agenda - far north queensland · 2015. 1. 8. · scott britton thanked everyone for the information...

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Far North Queensland Regional Organisation of Councils

AGENDA

ASSET MANAGEMENT GROUP MEETING No. 21

to be held

10.00am on Wednesday, 16 October 2013 at

Hoare Training Room, Level 3, Cairns Regional Council, Spence Street, Cairns

1. Opening Remarks and Welcome

2. Apologies

3. Minutes of Previous Meeting (17 July 2013)

4. Presentation – Brendan Macrae (QAO)

5. Business Arising from Previous Meeting

6. Local Government Financial Sustainability – Improving Financial Management and Sustainability Scheme (IFMSS) applications

7. Potential Regional Collaboration – Data Collection

8. IPWEA NAMS.PLUS2 Training: 29-31 October

9. Update from Councils

10. General Business

11. Next Meeting

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MINUTES

ASSET MANAGEMENT GROUP MEETING No. 20

held

Wednesday 17 July 2013 at 10am

via Teleconference: https://global.gotomeeting.com/join/820216749

Attendance:

Darlene Irvine FNQROC

Scott Britton FNQROC

Jason Hemingway (joined ½ way through meeting) Cassowary Coast Regional Council

Rob Edwards (joined ½ way through meeting) Cassowary Coast Regional Council

William Wong Cairns Regional Council

Steve Albrecht Cairns Regional Council

Helius Visser Cairns Regional Council

Michael Ringer Cairns Regional Council

Ed Kulpa Cairns Regional Council

Tony Lickiss Cook Shire Council

Martin Cookson Cook Shire Council

David Laakso Hinchinbrook Shire Council

Peter Martin Hinchinbrook Shire Council

Chris Shields Hinchinbrook Shire Council

Carol Trost (joined ½ way through meeting) Hinchinbrook Shire Council

Tony Hughes Tablelands Regional Council

Cassie Twine Tablelands Regional Council

John Breen Tablelands Regional Council

Apologies:

1. Opening Remarks and Welcome:

Scott Britton welcomed everyone to the meeting, which started shortly after 10am.

2. Apologies

As noted above.

Far North Queensland Regional Organisation of Councils

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3. Minutes of Previous Meeting (8 February 2013)

The Minutes of the previous meeting, No. 19, held on 8 February 2013 were confirmed as an accurate record of the meeting.

4. Business Arising from the Previous Meeting

4.1 Raise regional data collection of road assets with Regional Road Group.

Data collection for Road Assets has been included in the FNQRRG Technical Committee Capability Agreement and Action Plan for the 2013/2014 financial year.

4.2 Including Colin Gray on distribution list, take off Jenna Devietti, Lemaki Curulala and Andrea Jeynes. - COMPLETED

Tony Hughes raised the question of collecting Falling Weight Deflectometer data and using ARRBs

STEP Program as a result of the Presentation at the FNQRRG Technical Committee held on 8 July

2013.

Discussion noted that data collected on roads is now 3 years old and that data collection,

and potential subsidies should be explored in 2013/14.

Darlene Irvine advised that the Logan City Council was running a Roads Alliance funded

project with their RRG and Griffith University to calibrate pavement deterioration models

and that an invitation to present at a future RRG Technical Committee meeting would be

extended to Greg Kelly (Logan City Council).

Scott Britton advised that ARRB have suggested a pilot/trial approach to the use of STEP

as local calibration and other issues should be resolved prior to rolling out over the broader

road network.

This matter will be referred to the FNQ RRG Technical Committee for progression.

Action Required

Collection of Falling Weight Deflectometer Data and using ARRBs STEP program to

be raised with the FNQRRG Technical Committee (Scott Britton)

Extend invitation to Greg Kelly to present at a future RRG Technical Committee

Meeting (Scott Britton).

5. Local Government Financial Sustainability – Regional Round Table Forum, Townsville

Darlene Irvine gave an overview of the Regional Round Table Forum noting:

An agenda for the 2 day forum had yet to be distributed. Once this has been made

available it will be distributed to group members.

Handwritten comments (Minister Crisafulli) on the invite to Cr Shannon, noted that a range

of topics would be discussed including joint purchasing and deprecation.

A brief outlining the issues for discussion at the next FNQROC Board meeting to be held in

Cooktown on 12 August was being prepared and would be forwarded to finance officers

and Asset Management Coordinators for comment.

Included in the issues to be noted within the briefing note is the fact that Long-Term

Financial Plans (LTFPs) are currently driving renewal. The culture change required, thus

being the question regarding our funding gap, is the need for AMPs to drive the LTFP – the

impact upon depreciation in the P&L needs to be understood.

