2.1 COMMUNITY WASTEWATER MANGEMENT SYSTEM (CWMS ... Comm… · 2016 page 1 minutes of meeting of...

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Strategic Asset Management Advisory Committee - Minutes of Meeting held 9 March

2016 Page 1

MINUTES OF MEETING OF THE BAROSSA COUNCIL STRATEGIC ASSET MANAGEMENT ADVISORY COMMITTEE held in the Council Chamber, 43-51 Tanunda Road, Nuriootpa, on Wednesday 9 March 2016, commencing at 1.00pm.

WELCOME

Chairman Mayor Bob Sloane welcomed everyone to the meeting.

PRESENT

Mayor Bob Sloane, Crs Bim Lange, David de Vries, Scotty Milne and Mark

Grossman, Peter Bice - Director – Works and Engineering Services, Joanne

Thomas – Director – Corporate and Community Services, Steve Kaesler –

Manager – Engineering Services, Brendon Lyons – Manager – Assets and

Infrastructure, Andrew Evans – Manager - Operations and Rebecca Tappert -

Manager - Administrative Services.

APOLOGIES

Martin McCarthy.

CONFIRMATION OF MINUTES FROM PREVIOUS MEETING

MOVED Cr Milne that the Minutes of the Strategic Asset Management Advisory

Committee Meeting held on Monday 16 November 2015, as circulated, and

subject to minor amendment as discussed, be confirmed as a true and correct

record of the proceedings of that meeting.

Seconded Cr Lange CARRIED

Minor Amendment

BLACK SPOT & SPECIAL LOCAL ROADS FUNDING – POTENTIAL OPPORTUNITIES

Para Wirra – Black Spot Funding Application submitted, Special Local Roads

Application being prepared for submission in February 2016.

2.1 COMMUNITY WASTEWATER MANGEMENT SYSTEM (CWMS) INFRASTRUCTURE

ASSET MANAGEMENT PLAN (IAMP) REVIEW

MOVED Cr Milne that the draft CWMS Infrastructure Asset management Plan be

received and noted subject to comments received during the meeting, and

that Michael Clark be invited to the next Strategic Asset Management Advisory

Committee Meeting for discussion relating to CWMS Infrastructure Plan.

Seconded Cr Grossman CARRIED

The following comments were made regarding the draft CWMS Infrastructure

Asset Management Plan:-

Remove duplication of Williamstown

Investigate inclusion of 10 year graph as opposed to 20 year and

clarification of spike in 2028

Investigate if there Is any issue in relation to stormwater discharge across

the area

Building and Planning applications - how robust are the stormwater and

pipework inspections – further investigate.

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Strategic Asset Management Advisory Committee - Minutes of Meeting held 9 March

2016 Page 1

2.2 OVAL SURFACE AND IRRIGATION AUDITS – UPDATE/PROCESS/PRIORITIES

MOVED Cr Milne that the reports be received and noted.

Second Cr Lange CARRIED

Discussion ensued relating to challenges in terms of heavy usage from multiple

user groups with differing and sometimes conflicting needs.

Potential for coordinated approach to scheduling of different events/activities

to help Ovals to recover and cope with usage was outlined.

Confirmed that currently, critical Works at Williamstown and Tanunda Ovals are

proceeding.

Staff will present a draft of service levels for our Ovals at an upcoming Strategic

Asset Management Advisory Committee Meeting.

Members to be provided an update in regard to status of potential Stockwell

Oval and Talunga Park CWMS Connections being used for Oval watering.

Sub surface irrigation was discussed – it was suggested that Hydroplan be

requested to provide a cost and pro/con comparison with the current

recommended approach.

A question was also raised in relation to the pressure at Stockwell Oval (1100Kpa

– too high?) Also were all water sources clearly identified?

OTHER BUSINESS

DEPARTMENT OF PLANNING TRANSPORT AND INFRASTRUCTURE - KERB TO KERB

SEALING IN MAIN STREETS

MOVED Cr Lange that a letter be drafted for the Chief Executive Officer to

forward to the Minister for Transport and Local Member in relating to the

Department of Planning Transport and Infrastructure (DPTI) sealing in main streets

kerb to kerb.

Seconded Cr Lange CARRIED

NEXT MEETING

To be advised.

CLOSURE

There being no further business, the meeting closed at 2.40pm.

Confirmed

Date: ................................... Chairman: ....................................

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THE BAROSSA COUNCIL – COMMUNITY WASTEWATER MANAGEMENT SYSTEM – ASSET MANAGEMENT PLAN

THE BAROSSA COUNCIL

COMMUNITY WASTEWATER MANAGEMENT

SYSTEM (CWMS)

Asset Management Plan

Version 3.0

June 2016

4


Document Control

TRIM Reference: 16/9839

Rev No Date Revision Details Author Reviewer Approver

1 18/11/2008 Version 1.0 DGH MJL MJL

2 20/11/2012 Version 2.0 DGH AMWP MJL

3 30/06/2016 Version 3.0 MAI OMG CMT

© Copyright 2014 – All rights reserved.

The Institute of Public Works Engineering Australasia.

www.ipwea.org/namsplus

5

http://www.ipwea.org/namsplus


TABLE OF CONTENTS

1. EXECUTIVE SUMMARY ............................................................................................................... 1 Context ....................................................................................................................................... 1 What does it Cost? .................................................................................................................... 1 What we will do ......................................................................................................................... 2 What we cannot do ................................................................................................................. 2 Managing the Risks ................................................................................................................... 2 Confidence Levels .................................................................................................................... 3 The Next Steps ............................................................................................................................ 3

2. INTRODUCTION .......................................................................................................................... 5 2.1 Background ........................................................................................................................ 5 2.2 Goals and Objectives of Asset Management............................................................. 8 2.3 Plan Framework ................................................................................................................. 8 2.4 Core and Advanced Asset Management ................................................................ 10 2.5 Community Consultation ............................................................................................... 10

3. LEVELS OF SERVICE .................................................................................................................. 11 3.1 Customer Research and Expectations ....................................................................... 11 3.2 Strategic and Corporate Goals ................................................................................... 11 3.3 Legislative Requirements ............................................................................................... 12 3.4 Community Levels of Service ........................................................................................ 13 3.5 Technical Levels of Service............................................................................................ 15

4. FUTURE DEMAND ...................................................................................................................... 17 4.1 Demand Drivers ............................................................................................................... 17 4.2 Demand Forecast ........................................................................................................... 17 4.3 Demand Impact on Assets ............................................................................................ 17 4.4 Demand Management Plan ........................................................................................ 18 4.5 Asset Programs to meet Demand................................................................................ 19

5. LIFECYCLE MANAGEMENT PLAN ........................................................................................... 22 5.1 Background Data ........................................................................................................... 23 5.2 Infrastructure Risk Management Plan ......................................................................... 35 5.3 Routine Operations and Maintenance Plan ............................................................. 36 5.4 Renewal/Replacement Plan ........................................................................................ 41 5.5 Creation/Acquisition/Upgrade Plan............................................................................ 45 5.6 Disposal Plan .................................................................................................................... 46 5.7 Service Consequences and Risks ................................................................................. 47

6. FINANCIAL SUMMARY ............................................................................................................. 48 6.1 Financial Statements and Projections ......................................................................... 48 6.2 Funding Strategy ............................................................................................................. 55 6.3 Valuation Forecasts ........................................................................................................ 55 6.4 Key Assumptions made in Financial Forecasts .......................................................... 60 6.5 Forecast Reliability and Confidence ........................................................................... 61

7. PLAN IMPROVEMENT AND MONITORING ............................................................................ 63 7.1 Status of Asset Management Practices ...................................................................... 63 7.2 Improvement Plan........................................................................................................... 65 7.3 Monitoring and Review Procedures ............................................................................ 66 7.4 Performance Measures .................................................................................................. 66

8. REFERENCES .............................................................................................................................. 67 9. APPENDICES ............................................................................................................................. 68

Appendix A Maintenance Response Levels of Service ................................................ 68 Appendix B Projected 10 year Capital Renewal and Replacement Works Program 72 Appendix C Budgeted Expenditures Accommodated in LTFP .................................. 95 Appendix D State of The Assets ......................................................................................... 98

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Appendix E Abbreviations .................................................................................................. 99 Appendix F Glossary .......................................................................................................... 101

.

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1. EXECUTIVE SUMMARY

Context

The Barossa Council covers 912 square kilometres and is located 80 kilometres north-east of the

Adelaide Central Business District. It is bordered by the municipalities of Gawler Corporation, Light

Regional Council, Mid Murray Council, Adelaide Hills Council and the Playford Council. The Barossa

Council encompasses six major towns, Mount Pleasant, Angaston, Nuriootpa, Tanunda, Lyndoch

and Williamstown as well as 7 smaller towns and communities with a population of approximately

23,500. Council’s CWMS and Reuse assets are maintained and managed in accordance with all regulatory

requirements under the South Australian Water Act 2012, the Essential Services Commission of South

Australia (ESCOSA), the Office of The Technical Regulator (OTR) and Local Government Act 1999.

Current service is being met with existing asset capacity.

There are no current major issues that cannot be controlled with existing processes.

The Service The CWMS network comprises:

Gravity Mains (159 km)

Gravity Property Connections (5747)

Lagoons (18 including reuse and overflow)

Man Holes

Pump Stations (30)

Reuse Infrastructure (1)

Reuse Main (4 km)

Rising Main (44 km)

Waste Water Treatment Plants (5 WWTP)

As at 30 June 2015

These CWMS assets have a current replacement cost of $49,704 M (to nearest $000)

What does it Cost?

The projected outlays necessary to provide the services covered by this Asset Management Plan

(AM Plan) includes operations, maintenance, renewal and upgrade of existing assets over the 10

year planning period is $17,992 ($000)or $1,799 ($000)on average per year.

Estimated available funding for this period is $31,450 ($000) or $3,145 ($000) on average per year

which is 175% of the cost to provide the service. This is a funding surplus of $1,346 ($000) on average

per year. Projected expenditure required to provide services in the AM Plan compared with

planned expenditure currently included in the Long Term Financial Plan are shown in the graph

below.

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What we will do

We plan to provide CWMS services to the following:

Ensure the CWMS network is maintained at a safe and functional standard to Environmental

Protection Authority (EPA), Department of Health (DOH), Essential Services Commission of

South Australia (ESCOSA) and Office of The Technical Regulator’s requirements as set out in

this Infrastructure and Asset Management Plan. Maximise the useful life and operational efficiency of CWMS infrastructure via effective and

regular maintenance. Implement programmed replacement / upgrade of CWMS infrastructure in accordance

with long term infrastructure plans. Provide community benefits from water resources derived from CWMS operations.

What we cannot do

We cannot deviate from the full cost recovery model currently in place for both operational and

capital expenditure within the CWMS budget.

Managing the Risks

There are risks associated with providing the service and being able to complete all identified

activities and projects. We have identified major risks as:

Not ensuring full cost recovery.

Non-compliance to regulatory bodies

We will endeavour to manage these risks within available funding by:

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Continued effective programmed and preventative maintenance.

Continued operation improvements in tasks and activities.

Continued monitoring and condition assessment of the network.

Ensuring future growth is covered in long term capital works plans.

Confidence Levels

This AM Plan is based on a high level of confidence information.

The Next Steps

The actions resulting from this asset management plan are:

Develop specific service levels including performance targets.

Develop and establish ongoing assessment in relationship to safety and specified maintenance

intervention levels.

Audit and review of maintenance response times (to confirm whether maintenance works are

delivered on time).

Random audit of maintenance works (to confirm whether maintenance works are delivered to

the specified quality).

Review and assess changing Community Wastewater Management System studies, community

expectations and customer feedback/contact.

Consultation to ascertain the community’s service needs and preferences and confirm

performance targets.

Completing the improvement plan by November 2020.

Review of the customer request reports available in Pathway. Further improve reuse opportunities for communities.

Questions you may have

What is this plan about?

This asset management plan covers the infrastructure assets that serve The Barossa Council

community’s CWMS needs. These assets include treatment plants, lagoons, pipes, pump stations

and specialised equipment throughout the community area that enables Council to provide all services under its Water Entity Licence.

What is an Asset Management Plan?

Asset management planning is a comprehensive process to ensure that the delivery of services

from infrastructure is provided in a financially sustainable manner.

An asset management plan details information about infrastructure assets including actions

required to provide an agreed level of service in the most cost effective manner. The plan defines

the services to be provided, how the services are provided and what funds are required to provide

the services.

Do we have a funding shortfall?

Our present funding levels are sufficient to continue to provide existing services at current levels in

the medium term.

What can we do?

Continue to provide services within the framework of the National Water Initiative Pricing Principles,

meet the requirements of the OTR and ESCOSA.

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What can you do?

We will be pleased to consider your thoughts on the issues raised in this asset management plan

and suggestions on how we may change or reduce its CWMS mix of services to ensure that the

appropriate level of service can be provided to the community within available funding.

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2. INTRODUCTION

2.1 Background

The goal of the asset management plan is to demonstrate responsive management of assets (and

services provided from assets), compliance with regulatory requirements, and to communicate funding needed to provide the required levels of service over a 20 year planning period.

The asset management plan follows the format for AM Plans recommended in Section 4.2.6 of the International Infrastructure Management Manual1.

The asset management plan is to be read with the organisation’s Asset Management Policy, Asset

Management Strategy (draft document) and the following associated planning documents:

CWMS - Safety reliability maintenance and technical management plan for The Barossa Council

This infrastructure assets covered by this asset management plan are shown in Table 2.1. These assets are used to provide effluent management and treatment services to the community.

Table 2.1: Assets covered by this Plan

Asset category Dimension

Gravity Mains 159 km

Gravity Property Connections 5747 km

Lagoons (and infrastructure) 18

Man Holes (Bulk Item) Bulk Item

Pump Stations (and infrastructure) 30

Reuse Infrastructure 1

Reuse Main 4 km

Rising Main 44 km

WWTP 5

Key stakeholders in the preparation and implementation of this asset management plan are:

Shown in Table 2.1.1.

Table 2.1.1: Key Stakeholders in the AM Plan

Key Stakeholder Role in Asset Management Plan

Councillors/Board Members Represent needs of community/shareholders,

Allocate resources to meet the organisation’s objectives in

providing services while managing risks,

Ensure organisation is financial sustainable.

CEO/General Manager Ensuring effective AM practices, principles and processes are

considered at all levels within the organisation

OMG Ensuring effective AM practices, principles and processes are

1 IPWEA, 2011, Sec 4.2.6, Example of an Asset Management Plan Structure, pp 4|24 – 27.

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considered at all levels within the organisation

Neighbouring Councils Ensuring integration and consideration of neighbouring plans

and practices to effectively collaborate on cost effective service

provision

DPTI Interface Agreement with the State road network

SAPN Interface Agreement with power distribution network

SA Water Interface Agreement with the Water Supply Network

Dial Before You Dig Works coordination

Consultants/Contractors Design approvals, protection of assets (permit to work)

Developers Investing of new assets, (includes private and

public/government owned)

Community Service level expectation

Public transport providers Selection and changes to routes, Works coordination

Auditor General Audits (financial)

Emergency Services Works coordination

Telstra Interface Agreement for communication network

Optus Interface Agreement for communication network

AllWater Interface Agreement with the Water Supply Network

Environment Protection

Authority

Statutory environmental requirements

Department of Health Statutory health requirements

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CWMS Treatment System Structure

[As at November 2015]

Our organisational structure for service delivery from infrastructure assets is detailed below, [As at

November 2015]

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2.2 Goals and Objectives of Asset Management

The organisation exists to provide services to its community. Some of these services are provided by

infrastructure assets. We have acquired infrastructure assets by ‘purchase’, by contract,

construction by our staff and by donation of assets constructed by developers and others to meet increased levels of service.

Our goal in managing infrastructure assets is to meet the defined level of service (as amended from

time to time) in the most cost effective manner for present and future consumers. The key elements of infrastructure asset management are:

Providing a defined level of service and monitoring performance,

Managing the impact of growth through demand management and infrastructure

investment,

Taking a lifecycle approach to developing cost-effective management strategies for the

long-term that meet the defined level of service,

Identifying, assessing and appropriately controlling risks, and

Having a long-term financial plan which identifies required, affordable expenditure and

how it will be financed.2

2.3 Plan Framework

Key elements of the plan are

Levels of service – specifies the services and levels of service to be provided by the

organisation,

Future demand – how this will impact on future service delivery and how this is to be met,

2 Based on IPWEA, 2011, IIMM, Sec 1.2 p 1|7.

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Life cycle management – how Council will manage its existing and future assets to provide

defined levels of service,

Financial summary – what funds are required to provide the defined services,

Asset management practices,

Monitoring – how the plan will be monitored to ensure it is meeting organisation’s objectives,

Asset management improvement plan.

A road map for preparing an asset management plan is shown below.

Road Map for preparing an Asset Management Plan

Source: IPWEA, 2006, IIMM, Fig 1.5.1, p 1.11.

IS THE PLAN

AFFORDABLE?

CORPORATE PLANNING

Confirm strategic objectives and establish AM

policies, strategies & goals.

Define responsibilities & ownership.

Decide core or advanced AM Pan.

Gain organisation commitment.

REVIEW/COLLATE ASSET INFORMATION

Existing information sources

Identify & describe assets.

Data collection

Condition assessments

Performance monitoring

Valuation Data

ESTABLISH LEVELS OF SERVICE

Establish strategic linkages

Define & adopt statements

Establish measures & targets

Consultation

LIFECYCLE MANAGEMENT STRATEGIES

Develop lifecycle strategies

Describe service delivery strategy

Risk management strategies

Demand forecasting and management

Optimised decision making (renewals, new works,

disposals)

Optimise maintenance strategies

FINANCIAL FORECASTS

Lifecycle analysis

Financial forecast summary

Valuation Depreciation

Funding

IMPROVEMENT PLAN

Assess current/desired practices

Develop improvement plan

ITERATION

Reconsider service statements

Options for funding

Consult with Council

Consult with Community

DEFINE SCOPE &

STRUCTURE OF PLAN

INF

OR

MA

TIO

N M

AN

AG

EM

EN

T, a

nd

DA

TA

IM

PR

OV

EM

EN

T

AM PLAN

REVIEW AND

AUDIT

IMPLEMENT

IMPROVEMENT

STRATEGY

ANNUAL PLAN /

BUSINESS PLAN

INF

OR

MA

TIO

N M

AN

AG

EM

EN

T, a

nd

DA

TA

IM

PR

OV

EM

EN

T

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2.4 Core and Advanced Asset Management

This asset management plan is prepared as a ‘core’ asset management plan over a 20 year

planning period in accordance with the International Infrastructure Management Manual3. 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.

It is recommended that future revisions of this 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 in a financially sustainable manner.

2.5 Community Consultation

This ‘core’ asset management plan is prepared to facilitate community consultation initially through

feedback on public display of draft asset management plans prior to adoption by the

Council/Board. Future revisions of the asset management plan will incorporate community

consultation on service levels and costs of providing the service. This will assist the Council and the

community in matching the level of service needed by the community, service risks and consequences with the community’s ability and willingness to pay for the service.

3 IPWEA, 2011, IIMM.

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3. LEVELS OF SERVICE

3.1 Customer Research and Expectations

The Barossa Council manages drives and undertakes its own customer research with internal

resources utilising a combination of the following traditional and modern community engagement

strategies:

Social Media (Facebook)

Council website (www.barossa.sa.gov.au)

Council Customer Request Management System

Community Engagement Platform (www.ourbetterbarossa.com.au)

Newspaper advertising and editorial space

Newsletters (monthly and quarterly editions of d’Vine)

E-newsletter via Mailchimp

Survey Monkey

World Café style community engagement sessions

Postcards and traditional written communication

Direct communication and feedback to staff and elected members

The organisation uses this information to develop its Strategic Plan and in allocation of resources in the budget.

At this time The Barossa Council does not undertake specific customer satisfaction surveys.

3.2 Strategic and Corporate Goals

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

Our vision is:

Our Barossa: The premium wine, food and tourism region valued for its opportunity, liveability and

sense of place.

Our Themes are:

We protect our natural Environment and built Heritage

We support development of Business and Employment

We contribute to Physical and Social Infrastructure

We embrace a diverse Community and Culture

We invest in Health and Wellbeing

We value Communication and Technology

Comment [BL1]: Draft presented at Workshop

Review once Community Plan and Vision are endorsed by Council


Review once Community plan and Themes are

endorsed by Council

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http://www.barossa.sa.gov.au/

http://www.ourbetterbarossa.com.au/

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Relevant organisational themes and how these are addressed in this asset management plan are:

Table 3.2: Organisational Goals and how these are addressed in this Plan

Category Theme How Goal and Objectives are

addressed in AM Plan

Environment and built

Heritage

We protect our natural

Environment and built Heritage

Provision of energy efficient and

safe systems of effluent

management.

Business and

Employment

We support development of

Business and Employment

Consistent and compliant with

Councils Procurement Policy.

Physical and Social

Infrastructure

We contribute to Physical and

Social Infrastructure

Renewal and upgrade / new assets

created to account for increased

demand and growth.

Community and

Culture

We embrace a diverse

Community and Culture

N/A

Health and Wellbeing We invest in Health and Wellbeing Provide sanitary and compliant

infrastructure for the community.

Communication and

Technology

We value Communication and

Technology

Utilisation of the latest

communication infrastructure to

monitor and maintain CWMS

infrastructure and flows.

3.3 Legislative Requirements

The organisation has to meet many legislative requirements including Australian and State

legislation and State regulations. These include:

Table 3.3: Legislative Requirements

Legislation , Guidelines and Standards

Water Industry Act 2012 and Regulations 2012

Work Health and Safety Act 2012 and Regulations 2012

Workers Rehabilitation and Compensation Act 1986

South Australian Public Health Act 2011 and Regulations (Wastewater) 2013

Water Resources Act 1997

Natural Resources Management Act 2004 and associated Regulations

Local Government Act 1999

Environment Protection Act 1993

Environment Protection (Water Quality) Policy 2003

Comment [BL3]: To be identified in

Community Plan – presented at Council Workshop

Review once Community plan and Themes are endorsed by Council

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Dangerous Substances Act 1979 and associated Regulations 2008

Livestock Act 1997 (specifically Section 3.6)

Guidelines, Design Criteria and Standards for Community Wastewater Management Schemes

(LGA)

Community Wastewater Management System Codes 2013 (DHA)

Sewerage Code of Australia (WSA 02) and any SA Water supplementary documentation

Water Supply Code of Australia (WSA 03)

Dual Water Supply Systems First Edition Version 1.2. A Supplement (WSA 03-2002)

Sewage Pumping Station Code of Australia (WSA 04)

Vacuum Sewerage Code of Australia (WSA 06)

Pressure Sewerage Code of Australia (WSA 07)

AS/NZS 3500: Plumbing and drainage

AS/NZS 4020: Testing of products for use in contact with drinking water

AS/NZS 5667: Water quality - Sampling - Guidance on the design of sampling programs, sampling

techniques and the preservation and handling of samples

AS/NZS 2031: Water quality - Sampling for microbiological analysis (ISO 19458:2006, MOD)

AS/NZS ISO 3100: Risk management - Principles and Guidelines

The National Construction Code (NCC) Volume 3 Plumbing Code of Australia (PCA) including

South Australian Variations and/or Additional Provisions as listed in Appendix A

Standard Form: Technical Specification-Construction of Septic Tank Effluent Drainage Schemes

(DH, LGA)

Septic Tank Effluent Drainage Scheme Design Criteria (DH, LGA)

South Australian Biosolids Guidelines for the Safe Handling, Reuse or Disposal of Biosolids (EPA)

South Australian Recycled Water Guidelines (DHA)

Australian Guidelines for Water Recycling: Managing Health and Environmental Risks (Phase1)

(NRMMC, EPHC)

The organisation will exercise its duty of care to ensure public safety in accordance with the

infrastructure risk management plan linked to this AM Plan. Management of risks is discussed in

Section 5.2.

3.4 Community Levels of Service

Service levels are defined service levels in two terms, customer levels of service and technical levels

of service.

Community Levels of Service measure how the community receives the service and whether the

organisation is providing community value.

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An integral part of the CWMS network is the inter-relationship with various physical and social

factors, assessment of risk and applying key performance indicators in a practical manner.

Community levels of service measures used in the asset management plan are:

Quality How good is the service?

Function Does it meet users’ needs?

Capacity/Utilisation Is the service over or under used?

The organisation’s current and expected community service levels are detailed in Tables 3.4 and

3.5.

Table 3.4: Community Level of Service

Service

Attribute

Service Objective Performance

Measure Process

Current

Performance

Expected position

in 10 years based

on current LTFP

COMMUNITY OUTCOMES

Provide efficient and affordable collection and disposal of Community Wastewater

COMMUNITY LEVELS OF SERVICE

Quality Provide efficient method

of collection and

disposal of Community

Wastewater.

Customer

complaints

Acceptable Continuing to meet

the service delivery

needs of the

community.

Organisational measure

Confidence level

High High High

Function Ensure Community

Wastewater

Management System

meets community

expectations.

Customer requests

relating to

uncontrolled

releases from

CWMS network

All

uncontrolled

releases from

the network

stopped

within 4 hours

of being

reported

Continuing to meet

community

expectations.


Confidence levels

High High High

Capacity/

Utilisation

Provide appropriate

capacity for the

collection and disposal

of Community

Wastewater.

Customer

complaints

Acceptable Continuing to meet

capacity

requirements.


Confidence levels

High High High

Safety Provide Community

Wastewater

Management System

that is low risk to the

community

Reuse water quality

maintained to SA

Health

requirements. All

treatment sites

operate within EPA

licensing

Full

compliance

to SA Health

and EPA

requirements

Continuing to

provide a low risk

service to the

community.


Confidence levels

High High High

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3.5 Technical Levels of Service

Technical Levels of Service - Supporting the community service levels are operational or technical

measures of performance. These technical measures relate to the allocation of resources to service

activities that the organisation undertakes to best achieve the desired community outcomes and

demonstrate effective organisational performance.

Technical service measures are linked to annual budgets covering:

Operations – the regular activities to provide services such as opening hours, cleansing,

mowing grass, energy, inspections, etc.

Maintenance – the activities necessary to retain an asset as near as practicable to an

appropriate service condition (eg road patching, unsealed road grading, building and

structure repairs),

Renewal – the activities that return the service capability of an asset up to that which it had

originally (eg frequency and cost of road resurfacing and pavement reconstruction,

pipeline replacement and building component replacement),

Upgrade – the activities to provide a higher level of service (eg widening a road, sealing an

unsealed road, replacing a pipeline with a larger size) or a new service that did not exist

previously (eg a new library).

Service and asset managers plan, implement and control technical service levels to influence the

customer service levels.4

Table 3.5 shows the technical level of service expected to be provided under this AM Plan. The

agreed sustainable position in the table documents the position agreed by Council following the

consultation process.

4 IPWEA, 2011, IIMM, p 2.22

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Table 3.5: Technical Levels of Service

Service

Attribute

Service Objective Activity Measure Process Current Performance *

Operations Provide cost effective

Community Wastewater

Management System.

Monitor energy usage Energy usage

maintained to current or

below current levels

Maintenance Periodic visual assessment

and servicing of access

points

Routine removal and

inspection of access lids

Access to all reported

blockages available

within the 4 hour

timeframe

Periodic visual assessment

to determine condition

and function of drains

CCTV inspection and

drain flushing

85% of network

inspected at intervals of

not more than 6 years

Targeted Maintenance

identified as part of

periodic inspection

Targeted Maintenance As and where required

Renewal Renewal of existing assets

at an optimum time in their

lifecycle

CCTV inspection and

drain flushing

85% of network

inspected at intervals of

not more than 6 years

Planned works that

requires replacement


periodic inspection

Planned Renewal Works As and where required

as identified and

planned from periodic

visual inspection

Planned renewal if WHS

component

Planned Renewal Works As and where required

as identified and


visual inspection

2015 / 2016 Budget $2,073,150

Upgrade/New Ensure Community

Wastewater Management

System has appropriate

design capacity.

Continuous monitoring

of pump stations

operating hours

No pump station to

operate for more than

12 hours per day as per

SA health guidelines

Targeted Capital works if

capacity issue

Planned Capital Works As and where required

as identified and


visual inspection

Targeted Capital works to

address WHS issues

Planned Capital Works As and where required

as identified and


visual inspection

2015 / 2016 Budget $1,467,218

Note: * Current activities and costs (currently funded).

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4. FUTURE DEMAND

4.1 Demand Drivers

Drivers affecting demand include population change, changes in demographics, seasonal factors,

vehicle ownership rates, consumer preferences and expectations, technological changes,

economic factors, agricultural practices, environmental awareness for example.

The impact of these trends are regularly examined and demand management strategies are

recommended as a technique to modify demand without compromising customer expectations.

