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Infrastructure and Asset Management Plan for

Narrabri Shire Council

RURAL ROADS (and Village Streets)

Narrabri Shire Council Infrastructure and Asset Management Plan Rural Roads (and Village Streets)

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Adopted: 25 November 2008 Minute Number: 767/2008

Document Control Document ID: AMP Rural Roads and Village Streets

Rev No Date Revision Details Author Approved Minute No

1 May 2008 Initial Issue P Keech P Keech TBA

2 25/11/2008 Final P Keech P Keech 767/2008


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TABLE OF CONTENTS

1. EXECUTIVE SUMMARY..................................................................................................5

2. INTRODUCTION...............................................................................................................6

2.1 Background

2.2 Goals and Objectives of Asset Management

2.3 Plan Framework

2.4 Core and Advanced Asset Management

3. LEVELS OF SERVICE....................................................................................................11

3.1 Customer Research and Expectations

3.2 Legislative Requirements

3.3 Current Levels of Service

3.4 Desired Levels of Service

4. FUTURE DEMAND..........................................................................................................15

4.1 Demand Forecast

4.2 Changes in Technology

4.3 Demand Management Plan

4.4 Future Asset Growth And Value

5. LIFECYCLE MANAGEMENT PLAN................................................................................19

5.1 Physical Parameters

5.2 Asset Capacity and Performance

5.3 Network Risk Management Plan

5.4 Asset Condition

5.5 Asset Valuations

5.6 Operating Budget

5.7 Capital Budget

5.8 Upgrade and Creation

5.9 Disposal

6. FINANCIAL SUMMARY.................................................................................................31

6.1 Funding Strategy


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7. ASSET MANAGEMENT PRACTICES...........................................................................34

7.1 Asset Management Policy

7.2 Accounting/Financial Systems

7.3 Asset Management Systems

7.4 Information Flow Requirements and Processes

7.5 Procedures

8. PLAN IMPROVEMENT AND MONITORING.................................................................36

8.1 Improvement Plan

8.2 Monitoring and Review Procedures

9. REFERENCES................................................................................................................38

10. APPENDICES...............................................................................................................39

Appendix A

Appendix B

Appendix C

Appendix D


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1. EXECUTIVE SUMMARY

Council provides a Rural Road and Village Streets network which consists of the following Asset Categories

Bitumen Seal (Spray Seal and AC<60mm Rural) Bitumen Seal (Spray Seal and AC<60mm Village) Rigid Pavement Flexible Pavement (under seal) Gravel (in gravel roads) Gravel (in gravel village streets) Gravel (in gravel shoulders, K&G exist.)

Concrete Medians Concrete Channels (ie K&G) Concrete Footpaths Paved Footpaths Bitumen Footpaths Transverse Culverts (<6m wide waterway) Guardrail Directional/Information Signs Regulatory/Warning Signs

Goals

Council plans to operate and maintain the Rural Road and Village Streets network to achieve the following strategic objectives.

Meet the required level of service in the most cost effective manner for present and future consumers.

Renew all required infrastructure before it becomes unserviceable. Seal all the roads classed as Collector Road (priority 1 to 6 inclusive) Replace all village gravel surface roads and K&G shoulders with a sealed surface.

Financial Position

The total replacement cost of the existing Rural Road and Village Streets network is $ 108,946,452 The Depreciated Value of the Rural Roads and Village Streets is $ 46,865,336 Depreciated Replacement Cost/Current Replacement Cost is 43% Council currently underfunds it renewals each year to the value of $ 5,386,976

Funding Strategy

Commence consultation (with the local community and at other tiers of Government) about the need to increase revenue by the order of 7.6% each year in order to reduce the difference in income and expenditure to approximately zero (assuming $0 operating saving can be found) in 30 years. Preferably this would be achieved by a combination of rate and grant funding increases. OR

Increase income by $4.47 million and then ensure that income keeps pace with roadworks inflation.

Plan Improvements

The Rural Roads assets are a large and complex asset set. In preparing the first Management Plan a number of assumptions must be made otherwise the Plan will never be developed. As the Plan matures and Council’s systems embrace an Asset Management culture the opportunities to improve it will diminish. In developing this version a number of tasks have been identified as ways to improve future versions.


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2. INTRODUCTION

2.1 Background

This infrastructure and asset management plan

has been prepared to;

o Assist Council responsibly manage “Rural Roads” Assets and the services they provide o Demonstrate compliance with regulatory requirements, and o Communicate funding required to provide the required levels of service.

is to be read in conjunction with Council’s;

o Annual Management Plan o Local Environmental Plan o Development Design Specifications (adopted 1999)

covers the following infrastructure assets;

Table 2.1. Assets covered by this Plan

Asset category Units Quantity* Current Replacement Cost** ($)

Bitumen Seal (Spray Seal and AC<60mm Rural) m2 3,592,080 $ 17,960,400

Bitumen Seal (Spray Seal and AC<60mm Village) m2 23,712 $ 118,560

Rigid Pavement m3 7,200 $ 3,110,400

Flexible Pavement (under seal) m3 602,122 $ 39,137,904

Gravel (in Regional Roads) m3 74,992 $ 3,374,640

Gravel (in Collector Roads 1 to 6 inc) m3 108,776 $ 4,894,920

Gravel (in gravel roads) m3 878,017 $ 35,120,680

Gravel (in gravel village streets) m3 8,000 $ 320,000

Gravel (in gravel shoulders, K&G exist.) m3 892 $ 35,680

Concrete Medians m3 100 $ 20,000

Concrete Channels (ie K&G) m 2,130 $ 468,600

Concrete Footpaths m2 1,810 $ 226,250

Paved Footpaths m2 0 $ -

Bitumen Footpaths m2 0 $ -

Transverse Culverts (<6m wide waterway) m 6,310 $ 2,208,418

Guardrail m 3,000 $ 450,000

Directional/Information Signs each 9,000 $ 900,000

Regulatory/Warning Signs each 6,000 $ 600,000

TOTAL $ 108,946,452 * Estimated and extrapolated from 2002 database ** In this Asset Management Plan Current Replacement Cost is assumed to be the total renewal cost. The actual renewal cost will be

determined during the year in which replacement is to actually take place. Asset Value excludes land value.


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Key stakeholders with an interest in the sustainable management of the Rural Roads Infrastructure are;

Table 2.2. Key Stakeholders

Stakeholders How they input into the management of Urban Roads within Narrabri Shire Council

Council Staff Direct management and operational responsibility

Elected Representatives Regular Council and Committee meetings

Department of Local Government Best Practice Reviews and State Parliament Acts.

Emergency Services Quarterly Local Emergency Management Meetings

Transport Operators Individually contact Council staff or Elected Representatives

Primary Producers Individually contact Council staff or Elected Representatives

Local Business Individually contact Council staff or Elected Representatives and via town Chamber of Commerce meetings

Local Residents Individually contact Council staff or Elected Representatives, and annual Community Consultation meetings (excludes Narrabri Township)

Tourists Individually contact Council staff or Elected Representatives and via feedback through the Tourist Information Centre

This infrastructure and asset management plan is prepared under the direction of Council’s vision, mission, goals and objectives.

Council’s vision is:

“To deliver services to, and represent the interests of the whole community and provide a quality living environment within available resources.”