The work to understand our capacity to meet this funding gap is intended to be similar to

work undertaken by the Productivity Commission approximately 6 years ago.

As part of this discussion, Darlene Irvine noted updated Financial Sustainability Guidelines have

been released.

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Action Required

Darlene Irvine to forward copy of briefing note being prepared for Round Table

Forum (Darlene Irvine)

Darlene Irvine to forward copy of Agenda for Round Table Forum once available

(Darlene Irvine)

Darlene Irvine to forward copy of newly released guideline on council financial

sustainability (Darlene Irvine).

6. FNQROC Strategic Direction – Infrastructure Funding Gap – Update from Regional Infrastructure Project Coordinator

Scott Britton thanked everyone for the information provided and the time taken for discussions to

date. He further advised:

6.1 Discussions with each Council

Discussions with each council had revealed that each council is at different stages with

their AMPs, ranging from approved plans that are several years old through to some plans

that are incomplete drafts.

Many plans are currently in the process of being reviewed/updated/drafted.

Individual discussions will continue with each of the councils to understand individual issues

and receive most up to date AMPs as they become available.

Action Required

Councils to send copy of AMPs to Scott Britton whether reviewed/in update mode

/drafted (All Councils).

6.2 Training

In discussions with each of the councils, Scott Britton has raised the question regarding

capability and capacity. From this, it has become apparent that there is strong interest in

training from across the region.

IPWEA currently advertising NAMS.PLUS2 training in each capital city. The training is

typically delivered over 3 days, an initial day, with the second and third days happening

approximately 6 weeks later. The travel costs involved, on top of the course costs, can

make this training quite cost prohibitive.

As such, discussions have commenced with IPWEA with regards to holding a course in

Cairns. Discounted pricing can be offered if 20-25 participants can be confirmed. This

training will be identified in the Capability Agreement and Action Plan for the Regional Road

Group and an application for matching funding will be made to the Roads Alliance Board.

Darlene Irvine advised that discussions with IPWEA would continue with a view to holding

the course in October 2013.

Action Required

Scott Britton to continue discussions with IPWEA with regards to holding a course in

Cairns (Scott Britton).

All Councils to advise Scott Britton of estimated number of attendees for IPWEA

NAMS.PLUS2 course if held in Cairns (All Councils).

Application for matching funding for IPWEA NAMS.PLUS2 course to be made to

Roads Alliance Board (Scott Britton).

6.3 Plan of attack

Stage one of the FNQROC strategic direction for Asset Management is to develop an

understanding of our funding gap. A “helicopter’ view would be developed in the first 3

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instance, with improvement projects to come from this – thus improving the view and the

confidence in the information behind it.

Matrices will be developed from existing AMPs to draw out common issues that can be

used for discussion around improvement projects at the next meeting.

Discussions with finance officers regarding QTC financial models would also be undertaken

to feed in from a LTFP perspective as theory is for LTFP to match AMPs.

Action Required

Scott Britton to develop first cut ‘helicopter’ view from existing AMPs (Scott Britton)

Scott Britton to develop matrices from existing AMPs to draw out issues that can be

used as for discussion around improvement projects at the next meeting (Scott

Britton).

7. Update from Councils

7.1 Cook

Martin Cookson advised that AMPs currently be reviewed by external consultant – aiming

to cut them down to the bare minimum. Expected to received soon

Tony Lickiss advised that depreciation is 50%. NDRRA has created problem in that all

reseals completed using NDRRA will have life of 8-12 years. These assets will all need

funding within a relatively short timeframe in the future - will be a big problem.

Darlene Irvine advised that Barnaby Joyce presentation at the Strategic Network Alliance

Conference on Gold Coast acknowledged that R2R funding has not kept up in real terms.

7.2 Cairns

William Wong advised that Water and Waste AMPs were in process of being revised.

Ed Kupla advised that transport plans done, will go through progressive review. The rollout

of Civica Authority was continuing and expected to be complete in Oct 2014.

Haven’t as yet split plans for de-amalgamation.

7.3 Tablelands

John Breen advised currently splitting plans in readiness for de-amalgamation

A recent condition audit of Council buildings has resulted in 15yr works programs

Low confidence in Water and Waste plans at this point in time

Storm water plans were a bit light on at this point in time.

Need to discuss LTFPs with Finance – 10yr LTFP recently went to council.

7.4 Hinchinbrook

AMPs are approved but now 2yrs old

Need to link LTFPs to AMPs

Looking to participate in data collection through membership of NQ RRG. Townsville had

used IMG for condition data in the past.

ED Kupla advised that Cairns had used IMG to collect footpath data using quad bikes in the

past – good results however not video just images tied together – other minor software

issues but working with IMG to resolve

7.5 Cassowary Coast

Core Plan completed by Gary Everson who was no longer with Council.

