buildings & other structures asset management … · asset management plan version 1.01, ......

TENTERFIELD SHIRE COUNCIL

BUILDINGS & OTHER STRUCTURES

ASSET MANAGEMENT PLAN

Version 1.01, June 2012

TENTERFIELD SHIRE COUNCIL – BUILDINGS AND OTHER STRUCTURES ASSET MANAGEMENT PLAN

Document Control

Document ID: 59_07_101209 nams plus_amp template v11 1

Rev No Date Revision Details Author Reviewer Approver 1.01 June 2012 Initial Draft Calvin

Grogan Jamie Murphy John Hrobelko

© Copyright 2007 – All rights reserved.

The Institute of Public Works Engineering Australia.


TABLE OF CONTENTS

ABBREVIATIONS ................................................................................................................................................................................... i GLOSSARY ............................................................................................................................................................................................. i 1. EXECUTIVE SUMMARY ........................................................................................................................................................... 1

What does it Cost? ..................................................................................................................................................................... 1 Plans for the Future ................................................................................................................................................................... 1 Performance Measures .............................................................................................................................................................. 1

2. INTRODUCTION ....................................................................................................................................................................... 2 2.1 Background ...................................................................................................................................................................... 2 2.2 Goals and Objectives of Asset Management .................................................................................................................. 6 2.3 Plan Framework ............................................................................................................................................................... 6 2.4 Core and Advanced Asset Management ......................................................................................................................... 6

3. LEVELS OF SERVICE .............................................................................................................................................................. 7 3.1 Customer Research and Expectations ............................................................................................................................ 7 3.2 Legislative Requirements ................................................................................................................................................ 7 3.3 Current Levels of Service ................................................................................................................................................ 7 3.3.1 Community Levels of Service ............................................................................................................................... 7 3.3.2 Technical Levels of Service .................................................................................................................................. 8 3.4 Desired Levels of Service ................................................................................................................................................ 8

4. FUTURE DEMAND .................................................................................................................................................................... 9 4.1 Demand Forecast ............................................................................................................................................................ 9 4.2 Changes in Technology ................................................................................................................................................. 10 4.3 Demand Management Plan ........................................................................................................................................... 10 4.4 New Assets from Growth ............................................................................................................................................... 10

4.5 Future Projects ............................................................................................................................................................... 10 5. LIFECYCLE MANAGEMENT PLAN ....................................................................................................................................... 11

5.1 Background Data ........................................................................................................................................................... 11 5.1.1 Physical parameters .......................................................................................................................................... 11 5.1.2 Asset capacity and performance ....................................................................................................................... 12 5.1.3 Asset condition ................................................................................................................................................... 13 5.1.4 Asset valuations ................................................................................................................................................. 14 5.2 Risk Management Plan ................................................................................................................................................. 15 5.3 Routine Maintenance Plan ............................................................................................................................................ 16 5.3.1 Maintenance plan ............................................................................................................................................... 16 5.3.2 Standards and specifications ............................................................................................................................. 17 5.3.3 Summary of future maintenance expenditures .................................................................................................. 17 5.4 Renewal/Replacement Plan .......................................................................................................................................... 17 5.4.1 Renewal plan ..................................................................................................................................................... 17 5.4.2 Renewal standards ............................................................................................................................................ 18 5.4.3 Summary of future renewal expenditure ............................................................................................................ 19 5.5 Creation/Acquisition/Upgrade Plan ................................................................................................................................ 19 5.5.1 Selection criteria ................................................................................................................................................ 19 5.5.2 Standards and specifications ............................................................................................................................. 19 5.5.3 Summary of future upgrade/new assets expenditure ........................................................................................ 20 5.6 Disposal Plan ................................................................................................................................................................. 20

6. FINANCIAL SUMMARY .......................................................................................................................................................... 21 6.1 Financial Statements and Projections ........................................................................................................................... 21 6.1.1 Sustainability of service delivery ........................................................................................................................ 21 6.2 Funding Strategy ........................................................................................................................................................... 22 6.3 Valuation Forecasts ....................................................................................................................................................... 22 6.4 Key Assumptions made in Financial Forecasts ............................................................................................................. 23

7. ASSET MANAGEMENT PRACTICES .................................................................................................................................... 24 8. PLAN IMPROVEMENT AND MONITORING .......................................................................................................................... 24

8.1 Performance Measures ................................................................................................................................................. 24 8.2 Improvement Plan.......................................................................................................................................................... 24 8.3 Monitoring and Review Procedures ............................................................................................................................... 24

REFERENCES ...................................................................................................................................................................................... 25 APPENDICES ....................................................................................................................................................................................... 26

Appendix A ............................................................................................................................................................................... 26

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ABBREVIATIONS See General Asset Management Plan for Details

GLOSSARY See General Asset Management Plan for Details

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1. EXECUTIVE SUMMARY The council owned Buildings and Structures which exist within the shire are aimed to facilitate and meet the requirements of the community as it is council’s key objective to deliver these facilities to the community so that they are constantly well maintained and are in best possible condition to accommodate for their needs, and remain at a safe and functional standard. The purpose of Tenterfield Shire Councils Asset Management Plan (AMP) is to ensure that there is planned funding put into place, which can then allocated to the building infrastructure, when maintenance or other work is required for them, to ensure the infrastructure will meet compliance in regards to specifications, legislations and standards relevant to the specific infrastructure.

1.1 - What does it cost?

The projected costs to provide and maintain the infrastructure covered in this Asset Management Plan, Which includes the costs to cover the operations, maintenance and renewal or upgrading of the existing buildings as well as the costs of potential future assets over the duration of this plan (which is a period of 10 years) an estimated value is yet to be obtained.

1 .2 - Plans for the future

Council’s plan’s for the future include providing the required maintenance to all its infrastructure assets for the long term period of time, these plans also include the possible renewal or upgrading of some of the current assets. This is to be done to ensure that all buildings are maintained to a standard which is functional to the people who utilise these facilities and that they are maintained to a safe standard. The AMP is put into place to enhance the management and operations of the public facilities to enable these facilities to be able to cater for demand in which they face. The future plans are aiming to ensure that the community expectations are met to the best possible standard within the allocated funding.