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Our Values Consultation & Facilitation “To deliver services to, and represent the interests of the whole community and provide a quality living environment within available resources” Innovation Council will always endeavour to be innovative and will follow a path of creative and lateral thinking Leadership & Teamwork To provide leadership and to evoke a spirit of teamwork within the community and the Council. Effective Communication Effective communication between the Council, the community and staff will, at all times, be of paramount importance Value for Money The provision of Council services will always be cost effective and efficient. Exemplary Customer Service Council will endeavour to provide the highest level of service to all its customers Uncompromising Integrity Council’s integrity will be maintained at the highest level at all times Continuous Review and Development All of Council’s operations will be continually reviewed and quality management practices and state of the art technology will be used where appropriate. Council’s mission is, in relation to roads is as follows:

“Narrabri Shire Council is a significant contributor to Australia’s wheat and cotton export market and is developing coal and gas reserves. A well maintained, efficient road network is essential to the economic and social prosperity of the Shire” NSC Management Plan


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2.2 Goals and Objectives of Asset Management

Council exists to provide services to its community either directly (ie maintenance activities) or indirectly via the provision of infrastructure (ie roads). Council has acquired infrastructure assets by

Construction using Council’s staff

Construction using Contractors

Donations (ie developers such as mine operators)

Council’s goals in managing its Rural Roads infrastructure assets are to

Meet the required level of service in the most cost effective manner for present and future consumers.

Renew all required infrastructure before it becomes unserviceable.

Seal all the roads classed as a Collector Road (priority 1 to 6 inclusive)

Replace all village gravel surface roads and K&G shoulders with a sealed surface.

At the ordinary meeting in December 2007 Council resolved its highest priority Collector Roads as follows (vide minute no. 879/2007 and 880/2007)

Table 2.3. Priority Collector Roads

Priority Code Location Sealed Unsealed1 SR 47 Middle Route Road 10.3 28.2

2 SR 46 Doreen Lane 12.5 7.8

3 SR 11 Harparary Road 4.6 18.3

4 SR 45 Nowley Road 19.9 15.1

5 SR 01 Millie Road 22.0 55.7

6 SR 05 Kaputar Road 30.1 10.9

Total 99.3 136.0

The above goals will be achieved by developing the following key elements of infrastructure asset management, and budgeting as the plan recommends:

Taking a life cycle approach to planning,

Developing cost-effective management strategies for the long term,

Providing a defined level of service and monitoring performance,

Understanding and meeting the demands of growth through demand management and infrastructure investment,

Managing risks associated with asset failures,

Sustainable use of physical resources,

Continuous improvement in asset management practices.

Note: the Treatment of Gravel and Natural Surface Roads is explained in Section 5.1 Physical Parameters.


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2.3 Plan Framework

Key elements of the plan are

Levels of service Specifies the services and levels of service to be provided by council.

Future demand How this will impact on future service delivery and how this is to be met.

Life cycle management How Council will manage its existing and future assets to provide the required services

Financial summary Funding required to provide the required services.

Asset management practices Financial Management Systems

Asset Management Systems

Information Flow Requirements and Processes

Monitoring How the plan will be monitored to ensure it is meeting Council’s objectives.

Asset management improvement plan

How future versions of this Asset Management Plan will be improved.

2.4 Core and Advanced Asset Management

This infrastructure and asset management plan is prepared as a ‘core’ asset management plan in accordance with the International Infrastructure Management Manual. It is prepared to meet minimum legislative and organisational requirements for sustainable service delivery and long term financial planning and reporting. Core asset management is a ‘top down’ approach where analysis is applied at the ‘system’ or ‘network’ level.

Future revisions of this infrastructure and asset management plan will move towards ‘advanced’ asset management using a ‘bottom up’ approach for gathering asset information for individual assets to support the optimisation of activities and programs to meet agreed service levels.

This ‘core’ plan contains a section that lists how future versions of this plan will be improved.


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3. LEVELS OF SERVICE

3.1 Customer Research and Expectations

Council has not carried out any specific research on customer expectations. This will be investigated for future updates of the infrastructure and asset management plan.

As the asset plan matures Council will be in a better position to communicate with its customers and allow them to express their expectations with a full knowledge of Council’s financial position, and thus the impact of their expectations.

3.2 Legislative Requirements

Council has to meet many legislative requirements including Australian and State legislation and State regulations. These include (but are not limited to):

Table 3.2. Legislative Requirements

Legislation Requirement

Local Government Act Sets out role, purpose, responsibilities and powers of local governments including the preparation of a long term financial plan supported by infrastructure and asset management plans for sustainable service delivery.

OH&S Act 2000 Secures and promotes health, safety and welfare of people at work

Roads Act 1993 Defines rights of passage along a public road and rights of property owners adjoining a public road. Confers the authority of the road authority and provides for road classifications

Environmental Planning & Assessment Act 1979

Encourage the proper management, development and conservation of natural and artificial resources

Catchment Management Authorities Act 2003

Provide for proper natural resource planning at a catchment level

Fisheries Management Act 1994 Aims to conserve threatened species, populations and ecological communities of fish and marine vegetation whilst promoting ecologically sustainable development, including the conservation of biodiversity.

Heritage Act 1977 Define state and local heritage significance place, building, work, relic, moveable object or precinct

Native Vegetation Act 2003 Prevent broad scale clearing unless it improves or maintains environmental outcomes.

Noxious Weeds Act 1993 Prevent the establishment of new and spread of existing significant weeds. Reduce existing significant weeds.


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Protection of the Environment Operations Act 1997

Protect, restore and enhance the quality of the environment in NSW, having regard to the need to maintain ecologically sustainable development. Rationalise, simplify and strengthen the regulatory framework for environment protection.

Road Transport (Safety and Traffic Management) Act 1999

Improve safety and efficiency of transport on roads and road related issues.

Rural Fires Act 1997 Coordinate bush fire fighting and bush fire prevention

Threatened Species Conservation Act 1995

Conserve biological diversity and promote ecologically sustainable development and protect the critical habitat of threatened species

Water Management Act 2000 Provide for sustainable and integrated management of water sources of the State for the benefit of both present and future generations. Provide for the orderly, efficient and equitable sharing of water from water sources


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3.3 Current Levels of Service

Levels of Service (LOS) refer to those measures of the rural roads network that relate to customer satisfaction, they;

Help define the standards required for the town street system

Are an expansion of the Mission Statement

Will largely shape Council’s detailed planning

The standard of service must be balanced against the cost of providing the service. Council may need to review the LOS in the future in accordance with customer demand and industry trends.

Table 3.3. Current Service Levels

Service Criteria

Service Target

Compliance Measure

Routinely repair potholes Repair wheel path potholes deeper than 50mm within two weeks of being identified

Less than 2 justified complaints per month

Average Routine Grade (Grader and Free Roll only) across the network

Rural Sealed (ie US Shldr) 0.5 Grades/yr

Rural Unsealed 3 Grades/yr

Regional Sealed (ie US Shldr) 1 Grades/yr

Regional Unsealed 3 Grades/yr


Average Periodic Grade (Grader Roller Watercart) across the network

Rural Unsealed 0.33 Grades/yr

Regional Unsealed 1 Grades/yr


Progressively convert gravel collector road surfaces to sealed surfaces, excluding unsealed shoulders adjacent to table trains

No gravel surfaces by 2040 for top 6 Collector Roads Annual budget allocations set to achieve target and spent each year.

Keep culvert inlet and outlets clean Program routine maintenance of culverts every 4 years Less than 2 justified complaints per month

Ensure signs are legible, accurate and correctly installed

Program works as required and within two weeks of being identified.


Attend asset replacement before assets become unserviceable

Allocate funding required to eliminate Condition 5 assets

90% of required funding allocated each financial years

budget

Control grass growth on unsealed shoulders or sealed roads

Slash at intervals to ensure a maximum height of 300mm is not exceeded. Twice per year (average)


At present, indications of desired levels of service are obtained from residents’ feedback to Councillors and staff, service requests and correspondence. Council has yet to formally determine the communities desired levels of service. This will be done in future revisions of this infrastructure and asset management plan.


