Asset management strategy 2014 2023 adopted 27 6 2013

Moree Plains Shire Asset Management Strategy

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Adopted by Council 27 June 2013

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Table of Contents Introduction ____________________________________________________________ 4 Strategy Objectives _____________________________________________________ 5 Integrated Planning and Reporting Framework _______________________________ 5 Strategic Asset Management Planning ______________________________________ 7 Purpose of Asset Management________________________________________________________ 7 Policy ______________________________________________________________________________ 8 Asset Management Committee _______________________________________________________ 8

Asset Management System Capabilities ____________________________________ 9 Improvement Strategies _________________________________________________ 10 Assets Critical to Council’s Operations & Risk Management Strategies _________ 22 Critical Assets owned and managed by Council _______________________________________ 22 Critical Assets not owned or managed by Council but critical to our functions ____________ 30

Asset Management Plans________________________________________________ 31 Purpose ___________________________________________________________________________ 31 Asset Categories ___________________________________________________________________ 32 Asset Conditions ___________________________________________________________________ 32 Levels of Service ___________________________________________________________________ 32 Lifecycle Management ______________________________________________________________ 33

Future Direction _______________________________________________________ 34 Short Term Projects ________________________________________________________________ 34 Medium Term Projects _____________________________________________________________ 35 Long Term Projects_________________________________________________________________ 35 Assets Considered for Disposal ______________________________________________________ 35

Monitoring of Performance and Review of the Plan __________________________ 36 Appendix A ___________________________________________________________ 37 Asset Values ______________________________________________________________________ 37

Appendix B ___________________________________________________________ 38 Policy _____________________________________________________________________________ 38

Appendix C ___________________________________________________________ 43 Asset Management Maturity Index___________________________________________________ 43

References ___________________________________________________________ 46

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Introduction We are responsible for an extensive range of physical assets including buildings, parks and gardens, plant and equipment, pools, trees and roads which are located at various places across the Shire. As of the 30 June 2012, the ‘at fair value’ amount was almost $536 million for all of Council’s physical assets. Refer to Appendix A for further details.

The benefits of improving our asset management capabilities will result in better accountability, sustainability, risk management, service management and financial efficiency. We are faced with the ongoing dilemma of what resources and funds need to be provided to ensure these assets continue to provide the required services to its community in the most cost effective manner for the present and future generations. There are a number of factors that require us to critically assess the way in which it manages its physical assets. These include: o o o o

Limitations in Council’s ability to raise funds Increased pressure from the community for improved service delivery at less cost Legislation requiring the identification and depreciation of infrastructure The relationship to council’s integrated planning and reporting system

Central to this process are the forecasting of service delivery needs and the capacity of the organisation to meet them on a short, medium and long term basis. The key outcome is the provision of services responsive to the community’s needs within available resources.

This Asset Management Strategy provides the strategies required to improve our asset management capabilities by improving the practices associated with good asset management.

Asset Management requires an all of Council approach to its effective delivery.

The Asset Management Strategy fits within the goals and objectives of the Community Strategic Plan. Similarly, the Community Strategic Plan needs to respond to our asset management realities and responsibilities.

Road plant forms only one part of Council’s extensive asset management responsibilities

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Strategy Objectives The objectives of this strategy are to: 1. Provide an Asset Management Strategy that supports and links to the Community Strategic Plan and the Council’s Delivery and Operational Plan.

2. Identify assets that are critical to our operations and outline risk management strategies for these assets.

3. Provide specific strategies that will improve our asset management capability and projected resource requirements and timeframes required to achieve the improvements.

4. Ensure that asset management practices are applied consistently across the organisation and supported by senior management of Council enabling the more effective management of community assets now and into the future.

5. Meet the requirements of the Integrated Planning and Reporting Framework.

Integrated Framework

Planning

and

Reporting

In 2010, a new planning and reporting framework was introduced for NSW local governments to implement. The new reporting framework replaces the Management Plan and Social Plan with a Community Strategic Plan, Delivery Plan, Operational Plan and Resourcing Strategy which incorporates the Asset Management Strategy and Asset Management Plans. All aspects must be reported on annually.

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Legislative requirements for Asset Management Planning, as documented in the Planning a Sustainable Future, Planning and Reporting Guidelines for local government in NSW, are: 1. Council must account for and plan for all of the existing assets under its ownership, and any new asset solutions proposed in its Community Strategic Plan and Delivery Program.

2. Council must prepare an Asset Management Strategy and Asset Management Plan/s to support the Community Strategic Plan and Delivery Program.

3. The Asset Management Strategy and Plan/s must be for a minimum timeframe of 10 years.

4. The Asset Management Strategy must include a council endorsed Asset Management Policy.

5. The Asset Management Strategy must identify assets that are critical to the council’s operations and outline risk management strategies for these assets.

6. The Asset Management Strategy must include specific actions required to improve council’s asset management capability and projected resource requirements and timeframes.

7. The Asset Management Plan/s must encompass all the assets under a council’s control.

8. The Asset Management Plan/s must identify asset service standards.

9. The Asset Management Plan/s must contain long term projections of asset maintenance, rehabilitation and replacement costs.

10. Council must report on the condition of their assets in their annual financial statements in line with the Local Government Code of Accounting Practice and Financial Reporting.

This strategy addresses points two to six. Points seven to nine will be addressed by individual Asset Management Plans and point ten is included in the annual financial statements. Point one is addressed through the Asset Management Strategy as well as the individual Asset Management Plans. Both the Asset Management Strategy and the Asset Management Plans are directly linked to the Community Strategic Plan, the Delivery Plan and the Long Term Financial Plan.

Photo of the Moree Sewerage Treatment Plant taken during the February 2012 Floods

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Strategic Asset Management Planning Purpose of Asset Management The purpose of asset management is to meet a required level of service in the most cost effective manner, through the management of assets for present and future customers. It is a continuous process covering the full life of the asset. It is seen as a practical and financially responsible means of managing assets through the creation, acquisition, maintenance, operation, rehabilitation and disposal of assets to provide for the needs of the community.

To effectively manage our physical assets we must:  







 

Maintain data on assets by consolidating and maintaining up to date knowledge of our assets and their features within a comprehensive data base.

Understand the condition of individual assets by surveying the condition of assets in each category at specified regular intervals to suit effective planning timeframes for each asset category.

Assess their suitability for use by implementing processes to periodically assess and review the relevance of assets in terms of their current and continuing capacity to service the needs of our community.

Assess their risks, impacts and benefits by assessing and registering risks associated with assets and factor key risks into maintenance plans. Assess any environmental, social and financial impacts of the operation of assets.

Revise the composition of the asset portfolio by using all the knowledge gathered above and recommendations from other relevant plans to revise and confirm an optimum set of assets to be retained, disposed of and/or modified for use.

Develop annual maintenance plans based on condition survey results within the constraints of the Community Strategic Plan and the annual budget.

Plan for acquisition and allocation of resources by preparing financial and human resource plans to support the delivery of maintenance programs.