Need to now break down to sub classes – fleet, buildings etc.

Tech One system went live in March

Currently have issues with capitalisation

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8. General Business

Jason Hemingway requested that Gary Everson and Kerry Osmond be removed from the distribution list with himself, Rob Edwards and Jaek Passier to be included.

Action Required

Include Jason Hemmingway, Rob Edwards and Jaek Passier on distribution list, take

off Gary Everson and Kerry Osmond (FNQROC).

9. Next Meeting

The next meeting will be held in Cairns on Wednesday 4 September 2013. The meeting closed at 11:05 am.

ACTION ITEMS

Action Responsible Person(s)

Collection of Falling Weight Deflectometer Data and using ARRBs STEP program to be raised with the FNQRRG Technical Committee.

Scott Britton

Extend invitation to Greg Kelly to present at a future RRG Technical Committee Meeting.

Scott Britton

Darlene Irvine to forward copy of briefing note being prepared for Round Table Forum

Darlene Irvine

Darlene Irvine to forward copy of Agenda for Round Table Forum once available.

Darlene Irvine

Darlene Irvine to forward copy of newly released guideline on council financial sustainability.

Darlene Irvine

Councils to send copy of AMPs to Scott Britton whether reviewed/in update mode /drafted.

All Councils

Scott Britton to continue discussions with IPWEA with regards to holding a course in Cairns

Scott Britton

All Councils to advise Scott Britton of estimated number of attendees for IPWEA NAMS.PLUS2 course if held in Cairns

All Councils

Application for matching funding for IPWEA NAMS.PLUS2 course to be made to Roads Alliance Board

Scott Britton

Scott Britton to develop first cut ‘helicopter’ view from existing AMPs Scott Britton

Scott Britton to develop matrices from existing AMPs to draw out issues that can be used as for discussion around improvement projects at the next meeting

Scott Britton

Include Jason Hemmingway, Rob Edwards and Jaek Passier on distribution list, take off Gary Everson and Kerry Osmond.

FNQROC

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Local Government Capacity Building Program Improving Financial Management and Sustainability Scheme 2013–14 Application form Applications close on 15 October 2013

6

Local government capacity building program— 2013–14

Improving financial management and accountability scheme 2

Applicant details

1. Name of local government/s

If this is a joint application on behalf of two or more councils, please name each council

Far North Queensland Regional Organisation of Councils (FNQROC) members:

Cairns Regional Council

Cassowary Coast Regional Council

Cook Shire Council

Croydon Shire Council

Hinchinbrook Shire Council

Tablelands Regional Council

Wujal Wujal Aboriginal Shire Council

Yarrabah Aboriginal Shire Council

After 1 January 2014, it is anticipated that both Douglas and Mareeba Shires will be involved in this project.

2. Principal contact person This person will be contacted about the application

Title: Ms Given name: Darlene

Position: Executive Officer, FNQROC Surname: Irvine

Phone: 4044 3038 Mobile: 0403 808 680

Email: [email protected]

3. Joint applications only—which local government will receive / administer the IFMSS grant, if approved


4. Project title Maximum 10 words

Asset Sustainability and Retention Framework Project

5. Project description—summarise how you will use the IFMSS funding, if approved. Maximum 100 words

The aim of this project is to develop a framework for assessing assets in terms of their sustainability within the community context. The framework would include a number of factors that together would lead to an assessment on the viability of the asset into the future. Based upon this assessment Council can go to the community with more confidence and explain that a particular asset or groups of assets are not sustainable and are in fact an ongoing liability to the community.

6. Which of the following best describes the objective of the proposed IFMSS project? ()

improve financial management

build financial sustainability

enhance operational efficiency

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7. Which of the following categories best describes the proposed IFMSS project? ()

technological innovation

resource sharing

regional collaboration

financial management

asset management and planning

operational efficiency

service delivery

revenue generation

other—describe in 10 words or less

8. Summarise how this project links to the financial management and sustainability strategies and plans of your council/s. Approximately 250 words

Councils traditionally are reluctant to plan for the decommissioning of assets. There are various reasons for this but these reasons result in an ongoing financial burden councils are liable for. FNQROC’s Regional Asset Management Strategy (RAMS) provides a strategic asset management framework which guides the planning, maintenance, and operation of infrastructure essential to deliver the vision of the Council’s and communities of the Far North Queensland region. The first objective of the strategy is to develop a long term approach to service planning and delivery at Council and regional levels. In supporting this objective, a key task is the need to improve asset decision support knowledge. Asset registers contain data providing the estimated replacement cost, estimated life of the asset, condition assessment and the annual depreciation charge for council’s assets. However, more information is needed if an informed decision is to be made regarding the replacement or possible decommissioning of assets. The challenge arising from this extends to the need to critically examine which assets should not be replaced. This information relates to usage, design and of particular importance the relevance or sense of ownership of the asset to the community. This project will deliver a framework that will assist in the decision making process at the individual council level. The framework would be applied on a consistent basis across the Far North Queensland region and through linking to RAMS support regional objectives including the adoption of a long term approach and the improvement of asset decision support knowledge.