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3.4 Planned (Designed) Asset Life verses Funded Asset Live

As stated in Section 2.2 one of Council’s objectives is to;

Renew all required infrastructure before it becomes unserviceable.

Intuitively (and in the absence of better data) assets become unserviceable when they have aged beyond the end of their design life, however condition assessment is the real measure of serviceability.

As Council’s data develops and renewal targets are met it is expected that the difference in Planned (Designed) Asset Life and Funded Asset Live will be negligible.

Planned (Designed) Asset Life is based on a number of assumptions; asset condition monitoring will allow these assumptions to be validated and thus Planned (Designed) Asset Life confirmed.

Table 3.4. Age Distribution of Council’s Assets, at 2007

Design Life (yrs)

Near New 0-25%

Early Life

25-50%

Late Life

50-75%

End of Life

75-100%

Aged

+100%

Avg

Life (yrs)

Bitumen Seal (Spray Seal and AC<60mm Rural) 15 10% 10% 20% 40% 20% 10.5

Bitumen Seal (Spray Seal and AC<60mm Village) 15 10% 10% 20% 40% 20% 10.5

Rigid Pavement 60 80% 20% 0% 0% 0% 14.4

Flexible Pavement (under seal) 45 10% 20% 55% 10% 5% 25.2

Gravel (in Regional Roads) 5 20% 20% 40% 10% 10% 2.7

Gravel (in Collector Roads 1 to 6 inc) 5 20% 20% 40% 10% 10% 2.7

Gravel (in gravel roads) 15 20% 20% 40% 10% 10% 8.1

Gravel (in gravel village streets) 15 20% 20% 40% 10% 10% 8.1

Gravel (in gravel shoulders, K&G exist.) 15 20% 20% 40% 10% 10% 8.1

Concrete Medians 60 60% 25% 15% 0% 0% 18.6

Concrete Channels (ie K&G) 60 10% 10% 40% 40% 0% 37.2

Concrete Footpaths 60 10% 30% 40% 10% 10% 33.6

Paved Footpaths 60 70% 15% 5% 5% 5% 19.2

Bitumen Footpaths 60 10% 30% 40% 10% 10% 33.6

Transverse Culverts (<6m wide waterway) 60 10% 10% 20% 40% 20% 42.0

Guardrail 40 10% 20% 40% 20% 10% 24.0

Directional/Information Signs 10 10% 20% 40% 20% 10% 6.0

Regulatory/Warning Signs 10 10% 20% 40% 20% 10% 6.0

Note: this Age Distribution represents an estimation by Council staff, based on Deposited Plan dates and general knowledge of the Shires development.


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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 practices, environmental awareness, etc.

Demand factor trends and impacts on service delivery are summarised in Table 4.1a and 4.2b.

Table 4.1a. Australian Bureau of Statistics Figures

ABS Figures for Narrabri LGA 1996 2001 2006 5 yr Trend

Total persons 14,101 13,817 13,051 -5.54%

Age group:

0-4 years 1,141 1,020 945 -7.35%

5-14 years 2,284 2,194 2,064 -5.93%

15-19 years 947 838 830 -0.95%

20-24 years 790 795 622 -21.76%

25-34 years 2,065 1,821 1,531 -15.93%

35-44 years 2,137 2,145 1,834 -14.50%

45-54 years 1,793 1,835 1,781 -2.94%

55-64 years 1,350 1,455 1,550 6.53%

65-74 years 956 1,008 1,076 6.75%

75-84 years 492 532 621 16.73%

85 years and over 146 174 197 13.22%

Overseas visitors 15 17 29 70.59%

Median age of persons 34 36 38 5.56%

Median individual income ($/wk) 269 349 407 16.62%

Median family income ($/wk) 641 809 1,034 27.81%

Median household income ($/wk) 530 705 793 12.48%

Median housing loan repayment ($/m) 666 776 930 19.85%

Median rent ($/w) 80 95 110 15.79%


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Average number of persons per bedroom 1.2 1.1 1.1 0.00%

Average household size 2.7 2.6 2.5 -3.85%

Persons usually resident

1 1,127 1,186 1,252 5.56%

2 1,518 1,665 1,665 0.00%

3 808 816 713 -12.62%

4 831 804 719 -10.57%

5 439 383 357 -6.79%

6 or more 206 155 125 -19.35%

Total Households 4,929 5,009 4,831 -3.55%

Note: The Median of a set of numbers is the value of the middle number, when they are arranged in ascending order

Table 4.1b. Narrabri Shire Council Figures

2004 2005 2006 3 yr Trend

Total Assessments 6,851 6,903 6,956 1.53%

Traffic Counts (AADT all vehicles)* 462

Traffic Counts (AADT heavy vehicles)* 80

Subdivisions (New Lots Created) 66 46 21 -68.18%

* Collector Road Counts Baseline Study established May 2006 for 6 highest priority Collector Roads.

Rural Roads infrastructure is unlikely to grow significantly (assume 0.0% growth, for all Asset Subcategories) and the main focus will be on maintaining and improving existing assets. Improvement efforts are to focus on the elimination of gravel surfaced Collector Roads priority 1 to 6.

4.2 Changes in Technology

The following Technology changes are likely to have an impact on Asset Life, Renewal Costs, and Data Management;

Insitu Stabilisation of Pavements (chemistry and construction)

Bitumen Chemistry Technology

Laser Level control of Construction

Field Data Loggers.

The impact of these technologies will be reflected in future estimates of design life and asset replacement costs.


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4.3 Demand Management Plan

Demand for new services is managed through a combination of social, environmental and economic factors. As demand increases Council must consider managing existing assets better, upgrading existing assets and providing new assets. Demand management practices include non-asset solutions, insuring against risks and managing failures.

Asset Creation

Council’s Local Environmental Plan outlines the potential for development of new Rural Lots and only sustainable quantities of land development have been identified and appropriately zoned. The costs of development and the cost of running vehicles and rural properties is increasing the demand for consolidation of farming lots and should this mentality dominate in the future demand for additional lengths of “Rural Roads” Assets will reduce. The most viable rural “lifestyle” blocks will be adjacent to an existing road network.

Asset Upgrade

Typical improvement investment occurs as follows

Gravel Collector (priority 1 to 6) and Regional Roads to Seal Gravel Shoulders adjacent to K&G in Villages to Seal Widen and seal shoulders for 12km of Yarrie Lake Road

The main focus for Asset Improvements in this Plan is Gravel Road to Seal. The Demand for improvements is managed by the development and publication of 5 year priority lists in Council’s Annual Management Plan.

