POLICY REGISTER Ref: POL 001
ASSET MANAGEMENT POLICY Infrastructure Assets POLICY REFERENCE NUMBER:
POL-001
Original publication date June 2009 Revision number
Issue Date
Approved at
Approval date
0
June 2009
E-Team
September 2011
1
September 2011
E-Team
November 2011
This document is to be reviewed bi-annually. Next review date: June 2013 RESPONSIBLE DIRECTOR
Director Infrastructure Services
PART 1: INTRODUCTION This Asset Management policy reflects Council’s Vision, Mission, and asset management objectives for infrastructure assets as encapsulated in the Wagga Wagga Community Strategic plan and also the Asset Services Review 2006. In early 2010 the community developed a vision for Wagga Wagga as part of the This Way Wagga Wagga - Vision 2030 project. A thriving, innovative, connected community On the Murrumbidgee Rich in opportunity, choice, learning and environment Where paths cross, where people meet
1.1 Legislation Local Government Act 1993. and the subsequent Regulations under the Act.
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1.2 Policy Objectives The objective of this policy is to define Councils management of infrastructure assets and to outline the delivery of infrastructure service that strives to meet community expectations of time, quality, and value for money. This Policy outlines the management of the assets listed in Appendix 1 of this policy. This Asset Management Policy and associated Asset Management Strategy will complement and build upon the Community’s Strategic Plan and with its continued implementation and more formalised approach to asset management, principles and methodology; Council will achieve significant benefits including: • Clear direction and “ownership” of asset management; • A guide to better and more informed decision-making by Council, staff and community; • Integration of resources and knowledge and ability to plan for the present and future generations • A framework to implement continuous improvement in asset management; • Meet community needs and expectations; • Manage Council’s risk; • Greater resource efficiency through the use of integrated systems; and • Compliance to State and Federal legislation
1.3 Definitions • • • • •
Infrastructure Assets – Include all Civil, Building, Recreational and Environmental Assets owned or managed by Council. Life Cycle Cost – The total cost of an asset throughout its life including planning, design, construction, acquisition, operation, maintenance, rehabilitation and disposal costs. Asset Register – A record of asset information considered worthy of separate identification including inventory, historical, financial, condition, construction, technical, and financial. Useful Life – The period over which a depreciable asset is expected to be used. Asset Management Plan – A plan developed for the management of an infrastructure asset or asset category that combines multi-disciplinary management techniques (including technical and financial) over the lifecycle of the asset. The Asset Management Plan establishes, for each Asset Category and sub category: • Levels of service – specifies the services and levels of service to be provided by council. • Future demand – how this will impact on future service delivery and how this is to be met.
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• • • • • •
•
Life cycle management – how Council will manage its existing and future assets to provide the required services Financial summary – what funds are required to provide the required services. Asset management practices Monitoring – how the plan will be monitored to ensure it is meeting Council’s objectives. Asset management improvement plan
Agreed Levels of Service – The performance, maintenance, and service standards for each asset class or category. Will be held in Asset Management Plans and will identify the applicable service levels required for each asset. These levels of service will dictate the necessary relationship between an asset’s performance and subsequent maintenance required to maintain that service level. Future Demand - rational basis for demand forecasting and selection of options for proposed new assets based on current asset data aligned with community growth and development.
1.4 Review procedures This policy is subject to review on a 24 month basis and is the responsibility of the Manager, Infrastructure Planning.
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PART 2: ASSET MANAGEMENT 2.1 Management Objectives
To achieve the objectives listed in this policy Council must increase its understanding of its owned asset base and the expectations of the community in relation to the maintenance of these assets. To achieve these objectives the following is necessary: 2.1.1 Understanding Customer Expectations
All Infrastructure Services will be regularly reviewed to ascertain community’s service standard expectations. Council must initiate Community Satisfaction Surveys and Best Value Reviews to measure service delivery performance. 2.1.2 Asset Management Reference Group A multi-disciplinary and cross-functional Asset Management Working Group will be established to assist with the strategic asset management planning. Staff responsibilities for Asset Management activities shall be included in the Asset Management Plans, and also reflected in individual position descriptions.
2.2 Asset Planning and Budgeting 2.2.1 Council will adopt life cycle cost analysis for the management of infrastructure assets. Each asset will be condition assessed and included in the asset management database. Projections of the life cycle of each asset will be extrapolated from data including current condition, intervention levels and forecast maintenance requirements. 2.2.2 Annual Capital Works Projects and Asset Preservation shall be subjected to technical and financial evaluation and prioritised using pre-determined criteria and the principles determined by the Asset Management Reference Group and endorsed by the Director Infrastructure Services. 2.2.3. Council will regularly review its asset stock and identify opportunities for asset rationalisation and condition improvement or asset replacement as required. 2.2.4. Wherever possible, predictive modelling will be used to develop and implement preventative maintenance programs to ensure that lowest net life cycle cost is achieved and asset service potential is optimised.
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2.3.
Asset Operations and Maintenance
2.3.1 Annual Maintenance Plans shall be developed using asset condition data and shall incorporate corresponding financial data supplied by Infrastructure Services. 2.3.2 All outsourced services shall be procured through a competitive process. 2.3.3 All services shall be regularly benchmarked to ensure Council is adopting best practice techniques. 2.4.