9. Outline how this project will improve the financial management and/or financial sustainability of your council/s

The framework would be utilised by a local government in assessing particular assets or asset groupings. For example a local government may have a water main that has very few connections. There is a concern for the long term viability of the asset because of the high replacement cost, limited usage and low annual revenue. The asset would be assessed in terms of the framework and a ranking given possibly using the words - Sustainability Rating of - 3.

Whilst the assessment would be undertaken by the local government, the use of the framework would provide a greater degree of objectivity and credibility. Based upon the assessment the local government may have more confidence to decide not to renew that asset and discuss that decision with the community. The framework would provide the basis for the assessment and to a degree, the reasoning for Council's decision. Community consultation in these matters can become very emotional with the risk that decision-making may be more political rather than based upon a full assessment. It would be hoped that the development and use of this framework would enable the issue of financial sustainability to become a critical part of the community discussion and Council decision making process.

10. List and attach any evidence / supporting documentation (e.g. business case) for the project.

Supporting Document 1.

FNQROC Strategic Direction 2012 – 2017 http://www.fnqroc.qld.gov.au/images/stories/documents/fnqroc/FNQROC_Strategic_Directions.pdf 8

http://www.fnqroc.qld.gov.au/images/stories/documents/fnqroc/FNQROC_Strategic_Directions.pdf




FNQROC Regional Asset Management Strategy http://www.fnqroc.qld.gov.au/images/stories/documents/rams/Regional-Asset-Management-Strategy.pdf


Cassowary Coast Regional Council Project Proposal 2013 to FNQROC for consideration (refer attached)

11. Project evaluation—outline the key performance indicators and measures council/s will use to assess and report on the effectiveness of the completed project and its outcomes (positive and negative)

Adoption and consistent application of an asset sustainability and retention framework across the Far North Queensland region which member councils will utilise to rationalise assets.

Project Budget

Total project cost (GST Exc) A $159,573.08

Total funding sought (GST Exc) B $75,000.00

Project items

Add or delete rows as relevant

Funding sought

Own source contributions

Other contributions

Total item cost

Professional fees

Consultant $75,000.00 $ $ $75,000.00

Staffing costs

(NB wages/salaries/remuneration of existing council staff/executive officers are ineligible for IFMSS funding)

Project Steering Committee $ $50,032.48 $ $50,032.48

Individual Council participation and review $ $32,940.60 $ $32,940.60

Operational costs

Meeting expenses $ $1600.00 $ $1600.00 9

http://www.fnqroc.qld.gov.au/images/stories/documents/rams/Regional-Asset-Management-Strategy.pdf



TOTAL project funding contributions $75,000 $84,573.08 $ $159,573.08

Project timeframes

Proposed commencement date 1 December 2013

Proposed completion date 30 June 2014

Project deliverables and expenditure milestones

Project stage or major task


Start date

End date

Milestone Estimated expenditure

Develop and Endorse Terms of Reference (TOR)

Dec 2013

Dec 2013

TOR developed and endorsed

Approx. $30,000

Appoint Consultant Jan 2014

Jan 2014

Consultant appointed

Review Initial Draft May 2014

May 2014

First Draft reviewed Approx. $80,000

Review and Endorse final document Jun 2014

Jun 2014

Final document endorsed for use by councils

Approx. $50,000

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Certification

I certify that:

· I am authorised by the council/s to submit this application for funding

· I endorse this application for funding

· the details in this application are true and correct

· the council/s will deliver the project within the required timeframe

· the project will comply with all relevant Acts, Laws, Regulations, Queensland or Commonwealth policies and Industrial Agreements and Awards

· ongoing business operation, maintenance and management costs for the project will be met by the council/s

· the council/s consents to the release of information in this application (excluding personal details) for non-commercial public information purposes

· should this application be successful, the project will not commence until after funding has been approved and a funding agreement has been executed with the department.

To be certified by both the mayor and the chief executive officer (CEO) of the local government/s.

NB. In the case of a joint application the mayor and CEO of each participating council must certify the application (insert additional details as necessary.)