The Population Projections by Local Government Area predicts the Estimated Resident Population

will increase. Nuriootpa is expected to accommodate the majority of growth in the next 5-10 years

as it contains the largest amount of available, ‘development ready’ or residential zoned land.

In forecasting on the future integration of land use and Community Wastewater Management

System (CWMS) planning, the following are reviewed:

Land use effluent disposal demand.

Effluent reuse

Irrigation (BIL distribution network)

Urban Boundary Growth

Opportunities for provision of reuse water to council open space and Recreation Parks.

4.2 Demand Forecast

The present position and projections for demand drivers that may impact future service delivery

and utilisation of assets are identified and documented in Table 4.3.

4.3 Demand Impact on Assets

The impact of demand drivers that may affect future service delivery and utilisation of assets are

shown in Table 4.3.

Table 4.3: Demand Drivers, Projections and Impact on Services

Demand drivers Present position Projection Impact on services

Population 23,490 (Community Plan

Information 2016)

29,584 by 2036 Unless more land is

available issue of

sustainability is

significant.

Demographics Average growth rate of

1.64% per year between

1991-2011.

Future growth rate will

depend on timing of

rezoning and servicing

of additional land

located in existing

townships or within

areas at Concordia and

Kalbeeba identified in

the 30-year Plan as

“existing urban land” or

as a “long term urban

It is anticipated a

future growth rate of

around 1.64% per year

will have negligible

impact on existing

services (within the 20

year planning

timeframe for this

IAMP) primarily

because this growth is

based on infill aligned

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growth area”. with existing

infrastructure. In the

long term should a

new town be

provided,

infrastructure will be

constructed by the

developer. The

additional revenue

from this growth could

offset renewal and

rehabilitation costs for

existing infrastructure

across the Council

area.

Residential

Development

Limited by land supply

and township

boundaries.

Aged accommodation.

Housing needed for

workers.

Expanded towns and

new town.

Augmentation of

existing or new

infrastructure, services

and effluent disposal.

Increased demands

and inability to

provide affordable

housing.

Rural Living Range of lot sizes 0.5

hectare – 6 hectare.

Viability and

manageability of large

lots will result in pressure

to reduce sizes.

Additional service and

infrastructure

requirements in rural

localities.

Industrial

Development

Scattered rural locations

often displacing

agricultural land e.g.

Wineries.

Regional location

needed to prevent

impacts and use of

significant agricultural

areas.

Road infrastructure,

heavy transport

access, electricity and

water

supply/drainage.

Agriculturally

productive areas

Character preservation

legislation in place

which restricts future

residential development

in rural areas.

Continued production

affected by fragmented

land holding sizes and

water availability,

access issues, strategies

and policies need to

acknowledge larger

holdings and use of

smaller holdings.

Encroachment of

conflicting land uses

resulting in interface

and buffer issues.

Road and

infrastructure

provision.

4.4 Demand Management Plan

Demand for new services will be managed through a combination of managing existing assets,

upgrading of existing assets and providing new assets to meet demand and demand

management. Demand management practices include non-asset solutions, insuring against risks and managing failures.

Non-asset solutions focus on providing the required service without the need for the organisation to

own the assets and management actions including reducing demand for the service, reducing the

level of service (allowing some assets to deteriorate beyond current service levels) or educating

25

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customers to accept appropriate asset failures5. Examples of non-asset solutions include providing

services from existing infrastructure such as aquatic centres and libraries that may be in another community area or public toilets provided in commercial premises.

Opportunities identified to date for demand management are shown in Table 4.4. Further opportunities will be developed in future revisions of this asset management plan.

Table 4.4: Demand Management Plan Summary

Demand Driver Impact on Services Demand Management Plan

Trade Waste

Discharges

Trade waste discharges

impact on the BOD

loading of the WWTP.

These impacts will be minimised by applying

strict water quality discharge limits on all trade

waste connections to the system.

Stormwater inflow Increased stormwater

inflow into the

wastewater network.

Focused flow monitoring of system and smoke

testing targeted areas.

Public education plays a significant role in the

minimisation of rainwater inflow into the

wastewater network. Increasing community

awareness on the effects of the excessive

inflow rates will help in reducing the number of

faulty private drains and illegal stormwater

connections.

Community

Education

Increased stormwater

inflow into the

wastewater network.

Public education plays a significant role in the

minimisation of rainwater inflow into the

wastewater network. Increasing community

awareness on the effects of the excessive

inflow rates will help in reducing the number of

faulty private drains and illegal stormwater

connections.

4.5 Asset Programs to meet Demand

The new assets required to meet growth will be acquired free of cost from land developments and

constructed/acquired by the organisation. New assets constructed/acquired by the organisation

are discussed in Section 5.5. The cumulative value of new contributed and constructed asset values are summarised in Figure 1.

5 IPWEA, 2011, IIMM, Table 3.4.1, p 3|58.

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Figure 1: Upgrade and New Assets to meet Demand

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- 21 -


Barossa: Upgrade & New Assets to meet Demand

(CWMS_S1_V3) Data

Category Year Contributed* Constructed*

CWMS_S1_V3 2015 $249 $0

CWMS_S1_V3 2016 $498 $0

CWMS_S1_V3 2017 $749 $0

CWMS_S1_V3 2018 $1,002 $0

CWMS_S1_V3 2019 $1,255 $0

CWMS_S1_V3 2020 $1,510 $0

CWMS_S1_V3 2021 $1,766 $0

CWMS_S1_V3 2022 $2,023 $0

CWMS_S1_V3 2023 $2,282 $0

CWMS_S1_V3 2024 $2,542 $0

CWMS_S1_V3 2025 $2,803 $0

CWMS_S1_V3 2026 $3,066 $0

CWMS_S1_V3 2027 $3,329 $0

CWMS_S1_V3 2028 $3,595 $0

CWMS_S1_V3 2029 $3,861 $0

CWMS_S1_V3 2030 $4,129 $0

CWMS_S1_V3 2031 $4,398 $0

CWMS_S1_V3 2032 $4,669 $0

CWMS_S1_V3 2033 $4,940 $0

CWMS_S1_V3 2034 $5,214 $0

*all dollar values in ($'000)'s

Acquiring these new assets will commit the organisation to fund ongoing operations, maintenance

and renewal 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 operations, maintenance and renewal costs in Section 5.

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5. LIFECYCLE MANAGEMENT PLAN

Initial capital cost constitutes a significant up-front cost and often dominate the decision-making

process when acquiring new assets. However the ongoing recurrent expenditures (including

depreciation) usually represent a high portion of the total life-cycle costs of many assets. It is

important that they be included in the financial analysis undertaken to evaluate asset investment

options.

There may also be substantial costs associated with disposal at the end of an assets service life (e.g.

clean-up or demolition costs).

The way an asset is acquired or created may have a great impact on its future operation,

maintenance, or even disposal.

The Barossa Council, as custodians of the Local CWMS Network and infrastructure, are charged

with the responsibility to ensure that the asset continues to function and meet the community

needs and expectations as well as maintaining asset in safe and usable condition within a

reasonable duty of care.

In all cases, the asset functionality and asset maintenance targets need to be clearly defined with

the community (Users) and the asset service provider (Council) to determine the “ fit for purpose”

having regard to practicality and economics. That is, a level of service provided within a

reasonable duty of care in an affordable financial sustainable manner that considers community

expectations in regard to safety, discharge operation and overall condition of the local community

wastewater management system network.

Asset functionality as a “level of service” to the community must take into consideration such

factors as, life cycle, capability and capacity, risk management and strategic compliance to the

needs and expectations of the overall community.

Asset maintenance “levels of service” provide for the day - to - day maintenance programs to

ensure that the asset operations are safe within practical constraints, maintain to perform targets

for day - to - day use and is managed and maintained to minimise environmental risk and

protection of residents.

To minimise environmental impacts the following actions are identified;

Reducing hydraulic loading on the collection system and treatment plant

Continuation of asset augmentation

Better knowledge of the wastewater collection system, and its condition and

performance

Reduced energy costs

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The structure of maintenance and capital works is represented by the following diagram:

5.1 Background Data

5.1.1 Physical parameters

The assets covered by this asset management plan are shown in Table 2.1.

The CWMS reticulation infrastructure is predominantly located within the townships of:

Nuriootpa Township

Penrice Township

Springton Township

Tanunda Township

Lyndoch Township

Williamstown Township

Mount Pleasant Township

The age profile of the assets include in this AM Plan is shown in Figure 2.

30

- 24 -


Figure 2: Asset Age Profile

31

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32

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33

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34

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35

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5.1.2 Asset capacity and performance

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

Council's performance in the delivery of treated waste water services is monitored through key

performance indicators.

Level of Service (LoS) statements provide measurable performance indicators, describing the

means of delivering treated waste water services to achieve the desired outcomes. The key service

areas are:

Capability of service

Service sustainability

Quality of service (responsiveness)

Cost effectiveness

Customer service/customer satisfaction

One of the most important service sustainability indicators is the likely occurrence of high rainfall

inflows into the wastewater network. Other significant service sustainability measures are the

numbers of blockages and dry weather discharges from the wastewater network.

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

Township Earthenware

Gravity Lines

Earthenware gravity lines in sections of Tanunda, Nuriootpa and

Mount Pleasant require regular camera inspections to monitor

condition, with some faulty drains replaced or repaired.

Gravity lines Effluent infiltration/inflow involves the entry of surface water and

groundwater into a wastewater collection system, causing

hydraulic overloading of the system. This can result in;

Surging of manholes and house connections, causing

effluent to flow over properties, with potential public

health impacts

Overflow of effluent from wet wells and bypassing of

treatment plants, causing environmental and public

health problems

Overloading of the treatment processes, causing a

deterioration in effluent quality

Excessive pumping costs and increased pump wear; and

premature and expensive system augmentations.

The above service deficiencies were identified from Council CWMS and Engineering Officers.

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- 30 -


5.1.3 Asset condition

Condition is monitored as below:

Service Objective Activity Measure

Process

Current

Performance *

Methodology

Periodic visual

assessment and servicing

of access points

Routine removal

and inspection of

access lids

Access to all

reported

blockages

available within the

4 hour timeframe

Undertaken by specialist

pipeline maintenance and

inspection contractor in

addition to Council staff

on a cyclical program

Periodic visual

assessment to determine

condition and function

of drains

CCTV inspection

and drain flushing

85% of network

inspected at

intervals of not

more than 6 years






Targeted Maintenance


periodic inspection

Targeted

Maintenance

As and where

required






The condition profile of our assets is shown in Figure 3.

Fig 3: Asset Condition Profile

37

- 31 -


38

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39

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40

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Condition is measured using a 1 – 5 grading system6 as detailed in Table 5.1.3.

Table 5.1.3: Simple Condition Grading Model

Condition

Grading

Description of Condition

1 Very Good: only planned maintenance required

2 Good: minor maintenance required plus planned maintenance

3 Fair: significant maintenance required

4 Poor: significant renewal/rehabilitation required

5 Very Poor: physically unsound and/or beyond rehabilitation

5.1.4 Asset valuations

The value of assets recorded in the asset register as at 30 June 2015 covered by this asset

management plan is shown below. Assets were last revalued at 1 July 2014. Assets are valued at fair value.

Current Replacement Cost $49,704 ($000)

Depreciable Amount $49,704 ($000)

Depreciated Replacement Cost7 $29,534 ($000)

Annual Depreciation Expense $770 ($000)

The CWMS Pipework Network was valued as at 1 July 2014 using unit rates provided by Tonkin

Consulting. All other CWMS assets were revalued using in-house expertise comparing component

values to actual costs from recent CWMS Waste Water Treatment Plant construction and industry

rate comparisons.

One sixth of The CWMS Pipe Network is condition assessed annually. This sets the maintenance,

upgrade and replacement program for the following years.

An in-house condition assessment of lagoons and waste water treatment plants was undertaken in

2013/14 using independent assistance as/when required together with a review of the

independent useful life for this asset class.

Major changes from previous valuations are due to increases in unit rates, improvements in the accuracy of assumptions and improved accuracy of the data.

Various ratios of asset consumption and expenditure have been prepared to help guide and gauge asset management performance and trends over time.

Rate of Annual Asset Consumption 1.6%

(Depreciation/Depreciable Amount)

Rate of Annual Asset Renewal 0.3%

In 2016 the organisation plans to renew assets at 22% of the rate they are being consumed.

6 IPWEA, 2011, IIMM, Sec 2.5.4, p 2|79.

7 Also reported as Written Down Current Replacement Cost (WDCRC).

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5.1.5 Historical Data

Historical data on the physical location, dimensions and civil works are located in the Works and

Engineering Department and Council’s Electronic Document Records Management System

(EDRMS).

Historical Financial data can be found here:

https://www.barossa.sa.gov.au/sections/council/financial-documents/annual-financial-statements

5.2 Infrastructure Risk Management Plan

An assessment of risks8 associated with service delivery from infrastructure assets has identified

critical risks that will result in loss or reduction in service from infrastructure assets or a ‘financial

shock’ to the organisation. The risk assessment process identifies credible risks, the likelihood of the

risk event occurring, the consequences should the event occur, develops a risk rating, evaluates

the risk and develops a risk treatment plan for non-acceptable risks.

Critical risks, being those assessed as ‘Very High’ - requiring immediate corrective action and ‘High’

– requiring prioritised corrective action identified in the Infrastructure Risk Management Plan,

together with the estimated residual risk after the selected treatment plan is operational are summarised in Table 5.2. These risks are reported to management and Council.

Table 5.2: Critical Risks and Treatment Plans

Service or

Asset at Risk

What can Happen Risk Rating

(VH, H)

Risk Treatment Plan Residual

Risk *

Treatment

Plant

Discharge to

environment from

inadequacy capacity

High Upgrade plant capacity /

emergency flow storages

Low

Effluent Lines Blockage High Regular flushing of line and

inspections

Low

Pump Station Collapse of septic pits High Regular inspections and

replacement where required

Low

Effluent lines Infrastructure

damaged by

excavation.

High Add GIS CWMS data to Dial

Before You Dig service

Low

Pump Station Pump failure. High SCADA monitoring,

emergency response plan,

emergency generator,

emergency portable pump

Low

Effluent Lines Broken lines. High Emergency response plan for

clean-up, SCADA Emergency

Line Shutdown

Low

Effluent Lines Deterioration of

existing pipes.

High Systematic cleaning and

inspection of drain and

replace or repair when

required

Low

8 CWMS - Safety Reliability Maintenance and Technical Management Plan for The Barossa Council

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Pump Station Discharge to the

environment.

High SCADA monitoring Emergency

Response plan

Low

Note * The residual risk is the risk remaining after the selected risk treatment plan is operational.

5.3 Routine Operations and Maintenance Plan

Operations include regular activities to provide services such as public health, safety and amenity,

eg cleansing, street sweeping, grass mowing and street lighting.

Routine maintenance is the regular on-going work that is necessary to keep assets operating,

including instances where portions of the asset fail and need immediate repair to make the asset

operational again.

5.3.1 Operations and Maintenance Plan

Operations activities affect service levels including quality and function through street sweeping

and grass mowing frequency, intensity and spacing of street lights and cleaning frequency and

opening hours of building and other facilities.

Maintenance includes all actions necessary for retaining an asset as near as practicable to an

appropriate service condition including regular ongoing day-to-day work necessary to keep assets

operating, eg road patching but excluding rehabilitation or renewal. Maintenance may be

classified into reactive, planned and specific maintenance work activities.

Reactive maintenance is unplanned repair work carried out in response to service requests and

management/supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance

management system (MMS). MMS activities include inspection, assessing the condition against

failure/breakdown experience, prioritising, scheduling, actioning the work and reporting what was

done to develop a maintenance history and improve maintenance and service delivery

performance.

Specific maintenance is replacement of higher value components/sub-components of assets that

is undertaken on a regular cycle including repainting, replacing air conditioning units, etc. This work

falls below the capital/maintenance threshold but may require a specific budget allocation.

Actual past maintenance expenditure is shown in Table 5.3.1.

Table 5.3.1: Maintenance Expenditure Trends

Maintenance Expenditure

Year Operations

($000)

Maintenance

($000)

Operations Asset

Management

System ($000)

Total ($000)

2012/2013 $904 $380 $13 $1,297 Actual

2013/2014 $697 $303 $14 $1,014 Actual

2014/2015 $769 $340 $22 $1,130 Actual

2015/2016 $784 $324 $23 $1,132 Budgeted

Operations maintenance work is currently 70% of total maintenance expenditure.

Reactive Maintenance work is currently 29% of total maintenance expenditure.

Expenditure on the CWMS management system is currently 1% of total maintenance expenditure.

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Maintenance expenditure levels are considered to be adequate to meet projected service levels,

which may be less than or equal to current service levels. Where maintenance expenditure levels

are such that will result in a lesser level of service, the service consequences and service risks have

been identified and service consequences highlighted in this AM Plan and service risks considered

in the Infrastructure Risk Management Plan.

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

experience and judgement.

5.3.2 Operations and Maintenance Strategies

The organisation will operate and maintain assets to provide the defined level of service to

approved budgets in the most cost-efficient manner. The operation and maintenance activities

include:

Scheduling operations activities to deliver the defined level of service in the most efficient

manner,

Undertaking maintenance activities through a planned maintenance system to reduce

maintenance costs and improve maintenance outcomes. Undertake cost-benefit analysis

to determine the most cost-effective split between planned and unplanned maintenance

activities (50 – 70% planned desirable as measured by cost),

Maintain a current infrastructure risk register for assets and present service risks associated

with providing services from infrastructure assets and reporting Very High and High risks and

residual risks after treatment to management and Council/Board,

Review current and required skills base and implement workforce training and development

to meet required operations and maintenance needs,

Review asset utilisation to identify underutilised assets and appropriate remedies, and over

utilised assets and customer demand management options,

Maintain a current hierarchy of critical assets and required operations and maintenance

activities,

Develop and regularly review appropriate emergency response capability,

Review management of operations and maintenance activities to ensure Council is

obtaining best value for resources used.

Asset hierarchy

An asset hierarchy provides a framework for structuring data in an information system to assist in

collection of data, reporting information and making decisions. The hierarchy includes the asset

class and component used for asset planning and financial reporting and service level hierarchy

used for service planning and delivery.

The asset hierarchy in the Corporate Asset Management System is represented below:

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The organisation’s service hierarchy is shown is Table 5.3.2.

Table 5.3.2: Asset Service Hierarchy

Service Hierarchy Service Level Objective

Nuriootpa Township Provide an efficient and low risk method of collection and disposal

of Community Wastewater in alinement with Essential Services

Commission of South Australia (ESCOSA)

Penrice Township Provide an efficient and low risk method of collection and disposal



Springton Township Provide an efficient and low risk method of collection and disposal



Tanunda Township Provide an efficient and low risk method of collection and disposal



Lyndoch Township Provide an efficient and low risk method of collection and disposal



Williamstown Township Provide an efficient and low risk method of collection and disposal



Williamstown Township Provide an efficient and low risk method of collection and disposal



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Critical Assets

Critical assets are those assets which have a high consequence of failure but not necessarily a high

likelihood of failure. By identifying critical assets and critical failure modes, organisations can target

and refine investigative activities, maintenance plans and capital expenditure plans at the

appropriate time.

Operations and maintenances activities may be targeted to mitigate critical assets failure and

maintain service levels. These activities may include increased inspection frequency, higher

maintenance intervention levels, etc. Critical assets failure modes and required operations and

maintenance activities are detailed in Table 5.3.2.1.

Table 5.3.2.1: Critical Assets and Service Level Objectives

Critical Assets Critical Failure Mode Operations & Maintenance Activities

Lagoon Loss of treatment

capacity

Continuous lagoon monitoring for

operational performance including

corrective maintenance as required and

within budget allocations

Reticulation Network Uncontrolled discharge to

environment

Continuous network monitoring for




Pump Station Uncontrolled discharge to

environment

Continuous station monitoring for




Waste Water Treatment

Plant

Release of non-compliant

treated effluent

Continuous treatment plant monitoring for




Reuse water distribution

network

Inability to dispose of

treated effluent

Continuous reuse network monitoring for




Standards and specifications

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

Refer 3.3 – Legislative Requirements

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5.3.3 Summary of future operations and maintenance expenditures

Future operations and maintenance expenditure is forecast to trend in line with the value of the

asset stock as shown in Figure 4. Note that all costs are shown in current 2015 dollar values (ie real values).

Figure 4: Projected Operations and Maintenance Expenditure

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Barossa: Projected Operations & Maintenance Expenditure (CWMS_S1_V3) Data

Category Year Maintenance* Operations* Budget*

CWMS_S1_V3 2015 $340 $1,208 $1,548

CWMS_S1_V3 2016 $326 $1,237 $1,555

CWMS_S1_V3 2017 $327 $1,243 $1,555

CWMS_S1_V3 2018 $329 $1,250 $1,555

CWMS_S1_V3 2019 $331 $1,256 $1,555

CWMS_S1_V3 2020 $332 $1,262 $1,555

CWMS_S1_V3 2021 $334 $1,268 $1,555

CWMS_S1_V3 2022 $336 $1,275 $1,555

CWMS_S1_V3 2023 $337 $1,281 $1,555

CWMS_S1_V3 2024 $339 $1,287 $1,555

CWMS_S1_V3 2025 $342 $1,292 $1,554

CWMS_S1_V3 2026 $344 $1,298 $1,554

CWMS_S1_V3 2027 $346 $1,304 $1,554

CWMS_S1_V3 2028 $347 $1,311 $1,554

CWMS_S1_V3 2029 $349 $1,318 $1,554

CWMS_S1_V3 2030 $351 $1,324 $1,554

CWMS_S1_V3 2031 $353 $1,331 $1,554

CWMS_S1_V3 2032 $354 $1,337 $1,554

CWMS_S1_V3 2033 $356 $1,344 $1,554

CWMS_S1_V3 2034 $358 $1,351 $1,554


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

Maintenance is funded from the operating budget where available. This is further discussed in

Section 6.2.

5.4 Renewal/Replacement Plan

Renewal and replacement 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 or lesser

required service potential. Work over and above restoring an asset to original service potential is

upgrade/expansion or new works expenditure.

5.4.1 Renewal plan

Assets requiring renewal/replacement are identified from one of three methods provided in the

‘Expenditure Template’.

Method 1 uses Asset Register data to project the renewal costs using acquisition year and

useful life to determine the renewal year, or

Method 2 uses capital renewal expenditure projections from external condition modelling

systems, or

Method 3 uses a combination of average network renewals plus defect repairs in the Renewal Plan and Defect Repair Plan worksheets on the ‘Expenditure template’.

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Method 1 was used for this asset management plan.

The useful lives of assets used to develop projected asset renewal expenditures are shown in Table 5.4.1. Asset useful lives were last reviewed internally as at 1 July 2014.

Table 5.4.1: Useful Lives of Assets

Asset (Sub)Category Useful life

Pump Stations - Components 10 – 50 Years

Lagoons - Components 40 – 100 years

Waste Water Treatment Plant - Components 5 – 50 years

Pipes – PVC/UPVC 60 – 100 Years

Pipes - Earthenware 55 – 65 Years

5.4.2 Renewal and Replacement Strategies

The organisation will plan capital renewal and replacement projects to meet level of service objectives and minimise infrastructure service risks by:

Planning and scheduling renewal projects to deliver the defined level of service in the most

efficient manner,

Undertaking project scoping for all capital renewal and replacement projects to identify:

o the service delivery ‘deficiency’, present risk and optimum time for

renewal/replacement,

o the project objectives to rectify the deficiency,

o the range of options, estimated capital and life cycle costs for each options that

could address the service deficiency,

o and evaluate the options against evaluation criteria adopted by the organisation,

and

o select the best option to be included in capital renewal programs,

Using ‘low cost’ renewal methods (cost of renewal is less than replacement) wherever

possible,

Maintain a current infrastructure risk register for assets and service risks associated with

providing services from infrastructure assets and reporting Very High and High risks and



to meet required construction and renewal needs,

Maintain a current hierarchy of critical assets and capital renewal treatments and timings

required ,

Review management of capital renewal and replacement activities to ensure Council is


Renewal ranking criteria

Asset renewal and replacement is typically undertaken to either:

Ensure the reliability of the existing infrastructure to deliver the service it was constructed to

facilitate (eg replacing a main with an insufficient capacity), or

To ensure the infrastructure is of sufficient quality to meet the service requirements (eg to meet capacity requirements).9

It is possible to get some indication of capital renewal and replacement priorities by identifying assets or asset groups that:

9 IPWEA, 2011, IIMM, Sec 3.4.4, p 3|60.

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Have a high consequence of failure,

Have a high utilisation and subsequent impact on users would be greatest,

The total value represents the greatest net value to the organisation,

Have the highest average age relative to their expected lives,

Are identified in the AM Plan as key cost factors,

Have high operational or maintenance costs, and

Where replacement with modern equivalent assets would yield material savings.10

The ranking criteria used to determine priority of identified renewal and replacement proposals is detailed in Table 5.4.2.

Table 5.4.2: Renewal and Replacement Priority Ranking Criteria

Criteria Weighting

Upgrade lagoon capability to meet increased population from new

developments in main township

50%

Upgrade of reticulation pipe system

due to condition / capacity of existing

system particularly earthenware pipe

network.

35%

Upgrade of monitoring systems to

obtain real time analysis of

performance and faults at pump

stations.

15%

Total 100%

Renewal and replacement standards

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


5.4.3 Summary of future renewal and replacement expenditure

Projected future renewal and replacement expenditures are forecast to increase over time as the

asset stock increases from growth. The expenditure is summarised in Fig 5. Note that all amounts

are shown in real values.

10 Based on IPWEA, 2011, IIMM, Sec 3.4.5, p 3|66.

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The projected capital renewal and replacement program is shown in Appendix B.

Fig 5: Projected Capital Renewal and Replacement Expenditure

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Barossa - Projected Capital Renewal Expenditure (CWMS_S1_V3) Data

Category Year Renewal Cost

CWMS_S1_V3 2015 $0

CWMS_S1_V3 2016 $65

CWMS_S1_V3 2017 $113

CWMS_S1_V3 2018 $301

CWMS_S1_V3 2019 $71

CWMS_S1_V3 2020 $374

CWMS_S1_V3 2021 $110

CWMS_S1_V3 2022 $320

CWMS_S1_V3 2023 $356

CWMS_S1_V3 2024 $284

CWMS_S1_V3 2025 $312

CWMS_S1_V3 2026 $225

CWMS_S1_V3 2027 $679

CWMS_S1_V3 2028 $4,366

CWMS_S1_V3 2029 $214

CWMS_S1_V3 2030 $219

CWMS_S1_V3 2031 $2,172

CWMS_S1_V3 2032 $469

CWMS_S1_V3 2033 $524

CWMS_S1_V3 2034 $22

*all dollar values in ($'000)'s*

Deferred renewal and replacement, ie those assets identified for renewal and/or replacement and

not scheduled in capital works programs are to be included in the risk analysis process in the risk

management plan.

Renewals and replacement expenditure in the organisation’s capital works program will be

accommodated in the long term financial plan. This is further discussed in Section 6.2.

5.5 Creation/Acquisition/Upgrade Plan

New works are those works that create a new asset that did not previously exist, or works which

upgrade or improve an existing asset beyond its existing capacity. They may result from growth,

social or environmental needs. Assets may also be acquired at no cost to the organisation from

land development. These assets from growth are considered in Section 4.4.

5.5.1 Selection criteria

New assets and upgrade/expansion of existing assets are identified from various sources such as

councillor/director or community requests, proposals identified by strategic plans or partnerships

with other organisations. Candidate proposals are inspected to verify need and to develop a

preliminary renewal estimate. Verified proposals are ranked by priority and available funds and

scheduled in future works programmes. The priority ranking criteria is detailed below.

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Table 5.5.1: New Assets Priority Ranking Criteria

Criteria Weighting

Upgrade lagoon capability to meet

increased population from new

developments in main township

50%

Upgrade of reticulation pipe system due to

condition / capacity of existing system

particularly earthenware pipe network.

35%

Upgrade of monitoring systems to obtain

real time analysis of performance and

faults at pump stations.

15%

Total 100%

5.5.2 Capital Investment Strategies

The organisation will plan capital upgrade and new projects to meet level of service objectives by:

Planning and scheduling capital upgrade and new projects to deliver the defined level of

service in the most efficient manner,

Undertake project scoping for all capital upgrade/new projects to identify:

o the service delivery ‘deficiency’, present risk and required timeline for delivery of the

upgrade/new asset,

o the project objectives to rectify the deficiency including value management for

major projects,



o management of risks associated with alternative options,

o and evaluate the options against evaluation criteria adopted by Council, and

o select the best option to be included in capital upgrade/new programs,

Review current and required skills base and implement training and development to meet

required construction and project management needs,

Review management of capital project management activities to ensure Council is


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.