4.4 Future Asset Growth and Value

The new assets required to meet growth will be constructed and acquired from land developments. Upgrade expenditure will be managed by priority lists and funded after existing asset renewal needs are met. Should the assumptions of Asset Upgrade and Asset Creation outlined above be achieved Council’s inventory would be as outlined in Table 4.4. (Note: Asset Values exclude the value of the land they occupy)


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Table 4.4. Estimated 30 Year Asset Inventory and Current Replacement Cost

All Roads Existing

All Roads 30yrs

Rate $/Unit

Current Rep Cost 30yrs Inventory

Bitumen Seal (Spray Seal and AC<60mm Rural) m2 3,592,080 4,629,855 5 $ 23,149,275

Bitumen Seal (Spray Seal and AC<60mm Village) m2 23,712 112,632 5 $ 563,160

Rigid Pavement (inc Concrete Causeways) m3 7,200 7,200 432 $ 3,110,400

Flexible Pavement (under seal) m3 602,122 863,806 65 $ 56,147,364

Gravel (in Regional Roads) m3 74,992 74,992 45 $ 3,374,640

Gravel (in Collector Roads 1 to 6 inc) m3 108,776 45 $ -

Gravel (in gravel rural roads, remaining) m3 878,017 878,017 40 $ 35,120,680

Gravel (in gravel village streets) m3 8,000 40 $ -

Gravel (in gravel shoulders, K&G exist.) m3 892 40 $ -

Concrete Medians m3 100 100 200 $ 20,000

Concrete Channels (ie K&G) m 2,130 2,130 220 $ 468,600

Concrete Footpaths m2 1,810 1,810 125 $ 226,250

Paved Footpaths m2 0 0 150 $ -

Bitumen Footpaths m2 0 0 100 $ -

Transverse Culverts (<6m wide waterway) m 6,310 6,310 350 $ 2,208,418

Guardrail m 3,000 3,000 150 $ 450,000

Directional/Information Signs each 9,000 9,000 100 $ 900,000

Regulatory/Warning Signs each 6,000 6,000 100 $ 600,000

TOTAL $ 126,338,787

Current Replacement Cost Existing Inventory $ 108,946,452

Current Replacement Cost 30 Year Inventory $ 126,338,787

Increase $ 17,392,335

Acquiring 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 commitments are identified and considered in developing forecasts of future operating costs.


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5. LIFECYCLE MANAGEMENT PLAN

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

Council has purchased Biz@sset (Asset Management Software) as a tool to assist in the management of Infrastructure Assets. A major restructure and redundancy program in 2000 resulted in Council substantially downsizing with the aim of exploiting the efficiencies of competitive outsourcing. Unfortunately a number of administrative staff were lost and as a result Asset Management and most importantly inventory management was effectively abandoned.

Council has a number of asset databases which have provided the basis for this document and efforts are now underway to resurrect these databases and bring them up to date and into Biz@sset.

5.1 Physical parameters

The assets covered by this infrastructure and asset management plan are shown in Table 2.1. “Assets covered by this Plan”. The table outlines the quantity and replacement value for each asset category.

The Rural Roads Assets have the following specific Management Issues

Gravel Quality is poor and scarce. The gravel used is generally under strength and susceptible to large strength variation with changes in moisture.

Most Collector Roads are subjected to seasonal variations of heavy vehicles traffic volumes.

Most roads are remote and delivery and establishment costs for works are high.

Subsoil conditions are generally poor with expansive silts and clays dominating.

Longitudinal grades are flat and don’t promote the efficient draining of surface water.

Overloading of vehicles occurs and heavy traffic returns to the road network quickly after rain when the pavement is still wet and thus weak.

Low traffic volumes generally promote high speed driving behaviour in light vehicles, well in excess of the speed that suits the condition of the road.

Gravel Roads are a special asset in that its shape and ride quality is constantly changing. The shape is regularly attended to as part of a routine and periodic maintenance grading program. The value of the gravel road asset exists in the gravel properties and its thickness (average availability across the road cross section).

Asset Life depends on how long the gravel maintains its required thickness across the road cross section and its property specification. Over time the gravel is segregated because fines particles are lost and stones broken down and polished.

Maintenance: Council undertakes the following regular maintenance activities in accordance with adopted levels of service. Gravel is reclaimed and in some spots topped up, then the pavement is reshaped and recompacted. These activities are accounted for as annual operating expenses.

Natural Surface Roads are not considered an asset in the context of this plan. They are cleared areas with natural surface shaped up to suit vehicles. Their shape and condition are constantly changing and managed as part of an annual operating budget.


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5.2 Asset capacity and performance

New Rural Roads Assets are provided to meet Council’s Development Design Standards; however Renewed Assets and Improved Assets do often not meet all of the requirements of these standards because of the cost required to do so. Often for existing assets to be renewed or improved to current standards land needs to be acquired or other assets relocated. With this in mind, for Renewal projects, Council works towards its design standards without fully achieving them. (ie minimum grades and road alignment parameters for improvement projects are often not met).

Table 5.2. Known Service Performance Deficiencies

Location Service Deficiency

Gravel Roads Dusty and muddy with a generally rough ride

Unsealed Shoulders Silt up table drains and often promote growth of weeds (ie burrs)

Seasonal Heavy Loads At harvest time a large percentage of the network get “pounded”, often with overloaded vehicles and Council’s resources are stretched at the times.

Causeway Crossings The flat nature of the terrain makes Causeways long and flat they often wash out or soak the pavement for extended periods.

Flat Grades Moisture tends to sit in wheel ruts on most roads due to their flat grades.

Excessively Large Network Makes adequate response time difficult.

The above service deficiencies were identified from staff observations and Council’s regular community consultation meetings.


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5.3 Network Risk Management Plan

An assessment of risks associated with service delivery from infrastructure assets has identified critical risks to Council. The risk assessment process identifies credible risks, by assessing the likelihood of the risk event occurring, and the consequences should the event occur. The risk treatment plan for non-acceptable risks nominates how the risk can be mitigated if not eliminated.

Table 5.3. Network Risks and Treatment Plans

Asset at Risk What can Happen C L R Risk Treatment Plan

All Lack of Condition Assessment 2 L M Conduct Assessment progressively

All Potholes - Liability 2 M H Develop inspection program for Collector/ Regional Roads and complaints register for others.

Gravel Lack of Suitable Sustainable Source 1 M E Rationalise and prioritise use

Bitumen Prices increase in excess of inflation 2 M H Competitive Contracts and programs

Pavements Loads and tyre pressures increase 3 L M Weight of Loads Campaigns

All Unfunded renewal works 1 M E Asset Management Plan.

All Skills shortage reduces engineering and technical expertise

1 M E Traineeships for undergraduates

C=Consequence; L=Likehood; R=Risk (see Appendix A for Risk Matrix)


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5.4 Asset condition

The condition distribution of Council’s consolidated Rural Roads Assets is shown below,

Table 5.4a. Condition Distribution of Council’s Assets

Design Life (yrs)

Exce

1

Good

2

Fair

3

Poor

4

Unser

5

Average

Condition

Bitumen Seal (Spray Seal and AC<60mm Rural) 15 5% 20% 40% 30% 5% 3.10

Bitumen Seal (Spray Seal and AC<60mm Village) 15 5% 20% 40% 30% 5% 3.10

Rigid Pavement 60 20% 40% 30% 5% 5% 2.35

Flexible Pavement (under seal) 45 20% 40% 30% 5% 5% 2.35

Gravel (in Regional Roads) 5 5% 5% 25% 40% 25% 3.75

Gravel (in Collector Roads 1 to 6 inc) 5 5% 5% 25% 40% 25% 3.75

Gravel (in gravel roads) 15 5% 5% 25% 40% 25% 3.75

Gravel (in gravel village streets) 15 5% 5% 25% 40% 25% 3.75

Gravel (in gravel shoulders, K&G exist.) 15 5% 5% 25% 40% 25% 3.75

Concrete Medians 60 20% 40% 30% 5% 5% 2.35

Concrete Channels (ie K&G) 60 9% 28% 40% 19% 5% 2.82

Concrete Footpaths 60 10% 30% 40% 10% 10% 2.80

Paved Footpaths 60 30% 20% 20% 20% 10% 2.60

Bitumen Footpaths 60 10% 30% 40% 10% 10% 2.80

Transverse Culverts (<6m wide waterway) 60 5% 10% 40% 20% 25% 3.50

Guardrail 40 20% 40% 30% 5% 5% 2.35

Directional/Information Signs 10 20% 40% 30% 5% 5% 2.35

Regulatory/Warning Signs 10 20% 40% 30% 5% 5% 2.35

Note: this Condition Distribution represents an estimation by Council staff.