The strategic approach is to base decisions on relevant knowledge about assets in addition to more traditional accounting approaches. Establishment of this cycle of activities effectively changes our operational processes for asset management from an uncoordinated approach to a business excellence approach focussing on:    

Conducting condition assessments Integrating decisions with other plans and continually assessing the role of assets in achieving Council’s vision and priorities Performance measurement Continuous improvement

Bus shelters have been installed at various locations around Moree

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Policy This Asset Management Strategy is underpinned by Council’s Asset Management Policy which was endorsed by Council on 23rd January 2013 (Appendix B). This policy provides the broad framework necessary for ensuring that asset management is delivered in a structured and coordinated manner across the entire organisation.

Asset Management Policy

•Provides the framework for how we will implement asset management across the organisation. Current policy adopted

by Council 23 February 2013.

Asset Management Strategy

•This document provides the long term strategic approach to improving our asset management capabilities.

Asset Management Plan

•Individual plans documenting how assets will be managed throughout their full lifecycle.

Asset Management Committee We have established an Asset Management Steering Committee. The committee members provide the knowledge and skills as a collective group to deliver consistent and effective asset management practices across the organisation. They will also provide guidance and assistance on the development of the Asset Management Policy, Asset Management Strategy and the individual Asset Management Plans.

The committee meets approximately four times a year and the membership consists of representatives from across a wide range of Council departments and sections including:       

Engineering Water and Waste Risk Management Building management and maintenance Finance Information Technology.

Aquatic Facilities

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Asset Management System Capabilities We are actively working to improve our asset management capabilities. We have achieved rating of core or at least minimum rating for the majority of the essential elements required for a successful asset management system. We are aiming over the next five years to achieve intermediate level with the ultimate goal of achieving an advanced level in asset management within ten years. The current capabilities of the our Asset Management System has been assessed against the Asset Management Maturity Index as shown in Appendix C and a summary of that assessment is shown below.

Asset Management Maturity Index Rating Section Asset Management Policy Development Levels of Services and Performance Management

Minimum

Core

√

√

√

√

Demand Forecasting

√

Asset Register Data

√

Asset Condition

√

Risk Management

√

Decision Making

√

Operational Planning

√

Maintenance Planning

√

Capital Works Planning

√

Financial and Funding Strategies

√

Asset Management Teams

√

Intermediate

Advanced

√

Asset Management Plans Information Systems

√

Service Delivery Mechanisms

√

Quality Management

√

Improvement Planning

√

√

√ indicates that this element has been achieved.

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Improvement Strategies Section

Strategy

Resources/Responsibility

Timeframe

Asset Management Policy Development

The Asset Management Policy and Strategy is reviewed and adopted by the Council every four years to align with the NSW Local Government elections. This must be completed as part of the NSW Local Government Integrated Planning and Report Process to meet the requirements of the legislation.

General Manager‘s responsibility to implement the Integrated Planning and Reporting Process.

Complete every 4 years by: 

30 June 2013

Asset Manager’s responsibility to prepare, review, update and report on the Asset Management Policy & Strategy.



30 June 2017



30 June 2021



30 June 2025

140 staff hours every four years To fully integrate the Asset Management Policy and this strategy into the Council’s business process by: 



 

Identifying, defining and documenting the expectations of each function of Council through the development of a detailed Asset Management Strategy and Asset Management Plans which outline resources, responsibilities and timeframes.

Establishing an asset management section as part of the Engineering Department. This section is responsible for the development, implementation and coordination of our asset management system and associated functions.

Ensuring the Asset Management Policy and this strategy supports the Community Strategic Plan.

Auditing, reviewing and updating our procedures to ensure that they align to our Asset Management Policy and where necessary refers to the Policy.

General Manager Director Engineering Services Asset Manager x 1 fulltime GIS Officer x 1 fulltime Technical Officer (Assets) x 1 fulltime Asset Management Steering Committee Computers, office space and furniture, communication equipment etc. suitable for each staff member.

Vehicle for the section

Present to 30 June 2013 for Asset Management Strategy review and update then again every four years.

Present to 30 June 2014 for basic Asset Management Plans for each of the asset management categories and then on-going updating and improving.

Present to 30 June 2013 for the establishment of the 10 | P a g e

Section

Strategy

Resources/Responsibility

Timeframe asset management section.

Auditing, reviewing and updating Council procedures are an ongoing process.

Levels of Services and Performance Management

To define and analyse the needs of the different customer groups for all of the asset classes by:  





Ensuring that asset management is a key component of our yearly community consultation process.

Developing and implementing a consultation strategy to ensure the community is consulted on significant service levels and the options available.

If an alternate level of service is necessary then the cost to deliver this service level is also assessed to determine cost-benefits and if acceptable update relevant Asset Management Plans and other documents.

Determining what is a satisfactory standard.

Technical and customer levels of service are considered during all decision making and business planning by:   

General Manager Asset Manager Individual managers of assets 70 staff hours (asset team) for the yearly consultation 250 staff hours (Asset Manager) for the initial development, implementation and reporting of the service consultation strategy. Then 150 staff hours every 4 years to review and update.

All staff responsibility

Yearly consultation (approximately March/April)

1 July 2014 to 31 December 2015 – Initial development, implementation and reporting of strategy.

Than review and update every 4 years thereafter.

On-going

Ensuring relevant staff understand and adhere to the Asset Management Policy.

Referring to the Community Strategic Plan to confirm what the community requires and would like.

Ensuring that all major decisions are supported by a comprehensive business plan.

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Section

Strategy

Resources/Responsibility

Timeframe

Demanding Forecasting

To ensure that demand forecasts are based on:

All staff responsibility

On-going

Asset Manager

Present to 31 December 2014

   

Asset Register Data

Robust projection of a primary demand factor (eg: population growth) and extrapolation of historic trends.

Mathematical analysis of past trends and primary demand factors.

A range of demand scenarios (eg. high/medium/low).

Risk assessment of the different demand scenarios with mitigation actions identified.

Establish and implement an agreed asset hierarchy for all of our assets that allows for easy asset identification and cross referencing. The hierarchy must also be suitable for use in our Authority Asset Management Module.

Finance Asset Management Steering Committee Individual managers of assets

Gather, input and update asset data into our asset management system with the following information at the minimum:          

Unique asset number & asset register number Asset description Asset location description and GPS coordinates Year installed/purchased or constructed, asset age Purchase/installation cost and current replacement cost Expected asset life span Asset hierarchy Asset photos and drawings (if available) Identification if asset is critical or non-critical Date asset data updated into system

Asset Team Individual managers of assets

Present to 30 June 2015

Followed by yearly updating of Data collection – 1900 staff information hours Inputting & updating data – 500 staff hours

2013/2014  

2014/2015 

Data collection – 500 staff hours



Inputting & updating data – 200 staff hours 12 | P a g e

Section

Strategy

Resources/Responsibility

Timeframe

Asset Condition

Develop, implement and document a systematic asset condition collection process including:

Asset Team

Present to 31 December 2015

      



115 staff hours (asset team)

Training staff in the key elements Ensuring the data supports asset life assessments Prioritised based on the assets agreed risk Standards for data management documentation Allows for the data management processes to be fully integrated into business processes.