1.3 - Performance measures

Refer to section 3 table 3.3

The next steps

The future steps of the current AMP include the following:

• Ongoing improvement of the services and process in relation to the AMP

• Future revisions of the current plan to ensure that the plan remains current and to an improving level of detail.

• Ongoing inspection and assessment of the function and condition of the building infrastructure

• Greater review and feedback obtained from those who use the building infrastructure

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2. INTRODUCTION

2.1 Background

This asset management plan is relevant to infrastructure assets which are categorised under ‘Buildings and Other Structures’, that exist in and are the property of Tenterfield Shire Council. Tenterfield Shire Council is directly responsible for the maintenance, operations, management and any action regarding this infrastructure. The core purpose of the Asset Management Plan (AMP) is to ensure that council is effectively able to provide management and maintenance of the building infrastructure outlined in this document. This is to be carried out through the provision of funding so that the level of service of the building infrastructure is maintained at a desired level to the community. (As this is the first issue of the Asset Management Plan some of the information relating to this plan has not yet been obtained and is intended to be included in future revisions of this plan).

This asset management plan is to outline the following Building Infrastructure assets which are arranged into the following sub-categories:

• AERODROMES

• ANIMAL CONTROL

• OTHER COMMUNITY AMENITIES

• PUBLIC CONVENIENCES

• PUBLIC HALLS

• WASTE MANAGEMENT

• SPORTING GROUNDS

• SWIMMING POOLS

• COMMUNITY CENTRE

• COUNCIL BUILDINGS MAINTENANCE & OPERATIONS

• EMERGENCY SERVICES

• FIRE PROTECTION

• HOUSING

• MEDICAL CENTRES

• SALEYARDS & MARKETS

• ENGINEERING SUPERVISION

• TOURISM & AREA PROMOTION

• COMMERCIAL PREMESIS

See General Asset Management Plan for Details

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The key stakeholders in relation to the Building and Other Structures AMP are:

• Governments (at all three levels) – Funding, management and maintenance of all building infrastructure.

• Community and Visitors – involvement through utilising these facilities.

• Elected Members – Though community representation and administration.

• Utilities and Developers – Providers of services and infrastructure facilities.

• Employees and Volunteers – Operational and administration providers.

• Contractors and Suppliers – Supply of goods and services.

• Insurers – Remedy providers.

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Assets covered under Buildings & Other Structures Category

All buildings and structures have been categorised into the following ‘Sub-Categories’, The table below outlines the various sub categories, the quantity in each category and the replacement value for each category, as well as the total quantity and replacement value for all buildings and structures.

Note: “Note that many buildings are subject to lease arrangements with varying levels of commitment to maintenance. They are included as ‘Council-owned’ to enable a contingent liability to be allocated in projected costs for Council to resume full control of the asset, should the organization cease to exist.”

Asset category Quantity Replacement Value ($)

AERODROMES 1 $17 000.00

ANIMAL CONTROL 1 $17 000.00

OTHER COMMUNITY AMENITIES 3 $223,000.00

PUBLIC CONVENIENCES 9 $691 100.00

PUBLIC HALLS 19 $10 838 000.00

WASTE MANAGEMENT 5 $313 000.00

SPORTING GROUND 7 $1 695 000.00

COMMUNITY CENTRE 4 $1,281,000.00

COUNCIL BUILDINGS MAINTENANCE & OPERATIONS 4 $2 157 000.00

EMERGENCY SERVICES 2 $278 000.00

FIRE PROTECTION 17 $1 106 250.84

HOUSING 11 $1 958 000.00

MEDICAL CENTRES 1 $480,000.00

SALEYARDS & MARKETS 6 $283 000.00

ENGINEERING SUPERVISION 13 $2 066 600.00

TOURISM & AREA PROMOTION 7 $1 144 000.00

COMMERCIAL PREMESIS 1 $367 000.00

TOTAL 111 $24,914,950.84

Refer to Appendix A for a greater detailed breakdown of each asset category

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Breakdown of Building Infrastructure Assets

Commercial Premesis

1%

Community Centre4%

Council Buildings Maintenance and

Operations4%

Sporting Grounds6%

Waste Management5%

Public Halls17%

Emergency Services2%

Aerodromes1%

Animal Control1%

Fire Protection15%

Housing10%

Medical Centres1%

Saleyards & Markets5%

Public Conveniences8%

Other Community Ammenities

3%Tourism & Area Promotion

6%

Engineering Supervision

12%

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2.2 Goals and Objectives of Asset Management

See General Asset Management Plan for Details 2.3 Plan Framework


2.4 Core and Advanced Asset Management


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3. LEVELS OF SERVICE

3.1 Customer Research and Expectations

See General Asset Management Plan for Details 3.2 Legislative Requirements


3.3 Current Levels of Service

Council has defined service levels in two terms.

3.3.1 Community Levels of Service

See General Asset Management Plan for Details Service Criteria Technical measures may relate to

Quality Condition of buildings Quantity Number of council owned buildings Availability Buildings to accommodate requirements Safety Compliance with safety standards

Council’s current service levels for each Asset Category are detailed in Table 3.3 of each Asset Category Appendix.

Table 3.3. Current Service Levels

Key Performance Measure

Level of Service Performance Measure Process

Performance Target Current Performance

COMMUNITY LEVELS OF SERVICE Quality The facilities are to be

easily accessible for the designed purpose and kept well maintained.

Customer service/ user

feedback, Complaints

Less than ten complaints per year relating to council

building infrastructure.

No current measures other than user

complaints.

Function The facilities are fit for designed purpose, and

meet the required legislations


feedback, Complaints

Less than ten complaints per year relating to council

building infrastructure.


complaints.

Safety Ensure facilities meet safety requirements and do not pose as a potential danger or

health risk


feedback, Complaints,

reported incidents

No reported incidents, Less than ten complaints

per year relating to council building infrastructure.


complaints.

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3.3.2 Technical Levels of Service

TECHNICAL LEVELS OF SERVICE

Condition The condition of the infrastructure is to be maintained to a high

level

Routine inspections of

building condition

Increase of the level of maintenance currently

carried out on the buildings.