Risk Assessment and Management
2.4.1 Council will maintain a program of regular inspection of assets under its control to minimise Community’s risk. 2.4.2 Council will maintain a Quality and Occupational Health and Safety System for its employees and contractors working on Council assets. 2.4.3 Council will consider risk associated with each asset category in its Asset Management Plans 2.5.
Asset Accounting and Costing
2.5.1 Council will maintain detailed asset registers for those asset categories as listed in this policy. 2.5.2 Useful lives will be given to each of these assets with the written down value and depreciation value determined in accordance with the current applicable accounting regulations. 2.5.3 Depreciation will be calculated using a method that reflects the true consumption of the asset, or is an indication of the future cash flows necessary to sustain asset condition and maintain the required service level.
2.6.
Asset Management Plans
2.6.1 Council will develop Asset Management Plans for each asset category. 2.6.2 These Asset Management Plans will be subjected to continuous improvement.
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3. ASSET MANAGEMENT ROLES AND RESPONSIBILITIES To achieve the outcomes of this policy the following key roles and responsibilities are identified: 3.1. Council • To act as stewards for infrastructure assets. •
To set corporate Asset Management policy and vision with linkage to the Community Strategic Plan.
•
To ensure appropriate resources and funding for Asset Management activities are made available for Asset Management into the Infrastructure framework.
3.2. Executive Management Team • To continue to refine the "overarching" Asset Management Policy and the initial Asset Management Strategy with linkage to the Community Strategic Plan for consideration by Council. •
To recognise and embrace asset management as a corporate process
•
To foster and support the principles of Asset Management and the Infrastructure Planning Division.
•
To implement and continuously review the corporate Asset Management Policy and Strategy with agreed resources.
•
To ensure that timely, accurate and reliable information is presented to council for decision-making.
•
Support and attend as required, meetings of the Asset Management Reference Group
3.3 Asset Management Reference Group • Oversee the introduction and management of Asset Management into the Council corporate structure • Develop appropriate Policy and Strategy to support the Asset Management framework implementation • Make appropriate decisions on items such as suitability of software platforms, applicable asset categories and Asset Management Plan content etc. Asset Management Policy
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3.4 Infrastructure Planning Division of Council •
Chair the Asset Management Reference Group
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Draft an Asset Management Policy and procedures to implement policy.
•
Develop an implementation strategy for Infrastructure asset management and resource requirements utilising organisational mechanisms that reflect a corporate approach.
•
Introduce an Asset Management System for Council.
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Monitor the implementation of the Asset Management System.
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Maintain the Asset Management System.
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Provide linkage between the community, key stakeholders and the Councils asset managers on management of Council assets.
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Encourage continuous improvement, innovation and cost effective methods to improve Asset Management practices.
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Facilitate the development of Asset Management Plans and Capital Works Programs with a reporting mechanism to Council executive and Council elect.
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ASSET TYPE CLASSIFICATION SYSTEM
Asset Category
Asset Sub-Category 1
Buildings
Airport Buildings Animal Control Buildings Art & Performance Buildings Child Care Buildings Commercial Buildings Community Halls & Club Houses Health & Immunisation Buildings Landfill Buildings Libraries & Information Buildings Museums & Cultural Buildings Office & Depot Buildings Pavilions & Exhibition Buildings Public Amenities Buildings Residential Buildings Sports & Recreation Buildings Other Structures
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Infrastructure - Road and Bridge
Local Road Regional Road Urban Road Sealed Road Unsealed Road Access Roadways & Carparks Cycleways Concrete Road Bridges Timber Road Bridges Composite Road Bridges Road Culverts Kerb & Gutter Footpaths Pathways Cycleways Road Signage Guardrail Public Transport Shelters Public Transport Seating Bicycle Parking Facilities Roundabouts Medians Pedestrian Crossing
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Infrastructure - Salinity
Evaporation Ponds
Infrastructure - Stormwater
Covers, Inlets, Outlets and Junctions Flood Gates Flood Pumps Gross Pollutant Traps Inter Allotment Levee Banks Lined Open Drains Pipes and Culverts Sub-Soil Unlined Open Drains
Infrastructure - Sewerage
Access Chambers Gravity Mains (including jump ups) Pump Stations Pipes Rising Mains Wastewater Treatment Plants
Infrastructure - Airport
Aprons Flexible Pavements Rigid Pavements Run up bay Runway End Safety Areas Taxiways
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Infrastructure - Open Space
Athletics Track Baseball Diamond Boat Ramps Cemetery City Entry Signage Concrete Ponds & Waterfalls Cricket Nets Cricket Pitch Croquet Courts Cycle Tracks Drinking Fountains Fixed Bins Fountains Golf Course Indoor Courts Irrigation Mini Field Rugby Netball Court Open Space Signage Playgrounds Playing Fields Pumps Revetment Walls / Retaining Embankments
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Seating-Bench Seating-Grandstand Skate Park Hockey Fields Tables Tanks Tennis Court Infrastructure - Solid Waste
Cells Leachate Manholes/Pumpwells Leachate Sub-Soil Drains Monitoring Boreholes
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