Condition data validation process in place.

Ensuring the quality and completeness of condition information supports risk management, lifecycle decision-making and financial/performance reporting.

Ensuring periodic reviews of the process are carried out and any improvements identified are implemented where practical.

Conduct asset condition inspections using a consistent and reliable method as outlined in the asset condition collection process.

Asset Team

On-going

Individual managers of assets 300 staff hours per year

Risk Management

Develop and implement a risk management plan for our physical assets that:     

Includes a risk register Identifies the critical assets Identifies the high risk assets Provides strategies and specific actions to mitigate the risks associated with the critical and high risk assets Aligns to Council’s Risk Management Policy

Client Services Manager Asset Manager

1 July 2014 to 30 June 2016

360 staff hours to prepare the plan

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Section

Strategy

Resources/Responsibility

Timeframe

Decision Making

Develop and implement a documented systematic process that can be used to assist in decision-making associated with existing and future assets. This process would support the use of formal decision making and prioritisation techniques such as:

General Manager

1 July 2016 to 30 June 2018

Operational Planning

Maintenance Planning



Risk-Based Decisions



Benefit-Cost Analysis (BCA)



Multi-Criteria Analysis (MCA)



Optimising Across Different Activities

Develop and implement Operation Plans for each asset category or service function that: 

Includes an Emergency Response Plan



Is based on demand management



Provides provision for collection of utilisation data



Have strategies to effectively evaluate the plan on regular bases.

Utilise the Authority’s Customer Request Management (CRM) system, the GIS, TRIM and any of our other existing systems to improve fault tracking of assets by computerising and automating the data collection and analyses processes and ensuring they are linked to each other.

Executive Projects Manager Asset Manager Asset Management Steering Committee 280 staff hours

Individual managers of assets 750 staff hours to develop the plans

1 July 2016 to 30 June 2018

100 staff hours per year to update the plans

Individual managers of assets

On-going

All staff responsibility

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Section

Capital Works Planning

Strategy

Resources/Responsibility

Timeframe

Develop and implement yearly Maintenance Plans as part of the Asset Management Plans for each asset category. The Maintenance Plan would consider:

Individual managers of assets

Annually



Assets critically considered in response process.



Strategy for prescriptive versus performance-based maintenance developed.



Contingency plans for all maintenance activities



Frequency of major preventative maintenance optimised using benefit-cost analysis.



All reactive and planned programmes are developed alongside the renewal planning process to ensure optimal lifecycle benefits.



The effects of procurement procedures on maintenance outputs.

Develop and implement a Capital Project Plan as part of the Long Term Financial Plan and Asset Management Plans for each asset category. 



 

Any of our projects within the next 4 years to be completed must been fully scoped and include an estimate of cost, labour, material and equipment. All projects must be included in the Council’s Delivery Program and Operational Plan.

Any of our major projects within the next 4 to 10 years must have a formal options analysis and business case developed as well as cost estimates and included in the Delivery Program.

Any major capital projects that we are considering for the next 10 to 20 years are conceptually identified and costs broadly estimated.

All of our projects must align to the Community Strategic Plan.

70 staff hours per plan per year

General Manager Operations Manager

Complete every 4 years by: 

30 June 2014

Individual managers of assets



30 June 2018

Asset Manager



30 June 2022

Finance Manager

280 staff hours every four year period

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Section

Strategy

Resources/Responsibility

Timeframe

Any of our long-term capital investment programmes must be developed using advanced decision techniques such as predictive renewal modelling.

General Manager

As required

Directors Economic Development Officer Other staff involved in long-term capital investment programmes.

Financial and Funding Strategies

Conduct annual asset revaluations as per the schedule provided by the Division of Local Government with the aim of us achieving an ‘A’ grade data confidence level.

Finance Team

Annually

Asset Team 70 staff hours per year

Develop and implement a Long Term Financial Plan for a 10 year period: 

Developed in conjunction with the Asset Management Plans developed by our staff



That provides details on significant assumptions



That we update annually and redo every four years as part of the Integrated Planning and Reporting Process.

Establish an advanced financial modelling system that will provide sensitivity analysis, demonstrable whole of life costing and cost analysis for our level of service options.

Finance Team Asset Manager 200 staff hours every four years

Finance Team

Complete every 4 years by: 

30 June 2013



30 June 2017



30 June 2021



30 June 2025

30 June 2023

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Section

Strategy

Resources/Responsibility

Timeframe

Asset Management Teams

Establish and coordinate our Asset Management Steering Committee.

Membership includes representatives from each of the different asset categories.

Asset Management Steering Committee representative from each department plus

Establish committee by 30 June 2012



Meetings to be held approximately four times per year.



Provide training to interested and required committee members about the fundamentals of asset management.

Engineering Support Officer for administration support to the committee.

Training budget required for 2016/2017 financial year

100 staff hours per year. $10,000 for asset management training plus 100 staff hours in organisation and attendance.

To ensure that all staff in the organisation understands their role in asset management by: 





Our Human Resource section updating position descriptions as they become vacant or a new position is created with a duty statement about asset management and how it relates to that position.

Ensuring that our staff receives appropriate asset management training and information aligned to their role as required. It should be included as an option on the yearly training menu.

Managers and works superintendents discussing asset management with their staff regularly at toolbox and team meetings.

Human Resource Manager Recruitment Officer to update the position descriptions as required.

Asset Manager to develop internal training session on asset management and deliver the training.

Managers & Works Superintendents 140 staff hours

On-going - Updating of position descriptions 2015/2016 Development and implementation of internal training sessions.

On-going – Asset management discussions at toolbox and team meetings

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Section

Asset Management Plans

Strategy

Resources/Responsibility

Timeframe

The Director Engineering Services has the responsibility of delivering the Asset Management Policy and Strategy by establishing an asset management section that is responsible for the development, implementation and coordination of our asset management system and associated functions.

Director Engineering Services

Present to 30 June 2013 for the establishment of asset management section.

Prepare Asset Management Plans for each of our asset categories which includes:

Directors

Present to 30 June 2014 for stage 1

Stage 1 

Individual managers of assets Basic information on assets, services levels, planned works and financial forecasts for at least 10 years and future improvements.

Stage 2 

Executive summary, description of services and key/critical assets, top-down condition and performance description of supporting Asset Management processes, ten year financial forecasts, four year Asset Management Improvement Plan.

Stage 3 

Analysis of asset conditions and performance trends (past/future), effective customer engagement in setting ‘Level of Service’, Optimised Decision Making (ODM) and risk techniques applied to major programmes.

Stage 4 

Asset Manager Finance Manager 1125 staff hours to initially develop Asset Management Plans for each asset category to stage 1.