5.5.3 Summary of future upgrade/new assets expenditure

Projected upgrade/new asset expenditures are summarised in Fig 6. The projected upgrade/new

capital works program is shown in Appendix C. All amounts are shown in real values.

Fig 6: Projected Capital Upgrade/New Asset Expenditure

There is no projected capital upgrade / new expenditure outside that stated in the LTFP.

Expenditure on new assets and services in the organisation’s capital works program will be accommodated in the long term financial plan. 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.

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Council is not planning to dispose of any major CWMS assets. Minor plant and equipment may be

disposed of as it reaches the end of its useful life.

5.7 Service Consequences and Risks

The organisation has prioritised decisions made in adopting this AM Plan to obtain the optimum

benefits from its available resources. Decisions were made based on the development of 3 scenarios of AM Plans.

Scenario 1 - What we would like to do based on asset register data

Scenario 2 – What we should do with existing budgets and identifying level of service and risk

consequences (ie what are the operations and maintenance and capital projects we are unable

to do, what is the service and risk consequences associated with this position). This may require several versions of the AM Plan.

Scenario 3 – What we can do and be financially sustainable with AM Plans matching long-term financial plans.

The development of scenario 1 and scenario 2 AM Plans provides the tools for discussion with the

Council/Board and community on trade-offs between what we would like to do (scenario 1) and

what we should be doing with existing budgets (scenario 2) by balancing changes in services and

service levels with affordability and acceptance of the service and risk consequences of the trade-off position (scenario 3).

As the CWMS network operates under the Water Act (2012), it is required to provide a system that

meets the requirements of ESCOSA and Office of the Technical Regulator (OTR) Guidelines. This incorporates all risk management policies and procedures.

5.7.1 What we cannot do

There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:

N/A – All works will be undertaken to satisfy the requirements of ESCOSA and the OTR.

5.7.2 Service consequences

Operations and maintenance activities and capital projects that cannot be undertaken will maintain or create service consequences for users. These include:


5.7.3 Risk consequences

The operations and maintenance activities and capital projects that cannot be undertaken may maintain or create risk consequences for the organisation. These include:


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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). Note that all costs are

shown in real values.

Fig 7: Projected Operating and Capital Expenditure

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Barossa - Projected Operating and Capital Expenditure (CWMS_S1_V3) Data

Category Year Maintenance* Operations* Disposals* Capital

Upgrade* Capital

Renewal* Budget

Expenditure* CWMS_S1_V3 2015 $340 $1,208 $0 $0 $70 $3,015

CWMS_S1_V3 2016 $326 $1,237 $0 $0 $65 $3,203

CWMS_S1_V3 2017 $327 $1,243 $0 $0 $113 $3,194

CWMS_S1_V3 2018 $329 $1,250 $0 $0 $301 $3,341

CWMS_S1_V3 2019 $331 $1,256 $0 $0 $71 $3,213

CWMS_S1_V3 2020 $332 $1,262 $0 $0 $403 $3,381

CWMS_S1_V3 2021 $334 $1,268 $0 $0 $110 $2,705

CWMS_S1_V3 2022 $336 $1,275 $0 $0 $320 $3,019

CWMS_S1_V3 2023 $337 $1,281 $0 $0 $356 $3,430

CWMS_S1_V3 2024 $339 $1,287 $0 $0 $284 $2,949

CWMS_S1_V3 2025 $342 $1,292 $0 $0 $357 $3,145

CWMS_S1_V3 2026 $344 $1,298 $0 $0 $225 $3,145

CWMS_S1_V3 2027 $346 $1,304 $0 $0 $679 $3,145

CWMS_S1_V3 2028 $347 $1,311 $0 $0 $4,366 $3,145

CWMS_S1_V3 2029 $349 $1,318 $0 $0 $214 $3,145

CWMS_S1_V3 2030 $351 $1,324 $0 $0 $248 $3,145

CWMS_S1_V3 2031 $353 $1,331 $0 $0 $2,172 $3,145

CWMS_S1_V3 2032 $354 $1,337 $0 $0 $469 $3,145

CWMS_S1_V3 2033 $356 $1,344 $0 $0 $524 $3,145

CWMS_S1_V3 2034 $358 $1,351 $0 $0 $22 $3,145


6.1.1 Sustainability of service delivery

There are four key indicators for service delivery sustainability that have been considered in the

analysis of the services provided by this asset category, these being the asset renewal funding ratio,

long term life cycle costs/expenditures and medium term projected/budgeted expenditures over 5

and 10 years of the planning period.

Asset Renewal Funding Ratio

Asset Renewal Funding Ratio11 69%

The Asset Renewal Funding Ratio is the most important indicator and reveals that over the next 10

years, Council is forecasting that it will have 69%of the funds required for the optimal renewal and

replacement of its assets.

Long term - Life Cycle Cost

Life cycle costs (or whole of life costs) are the average costs that are required to sustain the service

levels over the asset life cycle. Life cycle costs include operations and maintenance expenditure

and asset consumption (depreciation expense). The life cycle cost for the services covered in this

11 AIFMG, 2012, Version 1.3, Financial Sustainability Indicator 4, Sec 2.6, p 2.16

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asset management plan is $2,360 ($000) per year (average operations and maintenance

expenditure plus depreciation expense projected over 10 years).

Life cycle costs can be compared to life cycle expenditure to give an initial indicator of

affordability of projected service levels when considered with age profiles. Life cycle expenditure

includes operations, maintenance and capital renewal expenditure. Life cycle expenditure will

vary depending on the timing of asset renewals. The life cycle expenditure over the 10 year

planning period is $1,690 ($000) per year (average operations and maintenance plus capital

renewal budgeted expenditure in LTFP over 10 years).

A shortfall between life cycle cost and life cycle expenditure is the life cycle gap. The life cycle

gap for services covered by this asset management plan is -$669 per year (-ve = gap, +ve =

surplus).

Life cycle expenditure is 72% of life cycle costs.

The life cycle costs and life cycle expenditure comparison highlights any difference between

present outlays and the average cost of providing the service over the long term. If the life cycle

expenditure is less than that life cycle cost, it is most likely that outlays will need to be increased or

cuts in services made in the future.

Knowing the extent and timing of any required increase in outlays and the service consequences if

funding is not available will assist organisations in providing services to their communities in a

financially sustainable manner. This is the purpose of the asset management plans and long term

financial plan.

Medium term – 10 year financial planning period

This asset management plan identifies the projected operations, maintenance and capital renewal

expenditures required to provide an agreed level of service to the community over a 10 year

period. This provides input into 10 year financial and funding plans aimed at providing the required

services in a sustainable manner.

These projected expenditures may be compared to budgeted expenditures in the 10 year period

to identify any funding shortfall. In a core asset management plan, a gap is generally due to

increasing asset renewals for ageing assets.

The projected operations, maintenance and capital renewal expenditure required over the 10 year

planning period is $1,799 ($000) on average per year.

Estimated (budget) operations, maintenance and capital renewal funding is $1,690 ($000) on

average per year giving a 10 year funding shortfall of -$109 ($000) per year. This indicates that

Council expects to have 94% of the projected expenditures needed to provide the services

documented in the asset management plan.

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Medium Term – 5 year financial planning period

The projected operations, maintenance and capital renewal expenditure required over the first 5

years of the planning period is $1,693 ($000) on average per year.

Estimated (budget) operations, maintenance and capital renewal funding is $1,702 ($000) on

average per year giving a 5 year funding shortfall of $9 ($000). This indicates that Council expects

to have 101% of projected expenditures required to provide the services shown in this asset

management plan.

Asset management financial indicators

Figure 7A shows the asset management financial indicators over the 10 year planning period and

for the long term life cycle.

Figure 7A: Asset Management Financial Indicators

Providing services from infrastructure in a sustainable manner requires the matching and managing

of service levels, risks, projected expenditures and financing to achieve a financial indicator of

approximately 1.0 for the first years of the asset management plan and ideally over the 10 year life

of the Long Term Financial Plan.

Figure 8 shows the projected asset renewal and replacement expenditure over the 20 years of the

AM Plan. The projected asset renewal and replacement expenditure is compared to renewal and

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replacement expenditure in the capital works program, which is accommodated in the long term

financial plan

Figure 8: Projected and LTFP Budgeted Renewal Expenditure

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Barossa: Projected & LTFP Budgeted Renewal Expenditure (CWMS_S1_V3) Data

Category Year

Projected Renewals

Planned Renewals

Expenditure Yr1

($'000) ($'000) ($'000)

CWMS_S1_V3 2015 $70 $169 $169

CWMS_S1_V3 2016 $65 $228 $169

CWMS_S1_V3 2017 $113 $104 $169

CWMS_S1_V3 2018 $301 $143 $169

CWMS_S1_V3 2019 $71 $99 $169

CWMS_S1_V3 2020 $403 $101 $169

CWMS_S1_V3 2021 $110 $157 $169

CWMS_S1_V3 2022 $320 $157 $169

CWMS_S1_V3 2023 $356 $101 $169

CWMS_S1_V3 2024 $284 $101 $169

CWMS_S1_V3 2025 $357 $136 $169

CWMS_S1_V3 2026 $225 $136 $169

CWMS_S1_V3 2027 $679 $136 $169

CWMS_S1_V3 2028 $4,366 $136 $169

CWMS_S1_V3 2029 $214 $136 $169

CWMS_S1_V3 2030 $248 $136 $169

CWMS_S1_V3 2031 $2,172 $136 $169

CWMS_S1_V3 2032 $469 $136 $169

CWMS_S1_V3 2033 $524 $136 $169

CWMS_S1_V3 2034 $22 $136 $169


Table 6.1.1 shows the shortfall between projected renewal and replacement expenditures and

expenditure accommodated in long term financial plan. Budget expenditures accommodated in

the long term financial plan or extrapolated from current budgets are shown in Appendix C.

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Table 6.1.1: Projected and LTFP Budgeted Renewals and Financing Shortfall

Barossa - Report 4 - Table 6.1.1 Renewals Financing (CWMS_S1_V3)

Year End

Projected LTFP Renewal Financing

Cumulative Shortfall($'000)

Jun-30 Renewals Renewal Budget

Shortfall ($'000) (- gap, + surplus)

($'000) ($'000) (- gap, + surplus)

2015 $70 $169 $99 $99

2016 $65 $228 $163 $261

2017 $113 $104 -$9 $253

2018 $301 $143 -$158 $94

2019 $71 $99 $28 $123

2020 $403 $101 -$302 -$180

2021 $110 $157 $47 -$133

2022 $320 $157 -$163 -$297

2023 $356 $101 -$255 -$552

2024 $284 $101 -$183 -$735

2025 $357 $136 -$221 -$956

2026 $225 $136 -$89 -$1,045

2027 $679 $136 -$543 -$1,589

2028 $4,366 $136 -$4,230 -$5,818

2029 $214 $136 -$78 -$5,896

2030 $248 $136 -$112 -$6,008

2031 $2,172 $136 -$2,036 -$8,045

2032 $469 $136 -$333 -$8,377

2033 $524 $136 -$388 -$8,765

2034 $22 $136 $114 -$8,651

Note: A negative shortfall indicates a financing gap, a positive shortfall indicates a surplus for that year.

6.1.2 Projected expenditures for long term financial plan

Table 6.1.2 shows the projected expenditures for the 10 year long term financial plan.

Expenditure projections are in 2015 real values.

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Table 6.1.2: Projected Expenditures for Long Term Financial Plan ($000)

Barossa - Report 5 - Table 6.1.2 Long Term Financial Plan (CWMS_S1_V3)

Year Operations Maintenance Projected Capital Disposals

Capital

Renewal Upgrade/New

2015 $1,208.00 $340.00 $70.48 $0.00 $0.00

2016 $1,237.14 $325.63 $65.40 $0.00 $0.00

2017 $1,243.32 $327.26 $112.56 $0.00 $0.00

2018 $1,249.52 $328.91 $301.24 $0.00 $0.00

2019 $1,255.76 $330.56 $70.75 $0.00 $0.00

2020 $1,262.03 $332.22 $403.35 $0.00 $0.00

2021 $1,268.32 $333.89 $110.33 $0.00 $0.00

2022 $1,274.65 $335.57 $320.41 $0.00 $0.00

2023 $1,281.02 $337.25 $356.48 $0.00 $0.00

2024 $1,287.41 $338.95 $283.91 $0.00 $0.00

2025 $1,291.54 $342.25 $357.45 $0.00 $0.00

2026 $1,297.99 $343.96 $224.91 $0.00 $0.00

2027 $1,304.48 $345.68 $679.35 $0.00 $0.00

2028 $1,311.01 $347.41 $4,365.81 $0.00 $0.00

2029 $1,317.56 $349.15 $213.96 $0.00 $0.00

2030 $1,324.15 $350.89 $248.07 $0.00 $0.00

2031 $1,330.77 $352.65 $2,172.33 $0.00 $0.00

2032 $1,337.42 $354.41 $468.72 $0.00 $0.00

2033 $1,344.11 $356.18 $523.89 $0.00 $0.00

2034 $1,350.83 $357.96 $21.62 $0.00 $0.00

6.2 Funding Strategy

After reviewing service levels, as appropriate to ensure ongoing financial sustainability projected

expenditures identified in Section 6.1.2 will be accommodated in the Council’s 10 year long term

financial plan.

6.3 Valuation Forecasts

Asset values are forecast to increase as additional assets are added to the asset stock from assets

constructed by land developers and others and donated to Council. Figure 9 shows the projected replacement cost asset values over the planning period in real values.

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Figure 9: Projected Asset Values

Barossa - Projected Asset Values (CWMS_S1_V3) Data

Category Year ($'000)

CWMS_S1_V3 2015 $49,953

CWMS_S1_V3 2016 $50,202

CWMS_S1_V3 2017 $50,453

CWMS_S1_V3 2018 $50,706

CWMS_S1_V3 2019 $50,959

CWMS_S1_V3 2020 $51,214

CWMS_S1_V3 2021 $51,470

CWMS_S1_V3 2022 $51,727

CWMS_S1_V3 2023 $51,986

CWMS_S1_V3 2024 $52,246

CWMS_S1_V3 2025 $52,507

CWMS_S1_V3 2026 $52,770

CWMS_S1_V3 2027 $53,033

CWMS_S1_V3 2028 $53,299

CWMS_S1_V3 2029 $53,565

CWMS_S1_V3 2030 $53,833

CWMS_S1_V3 2031 $54,102

CWMS_S1_V3 2032 $54,373

CWMS_S1_V3 2033 $54,644

CWMS_S1_V3 2034 $54,918


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

Figure 10: Projected Depreciation Expense

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Barossa - Projected Depreciation Expense (CWMS_S1_V3) Data

Category Year Annual Depreciation Charge

CWMS_S1_V3 2015 $770

CWMS_S1_V3 2016 $774

CWMS_S1_V3 2017 $778

CWMS_S1_V3 2018 $782

CWMS_S1_V3 2019 $786

CWMS_S1_V3 2020 $789

CWMS_S1_V3 2021 $793

CWMS_S1_V3 2022 $797

CWMS_S1_V3 2023 $801

CWMS_S1_V3 2024 $805

CWMS_S1_V3 2025 $809

CWMS_S1_V3 2026 $813

CWMS_S1_V3 2027 $818

CWMS_S1_V3 2028 $822

CWMS_S1_V3 2029 $826

CWMS_S1_V3 2030 $830

CWMS_S1_V3 2031 $834

CWMS_S1_V3 2032 $838

CWMS_S1_V3 2033 $842

CWMS_S1_V3 2034 $847

*all Dollar Values in ($'000)'s*

The depreciated replacement cost 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 Figure 11. The depreciated

replacement cost of contributed and new assets is shown in the darker colour and in the lighter colour for existing assets.

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Figure 11: Projected Depreciated Replacement Cost

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Barossa - Projected Depreciated Replacement Cost (CWMS_S1_V3) Data

Category Year Existing Assets New Assets

CWMS_S1_V3 2015 $28,933 $249

CWMS_S1_V3 2016 $28,391 $494

CWMS_S1_V3 2017 $27,725 $738

CWMS_S1_V3 2018 $27,098 $978

CWMS_S1_V3 2019 $26,427 $1,216

CWMS_S1_V3 2020 $25,758 $1,452

CWMS_S1_V3 2021 $25,145 $1,684

CWMS_S1_V3 2022 $24,532 $1,914

CWMS_S1_V3 2023 $23,863 $2,142

CWMS_S1_V3 2024 $23,194 $2,366

CWMS_S1_V3 2025 $22,560 $2,588

CWMS_S1_V3 2026 $21,926 $2,807

CWMS_S1_V3 2027 $21,292 $3,023

CWMS_S1_V3 2028 $20,658 $3,237

CWMS_S1_V3 2029 $20,024 $3,448

CWMS_S1_V3 2030 $19,390 $3,656

CWMS_S1_V3 2031 $18,756 $3,861

CWMS_S1_V3 2032 $18,122 $4,063

CWMS_S1_V3 2033 $17,488 $4,263

CWMS_S1_V3 2034 $16,854 $4,459


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 and risks that these may change are shown in Table 6.4.

Table 6.4: Key Assumptions made in AM Plan and Risks of Change

Key Assumptions Risks of Change to Assumptions

Growth will remain as predicted Low risk of change due to Character

Preservation (Barossa Valley) Act 2012

Supply of treated effluent to growers to remain

static

Moderate

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6.5 Forecast Reliability and Confidence

The expenditure and valuations projections in this AM Plan are based on best available data.

Currency and accuracy of data is critical to effective asset and financial management. Data confidence is classified on a 5 level scale12 in accordance with Table 6.5.

Table 6.5: Data Confidence Grading System

Confidence

Grade

Description

A Highly

reliable

Data based on sound records, procedures, investigations and analysis,

documented properly and recognised as the best method of assessment. Dataset

is complete and estimated to be accurate ± 2%

B Reliable Data based on sound records, procedures, investigations and analysis,

documented properly but has minor shortcomings, for example some of the data

is old, some documentation is missing and/or reliance is placed on unconfirmed

reports or some extrapolation. Dataset is complete and estimated to be

accurate ± 10%

C Uncertain Data based on sound records, procedures, investigations and analysis which is

incomplete or unsupported, or extrapolated from a limited sample for which

grade A or B data are available. Dataset is substantially complete but up to 50%

is extrapolated data and accuracy estimated ± 25%

D Very

Uncertain

Data is based on unconfirmed verbal reports and/or cursory inspections and

analysis. Dataset may not be fully complete and most data is estimated or

extrapolated. Accuracy ± 40%

E Unknown None or very little data held.

The estimated confidence level for and reliability of data used in this AM Plan is shown in Table 6.5.1.

Table 6.5.1: Data Confidence Assessment for Data used in AM Plan

Data Confidence

Assessment

Comment

Demand drivers A Highly reliable Generated from Senior Planner

Growth

projections

A Highly reliable Generated from Senior Planner

Operations

expenditures

A Highly reliable Generated from Finance

Maintenance

expenditures

A Highly reliable Generated from Finance

Projected

Renewal exps.

Asset values

A Highly reliable Generated from Works and Engineering Services

(CWMS)

Asset useful lives A Highly reliable Generated from Works and Engineering Services

(CWMS)

Condition

modelling


(CWMS)

Network renewals A Highly reliable Generated from Works and Engineering Services

(CWMS) Generated from Works and Engineering

Services (CWMS)

Defect repairs A Highly reliable Generated from Works and Engineering Services

(CWMS)


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Upgrade/New

expenditures


(CWMS)

Disposal

expenditures


(CWMS)

Over all data sources the data confidence is assessed as high confidence level for data used in the preparation of this AM Plan.

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7. PLAN IMPROVEMENT AND MONITORING

7.1 Status of Asset Management Practices

7.1.1 Accounting and financial systems

Council utilises the Technology One software product – Finance One.

Accountabilities for financial systems

Manager Financial Services

Senior Accountant - Budgets

Asset Accountant – Acquisition and disposal

Payroll Officer - Payroll

Accounts Payable Clerk – Accounts Payable

Finance Officer

Accounting standards and regulations

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Capital/maintenance threshold

Required changes to accounting financial systems arising from this AM Plan

Ability to split costs between Maintenance and Operating expenditure

7.1.2 Asset management system

Council utilises the Conquest Solutions Asset Management software product – Conquest III.

Asset registers

The CWMS asset register in Conquest III covers:

The relevant township

The Lagoons (and relevant infrastructure) in that Township

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The Pipe System in that Township

Pump Stations (and relevant infrastructure) in that Township

The WWTP (and relevant infrastructure) in that Township

Linkage from asset management to financial system

No software integration at this point in time. Assets in conquest do have Finance Asset ID listed against the assets.

Accountabilities for asset management system and data maintenance

Manager Assets and Infrastructure

Required changes to asset management system arising from this AM Plan

Improve the accuracy of data and the linkage of the Asset Management System data to the corporate mapping system.

7.2 Improvement Plan

The asset management improvement plan generated from this asset management plan is shown in

Table 7.2.

Table 7.2: Improvement Plan

Task

No

Task Responsibility Resources

Required

Timeline

1 Enable Finance System to record / allocate

costs between Operations and Maintenance

MFS TBA TBA

2 Easily differentiate between operating and

maintenance expenditure in Finance System

MFS TBA TBA

3 Easily differentiate between planned and

reactive maintenance expenditure in Finance

System

MFS TBA TBA

4 Develop and establish ongoing assessment in

relationship to safety and specified

maintenance intervention levels.

Coordinator

CWMS

TBA TBA

5 Audit and review of maintenance response

times (to confirm whether maintenance works

are delivered on time).

Coordinator

CWMS

TBA TBA

6 Random audit of maintenance works (to

confirm whether maintenance works are

delivered to the specified quality).

Coordinator

CWMS

TBA TBA

7 Review and assess changing Community

Wastewater Management System studies,

community expectations and customer

feedback/contact.

Coordinator

CWMS

TBA TBA

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8 Consultation to ascertain the community’s

service needs and preferences and confirm


Communications

and Marketing

Officer

TBA TBA

9 Review of the customer request reports

available in Pathway.

Admin Officer TBA TBA

10 Further improve reuse opportunities for

communities.

Coordinator

CWMS

TBA TBA

11 Utilise Conquest to undertake and record

planned and reactive maintenance activities

on the network.

Coordinator

CWMS

TBA TBA

12 Determine Function data and include against

each asset on a 1 – 5 rating.

Function is the ability of the physical

infrastructure to meet program delivery needs

Coordinator

CWMS /

Manager Assets

and

Infrastructure

TBA TBA

13 Determine Capacity/Utilisation data and

include against each asset on a 1 – 5 rating.

Capacity/Utilisation represents the ability of

the physical infrastructure to meet service

delivery needs.

Coordinator

CWMS /

Manager Assets

and

Infrastructure

TBA TBA

7.3 Monitoring and Review Procedures

This asset management plan will be reviewed during annual budget planning processes and

amended to recognise any material changes in service levels and/or resources available to

provide those services as a result of budget decisions.

The AM Plan will be updated annually to ensure it represents the current service level, asset values,

projected operations, maintenance, capital renewal and replacement, capital upgrade/new and

asset disposal expenditures and projected expenditure values incorporated into the organisation’s

long term financial plan.

Resources will be allocated by Council to ensure annual updates occur.

The AM Plan has a life of 4 years (Council/Board election cycle) and is due for complete revision

and updating within two years of each Council/Board election.

7.4 Performance Measures

The effectiveness of the asset management plan can be measured in the following ways:

The degree to which the required projected expenditures identified in this asset

management plan are incorporated into Council’s long term financial plan,

The degree to which 1-5 year detailed works programs, budgets, business plans and

organisational structures take into account the ‘global’ works program trends provided by

the asset management plan,

73

- 67 -


The degree to which the existing and projected service levels and service consequences

(what we cannot do), risks and residual risks are incorporated into the Council’s Strategic

Plan and associated plans,

The Asset Renewal Funding Ratio achieving the target of 1.0.

8. REFERENCES

IPWEA, 2006, ‘International Infrastructure Management Manual’, Institute of Public Works

Engineering Australasia, Sydney, www.ipwea.org/IIMM

IPWEA, 2008, ‘NAMS.PLUS Asset Management’, Institute of Public Works Engineering Australasia,

Sydney, www.ipwea.org/namsplus.

IPWEA, 2009, ‘Australian Infrastructure Financial Management Guidelines’, Institute of Public Works

Engineering Australasia, Sydney, www.ipwea.org/AIFMG.

IPWEA, 2011, ‘International Infrastructure Management Manual’, Institute of Public Works

Engineering Australasia, Sydney, www.ipwea.org/IIMM

Sample Council, ‘Strategic Plan 20XX – 20XX’,

The Barossa Council – Annual Budget and Business Plan 2015 – 2016

http://www.barossa.sa.gov.au/sections/council/financial-documents/annual-budget-

business-plan

Comment [BL4]: Awaiting approval of the

Community

74

http://www.ipwea.org/IIMM



http://www.ipwea.org/AIFMG


http://www.barossa.sa.gov.au/sections/council/financial-documents/annual-budget-business-plan


- 68 -


9. APPENDICES

Appendix A Maintenance Response Levels of Service

CW Infrastructure Community Wastewater Management Scheme

BC CWMS Blocked Sewer Connection – Decision Tree

Questions

Has a plumber checked your drains Yes/No

Yes Get plumber’s Contact

NO Has the boundary connection been located Yes/No

If No owner/plumber to locate (engineering can assist with a plan of

location)

If Yes check if full of water

Empty problem with owner’s pipe owners to fix

If over half full of water Council will attend

Job to CWMS operator at Depot

Issue Decision tree Priority Response Timeframe / Level of

Service

CWMS Blocked Sewer Connection High 1 Hour

CWMS Blocked Sewer Connection Normal 3 Days

OM CWMS Overflowing Manhole – Decision Tree

Location (Street near Number etc)

Traffic/Safety Hazard YES/NO

Overflowing Water going to?

Job to CWMS operator at Depot (high priority)


Service

CWMS Overflowing Manhole High 1 Hour

75

- 69 -


OIP CWMS Overflowing Inspection Point – Decision Tree



Overflowing Water going to?



Service

CWMS Overflowing Inspection Point High 1 Hour

DM CWMS Damaged Manhole – Decision Tree



YES Job to CWMS operator at Depot (high priority)

No Job to CWMS operator at Depot (normal priority


Service

CWMS Damaged Manhole High 1 Hour

CWMS Damaged Manhole Normal 3 Days

DIP CWMS Damaged Inspection Point – Decision Tree






Service

CWMS Damaged Inspection Point High 1 Hour

CWMS Damaged Inspection Point Normal 3 Days

76

- 70 -


DP CWMS Damaged Pipe – Decision Tree






Service

CWMS Damaged Pipe High 1 Hour

CWMS Damaged Pipe Normal 3 Days

PSO CWMS Pump Station Overflow – Decision Tree





Service

CWMS Pump Station Overflow High 1 Hour

PSWL CWMS Pump Station Warning Light – Decision Tree






Service

CWMS Pump Station Warning Light High 1 Hour

CWMS Pump Station Warning Light Normal 3 Days

77

- 71 -


OC CWMS Sewer Odour Complaint – Decision Tree


When is the Odour present

Job to CWMS operator at Depot (normal priority


Service

CWMS Sewer Odour Complaint Normal 3 Days

TPF CWMS Treatment Plant Fault – Decision Tree

Location (What Township)

What is the Problem





Service

CWMS Treatment Plant Fault High 1 Hour

CWMS Treatment Plant Fault Normal 3 Days

TWQF CWMS Treated Water Quality Fault – Decision Tree

Location (What Township)

What is the Problem





Service

CWMS Treated Water Quality Fault High 1 Hour

CWMS Treated Water Quality Fault Normal 3 Days

78

- 72 -


Appendix B Projected 10 year Capital Renewal and Replacement Works Program

Projected from CWMS Coordinator:

CWMS PROJECTS Scoped

Budget

Adjustment / Reasoning Comment

Year 1 - 2015/2016

Stockwell WWTP Upgrade

Truro interconnect

$500,000.00 New project Truro Load at Stockwell

Lyndoch WWTP Upgrade

Truro interconnect

$120,000.00 New project Increase Capacity and reuse

Options for Works

Reuse Compliance/

Upgrades all Sites

$800,000 New DH requirements

additional water pumps,

Tanunda Reuse Option works

etc

Tanunda WWTP

Refurbishment

$400,800 Increase load Pump/ Elect Additions /

Replacement

Stockwell Gravity Mains

Asset Management

$75,000 Inspection and repair

only Stockwell

Stockwell out to Tender July

Nuriootpa North Gravity

Mains Asset Management


only Nuriootpa North

Nuriootpa North out to

Tender January

Operation Emergency IP

and Manhole

Repairs/Replacement

$52,000 Approximately 5 Manhole/IP

fail in network Annually

Year 2 - 2016/2017

Nuriootpa WWTP

Refurbishment

$42,210 Pump Replacement

Jetting Trailer

Replacement

$84,145 Plant Replacement

Vehicle Replacements $42,005 1 VEHCILE

Mount Pleasant Gravity

Mains Asset Management


only Mount Pleasant

Mount Pleasant out to Tender

July

Technology Changes $400,000 SCADA Etc.