Table 5.4b. Condition Rating System

Rating Generic Description of Condition

1 Excellent Performing as designed and specified, essentially no defects

2 Good Less than 5% defects. Cyclic activities occurring

3 Fair 5% to 10% defects. Minor repairs required.

4 Poor More than 10% defects but serviceable. Major repair or, prioritised for renewal.

5 Unserviceable Not performing as designed. Repairs ineffective, renewal overdue.

Each Asset has a much more detailed description of Condition (see Appendix B) to ensure a consistent rating is applied by different staff.


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5.5 Asset valuations

The value of assets (as at May 2008) covered by this infrastructure and asset management plan is summarised below. Assets were last revalued at May 2008. Assets are valued at brownfield rates (ie the rate assuming the asset must be removed and replaced. It does not include the value of the land on which the asset exists).

Table 5.5a. Depreciated Replacement Cost

Current Rep Cost

Annual Depreciation

Salvage Value ($)

Depreciated Value

Bitumen Seal (Spray Seal and AC<60mm Rural) m2 $ 17,960,400 $ 1,197,360 $ - $ 5,388,120

Bitumen Seal (Spray Seal and AC<60mm Village) m2 $ 118,560 $ 7,904 $ - $ 35,568

Rigid Pavement m3 $ 3,110,400 $ 51,840 $ - $ 2,363,904

Flexible Pavement (under seal) m3 $ 39,137,904 $ 869,731 $ - $ 17,220,678

Gravel (in Regional Roads) m3 $ 3,374,640 $ 674,928 $ - $ 1,552,334

Gravel (in Collector Roads 1 to 6 inc) m3 $ 4,894,920 $ 978,984 $ - $ 2,251,663

Gravel (in gravel roads) m3 $ 35,120,680 $ 2,341,379 $ - $ 16,155,513

Gravel (in gravel village streets) m3 $ 320,000 $ 21,333 $ - $ 147,200

Gravel (in gravel shoulders, K&G exist.) m3 $ 35,680 $ 2,379 $ - $ 16,413

Concrete Medians m3 $ 20,000 $ 333 $ - $ 13,800

Concrete Channels (ie K&G) m $ 468,600 $ 7,810 $ - $ 178,068

Concrete Footpaths m2 $ 226,250 $ 3,771 $ - $ 99,550

Paved Footpaths m2 $ - $ - $ - $ -

Bitumen Footpaths m2 $ - $ - $ - $ -

Transverse Culverts (<6m wide waterway) m $ 2,208,418 $ 36,807 $ - $ 662,526

Guardrail m $ 450,000 $ 11,250 $ - $ 180,000

Directional/Information Signs each $ 900,000 $ 90,000 $ - $ 360,000

Regulatory/Warning Signs each $ 600,000 $ 60,000 $ - $ 240,000

$ 108,946,452 $ 6,355,809 $ - $ 46,865,336

* Depreciated Value refers to the current value of the assets and is calculated assuming a straight line depreciation curve with the asset having deducted a salvage value of the asset at end of life.


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Table 5.5b. Depreciated Replacement Cost Current Asset Inventory 30 Years

30 Year Inventory

Current Rep Cost

Annual Depreciation

Salvage Value ($)

Depreciated Value

Bitumen Seal (Spray Seal and AC<60mm Rural) m2 $ 23,149,275 $ 1,543,285 $ - $ 6,944,783

Bitumen Seal (Spray Seal and AC<60mm Village) m2 $ 563,160 $ 37,544 $ - $ 168,948

Rigid Pavement m3 $ 3,110,400 $ 51,840 $ - $ 2,363,904

Flexible Pavement (under seal) m3 $ 56,147,364 $ 1,247,719 $ - $ 24,704,840

Gravel (in Regional Roads) m3 $ 3,374,640 $ 674,928 $ - $ 1,552,334

Gravel (in Collector Roads 1 to 6 inc) m3 $ - $ - $ - $ -

Gravel (in gravel roads) m3 $ 35,120,680 $ 2,341,379 $ - $ 16,155,513

Gravel (in gravel village streets) m3 $ - $ - $ - $ -

Gravel (in gravel shoulders, K&G exist.) m3 $ - $ - $ - $ -

Concrete Medians m3 $ 20,000 $ 333 $ - $ 13,800

Concrete Channels (ie K&G) m $ 468,600 $ 7,810 $ - $ 178,068

Concrete Footpaths m2 $ 226,250 $ 3,771 $ - $ 99,550

Paved Footpaths m2 $ - $ - $ - $ -

Bitumen Footpaths m2 $ - $ - $ - $ -

Transverse Culverts (<6m wide waterway) m $ 2,208,418 $ 36,807 $ - $ 662,526

Guardrail m $ 450,000 $ 11,250 $ - $ 180,000

Directional/Information Signs each $ 900,000 $ 90,000 $ - $ 360,000

Regulatory/Warning Signs each $ 600,000 $ 60,000 $ - $ 240,000

$ 126,338,787 $ 6,106,666 $ - $ 53,624,265

Current Annual Depreciation Existing Inventory $ 6,355,809

Current Annual Depreciation 30 Year Inventory $ 6,106,666

Decrease $ 249,143

In other words should Council achieve is planned Asset upgrade and Creation Targets the Annual Depreciation Cost each year will reduce. This can be attributed to the small renewal life of the top 6 Collector Roads in their gravel state.


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5.6 Operating Budget

Council’s Operating budget funds the regular on-going work that is necessary to keep assets serviceable, including instances where portions of the asset fail and need immediate repair. Council defines three types of operating budgets as follows;

Reactive. Unplanned repair or cleaning work carried out in response to service requests, storm damage and management/supervisory directions, etc. Assessment and prioritisation of reactive repairs is undertaken by Council staff using experience and judgement. Generally speaking the aim here is to get the asset back in service as quickly as possible. More permanent repairs are then “planned” if required.

Planned. Maintenance & Repairs (M&R) including minor replacement work. Activities include, heavy patching, periodic grading, replacement of small sections, repainting, etc. This work falls below the capital/renewal threshold.

Cyclic. Routine pre-programmed cleaning, servicing and patrols such as minor bitumen patching, street sweeping, mowing, litter collection, trimming trees, cleaning drain outlets. Includes inspection, assessing the condition against failure/breakdown experience. Also includes fuel and energy costs etc. These expenses and activities must be done each year to keep the asset functioning.

5.6.1 Standards and specifications

Adopted standards and specifications aim to achieve the funded levels of service identified in Section 3.3.

Planned and Cyclic Activities are carried out in accordance with Council’s Work Process Guidelines. Crew Leaders are trained in the requirements of the guidelines and their competence ensures that the activities are carried out appropriately.

Reactive activities are also completed in accordance with adopted Work Process Guidelines where possible, however the main focus here is safety and restoration of service as soon as possible.

5.6.2 Operating Budget Trends

Table 5.6.2a. Operating Budget Expenditure Trends

Year Expenditure

Total Reactive Planned Cyclic

2008/09 $2,252,104 $ 111,800 5% $1,003,626 45% $1,136,678 50%

2009/10

2010/11

Average $2,252,104 $111,800 5% $1,003,626 45% $1,136,678 50%


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Current Operating allocations can be expressed as a per m2 rate for sealed and unsealed roads within the Rural Road network.

Sealed Roads Operating Cost (average $/m2) $0.22 - Shire

Sealed Roads Operating Cost (average $/m2) $0.12 - Regional

Unsealed Roads Operating Cost (average $/m2) $0.13 - Shire

Unsealed Roads Operating Cost (average $/m2) $0.54 - Regional

Operating costs are forecast to trend in line with the value of the asset stock (0.0%), plus an allowance for increase in levels of service (1.0%) over the planning period as shown in Appendix C. The values in Table 5.6.2b are a summary in today’s dollars (May 2008) with no account for inflation or a discount rate.