1125 staff hours to upgrade Asset Management Plans for each asset category to stage 2.

1 July 2014 to 30 June 2017 for stage 2 1 July 2017 to 30 June 2020 for stage 3 Reviewing and updating every 4 years thereafter

550 staff hours to upgrade Asset Management Plans for each asset category to stage 3.

125 staff hours to upgrade Asset Management Plans for each asset category to stage 4.

Reviewing and updating of our asset management plans every four years or when there is a major change.

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Section

Strategy

Resources/Responsibility

Timeframe

Information Systems

Ensure that our financial, asset, customer service and information management systems are integrated by:

Asset Manager

Present to 30 June 2015

Service Delivery Mechanisms



Identifying and enabling all advanced asset management functions within the Council’s asset management and financial management computer system (Authority) as they become required.



Ensuring the Authority and GIS systems are integrated to reduce the need for duplicate datasets and other information.



Link the financial and asset management computerised data by a Workorder system within the Authority system.



Making the authority system and in particular the Asset Management module available to all staff that manage our assets.



Ensuring that all asset management information is correctly linked to Council’s record management system (TRIM).

Define the core service functions of our organisation and their relevant internal and external customers. Then establish and evaluate internal service level agreements with the internal service providers.

Communications Manager Finance Manager

Communication Manager Asset Manager

1 July 2015 to 30 June 2017

140 Communication Section staff hours plus 70 other staff hours

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Section

Quality Management

Strategy

Resources/Responsibility

Timeframe

Develop and implement a tendering and contract management process that is documented and agreed to across all our departments. This process would include:

Client Services Manager

1 July 2013 to 30 June 2015



Reviewing our existing tendering and contract management practices to identify the strengths and weaknesses



Ensuring that our procurement policy supports the tendering and contract management process



Developing a tendering and contract management policy



Ensuring that the process allows for competitive tendering practices



Identifying risk management issues and applying the necessary controls to reduce the level of risk.

Develop, implement and evaluate a Quality Management System that supports ISO9001 Certification. The system would include our Quality Management Policy and our Quality Management Plan.

Water & Waste Manager Asset Manager Finance Manager 140 staff hours to develop an updated tendering and contract management process

Asset Manager $50,000 to organise and fully implement the Quality Management System & ISO9001 Certification.

1 July 2018 to 30 June 2023

$5,000 per year to maintain certification.

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Section

Strategy

Resources/Responsibility

Timeframe

Improvement Planning

Annually asses our asset management system against the Asset Management Maturity Index or other suitable system.

Asset Manager

Annually

Formally report on Council’s asset management capabilities through Council’s normal reporting processes such as Annual Report.

General Manager

35 hours per year Annually

Directors Asset Manager Finance Manager Communications Manager

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Assets Critical to Council’s Operations & Risk Management Strategies Critical assets are assets that are essential to the functions of Council and can cause detrimental effects to our services if they were to fail. A critical asset is not necessary the most likely asset to fail but it is the asset that will have the biggest impact on Council and the community if it was to fail. It is therefore important that we apply a risk management approach to all critical assets.

Critical Assets owned and managed by Council Aerodromes Boomi Aerodrome Why is the asset critical? While Boomi aerodrome is unlicensed, unlit and infrequently used by agricultural aircraft its runways are critical during flooding events for access and for food and fodder drops.

How is the risk mitigated? Our staff organise for annual technical and safety inspections undertaken by third parties.

Moree Airport Why is the asset critical? Moree Airport is a licensed airport for use by regular passenger transport services to Sydney.

It is also frequently used by charter and agricultural aircraft. The airport is a security controlled airport classified as Category 6. All runways are critical for usage during flooding events for access and for food and fodder drops.

How is the risk mitigated? Staff organise annual technical and safety inspections undertaken by third parties. Daily inspections of the airport are undertaken by our Aerodrome Reporting Officer. Our staff have developed and implemented the Moree Aerodrome Manual and the Moree Airport Transport Security Plan.

Mungindi Aerodrome Why is the asset critical? Mungindi Aerodrome is unlicensed however is lit and regularly used by air ambulance aircraft for transportation of patients from Mungindi Hospital. It is also utilised by agricultural aircraft. All runways are critical for usage during flooding events for access and for food and fodder drops.

How is the risk mitigated? Our staff organise for annual technical and safety inspections undertaken by third parties.

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Bores Moree bores for town water supply Why is the asset critical? If a number of bores were to fail at once or in close proximity it would be critical particularly if they could not be repaired within a week or two depending on the season and climate conditions.

How is the risk mitigated? The reservoirs have over 24 hours of storage. If one or two bores out of the five critical bores (13, 10A, TB8, TB19 and 2) were to fail we will commence repairs immediately. If two or three critical bores were to fail then we will implement level three water restrictions during winter and level four water restrictions during summer. If more than two of the non-critical bores were also out of operation when multiple critical bores had failed then we will implement level five water restrictions.

Pallamallawa bore for town water supply Why is the asset critical? This bore supplies the water to the village and if it failed it would be critical particularly if they could not be repaired within a 24 hour timeframe.

How is the risk mitigated? The reservoirs have over 24 hours of storage. If a bore was to fail it would immediately initiate Level 5 water restrictions including door knock of all effected residents. Procedure will be developed to handle such emergencies, including preparing to truck water into the town.

Bridges Dr Hollingworth Bridge, Edward Street, Moree Why is the asset critical? The structure supports the water mains that supply the residents that are located south of the river. In addition, this bridge allows over-dimension vehicles to safely traffic through Moree from North to South and/or east to west. Until the southern section of the Newell Highway realignment project is completed there is no alternative route through Moree. This has a State impact more than a Council impact.

How is the risk mitigated? We conduct routine inspections of the bridge and any deficiencies are incorporated into our maintenance plans. We assess every application received to move over-dimensional loads through the Moree Plains Shire before issuing permits.

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Buildings Gwydir Day Care Why is the asset critical? This Centre provides affordable child care for working families and therefore provides a critical service to the community.

How is the risk mitigated? We conduct regular inspections of the building and any issues identified are prioritised and scheduled for repair.

Council Depot in Moree Why is the asset critical? The Emergency Management Centre is located at the Council’s Moree Depot, which is activated during natural disasters such as major flooding. It is our centre for maintenance operations for Moree and surrounding areas. It is also the location where our major plant and fuel is stored for Council operations.

How is the risk mitigated? We conduct regular inspections and any issues identified are prioritised and scheduled for repair.

Max Centre, Moree Why is the asset critical? This building is the main administration office for Council and includes the Council Chambers. The building also supports a number of retail businesses, which provides financial income to the Council.

How is the risk mitigated? Integrated fire alert system has been installed across the entire building. Regular inspections are conducted and any issues identified are prioritised and scheduled for repair.

The Max Centre houses the administration centre for the Council

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Drainage Calgorm Street Flood Gate Valve Why is the asset critical? The outlet is approximately two metres lower than all other drainage outlets – if the shut off valve was to fail in time of a flood event then flood waters from the Broadwater creek would enter the north side of Moree many hours before the expected peak.