Not currently Measured

Function/

Accessibility

The buildings will meet compliance of the

relevant legislations.

The buildings are accessible & Functional for all

users of the facility

All buildings to have reached compliance within the duration of this AMP

(10 years)

Not currently Measured

Cost effectiveness

Provide the services required in a cost

effective manner, within the allocated funding outlined by the AMP

Compliance with the Budget and

AMP

To maintain costs within the Budget and AMP

Satisfactory

Safety Ensure the facilities are of a safe standard.

Safety audits of the facilities.

Routine maintenance

Safety inspections including testing and tagging of electrical

appliances, Inspections of fire extinguishers, routine inspections to determine

any defects.

Satisfactory

3.1.4 Sustainable Level of Service


3.4 Desired Levels of Service


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4. FUTURE DEMAND

4.1 Demand Forecast

Factors affecting demand include population change, changes in demographics, seasonal factors, vehicle ownership, consumer preferences and expectations, economic factors, agricultural practises, environmental awareness, etc.

Table 4.1. Demand Factors, Projections and Impact on Services

Tenterfield Shires population is 7,024. Since 2005 this is an increase of 298 persons or 4.43%.

Graph 1 – Estimated Residential Population

The three largest population groups in 2009 were 0-14 years age group (19.6%), the 55-64 years age group (15.9%) and the 45-54 years age group (15.1%).

Age groups less than 25 years accounted for 38.4% of the total population, whilst those over 65 years accounted for 19.1% of the population.

Graph 2 – Population by Age Group

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4.2 Changes in Technology

Changes in technology can potentially have a significant impact on the building infrastructure; this may require attention in further issues of the AMP.

4.3 Demand Management Plan

See General Asset Management Plan for Details Table 4.3. Demand Management Plan Summary

Service Activity Demand Management Plan

Building Maintenance and upgrades Upgrades to meet population growth demand and changes identifies in review reports and planning studies

Safety improvement Plan Upgrades to improve safety – to be developed further within the next review period

Building Review Plan Review of strategic plan to incorporate planned works, incorporate building hierarchy standards and examine utilisation patterns within the next review period

Financial Developing long term financial management plans to ensure financial sustainability

4.4 New Assets from Growth

The new assets required to meet growth will be acquired from land developments and constructed by Council. The new asset values are summarised in Fig 1.

Fig 1. New Assets from Growth

Insert graph of new assets from growth – see Guidelines for details

This information unavailable at this time

Acquiring these new assets will commit council to fund ongoing operations and maintenance costs for the period that the service provided from the assets is required. These future costs are identified and considered in developing forecasts of future operating and maintenance costs.

4.5 Future Projects

4.5.1 Drake Public Toilet Block

The Drake public toilet block at Woodward Park Drake, the site is located on the corner of the Bruxner Highway and Alison Street. There are two major issues relating to this site, firstly the building structure and its internal fixtures are currently in a poor condition. The second issue relating to this building is that the current On Site Sewerage septic tank and absorption pits are currently failing. Council has had expert consultant Dr. Bob Paterson visit the site who claims the site is unsuitable for disposal of the effluent from the toilet block. It is recommended that the effluent is to be pumped from the site to the site of the drake community hall, where there is an adequate effluent disposal area with suitable soil. Council also has the intention of replacing the existing toilet structure as it is thought to be beyond repair, council is currently considering a new toilet structure which is located closer to the car parking area off Alison Street.

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5. LIFECYCLE MANAGEMENT PLAN The lifecycle management plan details how Council plans to manage and operate the assets at the agreed levels of service (defined in section 3) while optimising life cycle costs.

5.1 Background Data

The building infrastructure assets for which council is responsible for, are being managed with two key aspects, these being the long term (strategic) plan for the assets and the Life cycle of the asset (the entire usage period of that asset). This Section outlines the overall information relating to all the building infrastructure assets such as the operation and management, the issues in regards to the infrastructure and the condition as well as the maintenance and upgrades required for the Buildings and Structures within the shire.

5.1.1 Physical parameters

The assets covered by this asset management plan are shown below.

AERODROMES Toilet building & Shelter located at Aerodrome

ANIMAL CONTROL Waste Transfer Station dog pound

OTHER COMMUNITY AMENITIES Mt Mackenzie radio towers & sheds, and Public toilet

PUBLIC CONVENIENCES Public toilet blocks and Rotundas

PUBLIC HALLS Public community halls

WASTE MANAGEMENT Sheds & Offices at waste transfer station and landfill

SPORTING GROUNDS Buildings & Structures at sporting grounds

COMMUNITY CENTRE Swimming Pool buildings and HACC building

COUNCIL BUILDINGS MAINTENANCE & OPERATIONS

Council admin building, parks and gardens shed and Bruxner park toilet building

EMERGENCY SERVICES SES buildings and structures.

FIRE PROTECTION Rural Fire Service buildings and structures

HOUSING Council owned dwellings, community and commercial buildings

MEDICAL CENTRES Medical office and residence

SALEYARDS & MARKETS All buildings, sheds & toilet blocks at the saleyards

ENGINEERING SUPERVISION Buildings located at the depot and sub depots.

TOURISM & AREA PROMOTION

COMMERCIAL PREMESIS

Tourist information centre & historic cottages

Buildings leased to commercial businesses

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The age profile of Council’s assets is shown below.

Fig 2. Asset Age Profile


5.1.2 Asset capacity and performance

Council’s services are generally provided to meet design standards where these are available.

Locations where deficiencies in service performance are known are detailed in Table 5.1.2.

Table 5.1.2. Known Service Performance Deficiencies

Location Service Deficiency

Administrative Building Lack of office accommodation

Swimming Pool Usable in summer only

Public Toilets Upgrading required, for accessibility & vandalism prevention

Various Buildings:

Disabled Access

Many of the public buildings within the shire require upgrades for disabled access and mobility, as many of these buildings may not have a disabled access or if they do it may be non-compliant

Various Buildings:

Sustainability

Many factors may be relating to the sustainability of some of the building infrastructure, an example of this could include the installation of energy efficient lighting to council buildings.