Linear Park Rising Main

extension

$350,000 Transferred to Stockwell

WWTP Upgrade Stage 2

New Rising Main


and Manhole

Repairs/Replacement



Operation Emergency

Drain Repairs

$40,000 Approximately Cost of repairs

in network Annually including

Pump outs

Operation Construction of

New IP due to planning

errors

$12,000 New IP requiring construction

due to Planning approval

errors

Totals $1,018,360

Year 3 - 2017/2018

Gravity Mains Asset

Management


only

out to Tender July/January

79

- 73 -


Williamstown CWMS $1,300,000 Co contribution from

Developers

WWTP or Lagoon Upgrade&

P/S

Reuse Infrastructure $500,000 Reuse Plant upgrade Additional Reuse Pumps Etc.


and Manhole

Repairs/Replacement



Operation Emergency

Drain Repairs



Pump outs



errors

$12,000.00 New IP requiring construction


errors


Totals $2,306,105

Year 4 - 2018/2019

Gravity Mains Asset

Management


only


Vehicle Replacements $92,620 2 VEHICLES

WWTP Capacity

Upgrades

$1,000,000 Treatment Capacity over

network


and Manhole

Repairs/Replacement



Operation Emergency

Drain Repairs



Pump outs



errors



errors

Totals $1,442,620

Year 5 - 2019/2020

Gravity Mains Asset

Management


only




Nuriootpa Network

treatment Capacity

Upgrade

$350,000 Equipment upsizing Treatment Capacity


and Manhole

Repairs/Replacement



Operation Emergency

Drain Repairs



Pump outs



errors



errors

Totals $1,298,625

Year 6 - 2020/2021

80

- 74 -


Gravity Mains Asset

Management


only


Nuriootpa WWTP

Upgrade

$1,000,000 Civil Structures Repairs Treatment Plant



and Manhole

Repairs/Replacement



Operation Emergency

Drain Repairs



Pump outs



errors



errors

Totals $1,451,055

Year 7 - 2021/2022


Gravity Mains Asset

Management


only

out to Tender July/January 2

Towns



and Manhole

Repairs/Replacement



Operation Emergency

Drain Repairs



Pump outs



errors



errors

Totals $757,215

Year 8 - 2022/2023


Gravity Mains Asset

Management


only




and Manhole

Repairs/Replacement



Operation Emergency

Drain Repairs



Pump outs



errors



errors

Totals $1,057,215

Year 9 - 2023/2024

81

- 75 -


Gravity Mains Asset

Management


only


Network Pump Station

Upgrades

$500,000 Remaining operating life

reviews and replacement

Springton WWTP

Upgrade

$500,000 Treatment Capacity



and Manhole

Repairs/Replacement



Operation Emergency

Drain Repairs



Pump outs



errors



errors

Year 10 - 2024/2025

TBA

82

- 76 -


Projected from IAMP Data:

Barossa - Report 6 - Appendix B 10 year Renewal & Replacement Program (CWMS_S1_V3)

Asset ID

Sub

Asset Name From To

Rem Planned Renewal Useful

Category Life Renewal Cost Life

(Years) Year ($) (Years)

33088 Pump Station & Infrastructure Melrose Street - Plant Buildings

Shed

-42 1973 $13,586 40

33106 Pump Station & Infrastructure Talunga Park - Plant Buildings

Shed

-42 1973 $6,792 40

33109 Pump Station & Infrastructure Vine Inn - Plant Buildings Shed -42 1973 $5,095 40

Subtotal $25,473

32819 Lagoon & Infrastructure Nuriootpa - Lagoon - Aerator

Irrigators

-4 2011 $15,620 10

Subtotal $15,620

32778 WWTP & Infrastructure Nuriootpa WWTP - Chlorine

Instrument Decant Tank

-3 2012 $10,605 5

32780 WWTP & Infrastructure Nuriootpa WWTP - Disolved

Oxygen AAT

-3 2012 $4,890 5

Subtotal $15,495

32837 Lagoon & Infrastructure Tanunda - Lagoon - Disolved

Oxygen Lagoon 1 East

-1 2014 $4,500 5


Oxygen Lagoon 1 West

-1 2014 $4,500 5


Oxygen IOC

-1 2014 $4,890 5

Subtotal $13,890

32875 Pump Station & Infrastructure Baird Street - Pump No 1 1 2016 $6,000 15

83

- 77 -


52544 Pump Station & Infrastructure Baird Street - Pump No 2 1 2016 $6,000 15

52545 Pump Station & Infrastructure Baird Street - Valve Pump No 1

Non Return

1 2016 $250 15


Outlet

1 2016 $150 15


Non Return

1 2016 $250 15


Outlet

1 2016 $150 15

32877 Pump Station & Infrastructure Bevilaqua Terrace - Pump No1 1 2016 $6,800 15

52548 Pump Station & Infrastructure Bevilaqua Terrace - Pump No2 1 2016 $6,800 15

32944 Pump Station & Infrastructure Bevilaqua Terrace - Valve Pump

No 1 Non Return

1 2016 $400 15


No 1 Oulet

1 2016 $450 15


No 2 Non Return

1 2016 $400 15


No 2 Outlet

1 2016 $450 15

52552 Pump Station & Infrastructure Gooden Drive - Valve Pumps No 1

Non Return

1 2016 $450 15


Outlet

1 2016 $400 15


Non Return

1 2016 $450 15


Outlet

1 2016 $400 15

32885 Pump Station & Infrastructure Greenock Road - Pump No1 1 2016 $6,300 15

52555 Pump Station & Infrastructure Greenock Road - Pumps No 2 1 2016 $6,300 15

52556 Pump Station & Infrastructure Greenock Road - Valve Pump

No1 Non Return

1 2016 $250 15


No1 Outlet

1 2016 $200 15


No2 Non Return

1 2016 $250 15


No2 Outlet

1 2016 $200 15

84

- 78 -


52559 Pump Station & Infrastructure Lyndoch Council Office - Valve

Pumps No 1 Non Return

1 2016 $450 15


Pumps No 1 Outlet

1 2016 $400 15


Pumps No 2 Non Return

1 2016 $450 15


Pumps No 2 Outlet

1 2016 $400 15

32922 Pump Station & Infrastructure Talunga Park - Pump No1 1 2016 $10,200 15

52562 Pump Station & Infrastructure Talunga Park - Pump No2 1 2016 $10,200 15

Subtotal $65,400

32874 Pump Station & Infrastructure Baird Street - Radio / Telemetry 2 2017 $3,000 10

32882 Pump Station & Infrastructure Gooden Drive - Radio / Telemetry 2 2017 $3,000 10

32884 Pump Station & Infrastructure Greenock Road - Radio /

Telemetry

2 2017 $3,000 10

32888 Pump Station & Infrastructure Hatch Street - Radio / Telemetry 2 2017 $3,000 10

32886 Pump Station & Infrastructure Hatch Street Reserve - Radio /

Telemetry

2 2017 $3,000 10

32977 Pump Station & Infrastructure Kaiser Stuhl Avenue - Control

Systems

2 2017 $18,000 15

32890 Pump Station & Infrastructure Kaiser Stuhl Avenue - Radio /

Telemetry

2 2017 $3,000 10

32892 Pump Station & Infrastructure Lae Road - Radio / Telemetry 2 2017 $3,000 10

32896 Pump Station & Infrastructure Little Adams Road - Radio /

Telemetry

2 2017 $3,000 10

32880 Pump Station & Infrastructure Lyndoch Council Office - Radio /

Telemetry

2 2017 $3,000 10

32898 Pump Station & Infrastructure Menge Road - Radio / Telemetry 2 2017 $3,000 10

32903 Pump Station & Infrastructure Old Mill Road - Radio / Telemetry 2 2017 $3,000 10

32905 Pump Station & Infrastructure Para Avenue - Radio / Telemetry 2 2017 $3,000 10

32907 Pump Station & Infrastructure Para Road - Radio / Telemetry 2 2017 $3,000 10

32909 Pump Station & Infrastructure Penfolds - Radio / Telemetry 2 2017 $3,000 10

32911 Pump Station & Infrastructure Railway Terrace - Radio /

Telemetry

2 2017 $3,000 10

85

- 79 -


32915 Pump Station & Infrastructure SchaedelStreet - Radio /

Telemetry

2 2017 $3,000 10

32917 Pump Station & Infrastructure South Terrace - Radio / Telemetry 2 2017 $3,000 10

32919 Pump Station & Infrastructure Sturt Highway - Radio / Telemetry 2 2017 $3,000 10

32878 Pump Station & Infrastructure Tanunda Caravan Park - Radio

/Telemetry

2 2017 $3,000 10

32923 Pump Station & Infrastructure Tolley Reserve - Radio /Telemetry 2 2017 $3,000 10

32925 Pump Station & Infrastructure Vine Inn - Radio / Telemetry 2 2017 $3,000 10

32927 Pump Station & Infrastructure Wild Street - Radio / Telemetry 2 2017 $3,000 10

32931 Pump Station & Infrastructure Williamstown Oval - Radio /

Telemetry

2 2017 $3,000 10

32933 Pump Station & Infrastructure Yettie Road - Radio / Telemetry 2 2017 $3,000 10

32783 WWTP & Infrastructure Nuriootpa WWTP - Actuator Valve

Decant Control

2 2017 $355 10

52412 WWTP & Infrastructure Nuriootpa WWTP - Actuator

Valves Hatch RM to Emergency

2 2017 $3,200 10


Valves Hatch RM to Plant

2 2017 $3,200 10


Valves Kaiser RM to Emergency

2 2017 $3,200 10


Valves Kaiser RM to Plant

2 2017 $3,200 10


Valves Para Ave RM to Plant

2 2017 $3,200 10


ValvesPara Ave RM to Emergency

2 2017 $3,200 10

32787 WWTP & Infrastructure Nuriootpa WWTP - Radio /

Telemetry

2 2017 $3,000 10

Subtotal $112,555

32842 Lagoon & Infrastructure Tanunda - Lagoon - Actuator

Valve 1

3 2018 $3,200 10


Valve 2

3 2018 $3,200 10


Valve 3

3 2018 $3,200 10

86

- 80 -


32843 Lagoon & Infrastructure Tanunda - Lagoon - Radio

/Telemetry

3 2018 $3,000 10

52465 Pump Station & Infrastructure Hatch Street - Pump No2 3 2018 $8,200 15

32973 Pump Station & Infrastructure Hatch Street - Valve Pump No1

Non Return

3 2018 $200 15


Outlet

3 2018 $250 15


Non Return

3 2018 $200 15


Outlet

3 2018 $250 15

52469 Pump Station & Infrastructure Hatch Street Reserve - Valve

Pump No2 Non Return

3 2018 $1,500 15

52470 Pump Station & Infrastructure Hatch Street Reserve - Pump No2 3 2018 $12,000 15


Pump No1 Non Return

3 2018 $1,500 15


Pump No1 Outlet

3 2018 $1,700 15


Pump No2 Outlet

3 2018 $1,700 15

52473 Pump Station & Infrastructure Kaiser Stuhl Avenue - Pump No2 3 2018 $6,700 15

32978 Pump Station & Infrastructure Kaiser Stuhl Avenue - Valve Pump

No1 Non Return

3 2018 $200 15


No1 Outlet

3 2018 $250 15


No2 Non Return

3 2018 $200 15


No2 Outlet

3 2018 $250 15

32893 Pump Station & Infrastructure Lae Road - Pump No1 3 2018 $6,700 15

52477 Pump Station & Infrastructure Lae Road - Pump No2 3 2018 $6,700 15

32983 Pump Station & Infrastructure Lae Road - Valve Pump No1 Non

Return

3 2018 $200 15

52478 Pump Station & Infrastructure Lae Road - Valve Pump No1

Outlet

3 2018 $250 15

52479 Pump Station & Infrastructure Lae Road - Valve Pump No2 Non

Return

3 2018 $200 15

87

- 81 -


52480 Pump Station & Infrastructure Lae Road - Valve Pump No2

Outlet

3 2018 $250 15

52481 Pump Station & Infrastructure Little Adams Road - Valve Pump

No2 Non Return

3 2018 $200 15

32897 Pump Station & Infrastructure Little Adams Road - Pump No1 3 2018 $6,700 15

52482 Pump Station & Infrastructure Little Adams Road - Pump No2 3 2018 $6,700 15


No1 Non Return

3 2018 $200 15


No1 Outlet

3 2018 $250 15


No2 Outlet

3 2018 $250 15

32899 Pump Station & Infrastructure Menge Road - Pump No1 3 2018 $4,300 15

52485 Pump Station & Infrastructure Menge Road - Pump No2 3 2018 $4,300 15

32996 Pump Station & Infrastructure Menge Road - Valve Pump No1

Non Return

3 2018 $200 15


Outlet

3 2018 $250 15


Non Return

3 2018 $200 15


Outlet

3 2018 $250 15

52489 Pump Station & Infrastructure Old Mill Road - Valve Pump No2

Non Return

3 2018 $200 15

33007 Pump Station & Infrastructure Old Mill Road - Control Systems 3 2018 $10,240 15

52490 Pump Station & Infrastructure Old Mill Road - Pump No1 3 2018 $6,700 15

52491 Pump Station & Infrastructure Old Mill Road - Pump No2 3 2018 $6,700 15


Non Return

3 2018 $200 15


Outlet

3 2018 $250 15


Outlet

3 2018 $250 15

52494 Pump Station & Infrastructure Para Avenue - Valve Pump No2

Non Return

3 2018 $200 15

32906 Pump Station & Infrastructure Para Avenue - Pump No1 3 2018 $6,700 15

52495 Pump Station & Infrastructure Para Avenue - Pump No2 3 2018 $6,700 15

88

- 82 -



Non Return

3 2018 $200 15


Outlet

3 2018 $250 15


Outlet

3 2018 $250 15

52498 Pump Station & Infrastructure Para Road - Valve Pump No2 Non

Return

3 2018 $200 15

32908 Pump Station & Infrastructure Para Road - Pump No1 3 2018 $6,700 15

52499 Pump Station & Infrastructure Para Road - Pump No2 3 2018 $6,700 15

33015 Pump Station & Infrastructure Para Road - Valve Pump No1 Non

Return

3 2018 $200 15

52500 Pump Station & Infrastructure Para Road - Valve Pump No1

Outlet

3 2018 $250 15

52501 Pump Station & Infrastructure Para Road - Valve Pump No2

Outlet

3 2018 $250 15

32910 Pump Station & Infrastructure Penfolds - Pump No1 3 2018 $6,700 15

52502 Pump Station & Infrastructure Penfolds - Pump No2 3 2018 $6,700 15

33020 Pump Station & Infrastructure Penfolds - Valve Pump No1 Non

Return

3 2018 $200 15

52503 Pump Station & Infrastructure Penfolds - Valve Pump No1 Outlet 3 2018 $250 15

52504 Pump Station & Infrastructure Penfolds - Valve Pump No2 Non

Return

3 2018 $200 15

52505 Pump Station & Infrastructure Penfolds - Valve Pump No2 Outlet 3 2018 $250 15

33025 Pump Station & Infrastructure Railway Terrace - Valve Pump

No1 Non Return

3 2018 $200 15


No1 Outlet

3 2018 $250 15


No2 Non Return

3 2018 $200 15


No2 Outlet

3 2018 $250 15

52509 Pump Station & Infrastructure SchaedelStreet - Valve Pump No2

Non Return

3 2018 $1,500 15

52510 Pump Station & Infrastructure SchaedelStreet - Pump No2 3 2018 $12,000 15


Non Return

3 2018 $1,500 15

89

- 83 -



Outlet

3 2018 $1,700 15


Outlet

3 2018 $1,700 15

52513 Pump Station & Infrastructure South Terrace - Pump No2 3 2018 $12,000 15

33038 Pump Station & Infrastructure South Terrace - Valve Pump No1

Non Return

3 2018 $1,500 15


Outlet

3 2018 $1,700 15


Non Return

3 2018 $1,500 15


Outlet

3 2018 $1,700 15

32920 Pump Station & Infrastructure Sturt Highway - Pump No1 3 2018 $10,200 15

52517 Pump Station & Infrastructure Sturt Highway - Pump No2 3 2018 $10,200 15

33043 Pump Station & Infrastructure Sturt Highway - Valve Pump No1

Non Return

3 2018 $200 15


Outlet

3 2018 $250 15


Non Return

3 2018 $200 15


Outlet

3 2018 $250 15

33047 Pump Station & Infrastructure Talunga Park - Valve Pump No1

Non Return

3 2018 $200 15


Outlet

3 2018 $250 15


Non Return

3 2018 $200 15


Outlet

3 2018 $250 15

32947 Pump Station & Infrastructure Tanunda Caravan Park - Control

Systems

3 2018 $35,000 15

52524 Pump Station & Infrastructure Tolley Reserve - Valve Pump No2

Non Return

3 2018 $200 15

32924 Pump Station & Infrastructure Tolley Reserve - Pump No1 3 2018 $6,700 15

52525 Pump Station & Infrastructure Tolley Reserve - Pump No2 3 2018 $6,700 15

90

- 84 -



Non Return

3 2018 $200 15


Outlet

3 2018 $250 15


Outlet

3 2018 $250 15

52528 Pump Station & Infrastructure Vine Inn - Valve Pump No1 Outlet 3 2018 $250 15

32926 Pump Station & Infrastructure Vine Inn - Pump No1 3 2018 $6,700 15

52529 Pump Station & Infrastructure Vine Inn - Pump No2 3 2018 $6,700 15

33054 Pump Station & Infrastructure Vine Inn - Valve Pump No1 Non

Return

3 2018 $200 15

52530 Pump Station & Infrastructure Vine Inn - Valve Pump No2 Non

Return

3 2018 $200 15

52531 Pump Station & Infrastructure Vine Inn - Valve Pump No2 Outlet 3 2018 $250 15

32928 Pump Station & Infrastructure Wild Street - Pump No1 3 2018 $6,700 15

52532 Pump Station & Infrastructure Wild Street - Pump No2 3 2018 $6,700 15

33058 Pump Station & Infrastructure Wild Street - Valve Pump No1 Non

Return

3 2018 $200 15

52533 Pump Station & Infrastructure Wild Street - Valve Pump No1

Outlet

3 2018 $250 15

52534 Pump Station & Infrastructure Wild Street - Valve Pump No2 Non

Return

3 2018 $200 15

52535 Pump Station & Infrastructure Wild Street - Valve Pump No2

Outlet

3 2018 $250 15

32932 Pump Station & Infrastructure Williamstown Oval - Pump No1 3 2018 $4,200 15

52536 Pump Station & Infrastructure Williamstown Oval - Pump No2 3 2018 $4,200 15

33066 Pump Station & Infrastructure Williamstown Oval - Valve Pump

No1 Non Return

3 2018 $200 15


No1 Outlet

3 2018 $250 15


No2 Non Return

3 2018 $200 15


No2 Outlet

3 2018 $250 15

33069 Pump Station & Infrastructure Yettie Road - Valve Pump No1

Non Return

3 2018 $200 15

52540 Pump Station & Infrastructure Yettie Road - Valve Pump No1 3 2018 $250 15

91

- 85 -


Outlet


Non Return

3 2018 $200 15


Outlet

3 2018 $250 15

Subtotal $301,240

32876 Pump Station & Infrastructure Bevilaqua Terrace - Radio /

Telemetry

4 2019 $3,000 10

33075 Pump Station & Infrastructure Lyndoch Council Office - Plant

Buildings Shed

4 2019 $8,492 40

32913 Pump Station & Infrastructure Redford Street - Radio / Telemetry 4 2019 $3,000 10

32929 Pump Station & Infrastructure William Street - Radio / Telemetry 4 2019 $3,000 10

52397 WWTP & Infrastructure Nuriootpa WWTP - Aerators AAT 2 4 2019 $15,620 10

52398 WWTP & Infrastructure Nuriootpa WWTP - Aerators IOC1 4 2019 $15,620 10

32802 WWTP & Infrastructure Springton WWTP - Aerator 4 2019 $19,020 10

32804 WWTP & Infrastructure Springton WWTP - Radio /

Telemetry

4 2019 $3,000 10

Subtotal $70,752

32833 Lagoon & Infrastructure Lyndoch - Lagoon - Fencing 5 2020 $42,881 40

32838 Lagoon & Infrastructure Tanunda - Lagoon - Aerator

Lagoon 1 No1

5 2020 $15,620 10


Oxygen Lagoon 1 East

5 2020 $4,500 5


Oxygen Lagoon 1 West

5 2020 $4,500 5

32982 Pump Station & Infrastructure Lae Road - Control Systems 5 2020 $10,240 15

33019 Pump Station & Infrastructure Penfolds - Control Systems 5 2020 $18,000 15

33045 Pump Station & Infrastructure Talunga Park - levelTransmitter 5 2020 $960 20

32879 Pump Station & Infrastructure Tanunda Caravan Park - Pump

No 1

5 2020 $45,000 15

52459 Pump Station & Infrastructure Tanunda Caravan Park - Pump

No 2

5 2020 $45,000 15

92

- 86 -


32950 Pump Station & Infrastructure Tanunda Caravan Park - Valve

Pump No 1 Non Return

5 2020 $8,000 15


Pump No 1 Oulet

5 2020 $1,500 15


Pump No 2 Oulet

5 2020 $1,500 15


Pump No2 Non Return

5 2020 $8,000 15

32902 Reuse Infrastructure Nuri Site 2 - Reuse - Radio /

Telemetry

5 2020 $21,000 10

50263 WWTP & Infrastructure Lyndoch WWTP - Actuator Valves

150 mm 3 Way

5 2020 $3,400 10

50268 WWTP & Infrastructure Lyndoch WWTP - Backwash Pump 5 2020 $1,200 10

52275 WWTP & Infrastructure Lyndoch WWTP - Clarifier 5 2020 $19,000 10

52276 WWTP & Infrastructure Lyndoch WWTP - Clarifier pump 5 2020 $2,000 10

52277 WWTP & Infrastructure Lyndoch WWTP - Dosing Liquid

Chlorine

5 2020 $3,200 10

50266 WWTP & Infrastructure Lyndoch WWTP - Effluent Pump 1 5 2020 $1,300 10

50267 WWTP & Infrastructure Lyndoch WWTP - Effluent Pump 2 5 2020 $1,300 10

52278 WWTP & Infrastructure Lyndoch WWTP - Fence 5 2020 $28,000 10

50262 WWTP & Infrastructure Lyndoch WWTP - Filter Sand Bank 5 2020 $2,400 10

50269 WWTP & Infrastructure Lyndoch WWTP - Oval Transfer

Pump

5 2020 $3,200 10

50270 WWTP & Infrastructure Lyndoch WWTP - Standpipe Pump 5 2020 $3,600 10

52279 WWTP & Infrastructure Lyndoch WWTP - Tank Clean

Water 1

5 2020 $4,800 10


Water 2

5 2020 $4,800 10


Water 3

5 2020 $4,800 10

52282 WWTP & Infrastructure Lyndoch WWTP - Tank Filter

Balance

5 2020 $2,000 10

52283 WWTP & Infrastructure Lyndoch WWTP - Tank Filter

Balance Overflow

5 2020 $3,200 10

52284 WWTP & Infrastructure Lyndoch WWTP - Valve Effluent

Pump 1 Inlet

5 2020 $200 10

52285 WWTP & Infrastructure Lyndoch WWTP - Valve Effluent 5 2020 $200 10

93

- 87 -


Pump 2 Inlet

52286 WWTP & Infrastructure Lyndoch WWTP - Valve Oval

Transfer Pump Inlet

5 2020 $200 10

52287 WWTP & Infrastructure Lyndoch WWTP - Valve Standpipe

Pump Inlet

5 2020 $200 10

52288 WWTP & Infrastructure Lyndoch WWTP - Valve Clarifier

pump Non Return

5 2020 $300 10


Pump 1 Non Return

5 2020 $300 10


Pump 1 Outlet

5 2020 $200 10


Pump 2 Non Return

5 2020 $300 10


Pump 2 Outlet

5 2020 $200 10


Transfer Pump Non Return

5 2020 $300 10


Transfer Pump Outlet

5 2020 $200 10


Pump Non Return

5 2020 $300 10


Pump Outlet

5 2020 $200 10




32778 WWTP & Infrastructure Nuriootpa WWTP - Chlorine

Instrument Decant Tank

5 2020 $10,605 5


Oxygen AAT

5 2020 $4,890 5


Oxygen IOC

5 2020 $4,890 5

52297 WWTP & Infrastructure Stockwell WWTP - Valve Clarifier 1

Inlet

5 2020 $300 10


outlet

5 2020 $300 10

52299 WWTP & Infrastructure Stockwell WWTP - Valve Clarifier 2 5 2020 $300 10

94

- 88 -


Inlet


Outlet

5 2020 $300 10

52301 WWTP & Infrastructure Stockwell WWTP - Valve Contact

Tank Inlet

5 2020 $300 10

52302 WWTP & Infrastructure Stockwell WWTP - Valve Inlet After

Control

5 2020 $300 10

52303 WWTP & Infrastructure Stockwell WWTP - Valve Inlet

Before Control

5 2020 $300 10

52304 WWTP & Infrastructure Stockwell WWTP - Valve Inlet

Byepass Control

5 2020 $300 10

52305 WWTP & Infrastructure Stockwell WWTP - Valve Inlet Flow

Control

5 2020 $300 10

52306 WWTP & Infrastructure Stockwell WWTP - Valve Pump

Balance 1 Inlet

5 2020 $200 10


Balance 2 Inlet

5 2020 $200 10


Balance 2 Non Return

5 2020 $300 10


Balance 2 Outlet

5 2020 $200 10


General Sump 2 Inlet

5 2020 $200 10


General Sump 2 Outlet

5 2020 $200 10


Sludge Return 1 Inlet

5 2020 $200 10


Sludge Return 1 Outlet

5 2020 $200 10


Sludge Return 1 Non Return

5 2020 $300 10


Sludge Return 2 Inlet

5 2020 $200 10


Sludge Return 2 Outlet

5 2020 $200 10



5 2020 $300 10

95

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5 2020 $300 10


Backwash 1 Inlet

5 2020 $200 10


Backwash 1 Non Return

5 2020 $300 10


Backwash 1 Outlet

5 2020 $200 10


Backwash 2 Inlet

5 2020 $200 10


Backwash 2 Non Return

5 2020 $300 10


Backwash 2 Outlet

5 2020 $200 10


Balance 1 Non Return

5 2020 $300 10


Balance1 Outlet

5 2020 $200 10


Effluent Return 1 Outlet

5 2020 $200 10


Effluent Return 1 Outlet

5 2020 $200 10


Effluent Return 1 Inlet

5 2020 $200 10


Effluent Return 1 Inlet

5 2020 $200 10


Effluent Return 1 Non Return

5 2020 $300 10


Effluent Return 1 Non Return

5 2020 $300 10


Effluent 1 Inlet

5 2020 $200 10


Effluent 1 Non Return

5 2020 $300 10


Effluent 1 Outlet

5 2020 $200 10


Effluent 2 Inlet

5 2020 $200 10

96

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Effluent 2 Non Return

5 2020 $300 10


Effluent 2 Outlet

5 2020 $200 10


General Sump 1 Inlet

5 2020 $200 10


General Sump 1 Outlet

5 2020 $200 10


General Sump 1 Non Return

5 2020 $300 10


Reuse 1 Non Return

5 2020 $300 10


Reuse 1 Outlet

5 2020 $200 10


Reuse 2 Non Return

5 2020 $300 10


Reuse 2 Outlet

5 2020 $200 10


Standpipe Non Return

5 2020 $300 10


Standpipe Outlet

5 2020 $200 10

52348 WWTP & Infrastructure Stockwell WWTP - Valve RBC1

Byepass

5 2020 $300 10


Isolate

5 2020 $300 10


Byepass

5 2020 $300 10


Isolate

5 2020 $300 10

52352 WWTP & Infrastructure Stockwell WWTP - Valve

Standpipe Lagoon Byepass

(future)

