presentation rockdale city council asset management improvements - lg financial sustainability...
TRANSCRIPT
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ROCKDALE CITY COUNCILOne Community, Many Cultures
Lady Robinsons Beach
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Rockdale NSW
• 12kms from Sydney’s CBD
• Neighbours- Marrickville, Kogarah, Hurstville, Botany & Sutherland
• Over 108,000 residents
• 39% CALD backgrounds
• 3 NSW Govt Priority Growth Precincts: Banksia, Arncliffe and Cooks Cove
• Train routes to the Airport and City.
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Corporate OverviewAnnual Operating Expenditure $86 million
Annual Capital Expenditure: $43 million
Incl Two Major Projects; Rockdale Aquatic Centre and Rockdale City Library
Infrastructure assets $800 Million (WDV)
Staff 361 FTE
Corporate Directorates • General Managers Unit• Corporate and Community
Services• City Operations• City Planning and Development
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Improving Rockdale’s Asset Management:
….towards best practiceVery Poor
PoorAverage
Good
Excellent
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Rockdale – A Historical Observation...•Lacked Long Term Financial Planning and Strategic Focus
•Funding was directed to reactive and short term projects
•There was a level of satisfaction with existing practices
•Limited impetus for improvement, change or growth• Introspective and silo activity•Simplified and theory based asset accounting practices
•Limited community engagement about assets
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Asset Accounting
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Issues
• Annual depreciation very high and asset renewals very low resulting in a significant asset backlog
• Operating Deficit• Business risks
– Outdated systems– Lack of detailed data and information supporting
methodologies applied– Critical assets
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A gradual and growing recognition of the need for change….
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Planets begin to align…
• 2009– NSW IPR requirements introduced
• 2011– New Senior Leadership and Political Dynamics– Organisational restructure –IP&R & Asset Mgt– New injection of Staff– Independent AM audits highlight need for
improvement (T-Corp, NSW Infrastructure Audit, Morrison Low)
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• 2012/13– Creation of Executive Officer Role– IMT review – Investment in technology required– Customer Service and Document Management
improvements highlighted other challenges– Local Government Reviews
• 2013/14– Impending SS7 Audit– Fit for Future
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2013 NSW Infrastructure Audit
Assessed Rockdale’s Infrastructure Management as weak.
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• The overall score of C would indicate that the Council is at a Core level of competence in asset management
• Should be at an advanced level or above for a Urban Sydney Metropolitan Council
Morrison Low Audit
Category AssessmentAsset Knowledge/Data C – Core LevelAsset Knowledge Processes D – Basic Level
Strategic Asset Planning Processes C – Core Level
Operations and Maintenance Work Practices
D – Basic level
Information Systems C – Core LevelOrganisational Context D – Basic Level
Assessment Description
A At or near best practice
B Advanced level of competence
C Core level of competence
D Basic level of competence
E Awareness
F Nothing/limited
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What did Rockdale Do?
• Organisational Importance and Focus• Agreed Purpose & Priorities• Expert advice and support• Barriers broken and trust developed• Agreed Common Language• Role & Responsibility Clarity• Revised Methodologies• New Systems
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ImprovementsRecommendations Status
SRVs Implemented – 2007, 2010/11 & 2012/13
Annual efficiency target from operational budget to asset renewal
Ongoing
More regular and consistent assetreevaluations programmed
Completed
Review and update asset condition data (with community consultation)
Completed
Review of SS7 and Depreciation Methodologies
Completed
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Improvements
Recommendations Status
Further clarification of maintenance and operational costs
Completed
De-commissioning of surplus assets
In progress:
Asset Renewal efficiencies In progress
Review of Roles and Responsibilities / Restructure
Implemented
Introduce an new finance and asset management system
Current project : Tender evaluation completedPreferred vendor endorsed by Council
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Ratio Benchmark 2013/2014
2014/2015
2015/2016
2016/2017
2017/2018
2018/2019
1. Operational Performance
Greater or Equal to 0
-.116 -.083 -.013 .038 .063 .08
2. Own SourceRevenue
Greater than60% average over 3yrs
82.9% 82.2% 83.4% 86.3% 87.3% 87.6%
3. Building and InfrastructureRenewal
100% 32% 48% 85% 107% 119.4% 109%
4. InfrastructureBacklog
Less than 2% 2.98% 1.45% 1.39% 1.38% 1.37% 1.36%
5. Asset Maintenance Ratio
Greater than 100% average over 3yrs
52% 67% 106% 106% 106% 106%
6. Debt Service Ratio Great than zero and less than or equal to 20%
2% 2% 1.90% 1.80% 1.80% 1.70%
7. Real Operating Expenditure
Decreasing Trend
.66 .64 .62 .61 .60 .59
ROCKDALES POSITION AGAINST FFF BENCHMARKS
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Improving Asset Management is a Continuous Voyage
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Lessons Learnt
• AM needs organisational focus and leadership• Establish and apply a common language • Its not all theory - Be practical & realistic • Seek independent expert advice and help when
needed• Press pause on the treadmill and check what
others are doing• Bring back the curious child in you! - Ask WHY
a lot?
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Lessons Learnt• Understand your organization's receptiveness to
change and work with it – bringing people along with the change
• Building Trust and relationship management crucial
• Foster and enable a culture of improvement, give people the opportunity and tools
• Acknowledge and celebrate successes
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Thank You