2012 International Local Government and Asset Management Conference

Gary Van Driel, General Manager – City ServicesWednesday 2 May – Thursday May 3 2012

GeelongGeelong

Melbourne

Geelong Today…

Victoria’s 2nd Largest City

12th Largest urban centre in Australia

Population of around 220,000

Rural, urban and coastal lifestyles

Labour force 110,000 (10% commute to Melbourne)

Manufacturing, Education, Research & Development, Health, Hospitality and Tourism

Geelong AssetsNo The Big Four Value

1. Road related $984 million

2. Stormwater Drainage $350 million

3. Buildings $190 million

4. Recreation and Leisure $198 million

Operating Budget $260 million

Capital Budget $84 million

Total Replacement Value $1.7 Billion

Roles and Responsibilities

Roles and Responsibilities

Service Manager Asset Owner Maintainer

Develop the relevant funding proposals.

Develop and implement the Asset Management Plan.

Maintain the asset to the agreed standard.

Plan for the acquisition, creation, modification and disposal of Assets.

Establish the Level of Service for the asset.

Advise of any issues relating to the performance of the asset and any opportunities to improve the efficiency of the asset.

Establish the Level of Service delivery.

Record/supply the data for inventory, valuation and condition.

Record/supply the data pertaining to asset maintenance.

Determine asset utilisation. Responsible for monitoring and reporting on their specific assets.

Record/supply the data pertaining to asset use.

Establish the level of maintenance required to keep the asset at an acceptable standard and availability.

The Journey

Key Messages Engineering professionals are geared to the “Asset Management” concept

whereas Non engineering professionals were aligned more towards “Service Management”. (The Challenge was to combine these).

Asset Management at Geelong - a corporate supported– decentralized model supported by various Work Units.

There is a need to drill down into the organisation to get good “Buy In” at practitioner level.

It is most important to maintain protocols and even some sacrosanct rules for managing assets.

Black and white – negotiate away the grey.

The Journey

Key Reflections

1. Landlord Analogy – helped understanding and “buy-in” from Non Engineering Asset Owners.

2. Financials – automation of depreciation has been a real winner.

3. Triggers to Act – Capitalization of Assets.

4. Geographic Location was the Initial determinate of accountability. Followed by agreements.

Special Roles

Councillors

1. Potential to set up a Project Control Group.

2. Greater involvement is desirable.

3. Layman's Language – Pictorial messages.

4. New Capital vs Renewal Capital – the political imperative.

Community

1. Road related survey of community – statistical sample.

2. Levels of Service.

Successes at Geelong• In 1997 the Asset Steering Committee was formed and included three

General Managers – three subgroups report upwards (Buildings, Land related, and Civil Infrastructure).

• A central Asset Management Unit performs roles such as Asset Reporting and facilitation of Strategic AM across the City.

• All of the City’s assets are in one system. This is mandatory.

• Asset management reporting to Government is centralised.

• A Support structure is in place.

Asset inventory officers.

Creation of - Polygons in GIS, Plans Scanning, Images created, Textural attributes.

ConclusionsWhat has been learnt? The Asset Management discipline is continuing to evolve and improve

AM Roles and responsibilities must be accurately defined

Relevant managers must make decisions on the ‘grey’ areas

Good Asset Systems are essential

Continuous improvement – eg “Service” is now the big ticket item

Keep looking at the big picture

Remember the 3 R’s

Questions?