Various Buildings:

Asbestos

Some of the older buildings contain asbestos, if this material is located within some of these buildings it may have to be removed and replaced with an alternative building material, if any further building work is to be undertaken on the site.

The above service deficiencies are only an approximate guide as to the possible deficiencies regarding the building infrastructure, this section will require revision when further information is obtained and the deficiencies outlined.

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5.1.3 Asset condition

The condition profile of Council’s assets is shown below.

Fig 3. Asset Condition Profile

12%

237%

359%

42%

50%

Building Condition

This graph is currently only an approximate guideline to the condition of the building infrastructure as each building has not yet been inspected for the AMP

Condition is measured using a 1 – 5 rating system.1

Rating Description of Condition 1 Excellent condition: Only planned maintenance required. 2 Very good: Minor maintenance required plus planned maintenance. 3 Good: Significant maintenance required. 4 Average: Significant renewal/upgrade required. 5 Poor: Unserviceable.

1 IIMM 2006, Appendix B, p B:1-3 (‘cyclic’ modified to ‘planned’)

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5.1.4 Asset valuations

The value of assets as at 30th June 2011 covered by this asset management plan is summarised below. Assets were last re-valued at 30th June 2011. Assets are valued at brownfield rates.

Current Replacement Cost $24,914,951

Depreciable Amount $31,717,127

Depreciated Replacement Cost $26,746,466

Annual Depreciation Expense $420,600

Council’s sustainability reporting reports the rate of annual asset consumption and compares this to asset renewal and asset upgrade and expansion.

Asset Consumption 1.32%

Asset renewal 1.01%

Annual Upgrade/expansion This information unavailable at this time

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5.2 Risk Management Plan

See General Asset Management Plan for Details Table 5.2. Critical Risks and Treatment Plans

Asset at Risk What can Happen Risk Rating (VH, H,M & L)

Risk Treatment Plan

Older aged Buildings

Deterioration and insufficient maintenance over a prolonged

period of time, which has increased the potential of

injury. And possible structural damage to the building

H

Planned routine maintenance as required on a regular basis. The actions for this process will entail submitting program work as per

AMP for budget consideration

Buildings and Structures Non-compliance

with standards and legislation

H

Upgrading of the infrastructure to ensure compliance with legislation and standards

Lease-Arrangement buildings

Lack of notification of tenant regarding required

maintenance

M

Communication with tenant, routine maintenance checking of the building

All Buildings Destruction due to fire M Installation of fire alarms & extinguishers, check adequacy of insurance, develop

continuity plan

Child Care Facility Failure to meet licensing requirements

L Planned maintenance to ensure buildings meet compliance of legislation.

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5.3 Routine Maintenance Plan


5.3.1 Maintenance plan

See General Asset Management Plan for Details Cyclic maintenance is replacement of higher value components/sub-components of assets that is undertaken on a regular cycle including repainting, building roof replacement, etc. This work generally falls below the capital/maintenance threshold.

Maintenance expenditure trends are shown in Table 5.3.1

Table 5.3.1. Maintenance Expenditure Trends

Year Maintenance Expenditure

2009/2010

$294,048

2010/2011

$276,063

2011/2012

$277,058

Assessment and prioritisation of reactive maintenance is undertaken by Council staff using experience and judgement.

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5.3.2 Standards and specifications

Maintenance work is carried out in accordance with the following Standards and Specifications.

• Building Code of Australia

• Australian Standards

• Local Environmental Planning Policy

• Manufacturer’s requirements for proprietary products

• Natspec

5.3.3 Summary of future maintenance expenditures

Future maintenance expenditure is forecast to trend in line with the value of the asset stock as shown in Fig 4. Note that all costs are shown in current 2011 dollar values.

Fig 4. Planned Maintenance Expenditure

Insert graph of planned maintenance expenditure – see guidelines for details.


Deferred maintenance, i.e. works that are identified for maintenance and unable to be funded are to be included in the risk assessment process in the infrastructure risk management plan.

Maintenance is funded from Council’s operating budget and grants where available. This is further discussed in Section 6.2.

5.4 Renewal/Replacement Plan


5.4.1 Renewal plan


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Table 5.4.1 Renewal Priority Ranking Criteria

Criteria Weighting

Community Plan No current weighting or ranking against other asset classes.

Long term financial plan No current weighting or ranking against other asset classes.

Current service level No current weighting or ranking against other asset classes.

Legislative OHS No current weighting or ranking against other asset classes.

Buildings (all Classes) Building has serious identified defects, resulting in unacceptable appearance, user comfort and / or safety. Urgent work is required, with safety issues to be addressed urgently

Total 100%

Renewal will be undertaken using ‘low-cost’ renewal methods where practical. The aim of ‘low-cost’ renewals is to restore the service potential or future economic benefits of the asset by renewing the assets at a cost less than replacement cost.

Examples of low cost renewal include the minor repair of an asset such as replacing a section of roof sheeting oppose to replacing the entire roof structure.

5.4.2 Renewal standards

Renewal work is carried out in carried out in accordance with the following Standards and Specifications.

• BCA (Building Code of Australia)

• Relevant legislations and Australian Standards

• Material, Product or supplier specifications

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5.4.3 Summary of future renewal expenditure

Projected future renewal expenditures are forecast to increase over time as the asset stock ages. The costs are summarised in Fig 5. Note that all costs are shown in current 2011 dollar values.

The projected capital renewal program is shown in Appendix B.

Fig 5. Projected Capital Renewal Expenditure

Insert graph of projected renewal expenditure – see guidelines for details.



5.5 Creation/Acquisition/Upgrade Plan

See General Asset Management Plan for Details 5.5.1 Selection criteria

See General Asset Management Plan for Details Table 5.5.1 New Assets Priority Ranking Criteria

Criteria Weighting

Available Budget No Weighting Adopted

Building Planning Priorities No Weighting Adopted

Standards and Legislation No Weighting Adopted

Total 100%

5.5.2 Standards and specifications

Standards and specifications for new assets and for upgrade/expansion of existing assets are the same as those for renewal shown in Section 5.4.2.