How is the risk mitigated? We regularly inspect the valve and test it to ensure it is operating properly. We also implement a preventative maintenance schedule. If a failure was detected then sealing and sandbagging would resist the flow in the short term but as the value is underground a failure during a flood event especially if raining would be very difficult to identify.

Information Technology Computer System including the servers Why is the asset critical? If the system was to fail all the electronically stored information for Council could be lost. As Council is advancing towards a paperless office environment, the computer system critical.

How is the risk mitigated? Our Information Technology staff perform frequent backups of all files stored on the servers then the backups are stored securely off site. The system has a regular maintenance program.

Levee Banks Mungindi Levee Bank Why is the asset critical? Provides flood protection to the residents of Mungindi.

How is the risk mitigated? A risk management plan will be developed and implemented.

Pallamallawa Levee Bank Why is the asset critical? Provides flood protection to the residents of Pallamallawa.

How is the risk mitigated? A risk management plan will be developed and implemented.

Yarraman Levee Bank Why is the asset critical? Provides flood protection to the residents of Yarraman.

How is the risk mitigated? A risk management plan will be developed and implemented.

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Pools Moree Artesian Aquatic Centre (MAAC) Why is the asset critical? The MAAC provides residents and tourist with a first class aquatic facility and is a major part of a multimillion dollar Hot Artesian Pools Tourism Industry.

How is the risk mitigated? By Asset Management and Maintenance plans are being created for the Centre. Approved disposal of the waste water by evaporation is a part of ensuring this critical industry.

The newly upgraded Moree Artesian Aquatic Centre was officially opened in 2012

Pump Stations Sewer Pump Stations Why is the asset critical? The four main pump stations in Moree No. 2, No. 3 and 15 and No. 17, No. 1 in Boggabilla and Ashley and Mungindi are distributing all of the sewage from the other upstream pump stations to their respective sewerage treatment works.

They transport large volumes and their failure could cause sewage to quickly back up and discharge to environmentally sensitive areas. All of the other pumps stations are critical to the local catchment that they serve as their failure could result in low lying discharge to back yards, streets and some house connections.

How is the risk mitigated? Emergency procedures are enacted as soon as a failure occurs.

Most pump stations have two pumps, one duty and one standby. The failure of any single pump results in a reserve pump being installed while the main pump is repaired. For a complete failure, backup pumps can be installed for most of the less critical pump stations.

The smaller pump stations can be emptied by a truck capable of pumping the waste into a container for treatment (super sucker).

For the main pump stations their volume, in most cases, is too great for the emergency procedures to be enacted; therefore the best way to mitigate the risk is to ensure that both the duty and standby pump is serviced regularly and replaced before its identified maximum life expires.

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Roads Edward Street, Moree Why is the asset critical? This street allows over-dimension vehicles to safely traffic through Moree.

How is the risk mitigated? Limiting the number of streets in Moree that are accessible to restricted access vehicles to those that have a specific need such as an identified freight route. Regular inspections of the road and the water and sewerage mains located under or next to the road and identify issues are included in the maintenance program.

Gwydir Street, Moree between Balo Street & Coolibah Street Why is the asset critical? This street allows over-dimension vehicles to safely traffic through Moree. This street allows heavy vehicle of any type to travel west through Moree from the Newell Highway.

How is the risk mitigated? Limiting the number of streets in Moree that are accessible to restricted access vehicles to those that have a specific need such as an identified freight route. Regular inspections of the road and the water and sewerage mains located under or next to the road and identify issues are included in the maintenance program.

Jones Avenue, Moree between Edward Street and Frome Street (Newell Highway) Why is the asset critical? This street allows over-dimension vehicles to safely traffic through Moree.

How is the risk mitigated? Limiting the number of streets in Moree that are accessible to restricted access vehicles to those that have a specific need such as an identified freight route. Regular inspections of the road and the water and sewerage mains located under or next to the road and identify issues are included in the maintenance program.

Jones Avenue, Moree is a critical transport link for the Shire

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Sewerage Treatment Plants Moree Sewerage Treatment Works Why is the asset critical? The treatment works is necessary to treat raw sewerage so that it can be safely discharged to the river system without causing detrimental effects to the environment.

How is the risk mitigated? Regular inspections on the sewerage treatment works and any issues prioritised and included in the maintenance schedule. The sewerage treatment works has been designed to allow for a short period of time before release of raw sewerage into the river system.

Photo of the Moree Sewerage Treatment Plant taken during the February 2012 Floods

Waste Facilities Moree Waste Management Facility Why is the asset critical? Provides the facilities to dispose of and reprocess waste in a way that is sustainable for Moree Plains Shire residents and the environment.

How is the risk mitigated? Mitigated through the implementation and conforming to the Environmental Impact Statement, Landfill Environmental Management Plan, Pollution Incident Response Management Plan and Environment Protection Agency license, management practices, environmental monitoring, and a lined landfill.

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Water Supply Towers Moree Why is the asset critical? While an individual tower is not considered critical for Council’s water supply functions some support external telecommunications facilities including the SBS tower which provide a critical service to the community.

How is the risk mitigated? Regular inspections of the tower and any identified issues are included in the maintenance program.

Pallamallawa Why is the asset critical? This tower holds the town’s water supply and the communication equipment for telecommunications sector.

How is the risk mitigated? Regular inspections of the tower and any identified issues are included in the maintenance program. The clear water tank at the treatment plant will hold one day’s supply under emergency water restriction conditions; therefore a critical back up to the main reservoir.

Pallamallawa Water Tower

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Critical Assets not owned or managed by Council but critical to our functions It has been identified that there is a number of assets that we are not responsible for but if they were to fail they would have a detrimental impact on our services and the community. We will continue to work with the owners of the asset to ensure that they are managed in a way that provides the highest service level to our community.

Bridges Dr Geoffrey Hunter Bridge, Mehi River, Moree (State Highway) Why is the asset critical? This is the major bridge that links the north and south sides of Moree together. The majority of everyday services such as shopping centres are located on the north side of the river. During times of flood this bridge is the last to close and provides a vital link for emergency services. This asset is owned by the Roads and Maritime Services.

Mungindi Bridge (Carnarvon Highway) Why is the asset critical? This is the major bridge that links the east and west sides of Mungindi together and provides a critical link between New South Wales and Queensland.

Major services such as the hospital are located on the west side of the river.

Bridge over the Macintyre River near Boggabilla (Newell Highway) Why is the asset critical? This road forms part of the Newell Highway and provides a critical link between New South Wales and Queensland for the transport of goods to and from the markets and ports in Queensland. While there is another bridge nearby it does have a weight limit on it and therefore cannot be used by the heavy vehicle industry.

Roads Newell Highway Why is the asset critical? Provides the major transport link through Moree Plains Shire from North to South. This asset is owned by the Roads and Maritime Services.