5 2020 $300 10


Standpipe Tank Byepass

5 2020 $300 10


Standpipe Tank Outlet

5 2020 $300 10

52355 WWTP & Infrastructure Stockwell WWTP - Actuator Valves 5 2020 $3,400 10

97

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200 mm

Subtotal $403,346

32832 Lagoon & Infrastructure Lyndoch - Lagoon - Electrical

Controls

6 2021 $3,072 15

32847 Lagoon & Infrastructure Tanunda - Lagoon - Electrical

Controls

6 2021 $45,000 15

52267 WWTP & Infrastructure Nuriootpa WWTP - Actuator Valve

Reuse

6 2021 $4,500 10


Valves Irrigatiors

6 2021 $4,500 10


Valves Linear RM to Emergency

6 2021 $3,200 10


Valves Linear RM to Plant

6 2021 $3,200 10




Subtotal $110,332


Lagoon 1 No2

7 2022 $15,620 10


Lagoon 1 No3

7 2022 $15,620 10

32937 Pump Station & Infrastructure Baird Street - Control Systems 7 2022 $18,000 15

32958 Pump Station & Infrastructure Gooden Drive - Control Systems 7 2022 $18,000 15

32963 Pump Station & Infrastructure Greenock Road - Control Systems 7 2022 $18,000 15

32972 Pump Station & Infrastructure Hatch Street - Control Systems 7 2022 $10,240 15

32968 Pump Station & Infrastructure Hatch Street Reserve - Control

Systems

7 2022 $10,240 15

32954 Pump Station & Infrastructure Lyndoch Council Office - Control

Systems

7 2022 $18,000 15

32986 Pump Station & Infrastructure Melrose Street - Control Systems 7 2022 $10,240 15

33011 Pump Station & Infrastructure Para Avenue - Control Systems 7 2022 $18,000 15

33024 Pump Station & Infrastructure Railway Terrace - Control Systems 7 2022 $18,000 15

98

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33033 Pump Station & Infrastructure SchaedelStreet - ControlSystems 7 2022 $10,240 15

33037 Pump Station & Infrastructure South Terrace - ControlSystems 7 2022 $23,000 15

33042 Pump Station & Infrastructure Sturt Highway - Control Systems 7 2022 $10,240 15

33046 Pump Station & Infrastructure Talunga Park - Control Systems 7 2022 $18,000 15

33050 Pump Station & Infrastructure Tolley Reserve - Control Systems 7 2022 $18,000 15

33053 Pump Station & Infrastructure Vine Inn - Control Systems 7 2022 $10,240 15

33068 Pump Station & Infrastructure Yettie Road - Control Systems 7 2022 $28,000 15

32792 WWTP & Infrastructure Nuriootpa WWTP - Electrical

Controls

7 2022 $20,480 15

32779 WWTP & Infrastructure Nuriootpa WWTP - Turbidity

Instruments Decant Tank

7 2022 $8,050 15

32785 WWTP & Infrastructure Nuriootpa WWTP - WAS Pump 7 2022 $4,200 15

Subtotal $320,410

32823 Lagoon & Infrastructure Nuriootpa - Lagoon - Electrical

Controls

8 2023 $10,240 15

52411 Lagoon & Infrastructure Nuriootpa - Lagoon - Electrical

Metering

8 2023 $10,240 15


Lagoon 1 No4

8 2023 $15,620 10

32844 Lagoon & Infrastructure Tanunda - Lagoon - Control

Systems

8 2023 $35,000 15

32957 Pump Station & Infrastructure Gooden Drive - level Transmitter 8 2023 $900 20

33092 Pump Station & Infrastructure Menge Road - Pumping Sump 8 2023 $34,693 50

52189 Pump Station & Infrastructure Old Sturt Highway - Radio /

Telemetry

8 2023 $3,000 10

33013 Pump Station & Infrastructure Para Road - level Transmitter 8 2023 $1,500 20

33096 Pump Station & Infrastructure Para Road - Pumping Sump 8 2023 $43,366 50

33022 Pump Station & Infrastructure Railway Terrace - level Transmitter 8 2023 $960 20

33040 Pump Station & Infrastructure Sturt Highway - level Transmitter 8 2023 $1,500 20




99

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50272 WWTP & Infrastructure Stockwell WWTP - Chlorine Carry

Water Pump 1 3KW

8 2023 $2,700 10

50273 WWTP & Infrastructure Stockwell WWTP - Chlorine Carry

Water Pump 1 3KW

8 2023 $2,700 10

50291 WWTP & Infrastructure Stockwell WWTP - Filter Sand Bank 8 2023 $102,300 10

50285 WWTP & Infrastructure Stockwell WWTP - Pump

Backwash 1

8 2023 $2,200 10


Backwash 2

8 2023 $2,200 10

50287 WWTP & Infrastructure Stockwell WWTP - Pump Effluent 1 8 2023 $11,000 10

50286 WWTP & Infrastructure Stockwell WWTP - Pump Effluent 2 8 2023 $11,000 10

50283 WWTP & Infrastructure Stockwell WWTP - Pump Reuse 2 8 2023 $7,000 10

50282 WWTP & Infrastructure Stockwell WWTP - Pump Reuse 1 8 2023 $7,000 10


Standpipe

8 2023 $4,500 10

Subtotal $356,479

32887 Pump Station & Infrastructure Hatch Street Reserve - Pump No1 9 2024 $12,000 15

32995 Pump Station & Infrastructure Menge Road - Control Systems 9 2024 $18,000 15

33097 Pump Station & Infrastructure Penfolds - Pumping Sump 9 2024 $34,693 50

52399 Pump Station & Infrastructure Redford Street - Valve Pump No2

Non Return

9 2024 $200 15

33028 Pump Station & Infrastructure Redford Street - Control Systems 9 2024 $18,000 15

32914 Pump Station & Infrastructure Redford Street - Pump No1 9 2024 $6,700 15

52400 Pump Station & Infrastructure Redford Street - Pump No2 9 2024 $6,700 15


Non Return

9 2024 $200 15


Outlet

9 2024 $250 15


Outlet

9 2024 $250 15

32916 Pump Station & Infrastructure SchaedelStreet - Pump No1 9 2024 $12,000 15

32918 Pump Station & Infrastructure South Terrace - Pump No1 9 2024 $12,000 15

33061 Pump Station & Infrastructure William Street - Control Systems 9 2024 $18,000 15

32930 Pump Station & Infrastructure William Street - Pump No1 9 2024 $4,200 15

100

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52404 Pump Station & Infrastructure William Street - Pump No2 9 2024 $4,200 15

33062 Pump Station & Infrastructure William Street - Valve Pump No1

Non Return

9 2024 $200 15


Outlet

9 2024 $250 15


Non Return

9 2024 $200 15


Outlet

9 2024 $250 15

33065 Pump Station & Infrastructure Williamstown Oval - Control

Systems

9 2024 $18,000 15

52408 Pump Station & Infrastructure Yettie Road - Pump No2 9 2024 $10,200 15

32934 Pump Station & Infrastructure Yettie Roady - Pump No1 9 2024 $10,200 15


50294 WWTP & Infrastructure Springton WWTP - Balance Pump

1

9 2024 $2,800 15

50293 WWTP & Infrastructure Springton WWTP - Balance Pump

2

9 2024 $2,800 15

32808 WWTP & Infrastructure Springton WWTP - Control Systems 9 2024 $25,000 15

32811 WWTP & Infrastructure Springton WWTP - Electrical

Controls

9 2024 $15,000 15

32805 WWTP & Infrastructure Springton WWTP - Filter 9 2024 $2,300 15

32801 WWTP & Infrastructure Springton WWTP - Liquid Chlorine

System

9 2024 $22,250 15

32806 WWTP & Infrastructure Springton WWTP - Pump Clarifier

Mixer

9 2024 $2,800 15

52403 WWTP & Infrastructure Springton WWTP - Pump Irrigation 9 2024 $4,700 15

32807 WWTP & Infrastructure Springton WWTP - Pump Under

Liner

9 2024 $1,150 15

50295 WWTP & Infrastructure Springton WWTP - Pump WAS/RAS 9 2024 $2,800 15

Subtotal $283,913

Program Total $2,094,905

101

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Appendix C Budgeted Expenditures Accommodated in LTFP

102

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103

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104

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Appendix D State of The Assets

105

- 99 -


Appendix E Abbreviations

AAAC Average annual asset consumption

AM Asset management

AM Plan Asset management plan

ARI Average recurrence interval

ASC Annual service cost

BOD Biochemical (biological) oxygen demand

CRC Current replacement cost

CWMS Community wastewater management

systems

DA Depreciable amount

DRC Depreciated replacement cost

EF Earthworks/formation

IRMP Infrastructure risk management plan

LCC Life Cycle cost

LCE Life cycle expenditure

LTFP Long term financial plan

MMS Maintenance management system

PCI Pavement condition index

RV Residual value

SoA State of the Assets

SS Suspended solids

vph Vehicles per hour

WDCRC Written down current replacement cost

OTR Office of the Technical Regulator

ESCOSA Essential Services Commission of South

Australia

OMG Organisation Managers Group

DPTI Department of Planning, Transport and

106

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Infrastructure

SAPN SA Power Networks

107

- 101 -


Appendix F Glossary

Annual service cost (ASC) Reporting actual cost

The annual (accrual) cost of providing a

service including operations, maintenance,

depreciation, finance / opportunity and

disposal costs less revenue.

For investment analysis and budgeting

An estimate of the cost that would be

tendered, per annum, if tenders were called

for the supply of a service to a performance

specification for a fixed term. The Annual

Service Cost includes operations,

maintenance, depreciation, finance /

opportunity and disposal costs, less revenue.

Asset A resource controlled by an entity as a result

of past events and from which future

economic benefits are expected to flow to

the entity. Infrastructure assets are a sub-class

of property, plant and equipment which are

non-current assets with a life greater than 12

months and enable services to be provided.

Asset category Sub-group of assets within a class hierarchy

for financial reporting and management

purposes.

Asset class A group of assets having a similar nature or

function in the operations of an entity, and

which, for purposes of disclosure, is shown as

a single item without supplementary

disclosure.

Asset condition assessment The process of continuous or periodic

inspection, assessment, measurement and

interpretation of the resultant data to indicate

the condition of a specific asset so as to

determine the need for some preventative or

remedial action.

Asset hierarchy A framework for segmenting an asset base

into appropriate classifications. The asset

hierarchy can be based on asset function or

asset type or a combination of the two.

Asset management (AM) The combination of management, financial,

economic, engineering and other practices

applied to physical assets with the objective

of providing the required level of service in

the most cost effective manner.

Asset renewal funding ratio The ratio of the net present value of asset

renewal funding accommodated over a 10

year period in a long term financial plan

relative to the net present value of projected

capital renewal expenditures identified in an

asset management plan for the same period

[AIFMG Financial Sustainability Indicator No

8].

Average annual asset consumption (AAAC)*

The amount of an organisation’s asset base

consumed during a reporting period

(generally a year). This may be calculated by

dividing the depreciable amount by the

useful life (or total future economic

benefits/service potential) and totalled for

each and every asset OR by dividing the

carrying amount (depreciated replacement

cost) by the remaining useful life (or

remaining future economic benefits/service

potential) and totalled for each and every

asset in an asset category or class.

Borrowings A borrowing or loan is a contractual

obligation of the borrowing entity to deliver

cash or another financial asset to the lending

entity over a specified period of time or at a

specified point in time, to cover both the

initial capital provided and the cost of the

interest incurred for providing this capital. A

borrowing or loan provides the means for the

borrowing entity to finance outlays (typically

physical assets) when it has insufficient funds

of its own to do so, and for the lending entity

to make a financial return, normally in the

form of interest revenue, on the funding

provided.

Capital expenditure Relatively large (material) expenditure, which

has benefits, expected to last for more than

12 months. Capital expenditure includes

renewal, expansion and upgrade. Where

capital projects involve a combination of

renewal, expansion and/or upgrade

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expenditures, the total project cost needs to

be allocated accordingly.

Capital expenditure - expansion Expenditure that extends the capacity of an

existing asset to provide benefits, at the same

standard as is currently enjoyed by existing

beneficiaries, to a new group of users. It is

discretionary expenditure, which increases

future operations and maintenance costs,

because it increases the organisation’s asset

base, but may be associated with additional

revenue from the new user group, eg.

extending a drainage or road network, the

provision of an oval or park in a new suburb

for new residents.

Capital expenditure - new Expenditure which creates a new asset

providing a new service/output that did not

exist beforehand. As it increases service

potential it may impact revenue and will

increase future operations and maintenance

expenditure.

Capital expenditure - renewal Expenditure on an existing asset or on

replacing an existing asset, which returns the

service capability of the asset up to that

which it had originally. It is periodically

required expenditure, relatively large

(material) in value compared with the value

of the components or sub-components of the

asset being renewed. As it reinstates existing

service potential, it generally has no impact

on revenue, but may reduce future

operations and maintenance expenditure if

completed at the optimum time, eg.

resurfacing or resheeting a material part of a

road network, replacing a material section of

a drainage network with pipes of the same

capacity, resurfacing an oval.

Capital expenditure - upgrade Expenditure, which enhances an existing

asset to provide a higher level of service or

expenditure that will increase the life of the

asset beyond that which it had originally.

Upgrade expenditure is discretionary and

often does not result in additional revenue

unless direct user charges apply. It will

increase operations and maintenance

expenditure in the future because of the

increase in the organisation’s asset base, eg.

widening the sealed area of an existing road,

replacing drainage pipes with pipes of a

greater capacity, enlarging a grandstand at

a sporting facility.

Capital funding Funding to pay for capital expenditure.

Capital grants Monies received generally tied to the specific

projects for which they are granted, which

are often upgrade and/or expansion or new

investment proposals.

Capital investment expenditure See capital expenditure definition

Capitalisation threshold The value of expenditure on non-current

assets above which the expenditure is

recognised as capital expenditure and below

which the expenditure is charged as an

expense in the year of acquisition.

Carrying amount

The amount at which an asset is recognised

after deducting any accumulated

depreciation / amortisation and

accumulated impairment losses thereon.

Class of assets See asset class definition

Component Specific parts of an asset having independent

physical or functional identity and having

specific attributes such as different life

expectancy, maintenance regimes, risk or

criticality.

Core asset management Asset management which relies primarily on

the use of an asset register, maintenance

management systems, job resource

management, inventory control, condition

assessment, simple risk assessment and

defined levels of service, in order to establish

alternative treatment options and long-term

cashflow predictions. Priorities are usually

established on the basis of financial return

gained by carrying out the work (rather than

detailed risk analysis and optimised decision-

making).

Cost of an asset The amount of cash or cash equivalents paid

or the fair value of the consideration given to

acquire an asset at the time of its acquisition

or construction, including any costs necessary

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to place the asset into service. This includes

one-off design and project management

costs.

Critical assets Assets for which the financial, business or

service level consequences of failure are

sufficiently severe to justify proactive

inspection and rehabilitation. Critical assets

have a lower threshold for action than non-

critical assets.

Current replacement cost (CRC) The cost the entity would incur to acquire the

asset on the reporting date. The cost is

measured by reference to the lowest cost at

which the gross future economic benefits

could be obtained in the normal course of

business or the minimum it would cost, to

replace the existing asset with a

technologically modern equivalent new asset

(not a second hand one) with the same

economic benefits (gross service potential)

allowing for any differences in the quantity

and quality of output and in operating costs.

Deferred maintenance The shortfall in rehabilitation work undertaken

relative to that required to maintain the

service potential of an asset.

Depreciable amount The cost of an asset, or other amount

substituted for its cost, less its residual value.

Depreciated replacement cost (DRC) The current replacement cost (CRC) of an

asset less, where applicable, accumulated

depreciation calculated on the basis of such

cost to reflect the already consumed or

expired future economic benefits of the asset.

Depreciation / amortisation The systematic allocation of the depreciable

amount (service potential) of an asset over its

useful life.

Economic life

See useful life definition.

Expenditure The spending of money on goods and

services. Expenditure includes recurrent and

capital outlays.

Expenses Decreases in economic benefits during the

accounting period in the form of outflows or

depletions of assets or increases in liabilities

that result in decreases in equity, other than

those relating to distributions to equity

participants.

Fair value The amount for which an asset could be

exchanged, or a liability settled, between

knowledgeable, willing parties, in an arms

length transaction.

Financing gap A financing gap exists whenever an entity has

insufficient capacity to finance asset renewal

and other expenditure necessary to be able

to appropriately maintain the range and level

of services its existing asset stock was originally

designed and intended to deliver. The service

capability of the existing asset stock should

be determined assuming no additional

operating revenue, productivity

improvements, or net financial liabilities

above levels currently planned or projected.

A current financing gap means service levels

have already or are currently falling. A

projected financing gap if not addressed will

result in a future diminution of existing service

levels.

Heritage asset An asset with historic, artistic, scientific,

technological, geographical or

environmental qualities that is held and

maintained principally for its contribution to

knowledge and culture and this purpose is

central to the objectives of the entity holding

it.

Impairment Loss The amount by which the carrying amount of

an asset exceeds its recoverable amount.

Infrastructure assets Physical assets that contribute to meeting the

needs of organisations or the need for access

to major economic and social facilities and

services, eg. roads, drainage, footpaths and

cycleways. These are typically large,

interconnected networks or portfolios of

composite assets. The components of these

assets may be separately maintained,

renewed or replaced individually so that the

required level and standard of service from

the network of assets is continuously

110

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sustained. Generally the components and

hence the assets have long lives. They are

fixed in place and are often have no

separate market value.

Investment property Property held to earn rentals or for capital

appreciation or both, rather than for:

(a) use in the production or supply of goods

or services or for administrative purposes;

or

(b) sale in the ordinary course of business.

Key performance indicator A qualitative or quantitative measure of a

service or activity used to compare actual

performance against a standard or other

target. Performance indicators commonly

relate to statutory limits, safety,

responsiveness, cost, comfort, asset

performance, reliability, efficiency,

environmental protection and customer

satisfaction.

Level of service The defined service quality for a particular

service/activity against which service

performance may be measured. Service

levels usually relate to quality, quantity,

reliability, responsiveness, environmental

impact, acceptability and cost.

Life Cycle Cost *

1. Total LCC The total cost of an asset

throughout its life including planning,

design, construction, acquisition,

operation, maintenance, rehabilitation

and disposal costs.

2. Average LCC The life cycle cost (LCC) is

average cost to provide the service over

the longest asset life cycle. It comprises

average operations, maintenance

expenditure plus asset consumption

expense, represented by depreciation

expense projected over 10 years. The Life

Cycle Cost does not indicate the funds

required to provide the service in a

particular year.

Life Cycle Expenditure The Life Cycle Expenditure (LCE) is the

average operations, maintenance and

capital renewal expenditure accommodated

in the long term financial plan over 10 years.

Life Cycle Expenditure may be compared to

average Life Cycle Cost to give an initial

indicator of affordability of projected service

levels when considered with asset age profiles.

Loans / borrowings See borrowings.

Maintenance All actions necessary for retaining an asset as

near as practicable to an appropriate service

condition, including regular ongoing day-to-

day work necessary to keep assets operating,

eg road patching but excluding rehabilitation

or renewal. It is operating expenditure

required to ensure that the asset reaches its

expected useful life.

• Planned maintenance Repair work that is identified and

managed through a maintenance

management system (MMS). MMS

activities include inspection, assessing the

condition against failure/breakdown

criteria/experience, prioritising scheduling,

actioning the work and reporting what

was done to develop a maintenance

history and improve maintenance and

service delivery performance.

• Reactive maintenance Unplanned repair work that is carried out

in response to service requests and

management/ supervisory directions.

• Specific maintenance Maintenance work to repair components

or replace sub-components that needs to

be identified as a specific maintenance

item in the maintenance budget.

• Unplanned maintenance Corrective work required in the short-term

to restore an asset to working condition so

it can continue to deliver the required

service or to maintain its level of security

and integrity.

Maintenance expenditure * Recurrent expenditure, which is periodically or

regularly required as part of the anticipated

schedule of works required to ensure that the

asset achieves its useful life and provides the

required level of service. It is expenditure,

which was anticipated in determining the

asset’s useful life.

Materiality The notion of materiality guides the margin of

error acceptable, the degree of precision

required and the extent of the disclosure

required when preparing general purpose

financial reports. Information is material if its

111

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omission, misstatement or non-disclosure has

the potential, individually or collectively, to

influence the economic decisions of users

taken on the basis of the financial report or

affect the discharge of accountability by the

management or governing body of the

entity.

Modern equivalent asset Assets that replicate what is in existence with

the most cost-effective asset performing the

same level of service. It is the most cost

efficient, currently available asset which will

provide the same stream of services as the

existing asset is capable of producing. It

allows for technology changes and,

improvements and efficiencies in production

and installation techniques

Net present value (NPV)

The value to the organisation of the cash

flows associated with an asset, liability,

activity or event calculated using a discount

rate to reflect the time value of money. It is

the net amount of discounted total cash

inflows after deducting the value of the

discounted total cash outflows arising from eg

the continued use and subsequent disposal

of the asset after deducting the value of the

discounted total cash outflows.

Non-revenue generating investments

Investments for the provision of goods and

services to sustain or improve services to the

community that are not expected to

generate any savings or revenue to the

Council, eg. parks and playgrounds,

footpaths, roads and bridges, libraries, etc.

Operations Regular activities to provide services such as

public health, safety and amenity, eg street

sweeping, grass mowing and street lighting.

Operating expenditure Recurrent expenditure, which is continuously

required to provide a service. In common use

the term typically includes, eg power, fuel,

staff, plant equipment, on-costs and

overheads but excludes maintenance and

depreciation. Maintenance and depreciation

is on the other hand included in operating

expenses.

Operating expense The gross outflow of economic benefits, being

cash and non cash items, during the period

arising in the course of ordinary activities of

an entity when those outflows result in

decreases in equity, other than decreases

relating to distributions to equity participants.

Operating expenses Recurrent expenses continuously required to

provide a service, including power, fuel, staff,

plant equipment, maintenance,

depreciation, on-costs and overheads.

Operations, maintenance and renewal

financing ratio Ratio of estimated budget to projected

expenditure for operations, maintenance and

renewal of assets over a defined time (eg 5,

10 and 15 years).

Operations, maintenance and renewal gap Difference between budgeted expenditures

in a long term financial plan (or estimated

future budgets in absence of a long term

financial plan) and projected expenditures

for operations, maintenance and renewal of

assets to achieve/maintain specified service

levels, totalled over a defined time (e.g. 5, 10

and 15 years).

Pavement management system (PMS) A systematic process for measuring and

predicting the condition of road pavements

and wearing surfaces over time and

recommending corrective actions.

PMS Score A measure of condition of a road segment

determined from a Pavement Management

System.

Rate of annual asset consumption * The ratio of annual asset consumption relative

to the depreciable amount of the assets. It

measures the amount of the consumable

parts of assets that are consumed in a period

(depreciation) expressed as a percentage of

the depreciable amount.

Rate of annual asset renewal *

The ratio of asset renewal and replacement

expenditure relative to depreciable amount

for a period. It measures whether assets are

being replaced at the rate they are wearing

out with capital renewal expenditure

expressed as a percentage of depreciable

amount (capital renewal expenditure/DA).

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Rate of annual asset upgrade/new * A measure of the rate at which assets are

being upgraded and expanded per annum

with capital upgrade/new expenditure

expressed as a percentage of depreciable

amount (capital upgrade/expansion

expenditure/DA).

Recoverable amount The higher of an asset's fair value, less costs to

sell and its value in use.

Recurrent expenditure Relatively small (immaterial) expenditure or

that which has benefits expected to last less

than 12 months. Recurrent expenditure

includes operations and maintenance

expenditure.

Recurrent funding Funding to pay for recurrent expenditure.

Rehabilitation See capital renewal expenditure definition

above.

Remaining useful life The time remaining until an asset ceases to

provide the required service level or

economic usefulness. Age plus remaining

useful life is useful life.

Renewal See capital renewal expenditure definition

above.

Residual value The estimated amount that an entity would

currently obtain from disposal of the asset,

after deducting the estimated costs of

disposal, if the asset were already of the age

and in the condition expected at the end of

its useful life.

Revenue generating investments Investments for the provision of goods and

services to sustain or improve services to the

community that are expected to generate

some savings or revenue to offset operating

costs, eg public halls and theatres, childcare

centres, sporting and recreation facilities,

tourist information centres, etc.

Risk management The application of a formal process to the

range of possible values relating to key

factors associated with a risk in order to

determine the resultant ranges of outcomes

and their probability of occurrence.

Section or segment A self-contained part or piece of an

infrastructure asset.

Service potential

The total future service capacity of an asset. It

is normally determined by reference to the

operating capacity and economic life of an

asset. A measure of service potential is used

in the not-for-profit sector/public sector to

value assets, particularly those not producing

a cash flow.

Service potential remaining A measure of the future economic benefits

remaining in assets. It may be expressed in

dollar values (Fair Value) or as a percentage

of total anticipated future economic benefits.

It is also a measure of the percentage of the

asset’s potential to provide services that is still

available for use in providing services

(Depreciated Replacement

Cost/Depreciable Amount).

Specific Maintenance Replacement of higher value

components/sub-components of assets that is

undertaken on a regular cycle including

repainting, replacement of air conditioning

equipment, etc. This work generally falls

below the capital/ maintenance threshold

and needs to be identified in a specific

maintenance budget allocation.

Strategic Longer-Term Plan A plan covering the term of office of

councillors (4 years minimum) reflecting the

needs of the community for the foreseeable

future. It brings together the detailed

requirements in the Council’s longer-term

plans such as the asset management plan

and the long-term financial plan. The plan is

prepared in consultation with the community

and details where the Council is at that point

in time, where it wants to go, how it is going to

get there, mechanisms for monitoring the

achievement of the outcomes and how the

plan will be resourced.

Sub-component Smaller individual parts that make up a

component part.

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Useful life Either:

(a) the period over which an asset is

expected to be available for use by an

entity, or

(b) the number of production or similar units

expected to be obtained from the asset

by the entity.

It is estimated or expected time between

placing the asset into service and removing it

from service, or the estimated period of time

over which the future economic benefits

embodied in a depreciable asset, are

expected to be consumed by the Council.

Value in Use The present value of future cash flows

expected to be derived from an asset or cash

generating unit. It is deemed to be

depreciated replacement cost (DRC) for

those assets whose future economic benefits

are not primarily dependent on the asset's

ability to generate net cash inflows, where

the entity would, if deprived of the asset,

replace its remaining future economic

benefits.

Source: IPWEA, 2009, Glossary

Additional and modified glossary items shown

*

114

THE BAROSSA COUNCIL – STORMWATER INFRASTRUCTURE & ASSET MANAGEMENT PLAN

THE BAROSSA COUNCIL

STORMWATER

Asset Management Plan

Version 3.0

June 2016

115


Document Control

TRIM Reference: 16/13448

Rev No Date Revision Details Author Reviewer Approver

1 18/11/2008 Version 1.0 DGH MJL MJL

2 20/11/2012 Version 2.0 DGH AMWP MJL

3 30/06/2016 Version 3.0 MAI OMG CMT

116


TABLE OF CONTENTS

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

Context ........................................................................................................................................ 1

What does it Cost? .................................................................................................................... 1

What we will do ......................................................................................................................... 2

What we cannot do ................................................................................................................. 2

Managing the Risks ................................................................................................................... 2

Confidence Levels .................................................................................................................... 3

The Next Steps ............................................................................................................................ 3

2. INTRODUCTION........................................................................................................................... 5

2.1 Background ........................................................................................................................ 5

2.2 Goals and Objectives of Asset Management ............................................................. 7

2.3 Plan Framework ................................................................................................................. 8

2.4 Core and Advanced Asset Management................................................................. 10

2.5 Community Consultation ............................................................................................... 10

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

3.1 Customer Research and Expectations ....................................................................... 11

3.2 Strategic and Corporate Goals ................................................................................... 11

3.3 Legislative Requirements ............................................................................................... 12

3.4 Community Levels of Service ........................................................................................ 13

3.5 Technical Levels of Service ............................................................................................ 14

4. FUTURE DEMAND ...................................................................................................................... 16

4.1 Demand Drivers ............................................................................................................... 16

4.2 Demand Forecast ........................................................................................................... 16

4.3 Demand Impact on Assets ............................................................................................ 16

4.4 Demand Management Plan ........................................................................................ 17

4.5 Asset Programs to meet Demand ................................................................................ 18

5. LIFECYCLE MANAGEMENT PLAN ........................................................................................... 20

5.1 Background Data............................................................................................................ 21

5.2 Infrastructure Risk Management Plan ......................................................................... 28

5.3 Routine Operations and Maintenance Plan.............................................................. 28

5.4 Renewal/Replacement Plan......................................................................................... 33

5.5 Creation/Acquisition/Upgrade Plan ............................................................................ 37

5.6 Disposal Plan .................................................................................................................... 38

5.7 Service Consequences and Risks ................................................................................. 39

6. FINANCIAL SUMMARY ............................................................................................................. 40

6.1 Financial Statements and Projections ......................................................................... 40

6.2 Funding Strategy ............................................................................................................. 47

6.3 Valuation Forecasts ........................................................................................................ 47

6.4 Key Assumptions made in Financial Forecasts .......................................................... 53

6.5 Forecast Reliability and Confidence ........................................................................... 54

7. PLAN IMPROVEMENT AND MONITORING ............................................................................ 56

7.1 Status of Asset Management Practices ...................................................................... 56

7.2 Improvement Plan ........................................................................................................... 59

7.3 Monitoring and Review Procedures ............................................................................ 60

7.4 Performance Measures .................................................................................................. 61

8. REFERENCES .............................................................................................................................. 62

9. APPENDICES.............................................................................................................................. 63

Appendix A Maintenance Response Levels of Service .................................................. 63

Appendix B Projected 10 year Capital Renewal and Replacement Works

Program 65

Appendix C Budgeted Expenditures Accommodated in LTFP ..................................... 67

Appendix D State of The Assets ........................................................................................... 70

Appendix E Abbreviations .................................................................................................... 71

Appendix F Glossary .............................................................................................................. 73

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1. EXECUTIVE SUMMARY

Context

The Barossa Council covers 912 square kilometres and is located 80 kilometres north-east of the

Adelaide Central Business District. It is bordered by the municipalities of Gawler Corporation, Light

Regional Council, Mid Murray Council, Adelaide Hills Council and the Playford Council. The Barossa

Council encompasses six major towns, Mount Pleasant, Angaston, Nuriootpa, Tanunda, Lyndoch

and Williamstown as well as 7 smaller towns and communities with a population of approximately

23,500. Council’s Stormwater assets are maintained and managed in accordance with all regulatory

requirements, relevant Australian Standards and Local Government Act 1999.

