district council of lower eyre peninsula 2014-15 complete.pdfdistrict council of lower eyre...

DISTRICT COUNCIL OF LOWER EYRE PENINSULA

INFRASTRUCTURE AND ASSET

MANAGEMENT PLAN

MARCH 2015 UPDATE

Prepared by DCLEP staff In March 2015

G:\New Common\New_Structure\Asset Management\AIMP 2015\AIMP Words 2014-15.doc

PURPOSE OF INFRASTRUCTURE & ASSET MANAGEMENT PLAN The Infrastructure and Asset Management Plan has been developed in accordance with Section 122 of the Local Government Act 1999, and forms part of Council’s Strategic Planning documents. The outcomes from the Asset Management Plan are designed to feed into the Council’s Long Term Financial Plan. The purpose of the plan is to ensure that the Council is adequately providing for the replacement of its assets in a timely manner. BASE DATA The base data (Asset Current Replacement Cost and Useful Life’s used in the formulation of the plan comes from a variety of sources, in particular: - Buildings Valuation by Maloney Field Services 1 July 2011 Port Lincoln Airport Valuation by Maloney Field Services 1 July 2011 Roads Valuation by Council staff (with unit rates to be quantified

by Gayler Professional Engineering Pty Ltd) at 1 July 2011

CWMS (Effluent) Valuation by Council staff (with unit rates to be quantified by Gayler Professional Engineering Pty Ltd) at 1 July 2011

Other Infrastructure Valuation by Council staff (with unit rates to be quantified by Gayler Professional Engineering Pty Ltd) at 1 July 2011

A major influence on Council’s annual depreciation calculations relates to our road infrastructure. With a revaluation due in 2015/2016 a review was undertaken of the previous methodology however it was limited to the sealed and formed and surfaced road. These two asset classes account for 98 percent of the road assets. The methodology applied to the 2011 valuation was assessed against historical practices, asset lives and current costs. To better differentiate between the various road types as well construction standards and reseal frequencies the asset types (e.g. sealed roads) were further separated in to low and moderate traffic use which then influenced construction standards and reseal frequencies. This approach has addressed a number of minor anomalies within the 2011 methodology which indicates that the replacement cost valuations has increased together with the depreciated replacement cost valuations, however the annual depreciation cost has decreased. The primary reason for this has been to compare practical reality, historical practices and current road conditions against theoretical service lives.


APPROACH TO TASK Existing Assets The renewal requirement for all Council assets has been calculated based on the replacement value of the asset divided by the asset’s useful life, with this amount representing the annual depreciation amount. The annual allocation to the reserve fund is calculated in line with the following equation: - Add Annual depreciation amount Deduct Actual expenditure on Asset where no loan borrowings are taken Deduct Repayments of Principal on loan borrowings taken to replace the Asset

New Assets The annual depreciation calculated on assets acquired during the period of the AIMP has been added to the renewal requirement amount as detailed under ‘Existing Assets’ above. Repayments of Principal on loan borrowings for Assets newly acquired after the 2014/15 year have not been deducted from the annual Reserve allocation as detailed in ‘Existing Assets’ above as the payments for these are reflected in the cash movement of the Long Term Financial Plan. Capital Renewal Replacement Work sheet The Capital Renewal / Replacement worksheet summarises the provisions required to reserves for the following classes of assets: -

Buildings

Playgrounds

Public Conveniences

Sealed Roads

Rural and Town Re-sheeting

Reserves and Other Recreational Assets

Authorised Landing Areas

Boat Ramps

Footpaths

Stormwater

Bridges The worksheet calculations refer only to assets which Council will ultimately wish to replace. It follows that items such as buildings owned by Lessee’s of Council owned land or Crown land under Council care and control have been removed from the Asset Management Plan.


PLANT & EQUIPMENT The Plant & Equipment replacement schedule sets out the planned replacement of major plant and equipment over the next ten years, including impact on the Plant Replacement reserve. The worksheet has been attached to this plan and also is included in the Long Term Financial Plan document. Smaller plant items are reviewed annually and assessed based on age and hours used however the following sets out the expected timeframes:- Admin Sedans Five Cars (every three to four years) Utilities Ten Utes (every four years) Trucks Seven Trucks (every six years) Rollers Eight Rollers (every twenty years)

COUNCIL BUSINESS ACTIVITIES Council operates the following self funded activities exclusive of any requirement for support from General Rate Revenue: -

Port Lincoln Airport

Coffin Bay Caravan Park

Cummins Homes

Community Waste-water Management Schemes Work sheets detailing annual income and expenditure requirements for these activities is attached to the Long Term Financial Plan document. ASSET MAINTENANCE Details of current maintenance expenditure on Council assets and comment on amended future requirements is detailed in the Asset Maintenance Section to this document. .


ASSET MAINTENANCE The following provisions have been made for Council General Rate funded Asset Maintenance in 2014/15 per the 2014/15 Budget, and have been indexed by three percent in the Long Term Financial Plan: - Buildings

Council office’s $ 27,700

Halls (includes insurance & minor upgrade) $ 51,300

Council Depot’s $ 22,000 Playgrounds $ 0 Public Conveniences

Cleaning Contracts $ 73,700

General Maintenance $ 29,000 Sealed Roads

Street Cleaning $ 30,000

Reseals $275,000

Line Marking $ 38,000

Routine Maintenance $ 70,000

Township Tree Maintenance $ 25,000 Rural and Town Re-sheeting

F & S Patrol Grading $355,000

F & S Tree Trimming $125,000

F & S General Maintenance $ 55,000 Reserves and Other Recreational Assets

Foreshore Maintenance $ 32,000

Reserves Maintenance & Minor Upgrade $106,000

Walking Trails o Oyster Walk $ 12,500 o Investigator Trail $ 12,500

Authorised Landing Areas

Coffin Bay $ 3,000

Cummins $ 4,500 Boat Ramps

General Maintenance $ 20,000 Footpaths

Spraying , Mowing & Repair $ 70,000 Stormwater

Pipe flushing & Cleaning $ 25,000

Bridges

Routine Maintenance $ 1,000 Cemeteries

Routine includes minor upgrades $ 60,000 Plant & Equipment $480,000


The following provisions have been made for Council Self- funded Asset Maintenance in 2014/15 per the 2014/15 Budget, and have been indexed by three percent in the Long Term Financial Plan: - Cummins Homes $ 48,000 CWMS

Cummins $180,700

North Shields $ 39,000

Tulka $ 28,000

Coffin Bay $176,300 Port Lincoln Airport

Lease Areas $ 3,000

Fences $ 3,000

Sealed Airside Pavement $ 5,000

Unsealed Runways & Parking $ 15,000

Terminal Building $165,500

Airfield Land $ 30,000

Landscaping $ 5,000

Daily Reporting Checks $ 35,000

Secure Car Park $ 2,000

Public Car Parks $ 5,000

Airfield lighting & Electrical $ 23,000

Security Programs $ 12,000

Roads $ 2,000

Depot & Offices $ 9,800

Houses $ 5,000

Bird & Animal Hazard Management $ 8,000

Carpark Infrastructure Maintenance $ 26,000 Coffin Bay caravan Park $ 8,200

district council of lower eyre peninsula 2014-15 complete.pdfdistrict council of lower eyre...

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