Mayor Given name Bob Surname Manning

Phone 4044 3083 Mobile 0418 773 044

Signature Date

CEO Given name Peter Surname Tabulo

Phone 4044 3017 Mobile 0409 596 244

Email [email protected]

Signature Date


Mayor Given name Bill Surname Shannon

Phone 4030 2203 Mobile 0400 228 848

Signature Date

CEO Given name Terry Surname Brennan

Phone 4030 2203 Mobile 0458 449 718


Signature Date 11



Cook Shire Council

Mayor Given name Peter Surname Scott

Phone 4082 0533 Mobile 0418 878 370

Signature Date

CEO Given name Steve Surname Wilton

Phone 4082 0524 Mobile 0428 695 955


Signature Date


Mayor Given name Trevor Surname Pickering

Phone 4748 7100 Mobile 0409 456 235

Signature Date

CEO Given name William Surname Kerwin

Phone 4748 100 Mobile 0428 456 185


Signature Date


Mayor Given name Rodger Surname Bow

Phone 4776 4600 Mobile

Signature Date

CEO Given name Leanne Surname Mash

Phone 4776 4602 Mobile 0417 647 883


Signature Date

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Mayor Given name Rosa Surname Lee Long

Phone 4043 4410 Mobile 0488 349 535

Signature Date

CEO Given name Ian Surname Church

Phone 4043 4900 Mobile 0439 031 838


Signature Date


Mayor Given name Clifford Surname Harrigan

Phone 4083 9100 Mobile 0408 309 100

Signature Date

CEO Given name Alan Surname Neilan

Phone 4083 9103 Mobile 0447 066 077


Signature Date


Mayor Given name Errol Surname Neal


Signature Date

CEO Given name Jeff Surname Jenkins

Phone 4056 9120 Mobile 0408 150 228


Signature Date

Scan signed page and email completed application form by 15 October 2013 to:

[email protected]

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mailto:[email protected]

Proposed Project under the Improving Financial Management and Sustainability

Scheme

Project name: Asset Sustainability and Retention Framework

Background

Cassowary Coast Regional Council has over $1 billion in non-current physical assets and the

recent Financial Plan prepared by Brett de Chastel clearly indicated that the high level of asset

ownership is a key risk factor in the ongoing sustainability of Council. The priority for expenditure

needs to be for the replacement of aging assets and not the construction of new assets. The

challenge also extends to the need to critically examine which assets should be replaced. Details

contained in the asset register provide the estimated replacement cost, estimated life of the asset,

condition assessment and the annual depreciation charge. However, more information is needed if

an informed decision is to be made regarding the replacement or possible decommissioning of

assets. This information relates to usage, design and of particular importance the relevance or

sense of ownership of the asset to the community.

Project Aim

The aim of this project is to develop a framework for assessing assets in terms of their

sustainability within the community context. The framework would include a number of factors that

together would lead to an assessment. Based upon this assessment Council can go to the

community ,where indicated, with more confidence and explain that a particular asset or groups of

assets are not sustainable and are in fact an ongoing liability to the community.

The type of factors included in the framework may include:

1. Financial data such as:

Replacement costs

Condition assessment

Estimated life

Annual depreciation costs

2. Community usage profile including:

Current and potential future use of the asset

Usage viewed via relevant benchmarking

3. Obsolescence rating which would include:

Design and efficiency considerations

Community demand and trends

4. Economic driver rating which would include:

The asset relevance to economic activity now and in the future

Opportunities for economic activity based upon the decommissioning of the asset

5. Environmental profile including:

Design factors

Consumption of resources

6. Community connection which may include:

The historical relevance of the asset within the community

Broad community view as opposed to sectional interests 14

Application and use of the Framework

The framework could be developed on a regional or state basis and utilised by a local government

in assessing particular assets or asset groupings. For example a local government may have a

water main that has very few connections. There is a concern for the long term viability of the asset

because of the high replacement cost, limited usage and low annual revenue. The asset would be

assessed in terms of the framework and a ranking given possibly using the words - Sustainability

Rating of - 5.

Whilst the assessment would be undertaken by the local government, the use of the framework

would provide a greater degree of objectivity and credibility. Based upon the assessment the local

government may have more confidence to decide not to renew that asset and discuss that decision

with the community. The framework would provide the basis for the assessment and to a degree,

the reasoning for Council's decision. Community consultation in these matters can become very

emotional with the risk that decision-making may be more political rather than based upon a full

assessment. It would be hoped that the development and use of this framework would enable the

issue of financial sustainability to become a critical part of the community discussion and Council

decision making process.

Potential uses for the framework

Example 1

The Cassowary Coast Regional Council does have extended water and sewerage networks which

need to be assessed as to their long-term viability. In one case there is 8 km reticulation line with

20 connections.