Gwydir Highway Why is the asset critical? Provides the major transport link through Moree Plains Shire from East to West. This asset is owned by the Roads and Maritime Services.

Carnarvon Highway Why is the asset critical? Provides the major transport link through Moree Plains Shire from Moree to the North West. This asset is owned by the Roads and Maritime Services.

Other Electricity Supply Assets Why is the asset critical? Critical to many of our other critical assets especially water bores, pumps, sewerage pumps stations and treatment plants.

Unlicensed Levee Banks Why is the asset critical? The levee banks or berms at Weemelah and Boomi provide a moderate level of protection to these communities.

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Asset Management Plans An Asset Management Plan provides information about how Council plans to manage a specific asset over a ten year period. They are dynamic documents and are updated at least every four years or when there has been a major change, ensuring they are effective as a management tool and reference document.

Each plan reflects Council’s objectives and policies, customer expectations and improvements in asset management systems. Each plan supports the Asset Management Strategy and is linked to the Council’s Community Strategic Plan, the Delivery Program, the yearly Operational Plan and the Long Term Financial Plan.

Council has or is developing asset management plans for each class of asset it is responsible for.

The level of detail within each plan depends on the complexity and size of the asset portfolio under consideration. It is important that all Asset Management Plans match the complexity required and are practical, readily understood and useable documents.

Over the next ten years, as part of this Strategy, Asset Management Plans will be prepared and updated in a three stage process as follows: Stage 1  Basic information on assets, services levels, planned works and financial forecasts for at least 10 years and future improvements.

Stage 2  Executive summary, description of services and key/critical assets, top-down condition and performance description of supporting asset management processes, ten year financial forecasts, four year Asset Management Improvement Plan.

Stage 3  Analysis of asset conditions and performance trends (past/future), effective customer engagement in setting ‘Level of Service’, Optimised Decision Making (ODM) and risk techniques applied to major programmes.

Purpose The purpose of the Asset Management Plans is to:  Define the agreed services levels of the assets.  Document and analyse the condition of the assets.  Meet Council’s legislative requirements under the Integrated Planning and Reporting framework.  Support Council’s funding applications to the Federal and State Government.  Provide valuable long-term financial planning information to Council based on sound decision making and risk management practices.  Consider and document the lifecycle management of assets.  Document existing and future work practices and procedures that enhance the life of an asset.

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Asset Categories The Asset Management Plans will cover seventeen asset categories including: Category 1: Roads Category 2: Bridges Category 3: Footpaths Category 4: Kerbs & Gutters Category 5: Stormwater Category 6: Buildings, Land, Facilities and Other Structures Category 7: Aquatic Facilities Category 8: Parks Category 9: Cemeteries Category 10: Parking infrastructure Category 11: Sewer Infrastructure Category 12: Water Infrastructure Category 13: Waste Infrastructure Category 14: Plant & Equipment Category 15: Information Technology Category 16: Airports Category 17: Trees

Asset Conditions This Strategy establishes a five point condition rating system for assets that carries through to the Asset Management Plans. These ratings are: Condition 1 – Excellent Condition Condition 2 – Good Condition Condition 3 – Average Condition Condition 4 – Poor Condition Condition 5 – Very Poor Condition It recognises that there are, and will continue to be, differences as to the definition of ‘condition’. These differences, however, do not generally affect the assessment of the relative condition of assets within a category in a manner that would be significant enough to hamper effective planning. Very effective action plans can and have been developed to improve the condition of assets, notwithstanding differences about what constitutes “good” or “very poor” at this time.

Levels of Service Levels of service are a key driver when developing Asset Management Plans as they describe what output Council intends to deliver to the community and are generally based on quality, reliability, responsiveness, sustainability, timeliness, accessibility and cost. When determining the agreed level of service Council must consult with customers and review performance data on the asset.

To determine the level of service required by an asset or an asset category it is important to consult with the people using the service and the staff who manage it. Consultation provides the necessary information required to determine what is considered an acceptable service level. During this process it is important that all the information must be provided including the cost implications if the level of service was to change.

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Lifecycle Management All assets have a predefined lifecycle, from planning, creating, operating, maintaining and renewing or disposing. These lifecycle phases have a direct influence on one another. For example limiting maintenance on an asset can result in the asset requiring renewal or replacement earlier than expected. This may be suitable in the short term but will add significantly to the life-cycle cost of the asset.

Disposal

Acquisition

•The economic life of the asset has expired.

•The need for the asset has disappeared.

•Asset is purchased, constructed , leased or otherwise brought into service.

Renewal

Operation and Maintenance

•Requirements of an asset is identified & established having regard to service delivery considerations

•Asset is used for its intended purpose.

•Includes periodic maintenance, refurbishment or major repair.

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Future Direction Council’s assets are increasing in number and value due to a number of factors such as residential, industrial and commercial growth by private developers means that they often hand over assets to us once they have been constructed to Council’s satisfaction. We increase our expenditure in providing new assets to service new residential, commercial and industrial subdivisions. We also improve and upgrade existing assets to meet the needs of the community.

Short Term Projects Projects identified for completion within the next four years must been fully scoped and include an estimate of cost, labour, material and equipment. All projects must be included in the Council’s Delivery Program and Operational Plan and the Long Term Financial Plan.

                              

Affordable housing subdivision Anne Street storm water outfall (design) Boggabilla Raw Water Pump Project Boomi Cemetery upgrades CCTV and Lighting Project for Moree Continue upgrade of roads Continued development of sporting fields Converting village landfill sites to transfer stations Evergreen Project Expansion of Gwydir Daycare Floodplain management projects Gateway Project Gwydir Highway Relocation Project Moree Airport – security cameras & automatic gate upgrade Moree Bike Plan 2010-2020 Moree CBD carpark upgrades Moree Cemetery upgrades Moree Depot installation of machinery shed Moree STP, Inlet works, balance tank rehabilitation Mungindi Pool upgrades Mungindi Stop Value and water mains replacement Pallamallawa Cemetery upgrades Parks, gardens and open spaces upgrades Sewer mains relining Stage Two at the Moree Waste Management Facility – Extension of the cell Timber bridge asset management Town entrances improvements and signage Village Drainage Improvements Water Supply Reservoir Maintenance and painting Water and Waste Telemetry Communications Network Renewal Yarraman Landfill Rehabilitation

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Medium Term Projects Major projects scheduled for the next 4 to 10 years must have a formal options analysis and business case developed as well as cost estimates and included in the Delivery Program and the Long Term Financial Plan. Major projects scheduled are:            

Boomi Cemetery upgrades Cinema and Conferencing Facilities Continued development of sporting fields Continue upgrade of roads Flood mitigation works Moree Airport runway and lighting upgrade Moree Airport terminal improvements Moree Bike Plan 2010-2020 Moree War Memorial Hall painting Parks, gardens and open spaces upgrades Town entrances improvements and signage Water Supply Reservoir Maintenance and painting

Long Term Projects Major capital projects scheduled for the next 10 to 20 years are conceptually identified and costs broadly estimated. All projects align to the Community Strategic Plan.           