Table 5.6.2b. Projected 30 Year Operating Costs

Year Budget* Year 1 $ 2,252,104 Year 5 $ 2,373,933 Year 10 $ 2,526,219 Year 15 $ 2,678,505 Year 20 $ 2,830,791 Year 25 $ 2,983,077 Year 30 $ 3,135,363

*Note: Budgets are linear between years

The budgets assume a progressive increase in operating costs due to more sealed shire road stock.


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5.7 Capital Budget

Council’s Capital Budget funds Asset Renewal, Asset Upgrades and Asset Creation each is defined as follows;

Renewal. Expenditure is major work which does not increase the asset’s design capacity but restores, rehabilitates, replaces or renews an existing asset to its original capacity or level of service.

Upgrade. Work over and above restoring an asset to original capacity or level of service ie sealing a gravel road, kerbing a table drain etc.

Creation. Expenditure to provide a new service and thus, asset. The service was not provided prior to the asset being purchased.

5.7.1 Renewal

Assets requiring renewal are identified by Council staff inspections. The process is being refined to allow lists of assets approaching “End of Life” or “Poor Condition” to be obtained from the asset register and the lists prioritised by Council staff. Proposals are inspected to verify accuracy of remaining life estimate and to develop a preliminary renewal cost estimate. Verified proposals are ranked by priority which helps determine a logical program of works (making allowances to balance resources, maximise scope and minimise disruptions), and available funds and scheduled in future budgets.

The priority ranking criterion detailed below, is being developed and will be formally used once a comprehensive database and condition assessment has been completed. At present this criteria helps guide the development of the current priority lists.

Table 5.7.1 Renewal Priority Ranking Criteria

Criteria Scoring Weighting

Road hierarchy Regional (9) Collector (6) Minor (3) 50% Proximity to CBD, School etc <500m (3); 500-2000 (2) over 2000 (1) 10% Complaints Received >5 (6); 1-5 (4); 0(2) 30% Deterioration Rate (years until asset becomes unserviceable).

<2 yrs (3); 2-5 yrs (2); >5 yrs (1) 10%

Total 100% 5.7.2 Renewal standards

Renewal work is predominately carried out on the same alignment and grade as the existing asset and where possible in accordance with the Council’s Development Specifications.

5.7.3 Summary of future Renewal Budgets

Council’s Rural Roads Infrastructure was developed in large efforts at various points in time and reflected a revolution of growth rather than an evolution of growth. As a result it is likely that renewal works will fall due in “waves” of work. To ensure this problem is overcome and not duplicated in the future, renewal budgets are set to provide a balanced cash flow. Working through Council’s backlog of works in this way is possible with Rural Roads Assets and will ensure that there is less chance of the “boom and bust” budget allocations in the future. The costs are summarised below.


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Table 5.7.3a. Projected Annual Renewal Costs

Design Life (yrs)

Quantity Units Target Quantity/Yr

Unit Rate

Budget Required

Bitumen Seal (Spray Seal and AC<60mm Rural) 15 3,592,080 m2 239,472 5 $ 1,197,360

Bitumen Seal (Spray Seal and AC<60mm Village) 15 23,712 m3 1,581 5 $ 7,904

Rigid Pavement 60 7,200 m3 120 432 $ 51,840

Flexible Pavement 45 602,122 m3 13,380 65 $ 869,731

Gravel (in Regional Roads) 5 74,992 m3 14,998 45 $ 674,928

Gravel (in Collector Roads 1 to 6 inc) 5 108,776 m3 21,755 45 $ 978,984

Gravel (in gravel roads) 15 878,017 m3 58,534 40 $ 2,341,379

Gravel (in gravel village streets) 15 8,000 m3 533 40 $ 21,333

Gravel (in gravel shoulders, K&G exist.) 15 892 m3 59 40 $ 2,379

Concrete Medians 60 100 m3 2 200 $ 333

Concrete Channels (ie K&G) 60 2,130 m 36 220 $ 7,810

Concrete Footpaths 60 1,810 m2 30 125 $ 3,771

Paved Footpaths 60 0 m2 0 150 $ -

Bitumen Footpaths 60 0 m2 0 100 $ -

Transverse Culverts (<6m wide waterway) 60 6,310 m 105 350 $ 36,807

Guardrail 40 3,000 m 75 150 $ 11,250

Directional/Information Signs 10 9,000 each 900 100 $ 90,000

Regulatory/Warning Signs 10 6,000 each 600 100 $ 60,000

Total Annual Allocation $ 6,355,809

The value of deferred renewal, ie those assets identified for renewal and not scheduled for renewal in capital works programs are to be quantified as future condition assessments occur.

Renewal costs are forecast to trend in line with the value of the asset stock (0.0% Growth) over the planning period as shown in Appendix C. The values in Table 5.7.3b are a summary in today’s dollars (May 2008) with no account for inflation or a discount rate.

Table 5.7.3b. Projected 30 Year Renewal Costs

Year Budget* Year 1 $ 6,355,809 Year 5 $ 6,322,590 Year 10 $ 6,281,066 Year 15 $ 6,239,542 Year 20 $ 6,198,018 Year 25 $ 6,156,495 Year 30 $ 6,114,971

Note: Budgets are linear between years


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5.8 Upgrade and Creation

Upgrade and Creation projects result from economic growth, social or environmental needs. Council’s expenditure in this area is limited. New Assets are predominantly acquired at no cost to the Council from land development. The value of new assets are estimated in Section 4.4.

Where upgrade expenditure is available Council’s preference for Rural Roads is to commit this funding to converting Collector Roads to seal.

Each year the next Collector Road to be sealed is inspected to verify its condition and to develop a preliminary renewal estimate. Collector Road priorities have been determined using the following ranking scheme.

Table 5.8.1a Collector Priority Ranking Criteria

Criteria Scale Points 1 Traffic Volume AADT < 30 0 30 to <60 1 60 < 90 2 Above 90 3

Seasonal Increase 0 - 25% 1 25% to <50% 2 > 50% 3 Sub Total Traffic Volume

2 Freight Task Heavy Vehicle AADT < 10 1 10 to <20 2 Above 20 3

Road Train or B Doubles Route Not approved 0 Road Train or B Doubles Zone 1 Sub Total Freight Task

3 Level of Service Road Condition 80% of the Time Good 1 Just Acceptable 2 Lose/Poor Shape/Rough 3

Road Condition after rain Trafficable 0 Untrafficable 1 Availability of Quality Local Gravel Available 0 Not Available 1 Sub Total Level of Service

4 Local Access No. of Properties/Families Serviced/5km 0 - 2 1 2 -5 2 More than 5 3

School Bus Route No 0 Yes 1 Sub Total Freight Task TOTAL POINTS

For other assets such as Village Streets sealing Table 5.8.1b will be used where required


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Table 5.8.1b New Village Streets Assets Priority Ranking Criteria

Criteria Scoring Weighting

Traffic Volume affected AADT >500 (3); 200 -500 (2) <200 (1) 30%

Degree to which Economic Activity is increased

High (3); Medium (2); Low (1) 20%

Degree to which Safety is addressed High (3); Medium (2); Low (1) 15%

Degree to which Maintenance costs reduced

High (3); Medium (2); Low (1) 10%

Degree to which level of service increased

High (3); Medium (2); Low (1) 15%

Proposal addresses a missing link Yes (2); No (1) 10%

Total 100%

5.8.1 Standards and specifications

New assets are provided in accordance with Council’s Development Specifications

Upgrade work is carried out on the same alignment and grade as the existing asset and where possible in accordance with the Council’s Development Specifications.