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5.5.3 Summary of future upgrade/new assets expenditure

Planned upgrade/new asset expenditures are summarised in Fig 6. The planned upgrade/new capital works program is shown in Appendix C. All costs are shown in current 2011 dollar values.

Fig 6. Planned Capital Upgrade/New Asset Expenditure

Insert graph of planned capital upgrade/new expenditure – see guidelines for details.


New assets and services are to be funded from Council’s capital works program and grants where available. This is further discussed in Section 6.2.

5.6 Disposal Plan

Disposal includes any activity associated with disposal of a decommissioned asset including sale, demolition or relocation. Assets identified for possible decommissioning and disposal are shown in Table 5.6. These assets will be further reinvestigated to determine the required levels of service and see what options are available for alternate service delivery, if any.

Table 5.6 Assets identified for Disposal

Asset Reason for Disposal Timing Cashflow from disposal

Drake Toilet Building Inadequate for use, replacement required

2012-2013 $0

Where cashflow projections from asset disposals are not available, these will be developed in future revisions of this asset management plan.

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6. FINANCIAL SUMMARY This section contains the financial requirements resulting from all the information presented in the previous sections of this asset management plan. The financial projections will be improved as further information becomes available on desired levels of service and current and projected future asset performance.

6.1 Financial Statements and Projections

The financial projections are shown in Fig 7 for projected operating (operations and maintenance) and capital expenditure (renewal and upgrade/expansion/new assets).

Fig 7. Planned Operating and Capital Expenditure

Insert graph of planned future operating and capital expenditure – see guidelines for details


Note that all costs are shown in current 2011 dollar values.

6.1.1 Sustainability of service delivery

There are two key indicators for financial sustainability that have been considered in the analysis of the services provided by this asset category, these being long term life cycle costs and medium term costs over the 10 year financial planning period.

• Long term - Life Cycle Cost to 2029

• Medium term costs over the 10 year period of councils LTFP.

Life cycle costs (or whole of life costs) are the average costs that are required to sustain the service levels over the longest asset life. Life cycle costs include maintenance and asset consumption (depreciation expense). The annual average life cycle cost for the services covered in this asset management plan is yet to be obtained.

Medium term – 10 year financial planning period

This asset management plan identifies the estimated maintenance and capital expenditures required to provide an agreed level of service to the community over a 20 year period for input into a 10 year financial plan and funding plan to provide the service in a sustainable manner.

This may be compared to existing or planned expenditures in the 20 year period to identify any gap. In a core asset management plan, a gap is generally due to increasing asset renewals.

Fig 8 shows the projected asset renewals in the 20 year planning period from the asset register. The projected asset renewals are compared to planned renewal expenditure in the capital works program and capital renewal expenditure in year 1 of the planning period as shown in Fig 8. Table 6.1.1 shows the annual and cumulative funding gap between projected and planned renewals.

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Fig 8. Projected and Planned Renewals and Current Renewal Expenditure

Insert graph of projected/planned asset renewals and current renewal expenditure- see guidelines.


Table 6.1.1 shows the gap between projected and planned renewals.

Table 6.1.1 Projected and Planned Renewals and Expenditure Gap

Year Projected Renewals Planned Renewals Renewal Funding Gap Cumulative Gap

INSERT projected and planned renewals in Table 6.1.1 and calculate yearly and cumulative renewal funding gaps.

Providing services in a sustainable manner will require matching of projected asset renewals to meet agreed service levels with planned capital works programs and available revenue.

A gap between projected asset renewals, planned asset renewals and funding indicates that further work is required to manage required service levels and funding to eliminate any funding gap.

Council will manage the ‘gap’ by developing this asset management plan to provide guidance on future service levels and resources required to provide these services.

Council’s long term financial plan covers the first 10 years of the 20 year planning period. The total maintenance and capital renewal expenditure required over the 10 years is yet to be obtained and included in.

The following information is yet to be obtained and will be included in further revisions of the AM.

This is an average expenditure of "[ Click here and type 10 yr average mtce & cap. renewal exp. ]" . Estimated maintenance and capital renewal expenditure in year 1 is "[ Click here and type yr 1 mtce & cap. renewal exp. ]" . The 10 year sustainability index is "[ Click here and type 10 yr sustainabilty index ]"

6.2 Funding Strategy

Projected expenditure identified in Section 6.1 is to be funded from Council’s operating and capital budgets. The funding strategy is detailed in the Council’s 10 year long term financial plan.

Achieving the financial strategy will require an ongoing commitment to fund the increasing demand for asset renewals. This may be in the form of increasing revenue streams, rates and user charges.

6.3 Valuation Forecasts

Asset values are forecast to increase as additional assets are added to the asset stock from construction and acquisition by Council and from assets constructed by land developers and others and donated to Council. Fig 9 shows the projected replacement cost asset values over the planning period in current (2011) dollar values.

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Fig 9. Projected Asset Values

Insert graph of projected asset values – see guidelines for details.

This information is yet to be obtained

Depreciation expense values are forecast in line with asset values as shown in Fig 10.

Fig 10. Projected Depreciation Expense

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The depreciated replacement cost (current replacement cost less accumulated depreciation) will vary over the forecast period depending on the rates of addition of new assets, disposal of old assets and consumption and renewal of existing assets. Forecast of the assets’ depreciated replacement cost is shown in Fig 11.

Fig 11. Projected Depreciated Replacement Cost

Insert graph of projected depreciated replacement cost – see guidelines for details.


6.4 Key Assumptions made in Financial Forecasts

This section details the key assumptions made in presenting the information contained in this asset management plan and in preparing forecasts of required operating and capital expenditure and asset values, depreciation expense and carrying amount estimates. It is presented to enable readers to gain an understanding of the levels of confidence in the data behind the financial forecasts.

Key assumptions made in this asset management plan are:

• Property assets will remain in council ownership though out the planning period;

• Forecasts are based on current equipment and construction cost and will be influenced by cost increases in materials and labour;

• The projected and planned renewals will remain constant;

Accuracy of future financial forecasts may be improved in future revisions of this asset management plan by the following actions.