Current service levels vary across the Council area as a result of historical and other reasons of a

practical nature. Capacity is being met with existing asset infrastructure when measured against

these limitations.

There are no major issues that cannot be controlled with existing processes and infrastructure.

The Service

The Stormwater network comprises:

Box Culvert (384 units)

Drainage Channel (22 units 1.7 km)

Grated Inlet Pit (9 units)

Gross Pollutant Trap (6 units)

Headwall (2832 units)

Junction Box (657 units)

Pipe (73 km)

Side Entry Pits (1289 units)

As at 30 June 2015

These Stormwater assets have a current replacement cost of $43,323 M (to nearest $000)

What does it Cost?

The projected outlays necessary to provide the services covered by this Asset Management Plan

(AM Plan) includes operations, maintenance, renewal and upgrade of existing assets over the 10

year planning period is $5,178 ($000)or $518 ($000)on average per year.

Estimated available funding for this period is $8,673 ($000) or $867 ($000) on average per year

which is 167% of the cost to provide the service. This is a funding surplus of $349 ($000) on average

per year. Projected expenditure required to provide services in the AM Plan compared with

planned expenditure currently included in the Long Term Financial Plan are shown in the graph

below.

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What we will do

We plan to provide Stormwater services as follows:

1. Ensure the Stormwater network is maintained at a safe and functional standard.

2. Minimise exposure to local flooding through the regular cleaning and maintenance of

stormwater drainage systems.

3. Upgrade / replace stormwater drainage infrastructure where required.

What we cannot do

We cannot deviate from the projected operational and capital expenditure and need to account

for these costs in the LTFP and annual Stormwater budget.

Managing the Risks

There are risks associated with providing the service and being able to complete all identified

activities and projects. We have identified major risks as:

Legislative requirements

Disaster Management recommendations

Customer expectations

Population and Tourism growth

Environmental expectations

Water Quality objectives

Climate change forecasts

Emergent flooding issues

We will endeavour to manage these risks within available funding by:

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Continued effective programmed and preventative maintenance.

Continued operation improvements in tasks and activities.

Continued monitoring and condition assessment of the network.

Ensuring future growth is covered in long term capital works plans.

Confidence Levels

This AM Plan is based on a high level of confidence information.

The Next Steps

The actions resulting from this asset management plan are:

Develop specific service levels including performance targets.

Develop and establish ongoing assessment in relationship to safety and specified maintenance


Audit and review of maintenance response times (to confirm whether maintenance works are

delivered on time).

Random audit of maintenance works (to confirm whether maintenance works are delivered to


Review and assess stormwater drainage plans, community expectations and customer

feedback/contact.

Consultation to ascertain the community’s service needs and preferences and confirm


Completing the improvement plan by November 2020.

Review of the customer request reports available in Pathway.

Questions you may have

What is this plan about?

This asset management plan covers the infrastructure assets that serve The Barossa Council

community’s stormwater needs. These assets include pipes, pits, junction boxes, drainage channels, culverts and gross pollutant traps.

What is an Asset Management Plan?

Asset management planning is a comprehensive process to ensure that the delivery of services

from infrastructure is provided in a financially sustainable manner.

An asset management plan details information about infrastructure assets including actions

required to provide an agreed level of service in the most cost effective manner. The plan defines

the services to be provided, how the services are provided and what funds are required to provide

the services.

Do we have a funding shortfall?

Our present funding levels are sufficient to continue to provide existing services at current levels in

the medium term.

What can we do?

Continue to provide services and budget to enable sufficient capacity improvements and

maintenance of the network.

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What can you do?

We will be pleased to consider your thoughts on the issues raised in this asset management plan

and suggestions on how we may change or reduce its CWMS mix of services to ensure that the

appropriate level of service can be provided to the community within available funding.

121

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2. INTRODUCTION

2.1 Background

The goal of the asset management plan is to demonstrate responsive management of assets (and

services provided from assets), compliance with regulatory requirements, and to communicate funding needed to provide the required levels of service over a 20 year planning period.

The asset management plan follows the format for AM Plans recommended in Section 4.2.6 of the International Infrastructure Management Manual1.

The asset management plan is to be read with the organisation’s Asset Management Policy, Asset

Management Strategy (draft document) and the following associated planning documents:

Relevant Stormwater Drainage Management Plans

Stormwater Drainage Fact Sheet

This infrastructure assets covered by this asset management plan are shown in Table 2.1. These assets are used to provide effluent management and treatment services to the community.

Table 2.1: Assets covered by this Plan

Asset category Dimension

Box Culvert 384 units

Drainage Channel 22 units 1.7 km

Grated Inlet Pit 9 units

Gross Pollutant Trap 6 units

Headwall 2832 units

Junction Box 657 units

Pipe 73 km

Side Entry Pit 1289 units

Key stakeholders in the preparation and implementation of this asset management plan are:

Shown in Table 2.1.1.

Table 2.1.1: Key Stakeholders in the AM Plan

Key Stakeholder Role in Asset Management Plan

Councillors/Board Members Represent needs of community/shareholders,

Allocate resources to meet the organisation’s

objectives in providing services while managing risks,

Ensure organisation is financial sustainable.

CEO/General Manager Ensuring effective AM practices, principles and

processes are considered at all levels within the

organisation

1 IPWEA, 2011, Sec 4.2.6, Example of an Asset Management Plan Structure, pp 4|24 – 27.

122

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OMG Ensuring effective AM practices, principles and

processes are considered at all levels within the

organisation

Neighbouring Councils Ensuring integration and consideration of

neighbouring plans and practices to effectively

collaborate on cost effective service provision

DPTI Interface Agreement with the State road network

SAPN Interface Agreement with power distribution network

SA Water Interface Agreement with the Water Supply Network

Dial Before You Dig Works coordination

Consultants/Contractors Design approvals, protection of assets (permit to

work)

Developers Investing of new assets, (includes private and

public/government owned)

Community Service level expectation

Public transport providers Selection and changes to routes, Works coordination

Auditor General Audits (financial)

Emergency Services Works coordination

Environment Protection

Authority

Statutory environmental requirements

Department of Health Statutory health requirements

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Our organisational structure for service delivery from infrastructure assets is detailed below, [As at

November 2015]


2.2 Goals and Objectives of Asset Management

The organisation exists to provide services to its community. Some of these services are provided by

infrastructure assets. We have acquired infrastructure assets by ‘purchase’, by contract,

construction by our staff and by donation of assets constructed by developers and others to meet increased levels of service.

Our goal in managing infrastructure assets is to meet the defined level of service (as amended from

time to time) in the most cost effective manner for present and future consumers. The key elements of infrastructure asset management are:

Providing a defined level of service and monitoring performance,

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- 8 -


Managing the impact of growth through demand management and infrastructure

investment,

Taking a lifecycle approach to developing cost-effective management strategies for the

long-term that meet the defined level of service,

Identifying, assessing and appropriately controlling risks, and

Having a long-term financial plan which identifies required, affordable expenditure and

how it will be financed.2

2.3 Plan Framework

Key elements of the plan are

Levels of service – specifies the services and levels of service to be provided by the

organisation,

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

defined levels of service,

Financial summary – what funds are required to provide the defined services,

Asset management practices,

Monitoring – how the plan will be monitored to ensure it is meeting organisation’s objectives,

Asset management improvement plan.

A road map for preparing an asset management plan is shown below.

2 Based on IPWEA, 2011, IIMM, Sec 1.2 p 1|7.

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Road Map for preparing an Asset Management Plan

Source: IPWEA, 2006, IIMM, Fig 1.5.1, p 1.11.

IS THE PLAN

AFFORDABLE?

CORPORATE PLANNING

Confirm strategic objectives and establish AM

policies, strategies & goals.

Define responsibilities & ownership.

Decide core or advanced AM Pan.

Gain organisation commitment.

REVIEW/COLLATE ASSET INFORMATION

Existing information sources

Identify & describe assets.

Data collection

Condition assessments

Performance monitoring

Valuation Data

ESTABLISH LEVELS OF SERVICE

Establish strategic linkages

Define & adopt statements

Establish measures & targets

Consultation

LIFECYCLE MANAGEMENT STRATEGIES

Develop lifecycle strategies

Describe service delivery strategy

Risk management strategies

Demand forecasting and management

Optimised decision making (renewals, new works,

disposals)

Optimise maintenance strategies

FINANCIAL FORECASTS

Lifecycle analysis

Financial forecast summary

Valuation Depreciation

Funding

IMPROVEMENT PLAN

Assess current/desired practices

Develop improvement plan

ITERATION

Reconsider service statements

Options for funding

Consult with Council

Consult with Community

DEFINE SCOPE &

STRUCTURE OF PLAN

INF

OR

MA

TIO

N M

AN

AG

EM

EN

T, a

nd

DA

TA

IM

PR

OV

EM

EN

T

AM PLAN

REVIEW AND

AUDIT

IMPLEMENT

IMPROVEMENT

STRATEGY

ANNUAL PLAN /

BUSINESS PLAN

INF

OR

MA

TIO

N M

AN

AG

EM

EN

T, a

nd

DA

TA

IM

PR

OV

EM

EN

T

126

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2.4 Core and Advanced Asset Management

This asset management plan is prepared as a ‘core’ asset management plan over a 20 year

planning period in accordance with the International Infrastructure Management Manual3. 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.

It is recommended that future revisions of this 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 in a financially sustainable manner.

2.5 Community Consultation

This ‘core’ asset management plan is prepared to facilitate community consultation initially through

feedback on public display of draft asset management plans prior to adoption by the

Council/Board. Future revisions of the asset management plan will incorporate community

consultation on service levels and costs of providing the service. This will assist the Council and the

community in matching the level of service needed by the community, service risks and consequences with the community’s ability and willingness to pay for the service.

3 IPWEA, 2011, IIMM.

127

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3. LEVELS OF SERVICE

3.1 Customer Research and Expectations

The Barossa Council manages drives and undertakes its own customer research with internal

resources utilising a combination of the following traditional and modern community engagement

strategies:

Social Media (Facebook)

Council website (www.barossa.sa.gov.au)

Council Customer Request Management System

Community Engagement Platform (www.ourbetterbarossa.com.au)

Newspaper advertising and editorial space

Newsletters (monthly and quarterly editions of d’Vine)

E-newsletter via Mailchimp

Survey Monkey

World Café style community engagement sessions

Postcards and traditional written communication

Direct communication and feedback to staff and elected members

The organisation uses this information to develop its Strategic Plan and in allocation of resources in the budget.

At this time The Barossa Council does not undertake specific customer satisfaction surveys.

3.2 Strategic and Corporate Goals

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

Our vision is:

Our Barossa: The premium wine, food and tourism region valued for its opportunity, liveability and

sense of place.

Our Themes are:

We protect our natural Environment and built Heritage

We support development of Business and Employment

We contribute to Physical and Social Infrastructure

We embrace a diverse Community and Culture

We invest in Health and Wellbeing

We value Communication and Technology

Relevant organisational themes and how these are addressed in this asset management plan are:


Review once Community Plan and Vision are endorsed by Council


Review once Community plan and Themes are

endorsed by Council

128

http://www.barossa.sa.gov.au/

http://www.ourbetterbarossa.com.au/

- 12 -


Table 3.2: Organisational Goals and how these are addressed in this Plan

Category Theme How Goal and Objectives are

addressed in AM Plan

Environment and built

Heritage

We protect our natural

Environment and built Heritage

Provision safe and convenient

stormwater systems to protect

development against flooding.

Business and

Employment

We support development of

Business and Employment

Consistent and compliant with

Councils Procurement Policy.

Physical and Social

Infrastructure

We contribute to Physical and

Social Infrastructure

Renewal and upgrade / new assets

created to account for increased

demand and growth.

Community and

Culture

We embrace a diverse

Community and Culture

N/A

Health and Wellbeing We invest in Health and Wellbeing Provision safe and convenient

stormwater systems to protect

against inundation.

Communication and

Technology

We value Communication and

Technology

N/A

3.3 Legislative Requirements

The organisation has to meet many legislative requirements including Australian and State

legislation and State regulations. These include:

Table 3.3: Legislative Requirements

Legislation , Guidelines and Standards

Work Health and Safety Act 2012 and Regulations 2012

Workers Rehabilitation and Compensation Act 1986

South Australian Public Health Act 2011 and Regulations (Wastewater) 2013

Water Resources Act 1997

Natural Resources Management Act 2004 and associated Regulations

Local Government Act 1999

Environment Protection Act 1993

Environment Protection (Water Quality) Policy 2003

Dangerous Substances Act 1979 and associated Regulations 2008

AS/NZS – Australian Standards

Australian Rainfall and Runoff – Engineers Australia 2001

Comment [BL3]: To be identified in

Community Plan – presented at Council Workshop

Review once Community plan and Themes are endorsed by Council

129

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The organisation will exercise its duty of care to ensure public safety in accordance with the

infrastructure risk management plan linked to this AM Plan. Management of risks is discussed in

Section 5.2.

3.4 Community Levels of Service

Service levels are defined service levels in two terms, customer levels of service and technical levels

of service.

Community Levels of Service measure how the community receives the service and whether the

organisation is providing community value.

An integral part of the CWMS network is the inter-relationship with various physical and social

factors, assessment of risk and applying key performance indicators in a practical manner.

Community levels of service measures used in the asset management plan are:

Quality How good is the service?

Function Does it meet users’ needs?

Capacity/Utilisation Is the service over or under used?

The organisation’s current and expected community service levels are detailed in Tables 3.4 and

3.5.

Table 3.4: Community Level of Service

Service

Attribute

Service Objective Performance

Measure

Process

Current

Performance

Expected position in 10

years based on current

LTFP

COMMUNITY OUTCOMES

Provide efficient and affordable collection and disposal of Stormwater Runoff

COMMUNITY LEVELS OF SERVICE

Quality Provide efficient method

of collection and

disposal of stormwater.

Customer

complaints

Acceptable Continuing to meet the

service delivery needs

of the community.


Confidence level

High High High

Function Ensure stormwater

management meets

community expectations.

Customer

complaints



of the community.


Confidence levels

High High High

Capacity/

Utilisation

Provide appropriate

capacity for the

collection and disposal

of stormwater.

Customer

complaints



of the community.


Confidence levels

High High High

Safety Provide a stormwater

network that is low risk to

the community

Customer

complaints



of the community.


Confidence levels

High High High

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3.5 Technical Levels of Service

Technical Levels of Service - Supporting the community service levels are operational or technical

measures of performance. These technical measures relate to the allocation of resources to service

activities that the organisation undertakes to best achieve the desired community outcomes and

demonstrate effective organisational performance.

Technical service measures are linked to annual budgets covering:

Operations – the regular activities to provide services such as opening hours, cleansing,

mowing grass, energy, inspections, etc.

Maintenance – the activities necessary to retain an asset as near as practicable to an

appropriate service condition (eg road patching, unsealed road grading, building and

structure repairs),

Renewal – the activities that return the service capability of an asset up to that which it had

originally (eg frequency and cost of road resurfacing and pavement reconstruction,

pipeline replacement and building component replacement),

Upgrade – the activities to provide a higher level of service (eg widening a road, sealing an

unsealed road, replacing a pipeline with a larger size) or a new service that did not exist

previously (eg a new library).

Service and asset managers plan, implement and control technical service levels to influence the

customer service levels.4

Table 3.5 shows the technical level of service expected to be provided under this AM Plan. The

agreed sustainable position in the table documents the position agreed by Council following the

consultation process.

4 IPWEA, 2011, IIMM, p 2.22

131

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Table 3.5: Technical Levels of Service

Service

Attribute

Service Objective Activity Measure Process Current Performance *

Operations Provide efficient method

of collection and disposal

of stormwater.

Complaints Satisfaction within levels

of service

Ensure Stormwater

capacity meets

community expectations.

Customer requests

relating to buildings not

flooded by up to 1:100

year Average

Recurrence Interval (ARI)

rainfall event

Satisfaction within levels

of service

Minimise flooding to

buildings from Council

drainage network

Buildings protected from

a 100 year average

recurrence interval

storm.

Some identified

properties located in

Nuriootpa.

No property flooding as

design storm event


of service

Maintenance Periodic visual assessment


Visual and/or CCTV

inspection

5% of network inspected

annually



Routine clearing of

drains

All perceived blockages

or potential blockages

are cleaned within 30

days

Condition of network is

sound to maintain function

without obstruction

Complaints Satisfaction within levels

of service



without obstruction

Regular street sweeping Based on sweeping

criteria



without obstruction

Regular Side Entry Pit

(SEP) cleaning

Based on inspection and

reported blockages

Provide stormwater system

that is low risk to workers

and the community

Number of injuries Nil per annum

Renewal Apply appropriate useful

life

Useful life review Annual review of useful

life in accordance with

accounting standards

2015 / 2016 Budget $509 ($000)

Upgrade/New Ensure stormwater system

has appropriate design

capacity.

Number of building

inundation events, less

than 1:100 ARI event


of service

Provide cost effective

stormwater system.

Cost / metre Review budget and

rates on an annual basis

Minimise life cycle

expenditure to maximise

asset life

Minimise life cycle

expenditure to maximise

asset life

Budgets are set to

maximise asset life

2015 / 2016 Budget $491 ($000)

132

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Note: * Current activities and costs (currently funded).

4. FUTURE DEMAND

4.1 Demand Drivers

Drivers affecting demand include population change, changes in demographics, seasonal factors,

vehicle ownership rates, consumer preferences and expectations, technological changes,

economic factors, agricultural practices, environmental awareness for example.

The impact of these trends are regularly examined and demand management strategies are

recommended as a technique to modify demand without compromising customer expectations.

The Population Projections by Local Government Area predicts the Estimated Resident Population

will increase. Nuriootpa is expected to accommodate the majority of growth in the next 5-10 years

as it contains the largest amount of available, ‘development ready’ or residential zoned land.

In forecasting on the future integration of land use and stormwater planning, the following are

reviewed:

Proposed land divisions

Proposed property / housing developments

Urban Boundary Growth

Analysis of areas designated for future development

Local planning controls

4.2 Demand Forecast

The present position and projections for demand drivers that may impact future service delivery

and utilisation of assets are identified and documented in Table 4.3.

4.3 Demand Impact on Assets

The impact of demand drivers that may affect future service delivery and utilisation of assets are

shown in Table 4.3.

Table 4.3: Demand Drivers, Projections and Impact on Services

Demand drivers Present position Projection Impact on services

Population 23,490 (Community

Plan Information

2016)

29,584 by 2036 Unless more land is available

issue of sustainability is

significant.

Demographics Average growth rate

of 1.64% per year

between 1991-2011.

Future growth rate

will depend on

timing of rezoning

and servicing of

additional land

located in existing

townships or within

areas at Concordia

and Kalbeeba

identified in the 30-

It is anticipated a future growth

rate of around 1.64% per year

will have negligible impact on

existing services (within the 20

year planning timeframe for this

IAMP) primarily because this

growth is based on infill aligned

with existing infrastructure. In

the long term should a new

town be provided, infrastructure

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year Plan as

“existing urban

land” or as a “long

term urban growth

area”.

will be constructed by the

developer. The additional

revenue from this growth could

offset renewal and rehabilitation

costs for existing infrastructure

across the Council area.

Residential

Development

Limited by land

supply and township

boundaries.

Aged

accommodation.

Housing needed for

workers.

Expanded towns

and new town.

Augmentation of existing or new

infrastructure, services and

stormwater disposal.

Increased demands and

inability to provide affordable

housing.

Rural Living Range of lot sizes 0.5

hectare – 6 hectare.

Viability and

manageability of

large lots will result

in pressure to

reduce sizes.

Additional service and

infrastructure requirements in

rural localities.

Industrial

Development

Scattered rural

locations often

displacing

agricultural land e.g.

Wineries.

Regional location

needed to prevent

impacts and use of

significant

agricultural areas.

Road infrastructure, heavy

transport access, electricity and

water supply/drainage.

Agriculturally

productive

areas

Character

preservation

legislation in place

which restricts future

residential

development in rural

areas.

Continued

production

affected by

fragmented land

holding sizes and

water availability,

access issues,

strategies and

policies need to

acknowledge

larger holdings and

use of smaller

holdings.

Encroachment of conflicting

land uses resulting in interface

and buffer issues. Road and

infrastructure provision.

4.4 Demand Management Plan

Demand for new services will be managed through a combination of managing existing assets,

upgrading of existing assets and providing new assets to meet demand and demand

management. Demand management practices include non-asset solutions, insuring against risks and managing failures.

Non-asset solutions focus on providing the required service without the need for the organisation to

own the assets and management actions including reducing demand for the service, reducing the

level of service (allowing some assets to deteriorate beyond current service levels) or educating

customers to accept appropriate asset failures5. Examples of non-asset solutions include providing


134

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services from existing infrastructure such as aquatic centres and libraries that may be in another community area or public toilets provided in commercial premises.

Opportunities identified to date for demand management are shown in Table 4.4. Further opportunities will be developed in future revisions of this asset management plan.

Table 4.4: Demand Management Plan Summary

Demand Driver Impact on Services Demand Management Plan

Increased

stormwater inflows

Increased load on the

stormwater network

testing capacity

Continually assess network capacity and

stormwater inflows. Address network capacity issues

with increased capacity.

4.5 Asset Programs to meet Demand

The new assets required to meet growth will be acquired free of cost from land developments and

constructed/acquired by the organisation. New assets constructed/acquired by the organisation

are discussed in Section 5.5. The cumulative value of new contributed and constructed asset values are summarised in Figure 1.

Figure 1: Upgrade and New Assets to meet Demand

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- 19 -


Acquiring these new assets will commit the organisation to fund ongoing operations, maintenance

and renewal 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 operations, maintenance and renewal costs in Section 5.

Barossa: Upgrade & New Assets to meet Demand (Stormwater_S1_V1) Data

Category Year Contributed* Constructed*

Stormwater_S1_V1 2015 $217 $0




Stormwater_S1_V1 2019 $1,094 $0

Stormwater_S1_V1 2020 $1,316 $0

Stormwater_S1_V1 2021 $1,539 $0

Stormwater_S1_V1 2022 $1,764 $0

Stormwater_S1_V1 2023 $1,989 $0

Stormwater_S1_V1 2024 $2,216 $0

Stormwater_S1_V1 2025 $2,443 $0

Stormwater_S1_V1 2026 $2,672 $0

Stormwater_S1_V1 2027 $2,902 $0

Stormwater_S1_V1 2028 $3,133 $0

Stormwater_S1_V1 2029 $3,365 $0

Stormwater_S1_V1 2030 $3,599 $0

Stormwater_S1_V1 2031 $3,834 $0

Stormwater_S1_V1 2032 $4,069 $0

Stormwater_S1_V1 2033 $4,306 $0

Stormwater_S1_V1 2034 $4,544 $0


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5. LIFECYCLE MANAGEMENT PLAN

Initial capital cost constitutes a significant up-front cost and often dominate the decision-making

process when acquiring new assets. However the ongoing recurrent expenditures (including

depreciation) usually represent a high portion of the total life-cycle costs of many assets. It is

important that they be included in the financial analysis undertaken to evaluate asset investment

options.

There may also be substantial costs associated with disposal at the end of an assets service life (e.g.

clean-up or demolition costs).

The way an asset is acquired or created may have a great impact on its future operation,

maintenance, or even disposal.

The Barossa Council, as custodians of the Local CWMS Network and infrastructure, are charged

with the responsibility to ensure that the asset continues to function and meet the community

needs and expectations as well as maintaining asset in safe and usable condition within a

reasonable duty of care.

In all cases, the asset functionality and asset maintenance targets need to be clearly defined with

the community (Users) and the asset service provider (Council) to determine the “ fit for purpose”

having regard to practicality and economics. That is, a level of service provided within a

reasonable duty of care in an affordable financial sustainable manner that considers community

expectations in regard to safety, discharge operation and overall condition of the local community

wastewater management system network.

Asset functionality as a “level of service” to the community must take into consideration such

factors as, life cycle, capability and capacity, risk management and strategic compliance to the

needs and expectations of the overall community.

Asset maintenance “levels of service” provide for the day - to - day maintenance programs to

ensure that the asset operations are safe within practical constraints, maintain to perform targets

for day - to - day use and is managed and maintained to minimise environmental risk and

protection of residents.

The structure of maintenance and capital works is represented by the following diagram:

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5.1 Background Data

5.1.1 Physical parameters

The assets covered by this asset management plan are shown in Table 2.1.

The age profile of the assets include in this AM Plan is shown in Figure 2.

Figure 2: Asset Age Profile

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139

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140

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5.1.2 Asset capacity and performance

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

Council's performance in the delivery of treated waste water services is monitored through key

performance indicators.

Level of Service (LoS) statements provide measurable performance indicators, describing the

means of delivering treated waste water services to achieve the desired outcomes. The key service

areas are:

Capability of service

Service sustainability

Quality of service (responsiveness)

Cost effectiveness

Customer service/customer satisfaction

One of the most important service sustainability indicators is the likely occurrence of high rainfall

inflows into the wastewater network. Other significant service sustainability measures are the

numbers of blockages and dry weather discharges from the wastewater network.

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

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Table 5.1.2: Known Service Performance Deficiencies

Location Service Deficiency

Pipe Network The physical condition of the stormwater asset may have deteriorated

and will not achieve its service potential and remaining life.

Capacity The pipe network may be under capacity resulting in over topping and

risk to adjoining assets.

Level of service failure Asset reliability or performance are effected by poor maintenance

programs and unexpected blockages.

Open Channel Potential for silting and debris blockages regular

Inspections Regular, programmed and documents inspections program.

The above service deficiencies were identified from Council Engineering Officers.

5.1.3 Asset condition

Condition is monitored as below:

Service Objective Activity Measure

Process

Current

Performance *

Methodology


to determine condition of

stormwater network

CCTV inspection 5% of network

inspected

annually



inspection contractor in addition

to Council staff.

The condition profile of our assets is shown in Figure 3.

Fig 3: Asset Condition Profile

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Condition is measured using a 1 – 5 grading system6 as detailed in Table 5.1.3.

Table 5.1.3: Simple Condition Grading Model

Condition

Grading

Description of Condition

1 Very Good: only planned maintenance required

2 Good: minor maintenance required plus planned maintenance

3 Fair: significant maintenance required

4 Poor: significant renewal/rehabilitation required

5 Very Poor: physically unsound and/or beyond rehabilitation

5.1.4 Asset valuations

The value of assets recorded in the asset register as at 30 June 2015 covered by this asset

management plan is shown below. Assets were last revalued at 1 July 2014. Assets are valued at fair value.

Current Replacement Cost $43,323 ($000)

Depreciable Amount $43,323 ($000)

Depreciated Replacement Cost7 $31,422 ($000)

Annual Depreciation Expense $429 ($000)

The Stormwater Pipework Network was valued as at 1 July 2014 using unit rates provided by Tonkin

Consulting.

Five percent of the stormwater pipe network is inspected for condition annually. This sets the

maintenance, upgrade and replacement program for the following years.

An in-house condition assessment of lagoons and waste water treatment plants was undertaken in

2013/14 using independent assistance as/when required together with a review of the

independent useful life for this asset class.

Major changes from previous valuations are due to increases in unit rates, improvements in the accuracy of assumptions and improved accuracy of the data.

Various ratios of asset consumption and expenditure have been prepared to help guide and gauge asset management performance and trends over time.

Rate of Annual Asset Consumption 1.0% (Depreciation/Depreciable Amount)

Rate of Annual Asset Renewal 0.0%

In 2016 the organisation plans to renew assets at 0% of the rate they are being consumed.