5.8.3 Summary of future Upgrade/Creation Budgets

Creation of new assets will essentially be denoted to Council by Developers.

The Upgrade budget required to achieve the following goal stated in Section 2.2 over the planning period as shown in Appendix C.

Seal all the roads classed as a Collector Road (priority 1 to 6 inclusive)

Replace all village gravel surface roads and K&G shoulders with a sealed surface.

Widen and Seal 12km of Yarrie Lake Road

The projected annual allocation required is $579,745, ie the average future growth expenditure from Table 6.1a, over 30 years 5.9 Disposal

The disposal of a community asset is a decision not taken lightly with often social and not economic factors dominating. Council staff are constantly monitoring asset costs, condition and usage. Disposal of community Rural Roads assets are considered on a case by case basis and a decision to follow through with a disposal requires a formal resolution from Council (ie road closure, sealed road to gravel etc). A hierarchy of local roads (below Collector Status) is being developed based on traffic volumes. This hierarchy will assist in further developing levels of service and renewal allocations. The issue of downgrading a sealed road to gravel or gravel road to natural surface will be determined by Council on a case by case basis as the need arises.


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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 infrastructure and 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.

Table 6.1a Financial Summary

Asset Value Actual 08/09 Target Current Replacement Cost $ 108,946,452 Depreciated Value $ 46,865,336 Asset Consumption Ratio* 43% 60%-80% * Depreciated Replacement Cost/Current Replacement Cost Renewal Budgets Actual 08/09 Ann Depn Exp Shire Roads East $ 424,667 $ 2,022,257 Shire Roads West $ 361,283 $ 2,790,583 Regional Roads $ 182,883 $ 1,542,970 Total $ 968,833 $ 6,355,809 Asset Sustainability Ratio# 15% 90%-110% # Actual Renewal Budget/Annual Depreciation Expense (Table5.5a) Renewal Funding Gap (Actual - Ann Depn Exp) -$ 5,386,976 Asset Component Lives (due to Renewal Funding Gap) Funded Design Bitumen Seal (Spray Seal and AC<60mm Rural) 20 15 Bitumen Seal (Spray Seal and AC<60mm Village) 20 15 Rigid Pavement 60 60 Flexible Pavement (under seal) 77 45 Gravel (in Regional Roads) 154 5 Gravel (in Collector Roads 1 to 6 inc) 111 5 Gravel (in gravel roads) 111 15 Gravel (in gravel village streets) 111 15 Gravel (in gravel shoulders, K&G exist.) 111 15 Concrete Medians 60 60 Concrete Channels (ie K&G) 60 60 Concrete Footpaths 60 60 Paved Footpaths 60 60 Bitumen Footpaths 60 60 Transverse Culverts (<6m wide waterway) 60 60 Guardrail 40 40 Directional/Information Signs 10 10 Regulatory/Warning Signs 10 10 Upgrade Target Actual 08/09 Required Shire Roads East $ 119,600 Shire Roads West $ 575,000 Regional Roads $ 800,000 Total $ 1,494,600 $ 579,745 Upgrade Funding Gap (Actual - Required) $ 914,856


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Income predictions have been estimated in Appendix D. The values in Table 6.1b are a summary in today’s dollars (May 2008) of the income and expenditure differences with the following assumptions made;

Income Sourced from Revenue, “RTA Repair” and Federal Assistance Grants and growing at 3.0% each year, (ie rates growing slightly more than grants so assume average of 3%)

Expenditure Actual Operating Budget, growth of 1.0% pa (0.0% expansion, 1.0% LoS)

Required Renewal Budget, slight decrease due to sealing collector roads

Required Upgrade Budget, upgrade existing assets averaged over 30 years

Expenditure Inflation assumed to be at 5%pa (see Appendix C)

Table 6.1b. Projected 30 Income and Expenditure Comparison

Income Exp Difference %Income

Year 1 $ 4,715,537 $ 9,187,658 -$ 4,472,121 -94.8%

Year 5 $ 5,307,379 $ 11,267,909 -$ 5,960,530 -112.3%

Year 10 $ 6,152,707 $ 14,509,551 -$ 8,356,845 -135.8%

Year 15 $ 7,132,673 $ 18,646,799 -$ 11,514,126 -161.4%

Year 20 $ 8,268,723 $ 23,927,093 -$ 15,658,369 -189.4%

Year 25 $ 9,585,716 $ 30,666,234 -$ 21,080,517 -219.9%

Year 30 $ 11,112,473 $ 39,267,275 -$ 28,154,803 -253.4%

Note: Budgets are linear between years

Assume income increases by $4,472,121 in year 1, income would then have to match expenditure inflation over the next 30 years.

Assume Income increases by 7.6% each year for 30 years and at year 30, income would essentially match expenditure.


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Funding Strategy

1. Bring “Upgrade Funding” back in line with the average Target expenditure of $ 579,745 otherwise renewal expenditure will continue to fall far behind.

2. Review Operating efficiencies. Ensure funds are adequately distributed to achieve stated Levels of Service

3. Commence consultation (with the local community and at other tiers of Government) about the need to increase revenue by the order of 7.6% each year in order to reduce the difference in income and expenditure to approximately zero (assuming $0 operating saving can be found) in 30 years.

4. Address Improvement Plan, Section 8 to verify assumptions, and reassess estimates as assumptions are verified.


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7. ASSET MANAGEMENT PRACTICES

In future versions of this Asset Management Plan 7.1, 7.2, 7.3 and 7.5 will cover;

7.1 Asset Management Policy

7.2 Accounting/Financial Systems.

summary of accounting & financial systems

accountabilities and responsibilities for financial system

accounting standards/regulations/guidelines that must be complied with

any changes to accounting/financial systems resulting from this IAMP

7.3 Asset Management Systems

summary of asset management system(s)

summary of how AM systems are linked to accounting/financial system

accountabilities and responsibilities for AM system(s)

changes to asset management systems resulting from this IAMP

7.4 Information Flow Requirements and Processes

The key information flows into this infrastructure and asset management plan are:

The asset register data on size, age, value, remaining life of the network;

The unit rates for the replacement of asset categories;

The adopted service levels;

Projections of various factors affecting future demand for services;

Correlations between maintenance and renewal, including decay models;

Data on new assets acquired by council.

The key information flows from this infrastructure and asset management plan are:

Budget, valuation and depreciation projections;

The useful life analysis.


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7.5 Procedures

Updating Asset inventory database to record asset creation, upgrade and renewal.

Monitoring condition of asset components

Updating priority lists

Recording asset complaints and deficiencies and reporting on such


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8. PLAN IMPROVEMENT AND MONITORING

8.1 Improvement Plan

The Rural Roads assets are a large and complex asset set. In preparing the first Management Plan a number of assumptions must be made otherwise the Plan will never be developed. As the Plan matures and Council’s systems embrace an Asset Management culture opportunities to improve it will diminish. In developing this version a number of tasks have been identified as ways to improve future versions.

Table 8.1 Improvement Plan

Task No

Task Responsibility Resources Required

Timeline

1 Complete Asset data base to confirm asset quantities (Table 2.1)

2 Capture actual construction dates searching as many records as possible (Table 3.4)

3 Make Asset Plan available to key stakeholders (Table 2.2)

4 Develop detailed condition assessment descriptions

5 Conduct a condition assessment (Table 5.4)

6 Seek feedback on Levels of Service (Table 3.3)

7 Update Asset Database annually to check growth assumptions (Table 4.1b) establish baseline traffic counts.

8 Analyse Operating Expenditure and ensure efficiency

9 Develop Asset Policy, Finance and Asset System

10 Develop procedures to maintain the Asset Plan.


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8.2 Monitoring and Review Procedures

This infrastructure and asset management plan will be reviewed during annual budget preparation and amended to recognise any changes in service levels and/or resources available to provide those services as a result of the budget decision process.