• Future projected expenditure to be modelled on asset condition, usage and operations

• Continual review of depreciation rates as improved condition and asset consumption information becomes available

• Continual Improvement in the asset data

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7. ASSET MANAGEMENT PRACTICES See General Asset Management Plan for Details

8. PLAN IMPROVEMENT AND MONITORING

8.1 Performance Measures


8.2 Improvement Plan

The asset management improvement plan generated from this asset management plan is shown in Table 8.2.

The actions resulting from this asset management plan are:

• Verify unit / replacement rates and useful lives across all asset groups.

• Establish a single asset register that is suitable for financial reporting and technical asset management. Develop formal processes for maintaining the asset register.

• Formalise condition inspection frameworks and establish process for on-going condition assessment (in particular sealed and unsealed pavements). Close gaps in condition data.

• Pilot the inspection frequencies and maintenance response times ensuring all asset categories are covered.

Formalise methodologies for establishing future capital works programmes for undertaking necessary Council funded road and drainage upgrade projects, including setting priorities for each category of assets.

8.3 Monitoring and Review Procedures


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REFERENCES Glen Innes Severn Council, ‘Buildings & Other Structures, Asset Management Plan Part 6’.

Glen Innes Severn Council, ‘Asset Management Plan Part 1’.

Kyogle Council, ‘Parks and Reserves, Asset Management Plan’

Albury City Council ‘Building Asset Management Plan

DVC, 2006, ‘Asset Investment Guidelines’, ‘Glossary’, Department for Victorian Communities, Local Government Victoria, Melbourne, http://www.dvc.vic.gov.au/web20/dvclgv.nsf/allDocs/RWP1C79EC4A7225CD2FCA257170003259F6?OpenDocument

IPWEA, 2006, ‘International Infrastructure Management Manual’, Institute of Public Works Engineering Australia, Sydney, www.ipwea.org.au

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APPENDICES

Appendix – A: Breakdown of Asset Categories�

Asset Description Function Description

Replacement Cost as at 30/06/2008

Depreciable Amount as at

30/06/2011

Depreciated Replacement

Cost as at 30/06/2011

Annual Depreciation

Expense

Aerodrome Toilet Building/Shelter Aerodrome $17,000.00 $15,450.00 $10,357.17 $490.00

TOTAL FOR AERODROMES $17,000.00 $15,450.00 $10,357.17 $490.00

Waste Transfer Station Dog Pound Animal Control $17,000.00 $15,300.00 $5,760.08 $544.00

TOTAL FOR ANIMAL CONTROL $17,000.00 $15,300.00 $5,760.08 $544.00

Mt Mackenzie Lookout Compost Toilet

Other Community Amenities

$26,000.00 $23,400.00 $9,698.80 $547.00

Mt Mackenzie Radio Shed x 4


$130,000.00 $117,000.00 $99,075.22 $895.00

Mt Mackenzie Radio Tower x 2


$67,000.00 $60,300.00 $26,263.54 $2,212.00

TOTAL FOR OTHER COMMUNITY AMENITIES

$223,000.00 $200,700.00 $135,037.56 $3,654.00

Jubilee Park Toilet Block Public

Conveniences $170,000.00 $153,000.00 $139,011.52 $4,337.00

Rotary Park Toilet Block Public Conveniences $170,000.00 $153,000.00 $139,008.67 $4,340.00

Jubilee Park Toilet Play Ground

Public Conveniences $130,000.00 $117,000.00 $99,116.92 $3,752.00

Water Supply Dam Rotunda

Public Conveniences $33,000.00 $29,700.00 $27,103.44 $723.00

Jubilee Park Rotunda Public Conveniences $54,000.00 $48,600.00 $34,816.84 $2,917.00

Drake Playground & Toilets

Public Conveniences $48,000.00 $43,200.00 $17,905.47 $1,010.00

Jennings Public Toilet Block


Market Square Toilet Block


Liston Public Toilet Block Public Conveniences $22,000.00 $19,800.00 $13,486.86 $628.00

TOTAL FOR PUBLIC CONVENIENCES

$691,100.00 $621,990.00 $515,573.46 $18,797.00 Legume Community Hall Public Halls $320,000.00 $288,000.00 $98,560.96 $7,120.00 Legume Community Hall Toilet Block Public Halls $34,000.00 $30,600.00 $7,417.17 $671.00

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Legume Community Hall?(Former Legume School) Class Room

Public Halls $99,000.00 $89,100.00 $17,698.03 $1,302.00

Legume Community Hall?(Former Legume School) Class Room Rear

Public Halls $45,000.00 $40,500.00 $8,044.56 $592.00

Legume Community Hall?(Former Legume School) Store Building

Public Halls $11,000.00 $9,900.00 $1,694.22 $198.00

Legume Community Hall?(Former Legume School) Toilet

Public Halls $59,000.00 $53,100.00 $9,087.16 $1,064.00

Recreation Reserve - Legume Public Halls $70,000.00 $63,000.00 $14,561.03 $947.00

Urbenville Community Hall Public Halls $270,000.00 $243,000.00 $103,617.18 $3,654.00

Pioneer Cottage Toilet Public Halls $40,000.00 $36,000.00 $12,251.13 $827.00 Bolivia Community Hall - External Improvements Public Halls $6,000.00 $5,400.00 $2,931.60 $146.00

Bolivia Community Hall - Fitout Public Halls $18,000.00 $16,200.00 $7,572.32 $761.00

Bolivia Community Hall - Mech & Elect Public Halls $132,000.00 $118,800.00 $61,253.40 $3,703.00

Bolivia Community Hall - Roof Cladding Public Halls $66,000.00 $59,400.00 $31,995.43 $1,414.00

Bolivia Community Hall - Structural Public Halls $318,000.00 $286,200.00 $161,615.70 $5,241.00

Drake Community Hall Public Halls $470,000.00 $423,000.00 $269,399.00 $7,357.00 Liston Community Hall Public Halls $420,000.00 $378,000.00 $188,166.67 $5,231.00 Sunnyside Community Hall Public Halls $320,000.00 $288,000.00 $120,583.34 $6,230.00

Mingoola Community Hall Public Halls $260,000.00 $234,000.00 149,323.94$ 4,651.00$