6 IPWEA, 2011, IIMM, Sec 2.5.4, p 2|79.

7 Also reported as Written Down Current Replacement Cost (WDCRC).

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5.1.5 Historical Data

Historical data on the physical location, dimensions and civil works are located in the Works and

Engineering Department and Council’s Electronic Document Records Management System

(EDRMS).

Historical Financial data can be found here:


Council’s Corporate Mapping System holds the spatial representation of the dataset.

5.2 Infrastructure Risk Management Plan

An assessment of risks associated with service delivery from infrastructure assets has identified

critical risks that will result in loss or reduction in service from infrastructure assets or a ‘financial

shock’ to the organisation. The risk assessment process identifies credible risks, the likelihood of the

risk event occurring, the consequences should the event occur, develops a risk rating, evaluates

the risk and develops a risk treatment plan for non-acceptable risks.

Critical risks, being those assessed as ‘Very High’ - requiring immediate corrective action and ‘High’

– requiring prioritised corrective action identified in the Infrastructure Risk Management Plan,

together with the estimated residual risk after the selected treatment plan is operational are summarised in Table 5.2. These risks are reported to management and Council.

Table 5.2: Critical Risks and Treatment Plans

Service or Asset

at Risk

What can Happen Risk Rating

(VH, H)

Risk Treatment Plan Residual

Risk *

Transport Assets

- Roads

Closure /

Damage due to

storm event

High Increase planned inspection

and cleaning frequency and

ongoing capacity review

Moderate

Community

Assets

Property Flooding

and flood

damage to

infrastructure

High Review and update street

sweeping program

Confirm visual and CCTV

inspection program

Update design and

construction standards

Implement new

development controls to

cover upgrade for growth

Investigate adequacy of

existing systems

Moderate

Stormwater

network

Blockage of pipes

and entry pits

High Improve effectiveness of street

sweeping and entry pit

cleaning

Moderate

Note * The residual risk is the risk remaining after the selected risk treatment plan is operational.

5.3 Routine Operations and Maintenance Plan

Operations include regular activities to provide services such as public health, safety and amenity,

eg cleansing, street sweeping, grass mowing and street lighting.

Routine maintenance is the regular on-going work that is necessary to keep assets operating,

including instances where portions of the asset fail and need immediate repair to make the asset

operational again.

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5.3.1 Operations and Maintenance Plan

Operations activities affect service levels including quality and function through street sweeping

and grass mowing frequency, intensity and spacing of street lights and cleaning frequency and

opening hours of building and other facilities.

Maintenance includes all actions necessary for retaining an asset as near as practicable to an

appropriate service condition including regular ongoing day-to-day work necessary to keep assets

operating, eg road patching but excluding rehabilitation or renewal. Maintenance may be

classified into reactive, planned and specific maintenance work activities.

Reactive maintenance is unplanned repair work carried out in response to service requests and

management/supervisory directions.

Planned maintenance is repair work that is identified and managed through a maintenance

management system (MMS). MMS activities include inspection, assessing the condition against

failure/breakdown experience, prioritising, scheduling, actioning the work and reporting what was

done to develop a maintenance history and improve maintenance and service delivery

performance.

Specific maintenance is replacement of higher value components/sub-components of assets that

is undertaken on a regular cycle including repainting, replacing air conditioning units, etc. This work

falls below the capital/maintenance threshold but may require a specific budget allocation.

Actual past maintenance expenditure is shown in Table 5.3.1.

Table 5.3.1: Maintenance Expenditure Trends

Maintenance Expenditure

Year Operations

($000)

Maintenance

($000)

Total ($000)

2012/2013 $160 $181 $341 Actual

2013/2014 $567 $466 $1,033 Actual

2014/2015 $216 $251 $468 Actual

2015/2016 $373 $135 $509 Budgeted

Operations maintenance work is currently 73% of total maintenance expenditure.

Reactive Maintenance work is currently 27% of total maintenance expenditure.

Maintenance expenditure levels are considered to be adequate to meet projected service levels,

which may be less than or equal to current service levels. Where maintenance expenditure levels

are such that will result in a lesser level of service, the service consequences and service risks have

been identified and service consequences highlighted in this AM Plan and service risks considered

in the Infrastructure Risk Management Plan.

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

experience and judgement and is based on the inputs into the Customer Request Management

(CRM) System.

5.3.2 Operations and Maintenance Strategies

The organisation will operate and maintain assets to provide the defined level of service to

approved budgets in the most cost-efficient manner. The operation and maintenance activities

include:

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Scheduling operations activities to deliver the defined level of service in the most efficient

manner,

Maintain a current infrastructure risk register for assets and present service risks associated

with providing services from infrastructure assets and reporting Very High and High risks and



to meet required operations and maintenance needs,

Review asset utilisation to identify underutilised assets and appropriate remedies, and over

utilised assets and customer demand management options,

Maintain a current hierarchy of critical assets and required operations and maintenance

activities,

Develop and regularly review appropriate emergency response capability,

Review management of operations and maintenance activities to ensure Council is


Asset hierarchy

An asset hierarchy provides a framework for structuring data in an information system to assist in

collection of data, reporting information and making decisions. The hierarchy includes the asset

class and component used for asset planning and financial reporting and service level hierarchy

used for service planning and delivery.

The asset hierarchy in the Corporate Asset Management System is represented below:

The organisation’s service hierarchy is shown is Table 5.3.2.

Table 5.3.2: Asset Service Hierarchy

Service Hierarchy Service Level Objective

Township stormwater

network

Effective disposal of stormwater within the township via an efficient

drainage network with low risk to infrastructure.

Rural stormwater

network

Effective distribution of stormwater in rural areas via drainage channels

and cross drains. Supporting efficient disposal with low risk to council

and community rural infrastructure.

Critical Assets

Critical assets are those assets which have a high consequence of failure but not necessarily a high

likelihood of failure. By identifying critical assets and critical failure modes, organisations can target

and refine investigative activities, maintenance plans and capital expenditure plans at the

appropriate time.

Operations and maintenances activities may be targeted to mitigate critical asset failure and

maintain service levels. These activities may include increased inspection frequency, higher

maintenance intervention levels, etc. Critical asset failure modes and required operations and

maintenance activities are detailed in Table 5.3.2.1.

Table 5.3.2.1: Critical Assets and Service Level Objectives

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Critical Assets Critical Failure Mode Operations & Maintenance Activities

Pipe Network Pipe break and

flooding

Continuous network monitoring for operational

performance including corrective maintenance

as required and within budget allocations

Pits Pit blockage and

flooding

Continuous monitoring including corrective

maintenance as required and within budget

allocations

Kerb and Gutter Channel blockage

and flooding

Street sweeping program and condition

monitoring

Waterways Channel blockage

and flooding

Continuous network monitoring for operational

performance including corrective maintenance

as required and within budget allocations

Floodwalls Wall break and

flooding



allocations

Detention basins Blockage and

overflow flooding



allocations

Weir Overtopping and

flooding



allocations

Standards and specifications

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


5.3.3 Summary of future operations and maintenance expenditures

Future operations and maintenance expenditure is forecast to trend in line with the value of the

asset stock as shown in Figure 4. Note that all costs are shown in current 2015 dollar values (ie real values).

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Figure 4: Projected Operations and Maintenance Expenditure

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Barossa: Projected Operations & Maintenance Expenditure (Stormwater_S1_V1) Data

Category Year Maintenance* Operations* Budget*

Stormwater_S1_V1 2015 $251 $216 $467

Stormwater_S1_V1 2016 $137 $375 $509

Stormwater_S1_V1 2017 $137 $377 $509

Stormwater_S1_V1 2018 $138 $378 $509

Stormwater_S1_V1 2019 $139 $380 $509

Stormwater_S1_V1 2020 $140 $382 $509

Stormwater_S1_V1 2021 $140 $384 $509

Stormwater_S1_V1 2022 $141 $386 $509

Stormwater_S1_V1 2023 $142 $388 $509

Stormwater_S1_V1 2024 $143 $389 $509

Stormwater_S1_V1 2025 $155 $376 $505

Stormwater_S1_V1 2026 $156 $377 $505

Stormwater_S1_V1 2027 $157 $379 $505

Stormwater_S1_V1 2028 $157 $381 $505

Stormwater_S1_V1 2029 $158 $383 $505

Stormwater_S1_V1 2030 $159 $385 $505

Stormwater_S1_V1 2031 $160 $387 $505

Stormwater_S1_V1 2032 $161 $389 $505

Stormwater_S1_V1 2033 $161 $391 $505

Stormwater_S1_V1 2034 $162 $393 $505


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

Maintenance is funded from the operating budget where available. This is further discussed in

Section 6.2.

5.4 Renewal/Replacement Plan

Renewal and replacement 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 or lesser

required service potential. Work over and above restoring an asset to original service potential is

upgrade/expansion or new works expenditure.

5.4.1 Renewal plan

Assets requiring renewal/replacement are identified from one of three methods provided in the ‘Expenditure Template’.

Method 1 uses Asset Register data to project the renewal costs using acquisition year and

useful life to determine the renewal year, or

Method 2 uses capital renewal expenditure projections from external condition modelling

systems, or

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Method 3 uses a combination of average network renewals plus defect repairs in the Renewal Plan and Defect Repair Plan worksheets on the ‘Expenditure template’.

Method 1 was used for this asset management plan.

The useful lives of assets used to develop projected asset renewal expenditures are shown in Table 5.4.1. Asset useful lives were last reviewed internally as at 1 July 2014.

Table 5.4.1: Useful Lives of Assets

Asset (Sub)Category Useful life

Box Culverts 150 Years

Drainage Channel Assets 25 – 100 years

Grated Inlet Pits 150 Years

Gross Pollutant Traps 100 Years

Headwalls 150 Years

Junction Boxes 150 Years

Pipes 55 - 150 Years

Side Entry Pits 150 Years

5.4.2 Renewal and Replacement Strategies

The organisation will plan capital renewal and replacement projects to meet level of service objectives and minimise infrastructure service risks by:

Planning and scheduling renewal projects to deliver the defined level of service in the most

efficient manner,

Undertaking project scoping for all capital renewal and replacement projects to identify:

o the service delivery ‘deficiency’, present risk and optimum time for

renewal/replacement,

o the project objectives to rectify the deficiency,



o and evaluate the options against evaluation criteria adopted by the organisation,

and

o select the best option to be included in capital renewal programs,

Using ‘low cost’ renewal methods (cost of renewal is less than replacement) wherever

possible,

Maintain a current infrastructure risk register for assets and service risks associated with

providing services from infrastructure assets and reporting Very High and High risks and



to meet required construction and renewal needs,

Maintain a current hierarchy of critical assets and capital renewal treatments and timings

required ,

Review management of capital renewal and replacement activities to ensure Council is


Renewal ranking criteria

Asset renewal and replacement is typically undertaken to either:

Ensure the reliability of the existing infrastructure to deliver the service it was constructed to

facilitate, or

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To ensure the infrastructure is of sufficient quality to meet the service requirements (eg to meet capacity requirements).8

It is possible to get some indication of capital renewal and replacement priorities by identifying assets or asset groups that:

Have a high consequence of failure,

Have a high utilisation and subsequent impact on users would be greatest,

The total value represents the greatest net value to the organisation,

Have the highest average age relative to their expected lives,

Are identified in the AM Plan as key cost factors,

Have high operational or maintenance costs, and Where replacement with modern equivalent assets would yield material savings.9

The ranking criteria used to determine priority of identified renewal and replacement proposals is detailed in Table 5.4.2.

Table 5.4.2: Renewal and Replacement Priority Ranking Criteria

Criteria Weighting

Provide 100 year ARI stormwater protection for development. 50%

Maintain the existing stormwater assets to ensure flood protection. 10%

Develop or alternatively adopt existing stormwater management guidelines for

new development. Guidelines to address erosion and sediment control on

construction sites. Promote objectives and policies from within and outside of

Council.

10%

Reduce additional stormwater flow, with infrastructure such as:

on-site detention of peak flows

on-site storage and re-use (rainwater tanks)

discharge to the ground (soakage pits/aquifer discharge)

30%

Total 100%

Renewal and replacement standards

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


5.4.3 Summary of future renewal and replacement expenditure

Projected future renewal and replacement expenditures are forecast to increase over time as the

asset stock increases from growth. The expenditure is summarised in Fig 5. Note that all amounts

are shown in real values.

8 IPWEA, 2011, IIMM, Sec 3.4.4, p 3|60. 9 Based on IPWEA, 2011, IIMM, Sec 3.4.5, p 3|66.

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The projected capital renewal and replacement program is shown in Appendix B.

Fig 5: Projected Capital Renewal and Replacement Expenditure

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Barossa - Projected Capital Renewal Expenditure (Stormwater_S1_V1) Data

Category Year Renewal Cost

Stormwater_S1_V1 2015 $0





















Deferred renewal and replacement, ie those assets identified for renewal and/or replacement and

not scheduled in capital works programs are to be included in the risk analysis process in the risk

management plan.

Renewals and replacement expenditure in the organisation’s capital works program will be

accommodated in the long term financial plan. This is further discussed in Section 6.2.

5.5 Creation/Acquisition/Upgrade Plan

New works are those works that create a new asset that did not previously exist, or works which

upgrade or improve an existing asset beyond its existing capacity. They may result from growth,

social or environmental needs. Assets may also be acquired at no cost to the organisation from

land development. These assets from growth are considered in Section 4.4.

5.5.1 Selection criteria

New assets and upgrade/expansion of existing assets are identified from various sources such as

councillor/director or community requests, proposals identified by strategic plans or partnerships

with other organisations. Candidate proposals are inspected to verify need and to develop a

preliminary renewal estimate. Verified proposals are ranked by priority and available funds and

scheduled in future works programmes. The priority ranking criteria is detailed below.

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Table 5.5.1: New Assets Priority Ranking Criteria

Criteria Weighting

Provide 100 year ARI stormwater protection for development. 50%

Maintain the existing stormwater assets to ensure flood protection. 10%

Develop or alternatively adopt existing stormwater management guidelines

for new development. Guidelines to address erosion and sediment control on

construction sites. Promote objectives and policies from within and outside of

Council.

10%

Reduce additional stormwater flow, with infrastructure such as:

on-site detention of peak flows

on-site storage and re-use (rainwater tanks)

discharge to the ground (soakage pits/aquifer discharge)

30%

Total 100%

5.5.2 Capital Investment Strategies

The organisation will plan capital upgrade and new projects to meet level of service objectives by:

Planning and scheduling capital upgrade and new projects to deliver the defined level of

service in the most efficient manner,

Undertake project scoping for all capital upgrade/new projects to identify:

o the service delivery ‘deficiency’, present risk and required timeline for delivery of the

upgrade/new asset,

o the project objectives to rectify the deficiency including value management for

major projects,



o management of risks associated with alternative options,

o and evaluate the options against evaluation criteria adopted by Council, and

o select the best option to be included in capital upgrade/new programs,

Review current and required skills base and implement training and development to meet

required construction and project management needs,

Review management of capital project management activities to ensure Council is


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.

5.5.3 Summary of future upgrade/new assets expenditure

Projected upgrade/new asset expenditures are summarised in Fig 6. The projected upgrade/new

capital works program is shown in Appendix C. All amounts are shown in real values.

Fig 6: Projected Capital Upgrade/New Asset Expenditure

There is no projected capital upgrade / new expenditure outside that stated in the LTFP.

Expenditure on new assets and services in the organisation’s capital works program will be accommodated in the long term financial plan. 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.

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Council is not planning to dispose of any major Stormwater assets.

5.7 Service Consequences and Risks

The organisation has prioritised decisions made in adopting this AM Plan to obtain the optimum

benefits from its available resources. Decisions were made based on the development of 3 scenarios of AM Plans.

Scenario 1 - What we would like to do based on asset register data

Scenario 2 – What we should do with existing budgets and identifying level of service and risk

consequences (ie what are the operations and maintenance and capital projects we are unable

to do, what is the service and risk consequences associated with this position). This may require several versions of the AM Plan.

Scenario 3 – What we can do and be financially sustainable with AM Plans matching long-term financial plans.

The development of scenario 1 and scenario 2 AM Plans provides the tools for discussion with the

Council/Board and community on trade-offs between what we would like to do (scenario 1) and

what we should be doing with existing budgets (scenario 2) by balancing changes in services and

service levels with affordability and acceptance of the service and risk consequences of the trade-off position (scenario 3).

5.7.1 What we cannot do

There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. These include:

Completion of Stormwater Management Plans for all townships.

Implementation of all recommendations of the Stormwater Management Plans at a consistent level for all townships.

5.7.2 Service consequences

Operations and maintenance activities and capital projects that cannot be undertaken will maintain or create service consequences for users. These include:

Possible service level inadequacies yet unknown are to be identified in the Stormwater

Management Plans for all townships.

5.7.3 Risk consequences

The operations and maintenance activities and capital projects that cannot be undertaken may maintain or create risk consequences for the organisation. These include:

Possible risks yet unknown are to be identified in the Stormwater Management Plans for all townships.

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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). Note that all costs are

shown in real values.

Fig 7: Projected Operating and Capital Expenditure

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Barossa - Projected Operating and Capital Expenditure (Stormwater_S1_V1) Data

Category Year Maintenance* Operations* Disposals* Capital

Upgrade* Capital

Renewal* Budget

Expenditure* Stormwater_S1_V1 2015 $251 $216 $0 $0 $0 $997

Stormwater_S1_V1 2016 $137 $375 $0 $0 $0 $1,028

Stormwater_S1_V1 2017 $137 $377 $0 $0 $0 $1,024

Stormwater_S1_V1 2018 $138 $378 $0 $0 $0 $1,069

Stormwater_S1_V1 2019 $139 $380 $0 $0 $0 $1,110

Stormwater_S1_V1 2020 $140 $382 $0 $0 $15 $729

Stormwater_S1_V1 2021 $140 $384 $0 $0 $0 $739

Stormwater_S1_V1 2022 $141 $386 $0 $0 $0 $659

Stormwater_S1_V1 2023 $142 $388 $0 $0 $0 $659

Stormwater_S1_V1 2024 $143 $389 $0 $0 $0 $659

Stormwater_S1_V1 2025 $155 $376 $0 $0 $0 $867

Stormwater_S1_V1 2026 $156 $377 $0 $0 $0 $867

Stormwater_S1_V1 2027 $157 $379 $0 $0 $0 $867

Stormwater_S1_V1 2028 $157 $381 $0 $0 $0 $867

Stormwater_S1_V1 2029 $158 $383 $0 $0 $0 $867

Stormwater_S1_V1 2030 $159 $385 $0 $0 $0 $867

Stormwater_S1_V1 2031 $160 $387 $0 $0 $0 $867

Stormwater_S1_V1 2032 $161 $389 $0 $0 $0 $867

Stormwater_S1_V1 2033 $161 $391 $0 $0 $0 $867

Stormwater_S1_V1 2034 $162 $393 $0 $0 $0 $867


6.1.1 Sustainability of service delivery

There are four key indicators for service delivery sustainability that have been considered in the

analysis of the services provided by this asset category, these being the asset renewal funding ratio,

long term life cycle costs/expenditures and medium term projected/budgeted expenditures over 5

and 10 years of the planning period.

Asset Renewal Funding Ratio

Asset Renewal Funding Ratio10 0%

The Asset Renewal Funding Ratio is the most important indicator and reveals that over the next 10

years, Council is forecasting that it will have 0% of the funds required for the optimal renewal and

replacement of its assets.

Long term - Life Cycle Cost

Life cycle costs (or whole of life costs) are the average costs that are required to sustain the service

levels over the asset life cycle. Life cycle costs include operations and maintenance expenditure

and asset consumption (depreciation expense). The life cycle cost for the services covered in this

10 AIFMG, 2012, Version 1.3, Financial Sustainability Indicator 4, Sec 2.6, p 2.16

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asset management plan is $945 ($000) per year (average operations and maintenance

expenditure plus depreciation expense projected over 10 years).

Life cycle costs can be compared to life cycle expenditure to give an initial indicator of

affordability of projected service levels when considered with age profiles. Life cycle expenditure

includes operations, maintenance and capital renewal expenditure. Life cycle expenditure will

vary depending on the timing of asset renewals. The life cycle expenditure over the 10 year

planning period is $505 ($000) per year (average operations and maintenance plus capital renewal

budgeted expenditure in LTFP over 10 years).

A shortfall between life cycle cost and life cycle expenditure is the life cycle gap. The life cycle

gap for services covered by this asset management plan is -$441 per year (-ve = gap, +ve =

surplus).

Life cycle expenditure is 53% of life cycle costs.

The life cycle costs and life cycle expenditure comparison highlights any difference between

present outlays and the average cost of providing the service over the long term. If the life cycle

expenditure is less than that life cycle cost, it is most likely that outlays will need to be increased or

cuts in services made in the future.

Knowing the extent and timing of any required increase in outlays and the service consequences i f

funding is not available will assist organisations in providing services to their communities in a

financially sustainable manner. This is the purpose of the asset management plans and long term

financial plan.

Medium term – 10 year financial planning period

This asset management plan identifies the projected operations, maintenance and capital renewal

expenditures required to provide an agreed level of service to the community over a 10 year

period. This provides input into 10 year financial and funding plans aimed at providing the required

services in a sustainable manner.

These projected expenditures may be compared to budgeted expenditures in the 10 year period

to identify any funding shortfall. In a core asset management plan, a gap is generally due to

increasing asset renewals for ageing assets.

The projected operations, maintenance and capital renewal expenditure required over the 10 year

planning period is $518 ($000) on average per year.

Estimated (budget) operations, maintenance and capital renewal funding is $505 ($000) on

average per year giving a 10 year funding shortfall of -$13 ($000) per year. This indicates that

Council expects to have 97% of the projected expenditures needed to provide the services

documented in the asset management plan.

Medium Term – 5 year financial planning period

The projected operations, maintenance and capital renewal expenditure required over the first 5

years of the planning period is $506 ($000) on average per year.

Estimated (budget) operations, maintenance and capital renewal funding is $501 ($000) on

average per year giving a 5 year funding shortfall of -$5 ($000). This indicates that Council expects

to have 99% of projected expenditures required to provide the services shown in this asset

management plan.

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Asset management financial indicators

Figure 7A shows the asset management financial indicators over the 10 year planning period and

for the long term life cycle.

Figure 7A: Asset Management Financial Indicators

Providing services from infrastructure in a sustainable manner requires the matching and managing

of service levels, risks, projected expenditures and financing to achieve a financial indicator of

approximately 1.0 for the first years of the asset management plan and ideally over the 10 year life

of the Long Term Financial Plan.

Figure 8 shows the projected asset renewal and replacement expenditure over the 20 years of the

AM Plan. The projected asset renewal and replacement expenditure is compared to renewal and

replacement expenditure in the capital works program, which is accommodated in the long term

financial plan

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Figure 8: Projected and LTFP Budgeted Renewal Expenditure

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Barossa: Projected & LTFP Budgeted Renewal Expenditure (CWMS_S1_V3) Data

Category Year

Projected Renewals

Planned Renewals

Expenditure Yr1

($'000) ($'000) ($'000)

Stormwater_S1_V1 2015 $ 0 $ 0 $ 0

Stormwater_S1_V1 2016 $ 0 $ 0 $ 0

Stormwater_S1_V1 2017 $ 0 $ 0 $ 0

Stormwater_S1_V1 2018 $ 0 $ 0 $ 0

Stormwater_S1_V1 2019 $ 0 $ 0 $ 0

Stormwater_S1_V1 2020 $ 15 $ 0 $ 0

Stormwater_S1_V1 2021 $ 0 $ 0 $ 0

Stormwater_S1_V1 2022 $ 0 $ 0 $ 0

Stormwater_S1_V1 2023 $ 0 $ 0 $ 0

Stormwater_S1_V1 2024 $ 0 $ 0 $ 0

Stormwater_S1_V1 2025 $ 0 $ 0 $ 0

Stormwater_S1_V1 2026 $ 0 $ 0 $ 0

Stormwater_S1_V1 2027 $ 0 $ 0 $ 0

Stormwater_S1_V1 2028 $ 0 $ 0 $ 0

Stormwater_S1_V1 2029 $ 0 $ 0 $ 0

Stormwater_S1_V1 2030 $ 0 $ 0 $ 0

Stormwater_S1_V1 2031 $ 0 $ 0 $ 0

Stormwater_S1_V1 2032 $ 0 $ 0 $ 0

Stormwater_S1_V1 2033 $ 0 $ 0 $ 0

Stormwater_S1_V1 2034 $ 0 $ 0 $ 0


Table 6.1.1 shows the shortfall between projected renewal and replacement expenditures and

expenditure accommodated in long term financial plan. Budget expenditures accommodated in

the long term financial plan or extrapolated from current budgets are shown in Appendix C.

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Table 6.1.1: Projected and LTFP Budgeted Renewals and Financing Shortfall

Barossa - Report 4 - Table 6.1.1 Renewals Financing (Stormwater_S1_V1)

Year End

Projected LTFP Renewal Financing

Cumulative Shortfall($'000)

Jun-30 Renewals Renewal Budget

Shortfall ($'000) (- gap, + surplus)

($'000) ($'000) (- gap, + surplus)

2015 $0 $0 $0 $0

2016 $0 $0 $0 $0

2017 $0 $0 $0 $0

2018 $0 $0 $0 $0

2019 $0 $0 $0 $0

2020 $15 $0 -$15 -$15

2021 $0 $0 $0 -$15

2022 $0 $0 $0 -$15

2023 $0 $0 $0 -$15

2024 $0 $0 $0 -$15

2025 $0 $0 $0 -$15

2026 $0 $0 $0 -$15

2027 $0 $0 $0 -$15

2028 $0 $0 $0 -$15

2029 $0 $0 $0 -$15

2030 $0 $0 $0 -$15

2031 $0 $0 $0 -$15

2032 $0 $0 $0 -$15

2033 $0 $0 $0 -$15

2034 $0 $0 $0 -$15

Note: A negative shortfall indicates a financing gap, a positive shortfall indicates a surplus for that year.

6.1.2 Projected expenditures for long term financial plan

Table 6.1.2 shows the projected expenditures for the 10 year long term financial plan.

Expenditure projections are in 2015 real values.

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Table 6.1.2: Projected Expenditures for Long Term Financial Plan ($000)

Barossa - Report 5 - Table 6.1.2 Long Term Financial Plan (Stormwater_S1_V1)

Year Operations Maintenance Projected Capital Disposals

Capital

Renewal Upgrade/New

2015 $216.00 $251.00 $0.00 $0.00 $0.00

2016 $374.79 $136.74 $0.00 $0.00 $0.00

2017 $376.58 $137.48 $0.00 $0.00 $0.00

2018 $378.39 $138.22 $0.00 $0.00 $0.00

2019 $380.20 $138.97 $0.00 $0.00 $0.00

2020 $382.02 $139.72 $15.25 $0.00 $0.00

2021 $383.85 $140.48 $0.00 $0.00 $0.00

2022 $385.69 $141.24 $0.00 $0.00 $0.00

2023 $387.54 $142.00 $0.00 $0.00 $0.00

2024 $389.40 $142.77 $0.00 $0.00 $0.00

2025 $375.57 $155.04 $0.00 $0.00 $0.00

2026 $377.45 $155.82 $0.00 $0.00 $0.00

2027 $379.34 $156.60 $0.00 $0.00 $0.00

2028 $381.23 $157.38 $0.00 $0.00 $0.00

2029 $383.14 $158.17 $0.00 $0.00 $0.00

2030 $385.06 $158.96 $0.00 $0.00 $0.00

2031 $386.98 $159.75 $0.00 $0.00 $0.00

2032 $388.92 $160.55 $0.00 $0.00 $0.00

2033 $390.86 $161.35 $0.00 $0.00 $0.00

2034 $392.82 $162.16 $0.00 $0.00 $0.00

6.2 Funding Strategy

After reviewing service levels, as appropriate to ensure ongoing financial sustainability projected

expenditures identified in Section 6.1.2 will be accommodated in the Council’s 10 year long term

financial plan.

6.3 Valuation Forecasts

Asset values are forecast to increase as additional assets are added to the asset stock from assets

constructed by land developers and others and donated to Council. Figure 9 shows the projected replacement cost asset values over the planning period in real values.

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Figure 9: Projected Asset Values

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Barossa - Projected Asset Values (Stormwater_S1_V1) Data

Category Year ($'000)

Stormwater_S1_V1 2015 $43,540





















166

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

Figure 10: Projected Depreciation Expense

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Barossa - Projected Depreciation Expense (Stormwater_S1_V1) Data

Category Year Annual Depreciation Charge






















The depreciated replacement cost 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 Figure 11. The depreciated

replacement cost of contributed and new assets is shown in the darker colour and in the lighter colour for existing assets.