Example 2

The Cassowary Coast Regional Council also has a public wharf which it inherited from the State

Government many years ago. The condition of the wharf structure is such that it is now considered

dangerous. The decision to remove the public wharf has resulted in a petition to Council for

reinstatement. Originally, the wharf was constructed to service a fishing and trawling fleet. This

fishing industry is substantially reduced and the main reason for requesting the reconstruction of

the public wharf appears to be the historic community connection and also as a fishing platform.

It is anticipated that the development and application of a sustainability framework would be of

assistance to local government and their community in understanding the importance of

sustainability. At times it appears easier for local government to not make the hard decisions

regarding assets decommissioning. A framework can bring some objectivity and greater credibility

to the community discussion and the decision-making process.

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NAMS.PLUS & NAMS lite Asset Management AM Plan Information Needs

IPWEA ‐ 1 ‐ www.ipwea.org.au/namsplus

Information Needs for NAMS.PLUS & NAMS lite Asset

Management Plan Training

1. Background

IPWEA has revised the NAMS.PLUS training program from 2 + 2 days to a 1 + 2 days format

following experience gained from the successful ‘hands on’ approach taken with the Asset

Management for Small, Rural and Remote Communities (AM4SRRC) Practice Note training

program. The AM4SRRC 2 day training course has been renamed as NAMS lite and incorporated

within the 3 day NAMS.PLUS and NAMS lite training courses.

Day 1 of the NAMS.PLUS and NAMS lite training course covers the background and methodology

of NAMS.PLUS and NAMS lite and introduces the information needed to work through their data

on days 2 & 3 to develop a draft asset management plan within available information.

Days 2 & 3 of the NAMS.PLUS and NAMS lite training course are ‘hands on’. Attendees are invited

to bring a laptop computer1 to enter their data as exercises into the templates, load the data to

the NAMS.PLUS web site, review the graphs and reports generated using their data and complete

the AM Plan template as far as possible.

The following pages contain a listing of the basic information required for the training course to

prepare an asset management plan using NAMS.PLUS and NAMS lite. NAMS lite is based on the

Asset Management for Small, Rural or Remote Communities (AM4SRRC) Practice Note.

The objective of the NAMS.PLUS and NAMS lite 3 day training courses is to assist training course

attendees understand and complete a draft asset management plan to the limit of available

information at the training course.

Persons attending the NAMS.PLUS and NAMS lite training courses are required to:

1. Select an appropriate service or asset category (eg Transport Services, Parks & Recreation,

Buildings, Drainage, etc.) for the training exercises, and

2. Collect and prepare the data specified below following the Day 1 of the course in

preparation for the ‘hands‐on’ exercises on Days 2 and 3.

Your efforts in completing the information needs sheet will be rewarded in your greater

understanding of the AM Planning process with your data and a more complete draft Asset

Management Plan at the conclusion of the course.

1 Requires wireless enabled laptop with MS Word and Excel (min 2003 versions).

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2. Information Needs for Expenditure Template

The NAMS.PLUS & NAMS lite Expenditure template provides for 3 methods of developing capital

renewal and replacement expenditure projections for input into a long term financial plan. The

methods are:

1. Asset register,

2. External modelling systems (eg a pavement management systems),

3. Network renewals and defect repairs.

Attendees are encouraged to prepare two expenditure templates covering Method 1 and Method

3 and view data projections for each method. Information needs to achieve this objective is

shown below.

Asset growth details for the community served by the assets:

o Present and projected annual percentage increase in contributed/donated assets,

or

o Present and projected population and value of contributed/donated assets per

dwelling received free of cost from developers/subdividers,

Asset register of the assets included in the AM Plan in electronic form:

o Asset ID, sub‐category, acquisition/construction year, current replacement cost,

useful life and condition (if available),

Network renewals and defect repairs for the services/assets covered by the AM Plan:

o Average amount required for capital renewal budget per annum (eg roads reseals,

200 km, reseal life 10 years, $20,000 reseal cost/km = $400,000 per annum),

o Listing and program of projects to repair defects (eg replace Big River Bridge

$600,000 in 2016, etc.),

New and upgrade capital works program for the services/assets covered by the AM Plan:

o Listing and program of new capital projects (eg build new library $6,000,000 in

2014, etc.),

Asset values of the assets included in the AM Plan:

o Current replacement cost, depreciable amount, depreciated replacement cost

(written down value) and depreciation expense,

Current budget or long‐term financial plan (preferred) budget expenditure projections for

the services/assets covered by the AM Plan covering:

o Operations (if not available, may be included within maintenance budgets),

o Maintenance,

o Capital renewal/replacement,

o Capital upgrade and new assets,

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Asset disposals of the assets included in the AM Plan:

o Disposal costs and carrying value (written down value or depreciated replacement

cost) for any assets planned for disposal and or sale.