Airport Upgrade Project Central Business District Stage 3 Development Consolidation of sporting fields Continue upgrade of roads Continued development of sporting fields Crematorium Newell Highway – Links to Moree Bypass Parks, gardens and open spaces upgrades Private Hospital / Palliative Care Facility Projects related to Border Railway – Linking Moree Plains Shire to Melbourne and Gladstone Ports Village Flood Protection Works

Assets Considered for Disposal The assets considered for disposal are:  Small Parks  Vacant blocks  ‘Paper’ Roads  Unused buildings  Plant and equipment (replacement program)

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Monitoring of Performance and Review of the Plan Monitoring performance in achievement of the targets of this Strategy will be undertaken through Council’s usual process of translating key performance measures into the annually revised Operational Plan required under the Integrated Planning & Reporting framework.

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Appendix A Asset Values The total written down current value of Council’s assets as at 30 June 2012 is as shown in the Table 1 below.

Asset Plant & Equipment Office Equipment Office Equipment (WIP) Furniture & Fittings Furniture & Fittings (WIP) Land: - Operational Land - Operation Land (WIP) - Community Land - Community Land (WIP) Buildings – Non Specialised Buildings – Non Specialised (WIP) Buildings –Specialised Buildings –Specialised (WIP) Other Structures Other Structure (WIP) Infrastructure: - Roads, Bridges, Footpaths - Roads, Bridges, Footpaths (WIP) - Stormwater Drainage - Stormwater Drainage (WIP) - Water Supply Network - Water Supply Network (WIP) - Sewerage Network - Sewerage Network (WIP) Other Assets: - Other Reinstatement, Rehabilitation & Restoration Assets - Tip Asset - Quarry Asset TOTAL INFRASTRUCTURE, PROPERTY, PLANT & EQUIP

At Cost -

Value as at 30/6/2012 ($’000) At Fair Accumulated Depreciation Impairment Value 19,508 10,883 3,886 2,546 15 1,236 891 26 -

Carrying Value 8,625 1,340 15 345 26

-

10,857 3 6,005 234 24,430 51 25,291 10,527 23,368 2,507

9,891 15,695 9,710 -

-

10,857 3 6,005 234 14,539 51 9,596 10,527 13,658 2,507

-

262,467 1,847 20,486 684 69,603 853 50,158 341

78,487 7,129 26,610 24,275 -

-

183,980 1,847 13,357 684 42,993 853 25,883 341

-

365

1

-

364

-

722 43 535,513

89 15 186,222

-

633 28 349,291

Table 1: Asset Financial Data - Figures taken from Moree Plains Shire Council General Purpose Financial Statements for the year ended 30 June 2012.

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Appendix B Policy

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Appendix C Asset Management Maturity Index The current capabilities of the Council’s Asset Management System has been assessed against the Asset Management Maturity Index as shown below and the boxes coloured green show what Moree Plains Shire Council has achieved.

Asset Management Maturity Index from the International Infrastructure Manual – 2011 Section 2.1 AM Policy Development

Minimum Corporate expectations expresses informally and simply, eg; all departments must update AM Plans every three years.

Core Defined policy statements for all significant activities.

Clear linkage to corporate goals. Policy supported by high level action plans with defined responsibilities for delivery.

2.2 Levels of Services and Performance Management

Assets contribution to the organisation’s objectives and some basic levels of services have been defined.

2.3 Demand Forecasting

Demand forecasts based on experienced staff predictions, with consideration of known past demand trends and likely future growth patterns.

2.4 Asset Register Data

Basic physical information recorded in a spread sheet or similar (eg. Location, size, type) but may be based on broad assumptions or not complete.

Customer Groups defined and requirements informally understood. Levels of service and performance measures in place covering a range of service attributes. Annual report against performance targets.

Demand forecasts based on robust projection of a primary demand factor (eg: population growth) and extrapolation of historic trends. Risk associated with demand change broadly understood and documented Sufficient information to complete asset valuation – as for ‘minimum’ plus replacement cost and asset age/life. Asset hierarchy, asset identification and asset attribute systems documented.

2.5 Asset Condition

Condition assessment at asset group level (‘top down). Supports minimum requirements for managing critical assets and statutory requirements (eg. Safety).

Condition assessment programme in place for major asset types, prioritised based on asset risk. Data supports asset life assessment. Data management standards and processes documented.

Programme for data critical assets and high risks.

2.6 Risk Management

Critical assets understood by staff involved in maintenance/ renewal decisions.

Risk framework developed.

Critical assets and high risk identified. Documented risk management strategies for critical assets and high risks.

Intermediate AM Policy and Strategy reviewed and adopted by Executive Team each year.

Expectations of the each activity area defined with detailed action plans, resources, responsibilities and timeframes.

Customer Groups need to be analysed. Costs to deliver alternate keys levels of service are assessed.

Customers are consulted on significant service levels and options.

Advanced AM Policy and Strategy fully integrated into the organisations business process and subject to defined audit, review and updating procedures.

Demand forecasts based on mathematical analysis of past trends and primary demand factors.

A range of demand scenarios is developed (eg. high/medium/low).

As for ‘intermediate’, plus risk assessment of different demand scenarios with mitigation actions identified.

A reliable register of physical and financial attributes recorded in an information system with data analysis and reporting functionality. Systematic and documented data collection process in place.

High level of confidence in critical asset data.

Condition assessment programme derived from benefit-cost analysis of options. A good range of condition data for all asset types (may be sampling based). Data management processes fully integrated into business processes.

Data validation process in place.

Systematic risk analysis to assist key decision-making.

Risk register regularly monitored and reported.

Risk managed consistently across the organisation.

Information on work history type and cost, condition, performance, etc. recorded at asset component level.

Systematic and fully optimised date collection programme. Complete data-base for critical assets; minimum assumptions for non-critical assets.

The quality and completeness of condition information supports risk management, lifecycle decision-making and financial/performance reporting. Periodic reviews of programme suitability carried out.

Levels of service consultation strategy developed and implemented. Technical and customer levels of service are integral to decision making and business planning.

Formal risk management policy in place. Risk is quantified and risk mitigation options evaluate.

Risk is integrated into all aspects of decision making.

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Section 3.1 Decision Making

Minimum AM decisions based largely on staff judgement and agreed corporate priorities.

Core Formal decision making techniques (MCA/BCA) are applied to major projects and programmes.

3.2 Operational Planning

Operational responses are understood by key staff, but plans may not be welldocumented, mainly reactive in nature. Asset utilisation is measured for some key assets but is not routinely analysed.

Emergency response plan is developed. Demand management is considered in major asset planning.

Asset utilisation is measured for critical asset groups and is routinely analysed.

3.3 Maintenance Planning

Organisational objectives and how asset functions support these are understood. Compliant with legislation and regulations.

Maintenance records maintained.