The Plan has a life of 3 years and is due for a comprehensive revision and updating in 2011/12


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9. REFERENCES

Narrabri Shire Council, ‘Management Plan 2008 – 2011,

NAMS Plus Workshop Material.

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


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APPENDICES


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Appendix A


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Appendix B

Develop a much more detailed description of Condition to ensure a consistent rating is applied by different staff, prior to initial condition assessment.


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Appendix C

Expenditure * Current Expenditure ** Required Expenditure Inflation 2.5% 5.0% 7.5%

Growth $ 30,889 -$ 8,305 $ 579,745

Operating* Renewal** Improvement** Total Total Total

Year 1 $ 2,252,104 $ 6,609,620 $ 579,745 $ 9,441,468 $ 9,441,468 $ 9,441,468

Year 2 $ 2,282,994 $ 6,601,315 $ 579,745 $ 9,700,654 $ 9,937,256 $ 10,173,857

Year 3 $ 2,313,883 $ 6,593,010 $ 579,745 $ 9,966,320 $ 10,457,832 $ 10,961,175

Year 4 $ 2,344,772 $ 6,584,705 $ 579,745 $ 10,238,627 $ 11,004,438 $ 11,807,541

Year 5 $ 2,375,661 $ 6,576,401 $ 579,745 $ 10,517,742 $ 11,578,373 $ 12,717,385

Year 6 $ 2,406,551 $ 6,568,096 $ 579,745 $ 10,803,834 $ 12,181,006 $ 13,695,467

Year 7 $ 2,437,440 $ 6,559,791 $ 579,745 $ 11,097,079 $ 12,813,770 $ 14,746,906

Year 8 $ 2,468,329 $ 6,551,486 $ 579,745 $ 11,397,655 $ 13,478,172 $ 15,877,202

Year 9 $ 2,499,219 $ 6,543,182 $ 579,745 $ 11,705,746 $ 14,175,794 $ 17,092,270

Year 10 $ 2,530,108 $ 6,534,877 $ 579,745 $ 12,021,539 $ 14,908,297 $ 18,398,469

Year 11 $ 2,560,997 $ 6,526,572 $ 579,745 $ 12,345,226 $ 15,677,426 $ 19,802,632

Year 12 $ 2,591,886 $ 6,518,267 $ 579,745 $ 12,677,006 $ 16,485,011 $ 21,312,108

Year 13 $ 2,622,776 $ 6,509,962 $ 579,745 $ 13,017,080 $ 17,332,975 $ 22,934,795

Year 14 $ 2,653,665 $ 6,501,658 $ 579,745 $ 13,365,657 $ 18,223,338 $ 24,679,183

Year 15 $ 2,684,554 $ 6,493,353 $ 579,745 $ 13,722,947 $ 19,158,219 $ 26,554,400

Year 16 $ 2,715,443 $ 6,485,048 $ 579,745 $ 14,089,170 $ 20,139,843 $ 28,570,258

Year 17 $ 2,746,333 $ 6,476,743 $ 579,745 $ 14,464,548 $ 21,170,549 $ 30,737,306

Year 18 $ 2,777,222 $ 6,468,439 $ 579,745 $ 14,849,311 $ 22,252,790 $ 33,066,882

Year 19 $ 2,808,111 $ 6,460,134 $ 579,745 $ 15,243,693 $ 23,389,144 $ 35,571,176

Year 20 $ 2,839,001 $ 6,451,829 $ 579,745 $ 15,647,934 $ 24,582,314 $ 38,263,293

Year 21 $ 2,869,890 $ 6,443,524 $ 579,745 $ 16,062,282 $ 25,835,144 $ 41,157,318

Year 22 $ 2,900,779 $ 6,435,220 $ 579,745 $ 16,486,988 $ 27,150,615 $ 44,268,396

Year 23 $ 2,931,668 $ 6,426,915 $ 579,745 $ 16,922,312 $ 28,531,859 $ 47,612,804

Year 24 $ 2,962,558 $ 6,418,610 $ 579,745 $ 17,368,519 $ 29,982,166 $ 51,208,042

Year 25 $ 2,993,447 $ 6,410,305 $ 579,745 $ 17,825,881 $ 31,504,988 $ 55,072,924

Year 26 $ 3,024,336 $ 6,402,001 $ 579,745 $ 18,294,677 $ 33,103,951 $ 59,227,671

Year 27 $ 3,055,225 $ 6,393,696 $ 579,745 $ 18,775,193 $ 34,782,862 $ 63,694,025

Year 28 $ 3,086,115 $ 6,385,391 $ 579,745 $ 19,267,722 $ 36,545,719 $ 68,495,355

Year 29 $ 3,117,004 $ 6,377,086 $ 579,745 $ 19,772,564 $ 38,396,719 $ 73,656,785

Year 30 $ 3,147,893 $ 6,368,781 $ 579,745 $ 20,290,027 $ 40,340,269 $ 79,205,323


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Appendix D

Income * Based on Current Expenditure Levels Inflation 2.0% 3.0% 5.0% Growth Total Total Total Year 1* $ 4,715,537 $ 4,715,537 $ 4,715,537 Year 2 $ 4,809,848 $ 4,857,003 $ 4,951,314 Year 3 $ 4,906,045 $ 5,002,714 $ 5,198,880 Year 4 $ 5,004,166 $ 5,152,795 $ 5,458,824 Year 5 $ 5,104,249 $ 5,307,379 $ 5,731,765 Year 6 $ 5,206,334 $ 5,466,600 $ 6,018,353 Year 7 $ 5,310,461 $ 5,630,598 $ 6,319,271 Year 8 $ 5,416,670 $ 5,799,516 $ 6,635,235 Year 9 $ 5,525,004 $ 5,973,502 $ 6,966,996 Year 10 $ 5,635,504 $ 6,152,707 $ 7,315,346 Year 11 $ 5,748,214 $ 6,337,288 $ 7,681,113 Year 12 $ 5,863,178 $ 6,527,406 $ 8,065,169 Year 13 $ 5,980,442 $ 6,723,229 $ 8,468,428 Year 14 $ 6,100,050 $ 6,924,926 $ 8,891,849 Year 15 $ 6,222,051 $ 7,132,673 $ 9,336,441 Year 16 $ 6,346,492 $ 7,346,653 $ 9,803,263 Year 17 $ 6,473,422 $ 7,567,053 $ 10,293,427 Year 18 $ 6,602,891 $ 7,794,065 $ 10,808,098 Year 19 $ 6,734,948 $ 8,027,887 $ 11,348,503 Year 20 $ 6,869,647 $ 8,268,723 $ 11,915,928 Year 21 $ 7,007,040 $ 8,516,785 $ 12,511,724 Year 22 $ 7,147,181 $ 8,772,288 $ 13,137,311 Year 23 $ 7,290,125 $ 9,035,457 $ 13,794,176 Year 24 $ 7,435,927 $ 9,306,521 $ 14,483,885 Year 25 $ 7,584,646 $ 9,585,716 $ 15,208,079 Year 26 $ 7,736,339 $ 9,873,288 $ 15,968,483 Year 27 $ 7,891,066 $ 10,169,487 $ 16,766,907 Year 28 $ 8,048,887 $ 10,474,571 $ 17,605,253 Year 29 $ 8,209,865 $ 10,788,808 $ 18,485,515 Year 30 $ 8,374,062 $ 11,112,473 $ 19,409,791

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