3. Information Needs for Infrastructure Risk Management Plan (IRMP)

The infrastructure risk management identifies any assets that have the potential to cause a loss of

or reduction in service or financial shock to the organisation. The course includes 3 exercises to:

identify the service or asset at risk,

analyse the current risk, and

develop a risk treatment plan.

Information required to complete the exercises includes:

Listing of the 5 major service or assets covered by the AM Plan that have a risk of the

service being lost or downgraded or failure of the asset will cost the organisation a large

amount of money. The service or assets may include a network (loss of service from

unsealed road network resheeting being insufficient to maintain all weather access) or an

individual asset (Small Creek timber bridge in very poor condition).

4. Information Needs for Asset Management Plan

Information for the AM Plan is not required for the training courses. The information is that

shown in yellow highlights in the AM Plan template included in the course Day 1 handouts.

This material may be collected and entered into the AM Plan template after the course.

5. Further Instructions

Further instructions on completing AM Plans are available in the NAMS.PLUS ebook guidelines and

Asset Management for Small, Rural or Remote Communities Practice Note for NAMS lite users.

V1.0 24 April 2012

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Local Government Capacity Building Program Improving Financial Management and Sustainability Scheme 2013–14 Application form Applications close on 15 October 2013

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Applicant details

1. Name of local government/s

If this is a joint application on behalf of two or more councils, please name each council

Far North Queensland Regional Organisation of Councils (FNQROC) members:



Cook Shire Council






After 1 January 2014, it is anticipated that both Douglas and Mareeba Shires will be involved in this project.

2. Principal contact person This person will be contacted about the application

Title: Ms Given name: Darlene

Position: Executive Officer, FNQROC Surname: Irvine

Phone: 4044 3038 Mobile: 0403 808 680

Email: [email protected]

3. Joint applications only—which local government will receive / administer the IFMSS grant, if approved


4. Project title Maximum 10 words

Rate Revenue Raising Capacity Assessment Project

5. Project description—summarise how you will use the IFMSS funding, if approved. Maximum 100 words

FNQROC’s Strategic Directions 2012-17 identifies the region’s Infrastructure Funding Gap as the highest priority project. In order to address the Infrastructure Funding Gap the following two key questions need to be answered:

a) What is our infrastructure funding renewal gap in the next five, 10 and 20 years? and b) What is Councils’ capacity to raise revenue to meet this infrastructure funding renewal gap?

The aim of this project is to commission an independent report to answer the question regarding Council’s capacity to raise rate revenue to meet this infrastructure funding renewal gap.

6. Which of the following best describes the objective of the proposed IFMSS project? ()

improve financial management

build financial sustainability

enhance operational efficiency

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7. Which of the following categories best describes the proposed IFMSS project? ()

technological innovation

resource sharing

regional collaboration

financial management

asset management and planning

operational efficiency

service delivery

revenue generation

other—describe in 10 words or less

8. Summarise how this project links to the financial management and sustainability strategies and plans of your council/s. Approximately 250 words

Current revenue levels and the high cost of providing services place significant pressure upon the renewal of existing assets. While a response to this would be to raise rates and charges, the capacity of the community to pay also needs to be considered. This challenge has been identified as the highest priority for the Far North Queensland region in the FNQROC’s Strategic Directions 2012-17. Through the Regional Asset Management Strategy (RAMS), FNQROC councils have adopted a strategic asset management framework which guides the planning, maintenance, and operation of infrastructure essential to deliver the vision of the Council’s and communities of the Far North Queensland region. The objectives of this strategy are to assist councils meet expectations in the delivery of community infrastructure. In supporting these objectives, a key task is the need to improve decision support knowledge. More information is needed if informed decisions are to be made regarding future rate increases and/or reduction in service levels. To aid this decision making process, the key question regarding Council’s capacity to raise revenue to meet the infrastructure funding renewal gap through higher rates and/or utilities charges needs to be critically examined. This project will deliver an independent report that will assist in the decision making process at the individual council level.

9. Outline how this project will improve the financial management and/or financial sustainability of your council/s

On an individual council basis, the report will provide an independent assessment on the community’s capacity to ‘pay for services’. This could be used to:

a) support future rate discussions/decisions

b) assess levels of service in line with community expectations / funding capacity

c) provide council’s with support tools to justify decisions (increases in charges / decrease in services) to the community

This will allow council’s to develop sustainable budgets and long-term financial plans that consider the revenue generation capacity versus service level expectations of the community. Based upon this independent assessment, councils can go to the community with more confidence and explain decisions.