Steinbrook Community Hall Public Halls $290,000.00 $261,000.00 $71,387.26 $6,186.00

Torrington War Memorial Hall Public Halls $310,000.00 $279,000.00 $99,160.91 $3,794.00

School of Arts - External Improvements Public Halls $62,000.00 $55,800.00 $38,008.42 $1,771.00

School of Arts - Fitout Public Halls $441,000.00 $396,900.00 $263,864.91 $19,162.00 School of Arts - Mech & Electrical Public Halls $1,224,000.00 $1,101,600.00 $743,783.56 $41,550.00

School of Arts - Roof Cladding Public Halls $976,000.00 $878,400.00 $577,976.70 $25,665.00

School of Arts - Structural Public Halls $2,890,000.00 $2,601,000.00 $1,887,360.11 $50,190.00

Band Hall Public Halls $150,000.00 $135,000.00 $67,202.38 $1,969.00 Memorial Hall & RSL - External Improvements Public Halls $17,000.00 $15,300.00 $8,241.25 $364.00

Memorial Hall & RSL - Fitout Public Halls $51,000.00 $45,900.00 $3,482.39 $11,167.00

Memorial Hall & RSL - Mech & Elect Public Halls $376,000.00 $338,400.00 $174,479.37 $10,549.00

Memorial Hall & RSL - Roof Cladding Public Halls $188,000.00 $169,200.00 $91,138.50 $4,027.00

Memorial Hall & RSL - Public Halls $905,000.00 $814,500.00 $463,523.67 $11,326.00

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Structural TOTAL FOR PUBLIC HALLS

$10,838,000.00 $9,754,200.00 $17,321,232.99 $238,225.00

Waste Transfer Station Shed & Office

Sanitation & Garbage $270,000.00 $243,000.00 $158,500.00 $4,708.00

Boonoo Boonoo Waste Landfill Shed

Sanitation & Garbage $10,000.00 $9,000.00 $3,730.31 $210.00

Waste Transfer Station Storage Shed

Sanitation & Garbage $17,000.00 $15,300.00 $6,060.83 $243.00

Site Office at Drake Sanitation & Garbage $6,000.00

Urbenville Site Office Sanitation & Garbage $10,000.00

TOTAL FOR WASTE MANAGEMENT

$313,000.00 $267,300.00 $168,291.14 $5,161.00

Rotary Park Playground Sporting Grounds $35,000.00 $31,500.00 $26,685.32 $1,010.00

Rugby League Park Clubhouse - External Improvements

Sporting Grounds $6,000.00 $5,400.00 $4,395.24 $173.00

Rugby League Park Clubhouse - Fitout

Sporting Grounds $64,000.00 $57,600.00 $38,494.57 $2,680.00

Rugby League Park Clubhouse - Mech & Elect


Rugby League Park Clubhouse - Structural


Rugby League Park Clubhouse - Roof Cladding


Rugby League Park Kiosk


Skate Park Sporting Grounds $110,000.00 $99,000.00 $74,003.92 $3,157.00

Tennis Clubhouse Sporting Grounds $120,000.00 $108,000.00 $61,461.70 $1,502.00

Shirley Park Sporting Grounds $220,000.00 $198,000.00 $160,728.78 $3,244.00

Federation Park Sporting Grounds $480,000.00 $432,000.00 $184,205.55 $7,518.00

TOTAL FOR SPORTING GROUNDS

$1,695,000.00 $1,525,500.00 $890,653.00 $32,197.00

Swimming Pool Filter Room Swimming Pool $110,000.00 $99,000.00 $39,217.15 $1,571.00

Swimming Pool Grandstand Swimming Pool $68,000.00 $61,200.00 $25,366.08 $1,431.00

Swimming Pool Main Building Swimming Pool $340,000.00 $306,000.00 $150,536.22 $5,895.00

HACC Building - External Improvements

Community Centre $8,000.00 $7,200.00 $6,328.07 $66.00

HACC Building - Fitout Community Centre $98,000.00 $88,200.00 $67,598.61 $2,749.00

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HACC Building - Mech & Elect

Community Centre $237,000.00 213,300.00$ $181,512.55 $2,317.00

HACC Building - Roof Cladding

Community Centre $119,000.00 $107,100.00 $92,458.30 $891.00

HACC Building - Structural

Community Centre $301,000.00 $270,900.00 $232,613.12 $1,373.00

TOTAL FOR COMMUNITY CENTRES $1,281,000.00 $1,152,900.00 $795,630.10 $16,293.00

Council Administration Building - Structural

Council Bldg Mtnc &

Operations $780,000.00 $702,000.00 $594,778.66 $4,179

Council Administration Building - Roof Cladding

Council Bldg Mtnc &

Operations $307,000.00 $276,300.00 $229,809.50 $2,813.00

Council Administration Building - Fitout

Council Bldg Mtnc &

Operations $253,000.00 $227,700.00 $180,879.00 $4,663.00

Council Administration Building - Mech & Elect

Council Bldg Mtnc &

Operations $615,000.00 $553,500.00 $463,273.03 $6,690.00

Council Administration Building - External Improvements

Council Bldg Mtnc &

Operations $22,000.00 $19,800.00 $17,355.02 $243.00

Amenities Shelter (Bruxner Park Near Admin Build.)

Council Bldg Mtnc &

Operations $150,000.00 $135,000.00 $67,202.38 $1,969.00

Council Depot Parks & Gardens Building

Council Bldg Mtnc &

Operations $11,000.00 $9,900.00 $8,607.56 $179.00

Generator Room (Supplying Admin Build.)