3.4 Capital Works Planning

There is a schedule of proposed capital projects and associated costs, based on staff judgement of future requirements.

Asset critically considered in response process. Fault tracking and closure process. Strategy for prescriptive versus performance-based maintenance developed.

Key maintenance objectives established and measured.

Projects have been collated from a wide range of sources such as hydraulic models, operational staff and risk processes. Capital projects for the next three years are fully scoped and estimated.

3.5 Financial and Funding Strategies

Assets re-valued in compliance with financial reporting and accounting standards. 10 year financial forecasts are based on exploration of past trends and broad assumptions about the future, expenditure categories compliant with FRS

Asset revaluations have ‘C’ grade data confidence* 10+ financial forecasts bases on current AMP outputs.

Significant assumptions are specific and well reasoned.

Expenditure captured at a level useful for AM analysis.

4.1 AM Teams

AM allocated primarily to one or two people who have AM experience.

Cross-Council coordination occurs through a Steering Group or Committee. AM training occurs for primary staff. The executive team have considered options for Am functions and structures.

Intermediate Formal decision making and prioritisation techniques are applied to all operational and capital asset programmes within each main budget category.

Critical assumptions and estimates are tested for sensitivity to results.

Emergency response plans and business continuity planed are routinely developed and tested.

Demand management is a component of all operational decision making. Asset utilisation is measured and analysed for most asset groups.

Contingency plans for all maintenance activities.

Asset failure modes understood. Frequency of major preventative maintenance optimised using benefit-cost analysis.

Maintenance management software implemented.

As for ‘core’ plus formal options analysis and business case development has been completed for major projects in the 3-5 year period. Major capital projects for the next 10-20 are conceptually identified and broad cost estimates are available.

Asset revaluations have a ‘B’ grade data confidence* 10 year + financial forecasts based on current comprehensive AMP’s with detailed supporting assumptions/reliability factors. Asset Expenditure easily linked to finance databases.

All staff in the organisation understand their role in AM, it is defined in their job descriptions, and they receive supporting training aligned to that role. A person on the Executive Team has responsibility for delivering the AM Policy/Strategy.

Advanced As for ‘intermediate’, plus…

The framework enables projects to be optimised across all activity areas.

Formal risk-based sensitivity analysis is carried out.

Operational plans routinely analysed, tested and improved. Formal debriefs occur after incidents. Asset utilisation measured realtime and effectiveness analysed across all asset group. Operational programmes are optimised using benefit-cost and risk analysis.

Forensic root analysis for major faults. Optimism of all reactive and planned programmes alongside renewal planning.

Procurement models fully explored.

Long-term capital investment programmes are developed using advanced decision techniques such as predictive renewal modelling (refer Section 3.1)

Asset revaluations have an ‘A’ grade data confidence* 10 year+ financial forecasts based on comprehensive, advanced AM plans with detailed underlying assumptions and high confidence in accuracy.

Advanced financial modelling provides sensitivity analysis, demonstrable whole of life costing and cost analysis for level of service options.

A formal AM capability building programme is in one place and routinely monitored. The AM structure has been formally reviewed with consideration of the benefits and costs of options.

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Section 4.2 AM Plans

Minimum Plan contains basic information on assets, services levels, planned works and financial forecasts (5-10years) and future improvements

Core As for ‘Minimum’ plus executive summary, description of services and key/critical assets, top-down condition and performance description of supporting AM processes, 10 year financial forecasts, 3year AM improvement plan.

Intermediate As for ‘Core’ plus analysis of asset conditions and performance trends (past/future), effective customer engagement in setting LoS, ODM/risk techniques applied to major programmes.

4.3 Information Systems

Asset register can record core asset attributes – size, material etc. Asset information reports can be manually generated for AMP input.

More automated analysis reporting on a wider range of information. Key operations, unplanned maintenance and condition and performance information held.

4.4 Service Delivery Mechanisms

Service delivery roles clearly allocated (internal and external), generally following historic approaches.

Asset register enables hierarchical reporting (at component to facility level).

Customer request tracking and planned maintenance functionality enabled.

System enables manual reports to be generated for valuation, renewal forecasting.

Contract in place for external service provision.

Core functions defined

4.5 Quality Management

Simple process documentation in place for service-critical activities

Defined quality policy and basic Quality Management System. All critical activity processes documented.

4.6 Improvement Planning

Improvement actions identified and allocated to appropriate staff.

Current and future AM performance assessed and gaps used to drive the improvement actions.

Improvement plans identify objectives, timeframes, deliverables, resource requirements and responsibilities.

Internal service level agreements in place with internal service providers.

Contracting approaches reviewed to identify best delivery mechanism.

Tendering / contracting policy in place. Competitive tendering practices applied.

Process documentation implemented in accordance with the Quality Management System plan.

All processes documented to appropriate level of detail.

Formal monitoring and reporting on the improvement programme to Executive Team. Project briefs developed by all key improvement actions.

Advanced As for ‘Intermediate’ plus evidence of programmes driven by comprehensive ODM techniques, risk management programmes and level of service/cost trade-off analysis.

Improvement programmes largely complete with focus on ongoing maintenance of current practice.

Financial, asset and customer service systems are integrated and all advanced AM functions are enabled.

All potential service delivery mechanisms reviewed and formal analysis carried out.

Risks, benefits and costs of various outsourcing options are considered.

ISO 9001 Certification achieved and surveillance audits demonstrate the satisfactory operation of the Quality Management System.

Improvement plans specify key performance indicators (KPI’s) for monitoring AM improvement and these are routinely reported.

* For asset attributes, unit replacement rates, asset lives

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References Australian Infrastructure Financial Management Guidelines, Edition 1.0 – 2009 Developing Strategic Asset Management Plans, Tasmania Department of Treasury and Finance, May 2004 Draft NSW Water and Sewerage Asset Management Guidelines, NSW Office of Water, April 2011 IIMM International Infrastructure Management Manual, National Asset Management Support Group, 2011 Integrated Planning and Reporting Guidelines for local government in NSW Moree Plains 2035 Community Strategic Plan Moree Plains Delivery Program and Operational Plan 2014-2017 Moree Plains Shire Council Community Strategic Plan Community Research, March 2013 Moree Plains Shire Council Community Strategic Plan Review NSW Water and Sewerage Strategic Business Planning Guidelines, NSW Office of Water, July 2011 Strategic Asset Management Plan 2010 to 2020, Moree Plains Shire Council, 2010 Strategic Asset Management Plan, City of Canterbury, May 2011 Strategic Asset Management Plan, Parramatta City Council, May 2012

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Moree Plains Shire Council Level 2 Max Centre Arcade 30 Heber Street Moree NSW 2400 Postal Address: PO Box 420 Moree NSW 2400

Telephone: (02) 6757 3222 Fax: (02) 6752 3934 Email: council@mpsc.nsw.gov.au Web: www.mpsc.nsw.gov.au Facebook: www.facebook.com/MoreePlainsShireCouncil Twitter: https://twitter.com/moreeshire