10. List and attach any evidence / supporting documentation (e.g. business case) for the project.


FNQROC Strategic Directions http://www.fnqroc.qld.gov.au/images/stories/documents/fnqroc/FNQROC_Strategic_Directions.pdf


FNQROC Regional Asset Management Strategy http://www.fnqroc.qld.gov.au/images/stories/documents/rams/Regional-Asset-Management-Strategy.pdf 21

http://www.fnqroc.qld.gov.au/images/stories/documents/fnqroc/FNQROC_Strategic_Directions.pdf

http://www.fnqroc.qld.gov.au/images/stories/documents/rams/Regional-Asset-Management-Strategy.pdf



11. Project evaluation—outline the key performance indicators and measures council/s will use to assess and report on the effectiveness of the completed project and its outcomes (positive and negative)

Receipt of an independent report outlining council’s capacity to raise rates and/or utilities charges.

Consideration of report findings within council budget development processes.

Consultation with communities regarding budget/service level decisions made by council.

Project Budget

Total project cost (GST Exc) A $150,158.04

Total funding sought (GST Exc) B $100,000.00

Project items


Funding sought

Own source contributions

Other contributions

Total item cost

Professional fees

Consultant $100,000.00 $ $ $100,000.00

Staffing costs

(NB wages/salaries/remuneration of existing council staff/executive officers are ineligible for IFMSS funding)

Project Steering Committee $ $20,417.44 $ $20,417.44

Individual Council participation and review $ $28,540.60 $ $28,540.60

Operational costs

Meeting expenses $ $1,200.00 $ $1,200.00

TOTAL project funding contributions $100,000 $50,158.04 $ $150,158.04

Project timeframes

Proposed commencement date 1 December 2013

Proposed completion date 30 June 2014

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Project deliverables and expenditure milestones

Project stage or major task


Start date

End date

Milestone Estimated expenditure

Develop and Endorse Terms of Reference (TOR)

Dec 2013

Dec 2013

TOR developed and endorsed

Approx. $30,000

Appoint Consultant Jan 2014

Jan 2014

Consultant appointed

Review Initial Draft May 2014

May 2014

First Draft reviewed Approx. $75,000

Review final document Jun 2014

Jun 2014

Final document draft reviewed Approx. $45,000

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Certification

I certify that:

· I am authorised by the council/s to submit this application for funding

· I endorse this application for funding

· the details in this application are true and correct

· the council/s will deliver the project within the required timeframe

· the project will comply with all relevant Acts, Laws, Regulations, Queensland or Commonwealth policies and Industrial Agreements and Awards

· ongoing business operation, maintenance and management costs for the project will be met by the council/s

· the council/s consents to the release of information in this application (excluding personal details) for non-commercial public information purposes

· should this application be successful, the project will not commence until after funding has been approved and a funding agreement has been executed with the department.

To be certified by both the mayor and the chief executive officer (CEO) of the local government/s.

NB. In the case of a joint application the mayor and CEO of each participating council must certify the application (insert additional details as necessary.)


Mayor Given name Bob Surname Manning

Phone 4044 3083 Mobile 0418 773 044

Signature Date

CEO Given name Peter Surname Tabulo

Phone 4044 3017 Mobile 0409 596 244


Signature Date


Mayor Given name Bill Surname Shannon

Phone 4030 2203 Mobile 0400 228 848

Signature Date

CEO Given name Terry Surname Brennan

Phone 4030 2203 Mobile 0458 449 718


Signature Date 24



Cook Shire Council

Mayor Given name Peter Surname Scott

Phone 4082 0533 Mobile 0418 878 370

Signature Date

CEO Given name Steve Surname Wilton

Phone 4082 0524 Mobile 0428 695 955


Signature Date


Mayor Given name Trevor Surname Pickering

Phone 4748 7100 Mobile 0409 456 235

Signature Date

CEO Given name William Surname Kerwin

Phone 4748 100 Mobile 0428 456 185


Signature Date


Deputy Mayor

Given name Patrick Surname Lynch

Phone 4776 4600 Mobile 0427 737 675

Signature Date

CEO Given name Leanne Surname Mash

Phone 4776 4602 Mobile 0417 647 883


Signature Date

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Mayor Given name Rosa Surname Lee Long

Phone 4043 4410 Mobile 0488 349 535

Signature Date

CEO Given name Ian Surname Church

Phone 4043 4900 Mobile 0439 031 838


Signature Date


Mayor Given name Clifford Surname Harrigan


Signature Date

CEO Given name Alan Surname Neilan

Phone 4083 9103 Mobile 0447 066 077


Signature Date


Mayor Given name Errol Surname Neal


Signature Date

CEO Given name Jeff Surname Jenkins

Phone 4056 9120 Mobile 0408 150 228


Signature Date

Scan signed page and email completed application form by 15 October 2013 to:

[email protected]

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mailto:[email protected]

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