Council Bldg Mtnc &

Operations $19,000.00 $17,100.00 $15,371.46 $195.00

TOTAL FOR COUNCIL BUILDINGS MTNC & OPERATIONS

$2,157,000.00 $1,941,300.00 $1,577,276.61 $20,931.00

SES Facility Emergency Services $250,000.00 $225,000.00 $202,089.94 $3,615.00

SES Shed Emergency Services $28,000.00 $25,200.00 $22,547.40 $135.00

TOTAL FOR EMERGENCY SERVICES

$278,000.00 $250,200.00 $224,637.34 $3,750.00

Fire Control Centre Office

Fire Protection - Other $250,000.00 $225,000.00 $185,306.13 $3,435.00

Fire Control Centre Workshop

Fire Protection - Other $140,000.00 $126,000.00 $109,733.20 $876.00

Fire Control Centre Old Store Shed


Drake Rural Fire Service Shed - 2 Bays


Liston Rural Fire Service Shed - 2 Bays


Torrington/Stannum Rural Fire Service Shed


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- 1 Bay Frazers Cutting Rural Fire Station Shed - 2 Bays


Legume Rural Fire Shed - 2 Bays


Urbenville Rural Fire Service Shed - 4 Bays


Sandy Flats Rural Fire Service


Leefield Rural Fire Service


Barney Downs Rural Fire Service


Homestead Rural Fire Service Shed


Mt Mackenzie Rural Fire Service Shed

Fire Protection - Other $14,036.00 $13,685.34 $352.00

Pretty Gully Rural Fire Service Shed

Fire Protection - Other $14,036.00 $13,685.34 $450.00

Fire Station - Urbenville Fire Protection - Other $68,000.00 $61,200.00 $33,827.46 $1,177.00

Fire Control Centre Toilet Block


TOTAL FOR FIRE PROTECTION

$1,106,250.84 $1,1023,697.34 $842,038.23 $17,879.00

2Ten FM Radio Station Garage Housing $12,000.00 $10,800.00 $9,018.83 $126.00

2Ten FM Radio Station Main Building Housing $150,000.00 $135,000.00 $115,073.14 $1,262.00

2Ten FM Radio Station Store Housing $26,000.00 $23,400.00 $23,274.06 $58.00

Child Care Centre (Big Bird's Nest) Housing $400,000.00 $360,000.00 $314,202.60 $2,026.00

Council Residence - 268 Douglas St Housing $230,000.00 $207,000.00 $186,751.46 $3,263.00

Tenterfield Disabilities & Respite Centre Housing $130,000.00 $117,000.00 $96,423.43 $1,674.00

Council Residence - 140a Petre St Housing $180,000.00 $162,000.00 $136,927.18 $1,380.00

Council Residence - 29 High St Housing $170,000.00 $153,000.00 $127,016.55 $2,171.00

Council Residence - 53 Welburn Ln Housing $200,000.00 $180,000.00 $174,084.84 $3,598.00

Council Residence - 85 Drummond St Housing $220,000.00 $198,000.00 $168,958.45 $2,488.00

Doctor's Surgery & Residence Housing $240,000.00 $216,000.00 $180,812.27 $2,039.00

TOTAL FOR HOUSING $1,958,000.00 $1,762,200.00 $1,532,542.81 $20,085.00

Urbenville Medical Centre Medical Clinic $480,000.00 $ $ $

TOTAL FOR MEDICAL CENTRES $ $ $ $

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Saleyards Canteen Saleyards &

Markets $90,000.00 $81,000.00 $69,989.12 $1,377.00

Saleyards Windy Loo Saleyards & Markets $16,000.00 $14,400.00 $13,378.50 $93.00

Saleyards Office & Toilets

Saleyards & Markets $110,000.00 $99,000.00 $89,265.63 $460.00

Saleyards Store Shed Saleyards & Markets $23,000.00 $20,700.00 $18,975.23 $184.00

Saleyards Scales Office Saleyards & Markets $25,000.00 $22,500.00 $16,850.39 $284.00

Saleyards Paint Shed Saleyards & Markets $19,000.00 $17,100.00 $17,655.73 $442.00

TOTAL FOR SALEYARDS & MARKETS

$283,000.00 $254,700.00 $210,224.60 $2,840.00

Council Works Depot Administration Building

Supervision - Engineering $290,000.00 $261,000.00 $221,138.36 $1,610.00

Council Works Depot Workshop - Structural


Council Works Depot Workshop - Roof Cladding


Council Works Depot Workshop - Fitout


Council Works Depot Workshop - Mech & Elect


Council Works Depot Workshop - External Improvements

Supervision - Engineering $8,000.00 $7,200.00 $6,400.10 $67.00

Council Works Depot Amenities Building


Council Works Depot Oil Store


RTA Shed 'A' Supervision - Engineering $51,000.00 $45,900.00 $39,716.14 $279.00

RTA Shed 'C' Supervision - Engineering $51,000.00 $45,900.00 $39,716.14 $279.00

Council Works Store - Structural


Council Works Store - Roof Cladding


Council Works Store - Fitout

Supervision - Engineering $47,000.00 $42,300.00 $36,619.79 1,665.00$

Council Works Store - Mech & Elect


Council Works Store - External Improvements


Legume Workshop Depot Shed 1


Legume Workshop Depot Shed 2


Urbenville Depot Workshop


Urbenville Depot Cement Store


- 32 -


Urbenville Depot Garage & Toilet


Liston Works Depot Store


TOTAL FOR ENGINEERING SUPERVISION

$2,066,600.00 $1,902,090.00 $1,631,272.56 $25,658.00

Tenterfield Tourist Information Centre - External Improvements

Tourism & Area Promotion $6,000.00 $5,400.00 $4,546.28 $141.00

Tenterfield Tourist Information Centre - Fitout

Tourism & Area Promotion $70,000.00 $63,000.00 $53,089.60 $2,011.00

Tenterfield Tourist Information Centre - Mech & Elect


Tenterfield Tourist Information Centre - Roof Cladding


Tenterfield Tourist Information Centre - Structural


Bicentennial Museum Tourism & Area Promotion $140,000.00 $126,000.00 $105,143.21 $1,472.00

Centenary Cottage Chauvel Gallery


Centenary Cottage Machinery Display Shed


Centenary Cottage Museum


Centenary Cottage Petrie Cottage


Pioneer Cottage Tourism & Area Promotion $130,000.00 $117,000.00 $106,888.53 $487.00

TOTAL FOR TOURISM & AREA PROMOTION

$1,144,000.00 $1,029,600.00 $885,938.30 $14,156.00 Mobile Service Station Commercial

Premises $367,000.00

TOTAL FOR COMMERCIAL PREMISES

$367,000.00

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