168

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Figure 11: Projected Depreciated Replacement Cost

169

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Barossa - Projected Depreciated Replacement Cost (Stormwater_S1_V1) Data

Category Year Existing Assets New Assets

Stormwater_S1_V1 2015 $30,993 $217

Stormwater_S1_V1 2016 $30,564 $432

Stormwater_S1_V1 2017 $30,135 $647

Stormwater_S1_V1 2018 $29,706 $860

Stormwater_S1_V1 2019 $29,277 $1,072

Stormwater_S1_V1 2020 $28,848 $1,284

Stormwater_S1_V1 2021 $28,419 $1,494

Stormwater_S1_V1 2022 $27,990 $1,703

Stormwater_S1_V1 2023 $27,561 $1,911

Stormwater_S1_V1 2024 $27,132 $2,118

Stormwater_S1_V1 2025 $26,703 $2,323

Stormwater_S1_V1 2026 $26,274 $2,528

Stormwater_S1_V1 2027 $25,845 $2,732

Stormwater_S1_V1 2028 $25,416 $2,934

Stormwater_S1_V1 2029 $24,987 $3,135

Stormwater_S1_V1 2030 $24,558 $3,335

Stormwater_S1_V1 2031 $24,129 $3,534

Stormwater_S1_V1 2032 $23,700 $3,732

Stormwater_S1_V1 2033 $23,271 $3,929

Stormwater_S1_V1 2034 $22,842 $4,124


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 and risks that these may change are shown in Table 6.4.

Table 6.4: Key Assumptions made in AM Plan and Risks of Change

Key Assumptions Risks of Change to Assumptions

Growth will remain as predicted Low risk of change due to Character

Preservation (Barossa Valley) Act 2012

The expected rainfall intensity, frequency and

duration values will remain consistent for the

duration of this plan.

Moderate

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6.5 Forecast Reliability and Confidence

The expenditure and valuations projections in this AM Plan are based on best available data.

Currency and accuracy of data is critical to effective asset and financial management. Data confidence is classified on a 5 level scale11 in accordance with Table 6.5.

Table 6.5: Data Confidence Grading System

Confidence Grade Description

A Highly reliable Data based on sound records, procedures, investigations and analysis,

documented properly and recognised as the best method of assessment.

Dataset is complete and estimated to be accurate ± 2%

B Reliable Data based on sound records, procedures, investigations and analysis,

documented properly but has minor shortcomings, for example some of the

data is old, some documentation is missing and/or reliance is placed on

unconfirmed reports or some extrapolation. Dataset is complete and

estimated to be accurate ± 10%

C Uncertain Data based on sound records, procedures, investigations and analysis which

is incomplete or unsupported, or extrapolated from a limited sample for

which grade A or B data are available. Dataset is substantially complete

but up to 50% is extrapolated data and accuracy estimated ± 25%

D Very Uncertain Data is based on unconfirmed verbal reports and/or cursory inspections and

analysis. Dataset may not be fully complete and most data is estimated or

extrapolated. Accuracy ± 40%

E Unknown None or very little data held.

The estimated confidence level for and reliability of data used in this AM Plan is shown in Table 6.5.1.

Table 6.5.1: Data Confidence Assessment for Data used in AM Plan

Data Confidence Assessment Comment

Demand drivers A Highly reliable Dependent on Barossa

Development Plan

Growth projections A Highly reliable Dependent on Barossa

Development Plan

Operations expenditures B Reliable Dependent on inspection plan

Maintenance expenditures B Reliable Dependent on inspection plan

Projected Renewal expenditure B Reliable Dependent on renewals identified

in inspection plan

Asset useful lives A Highly reliable Annual review

Condition modelling B Reliable Increase in inspection program

required

Network renewals B Reliable Dependent on inspection plan

Defect repairs A Highly reliable Predominantly reactive unless

identified as part of inspection

program

Upgrade/New expenditures A Highly reliable Dependent on completion of

Stormwater Management Plans for

all townships

Disposal expenditures A Highly reliable N/A


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Over all data sources the data confidence is assessed as having a reliable levell for data used in the preparation of this AM Plan.

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7. PLAN IMPROVEMENT AND MONITORING

7.1 Status of Asset Management Practices

7.1.1 Accounting and financial systems

Council utilises the Technology One software product – Finance One.

Accountabilities for financial systems

Manager Financial Services

Senior Accountant - Budgets

Asset Accountant – Acquisition and disposal

Payroll Officer - Payroll

Accounts Payable Clerk – Accounts Payable

Finance Officer

Accounting standards and regulations

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Capital/maintenance threshold

Required changes to accounting financial systems arising from this AM Plan

Ability to split costs between Maintenance and Operating expenditure

7.1.2 Asset management system

Council utilises the Conquest Solutions Asset Management software product – Conquest III.

Asset registers

The Stormwater asset register in Conquest III covers:

Rural Drainage

Rural Drainage (Cross Drains)

o The Box Culverts, Headwalls and Pipes within Cross Drains

The various sizes of assets within that category

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Township Drainage (including Drainage Channel)

Township Drainage (Stormwater Drain Assets)

o The Box Culverts – with concrete bases


o Drainage Channel Assets

The various material types of assets within that category

The various asset lives of assets within that category

o Grated Inlet Pits


o Gross Pollutant Traps


o Headwall Stormwater


o The Box Culverts – with concrete bases

Headwall – Box Culvert


Headwall – Pipe


o Junction Boxes

Greater than Standard Depth (depth above 1500)

Less than Standard Depth (depth less than 1000)

Standard 1000 – 1500mm depth

o Pipes


o Side Entry Pits

Single Pit

1000mm Depth

1500mm Depth

2000mm Depth

Double Pit

1000mm Depth

1500mm Depth

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2000mm Depth

Greater than Double Pit

Linkage from asset management to financial system

No software integration at this point in time. Assets in conquest do have Finance Asset ID listed against the assets.

Accountabilities for asset management system and data maintenance

Manager Assets and Infrastructure

Required changes to asset management system arising from this AM Plan

Improve the accuracy of data and the linkage of the Asset Management System data to the corporate mapping system.

7.2 Improvement Plan

The asset management improvement plan generated from this asset management

plan is shown in Table 7.2.

Table 7.2: Improvement Plan

Task

No

Task Responsibility Resources

Required

Timeline

1 Enable Finance System to record /

allocate costs between Operations

and Maintenance

MFS TBA TBA

2 Easily differentiate between

operating and maintenance

expenditure in Finance System

MFS TBA TBA

3 Easily differentiate between

planned and reactive

maintenance expenditure in

Finance System

MFS TBA TBA

4 Develop and establish ongoing

assessment in relationship to safety

and specified maintenance


MES TBA TBA

5 Audit and review of maintenance

response times (to confirm whether

maintenance works are delivered

on time).

MES TBA TBA

6 Random audit of maintenance

works (to confirm whether

maintenance works are delivered to


MES TBA TBA

7 Review and assess changing

Community Wastewater

MES TBA TBA

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Management System studies,

community expectations and

customer feedback/contact.

8 Consultation to ascertain the

community’s service needs and

preferences and confirm


Communicati

ons and

Marketing

Officer

TBA TBA

9 Review of the customer request

reports available in Pathway.

Admin

Officer

TBA TBA

10 Utilise Conquest to undertake and

record planned maintenance

activities on the network.

Admin

Officer

TBA TBA

11 Undertake maintenance activities

through a planned maintenance

system to reduce maintenance

costs and improve maintenance

outcomes.

MES TBA TBA

12 Account for Stormwater as a

separate line item from Bridges and

Floodplain for New / Upgrade

Capital Expenditure.

MFS TBA TBA

13 Account for Stormwater as a

separate line item from Bridges and

Floodplain for Renewal /

Replacement Capital Expenditure.

MFS TBA TBA

14 Determine Function data and

include against each asset on a 1 –

5 rating.

Function is the ability of the physical

infrastructure to meet program

delivery needs

MES TBA TBA

15 Determine Capacity/Utilisation data

and include against each asset on

a 1 – 5 rating.

Capacity/Utilisation represents the

ability of the physical infrastructure

to meet service delivery needs.

MES TBA TBA

7.3 Monitoring and Review Procedures

This asset management plan will be reviewed during annual budget planning

processes and amended to recognise any material changes in service levels and/or

resources available to provide those services as a result of budget decisions.

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The AM Plan will be updated annually to ensure it represents the current service level,

asset values, projected operations, maintenance, capital renewal and replacement,

capital upgrade/new and asset disposal expenditures and projected expenditure

values incorporated into the organisation’s long term financial plan.

Resources will be allocated by Council to ensure annual updates occur.

The AM Plan has a life of 4 years (Council/Board election cycle) and is due for

complete revision and updating within two years of each Council/Board election.

7.4 Performance Measures

The effectiveness of the asset management plan can be measured in the following

ways:

The degree to which the required projected expenditures identified in this

asset management plan are incorporated into Council’s long term financial

plan,

The degree to which 1-5 year detailed works programs, budgets, business

plans and organisational structures take into account the ‘global’ works

program trends provided by the asset management plan,

The degree to which the existing and projected service levels and service

consequences (what we cannot do), risks and residual risks are incorporated

into the Council’s Strategic Plan and associated plans,

The Asset Renewal Funding Ratio achieving the target of 1.0.

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8. REFERENCES

IPWEA, 2006, ‘International Infrastructure Management Manual’, Institute of Public

Works Engineering Australasia, Sydney, www.ipwea.org/IIMM

IPWEA, 2008, ‘NAMS.PLUS Asset Management’, Institute of Public Works Engineering

Australasia, Sydney, www.ipwea.org/namsplus.

IPWEA, 2009, ‘Australian Infrastructure Financial Management Guidelines’, Institute of

Public Works Engineering Australasia, Sydney, www.ipwea.org/AIFMG.

IPWEA, 2011, ‘International Infrastructure Management Manual’, Institute of Public

Works Engineering Australasia, Sydney, www.ipwea.org/IIMM

Sample Council, ‘Strategic Plan 20XX – 20XX’,

The Barossa Council – Annual Budget and Business Plan 2015 – 2016

http://www.barossa.sa.gov.au/sections/council/financial-documents/annual-

budget-business-plan

Comment [BL4]: Awaiting approval of the

Community

179




http://www.ipwea.org/AIFMG




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9. APPENDICES

Appendix A Maintenance Response Levels of Service

The response level of Service for stormwater is dependent on the answers given by the customer. This determines which department the request will go to as per below:

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The accepted Response Levels of Service for Questions 1-4 are:

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Appendix B Projected 10 year Capital Renewal and Replacement Works Program

STORMWATER PROJECTS Comment 2015/2016 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024

Upgrade Inlet Capacity Various

Lyndoch (Ref C1) Barossa Valley Way, stormwater crossing

from Kauffman Avenue to Village Green, Including energy

dissipation structure.

Installation of (1x) double SEP

$

60,000

Homburg Street Drainage, Tanunda

A new drainage system is proposed to be const. from

Langmeil Rd extended to Homburg, Angas & Roenfeldt

Drive to reduce nuisance gutter flows.

$

450,729

Drainage Capacity Upgrade Various

Moculta, Altmann Street South to Truro Road, drainage

upgrade

$

80,000

Mt Pleasant (Ref B1) Hospital Road to Showgrounds Road,

establish open channel easement and scour protection and

new pipe and pits

Channel treatment plus erosion / scour protection.

$

30,000

Mt Pleasant (Ref B2) Showgrounds Road to Melrose Street,

establish open channel easement and scour protection Installation of (1x) single SEP.

$

80,000

Mt Pleasant (Ref B3) Melrose Street, new underground pipe

crossing and SEP's

Mt Pleasant (Ref C1) Hospital to Showgrounds Roads, establish

open channel easement and scour protection Installation of (1x) single SEP.

Mt Pleasant (Ref C2) New inlet pits in Phillis street and Melrose

Street

Mt Pleasant (Ref F1) Herriot Road to William Street, establish

open channel easement and scour protection F

$

10,000

Mt Pleasant (Ref F2) William Street to Melrose Street, establish

open channel easement and scour protection

Installation of 375 dia (20m) s/w pipe & Channel treatment

plus erosion control.

$

15,000

Mt Pleasant (Ref F3) Melrose Street to River, establish open

channel easement and scour protection F

$

15,000

Mt Pleasant (Ref G1) William Street, (Cnr Tungkillo Road)

underground drainge

$

15,000

Mt Pleasant (Ref G2) Tungkillo Road to Isaac Street, establish

open channel easement and scour protection Channel treatment plus erosion / scour protection.

$

4,000

Mt Pleasant (Ref G3) Isaac Street to Melrose Street, establish

open channel easement and scour protection Channel treatment plus erosion / scour protection.

$

20,000

Mt Pleasant (Ref G4) Isaac Street (Cnr Melrose Street)

underground drainage

Installation of new JB plus(2x) Double SEP and 375 dia

(30m) s/w pipe.

$

15,000

Nuriootpa, Kalimna Creek Flood Study Including stormwater management plan for the Nuriootpa

Township

Nuriootpa, Greenock Road, Open Drain upgrade Stone pitched open channel from Vine St to Moppa Creek

Nuriootpa, Old Kapunda Road, Open drain upgrade Stone pitched open channel from Vine St to Kalimna

Creek

Installation of (1x) grated inlet pit, (2x) JB & 450 dia (50m)

s/w pipe.

Springton, Miller Street / Williamtown Road / Hamiltons Road

intersection drainage upgrade

$

50,000

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Tanunda (Ref ABD 001 - 003) Coronation Avenue,

underground drain and SEP's

$

70,000

Tanunda (Ref ABD 004 - 008) Acacia Street to Murray Street,

underground drain and SEP's

Extension of current Acacia St s/w const. to connect to

Murray St & Coronation Ave

$

120,000

Tanunda (Ref ACE 001 - 014) Homburg Street / Third Avenue /

Angas Street drainage upgrade

$

200,000

$

300,000

Tanunda (Ref ACU 001 - 004) Murray Street drainage upgrade,

from south of Basedow Creek to Basedow Creek, underground

drain and SEP's

Extension of a pipe south from Basedow Creek along

Murray St is proposed to intercept high gutter flows

Tanunda (Ref ADA 001 - 004) Bilyara Street drainage upgrade,

from College Street to Basedow Creek

$

40,000

Tanunda (Ref AND 011 - 014) Maria Street, South Outfall

upgrade, downstream of Maria Street

Increase the capacity of the open channel from Maria St

through to the outfall to convey the 100 yr ARI flow

(2.7m3/s)

$

50,000

Tanunda, Para Road, drainage upgrade, from Murrray Street

to Richmond Grove outfall, underground drainage and SEP's

$

170,000

$

330,000

Williamstown, George Street low point drainage improvement

Springton Drainage

Nuriootpa Floodplain Project Remediation work as result of floodplain modelling report

Developer Funded Work

Mount Pleasant

Still to be identified in assets condition review $

150,000

$

150,000

$

150,000

$

150,000

$

150,000

$

150,000

$

150,000

$

150,000

$

150,000

TOTAL TOTAL BUDGET $

530,000

$

519,000

$

515,000

$

560,000

$

600,729

$

220,000

$

230,000

$

150,000

$

150,000

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Appendix C Budgeted Expenditures Accommodated in LTFP

184

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185

- 69 -


186

- 70 -


Appendix D State of The Assets

187

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Appendix E Abbreviations

AAAC Average annual asset consumption

AM Asset management

AM Plan Asset management plan

ARI Average recurrence interval

ASC Annual service cost

BOD Biochemical (biological) oxygen demand

CRC Current replacement cost

CWMS Community wastewater management

systems

DA Depreciable amount

DRC Depreciated replacement cost

EF Earthworks/formation

IRMP Infrastructure risk management plan

LCC Life Cycle cost

LCE Life cycle expenditure

LTFP Long term financial plan

MMS Maintenance management system

PCI Pavement condition index

RV Residual value

SoA State of the Assets

SS Suspended solids

vph Vehicles per hour

WDCRC Written down current replacement cost

OTR Office of the Technical Regulator

ESCOSA Essential Services Commission of South

Australia

OMG Organisation Managers Group

188

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DPTI Department of Planning, Transport and

Infrastructure

SAPN SA Power Networks

189

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Appendix F Glossary

Annual service cost (ASC)

Reporting actual cost

The annual (accrual) cost of providing

a service including operations,

maintenance, depreciation, finance /

opportunity and disposal costs less

revenue.

For investment analysis and budgeting

An estimate of the cost that would be

tendered, per annum, if tenders were

called for the supply of a service to a

performance specification for a fixed

term. The Annual Service Cost

includes operations, maintenance,

depreciation, finance / opportunity

and disposal costs, less revenue.

Asset

A resource controlled by an entity as a

result of past events and from which

future economic benefits are

expected to flow to the entity.

Infrastructure assets are a sub-class of

property, plant and equipment which

are non-current assets with a life

greater than 12 months and enable

services to be provided.

Asset category

Sub-group of assets within a class

hierarchy for financial reporting and

management purposes.

Asset class

A group of assets having a similar

nature or function in the operations of

an entity, and which, for purposes of

disclosure, is shown as a single item

without supplementary disclosure.

Asset condition assessment

The process of continuous or periodic

inspection, assessment, measurement

and interpretation of the resultant

data to indicate the condition of a

specific asset so as to determine the

need for some preventative or

remedial action.

Asset hierarchy

A framework for segmenting an asset

base into appropriate classifications.

The asset hierarchy can be based on

asset function or asset type or a

combination of the two.

Asset management (AM)

The combination of management,

financial, economic, engineering and

other practices applied to physical

assets with the objective of providing

the required level of service in the most

cost effective manner.

Asset renewal funding ratio

The ratio of the net present value of

asset renewal funding

accommodated over a 10 year period

in a long term financial plan relative to

the net present value of projected

capital renewal expenditures identified

in an asset management plan for the

same period [AIFMG Financial

Sustainability Indicator No 8].

Average annual asset consumption

(AAAC)*

The amount of an organisation’s asset

base consumed during a reporting

period (generally a year). This may be

calculated by dividing the

depreciable amount by the useful life

(or total future economic

benefits/service potential) and totalled

for each and every asset OR by

dividing the carrying amount

(depreciated replacement cost) by

the remaining useful life (or remaining

future economic benefits/service

potential) and totalled for each and

every asset in an asset category or

class.

Borrowings

A borrowing or loan is a contractual

obligation of the borrowing entity to

deliver cash or another financial asset

to the lending entity over a specified

period of time or at a specified point in

time, to cover both the initial capital

provided and the cost of the interest

incurred for providing this capital. A

borrowing or loan provides the means

for the borrowing entity to finance

outlays (typically physical assets) when

it has insufficient funds of its own to do

so, and for the lending entity to make

a financial return, normally in the form

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of interest revenue, on the funding

provided.

Capital expenditure

Relatively large (material) expenditure,

which has benefits, expected to last

for more than 12 months. Capital

expenditure includes renewal,

expansion and upgrade. Where

capital projects involve a combination

of renewal, expansion and/or upgrade

expenditures, the total project cost

needs to be allocated accordingly.

Capital expenditure - expansion

Expenditure that extends the capacity

of an existing asset to provide benefits,

at the same standard as is currently

enjoyed by existing beneficiaries, to a

new group of users. It is discretionary

expenditure, which increases future

operations and maintenance costs,

because it increases the organisation’s

asset base, but may be associated

with additional revenue from the new

user group, eg. extending a drainage

or road network, the provision of an

oval or park in a new suburb for new

residents.

Capital expenditure - new

Expenditure which creates a new asset

providing a new service/output that

did not exist beforehand. As it

increases service potential it may

impact revenue and will increase

future operations and maintenance

expenditure.

Capital expenditure - renewal

Expenditure on an existing asset or on

replacing an existing asset, which

returns the service capability of the

asset up to that which it had originally.

It is periodically required expenditure,

relatively large (material) in value

compared with the value of the

components or sub-components of

the asset being renewed. As it

reinstates existing service potential, it

generally has no impact on revenue,

but may reduce future operations and

maintenance expenditure if

completed at the optimum time, eg.

resurfacing or resheeting a material

part of a road network, replacing a

material section of a drainage network

with pipes of the same capacity,

resurfacing an oval.

Capital expenditure - upgrade

Expenditure, which enhances an

existing asset to provide a higher level

of service or expenditure that will

increase the life of the asset beyond

that which it had originally. Upgrade

expenditure is discretionary and often

does not result in additional revenue

unless direct user charges apply. It will

increase operations and maintenance

expenditure in the future because of

the increase in the organisation’s asset

base, eg. widening the sealed area of

an existing road, replacing drainage

pipes with pipes of a greater capacity,

enlarging a grandstand at a sporting

facility.

Capital funding

Funding to pay for capital

expenditure.

Capital grants

Monies received generally tied to the

specific projects for which they are

granted, which are often upgrade

and/or expansion or new investment

proposals.

Capital investment expenditure

See capital expenditure definition

Capitalisation threshold

The value of expenditure on non-

current assets above which the

expenditure is recognised as capital

expenditure and below which the

expenditure is charged as an expense

in the year of acquisition.

Carrying amount

The amount at which an asset is

recognised after deducting any

accumulated depreciation /

amortisation and accumulated

impairment losses thereon.

Class of assets

See asset class definition

Component

Specific parts of an asset having

independent physical or functional

identity and having specific attributes

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such as different life expectancy,

maintenance regimes, risk or criticality.

Core asset management

Asset management which relies

primarily on the use of an asset register,

maintenance management systems,

job resource management, inventory

control, condition assessment, simple

risk assessment and defined levels of

service, in order to establish alternative

treatment options and long-term

cashflow predictions. Priorities are

usually established on the basis of

financial return gained by carrying out

the work (rather than detailed risk

analysis and optimised decision-

making).

Cost of an asset

The amount of cash or cash

equivalents paid or the fair value of

the consideration given to acquire an

asset at the time of its acquisition or

construction, including any costs

necessary to place the asset into

service. This includes one-off design

and project management costs.

Critical assets

Assets for which the financial, business

or service level consequences of

failure are sufficiently severe to justify

proactive inspection and

rehabilitation. Critical assets have a

lower threshold for action than non-

critical assets.

Current replacement cost (CRC)

The cost the entity would incur to

acquire the asset on the reporting

date. The cost is measured by

reference to the lowest cost at which

the gross future economic benefits

could be obtained in the normal

course of business or the minimum it

would cost, to replace the existing

asset with a technologically modern

equivalent new asset (not a second

hand one) with the same economic

benefits (gross service potential)

allowing for any differences in the

quantity and quality of output and in

operating costs.

Deferred maintenance

The shortfall in rehabilitation work

undertaken relative to that required to

maintain the service potential of an

asset.

Depreciable amount

The cost of an asset, or other amount

substituted for its cost, less its residual

value.

Depreciated replacement cost (DRC)

The current replacement cost (CRC) of

an asset less, where applicable,

accumulated depreciation calculated

on the basis of such cost to reflect the

already consumed or expired future

economic benefits of the asset.

Depreciation / amortisation

The systematic allocation of the

depreciable amount (service

potential) of an asset over its useful life.

Economic life

See useful life definition.

Expenditure

The spending of money on goods and

services. Expenditure includes

recurrent and capital outlays.

Expenses

Decreases in economic benefits during

the accounting period in the form of

outflows or depletions of assets or

increases in liabilities that result in

decreases in equity, other than those

relating to distributions to equity participants.

Fair value

The amount for which an asset could

be exchanged, or a liability settled,

between knowledgeable, willing

parties, in an arms length transaction.

Financing gap

A financing gap exists whenever an

entity has insufficient capacity to

finance asset renewal and other

expenditure necessary to be able to

appropriately maintain the range and

level of services its existing asset stock

was originally designed and intended

to deliver. The service capability of the

existing asset stock should be

determined assuming no additional

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operating revenue, productivity

improvements, or net financial liabilities

above levels currently planned or

projected. A current financing gap

means service levels have already or

are currently falling. A projected

financing gap if not addressed will

result in a future diminution of existing

service levels.

Heritage asset

An asset with historic, artistic, scientific,

technological, geographical or

environmental qualities that is held

and maintained principally for its

contribution to knowledge and culture

and this purpose is central to the

objectives of the entity holding it.

Impairment Loss

The amount by which the carrying

amount of an asset exceeds its

recoverable amount.

Infrastructure assets

Physical assets that contribute to

meeting the needs of organisations or

the need for access to major

economic and social facilities and

services, eg. roads, drainage,

footpaths and cycleways. These are

typically large, interconnected

networks or portfolios of composite

assets. The components of these

assets may be separately maintained,

renewed or replaced individually so

that the required level and standard of

service from the network of assets is

continuously sustained. Generally the

components and hence the assets

have long lives. They are fixed in place

and are often have no separate

market value.

Investment property

Property held to earn rentals or for

capital appreciation or both, rather

than for:

(a) use in the production or supply of

goods or services or for

administrative purposes; or

(b) sale in the ordinary course of

business.

Key performance indicator

A qualitative or quantitative measure

of a service or activity used to

compare actual performance against

a standard or other target.

Performance indicators commonly

relate to statutory limits, safety,

responsiveness, cost, comfort, asset

performance, reliability, efficiency,

environmental protection and

customer satisfaction.

Level of service

The defined service quality for a

particular service/activity against

which service performance may be

measured. Service levels usually relate

to quality, quantity, reliability,

responsiveness, environmental impact,

acceptability and cost.

Life Cycle Cost *

1. Total LCC The total cost of an asset

throughout its life including

planning, design, construction,

acquisition, operation,

maintenance, rehabilitation and

disposal costs.

2. Average LCC The life cycle cost

(LCC) is average cost to provide

the service over the longest asset

life cycle. It comprises average

operations, maintenance

expenditure plus asset

consumption expense, represented

by depreciation expense

projected over 10 years. The Life

Cycle Cost does not indicate the

funds required to provide the

service in a particular year.

Life Cycle Expenditure

The Life Cycle Expenditure (LCE) is the

average operations, maintenance

and capital renewal expenditure

accommodated in the long term

financial plan over 10 years. Life Cycle

Expenditure may be compared to

average Life Cycle Cost to give an

initial indicator of affordability of

projected service levels when considered with asset age profiles.

Loans / borrowings

See borrowings.

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Maintenance

All actions necessary for retaining an

asset as near as practicable to an

appropriate service condition,

including regular ongoing day-to-day

work necessary to keep assets

operating, eg road patching but

excluding rehabilitation or renewal. It is

operating expenditure required to

ensure that the asset reaches its

expected useful life.

• Planned maintenance

Repair work that is identified and

managed through a maintenance

management system (MMS). MMS

activities include inspection,

assessing the condition against

failure/breakdown

criteria/experience, prioritising

scheduling, actioning the work and

reporting what was done to

develop a maintenance history

and improve maintenance and

service delivery performance.

• Reactive maintenance

Unplanned repair work that is

carried out in response to service

requests and management/

supervisory directions.

• Specific maintenance

Maintenance work to repair

components or replace sub-

components that needs to be

identified as a specific

maintenance item in the

maintenance budget.

• Unplanned maintenance

Corrective work required in the

short-term to restore an asset to

working condition so it can

continue to deliver the required

service or to maintain its level of

security and integrity.

Maintenance expenditure *

Recurrent expenditure, which is

periodically or regularly required as

part of the anticipated schedule of

works required to ensure that the asset

achieves its useful life and provides the

required level of service. It is

expenditure, which was anticipated in

determining the asset’s useful life.

Materiality

The notion of materiality guides the

margin of error acceptable, the

degree of precision required and the

extent of the disclosure required when

preparing general purpose financial

reports. Information is material if its

omission, misstatement or non-

disclosure has the potential,

individually or collectively, to influence

the economic decisions of users taken

on the basis of the financial report or

affect the discharge of accountability

by the management or governing

body of the entity.

Modern equivalent asset

Assets that replicate what is in

existence with the most cost-effective

asset performing the same level of

service. It is the most cost efficient,

currently available asset which will

provide the same stream of services as

the existing asset is capable of

producing. It allows for technology

changes and, improvements and

efficiencies in production and

installation techniques

Net present value (NPV)

The value to the organisation of the

cash flows associated with an asset,

liability, activity or event calculated

using a discount rate to reflect the

time value of money. It is the net

amount of discounted total cash

inflows after deducting the value of

the discounted total cash outflows

arising from eg the continued use and

subsequent disposal of the asset after

deducting the value of the discounted

total cash outflows.

Non-revenue generating investments

Investments for the provision of goods

and services to sustain or improve

services to the community that are not

expected to generate any savings or

revenue to the Council, eg. parks and

playgrounds, footpaths, roads and

bridges, libraries, etc.

Operations

Regular activities to provide services

such as public health, safety and

amenity, eg street sweeping, grass

mowing and street lighting.

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Operating expenditure

Recurrent expenditure, which is

continuously required to provide a

service. In common use the term

typically includes, eg power, fuel, staff,

plant equipment, on-costs and

overheads but excludes maintenance

and depreciation. Maintenance and

depreciation is on the other hand

included in operating expenses.

Operating expense

The gross outflow of economic

benefits, being cash and non cash

items, during the period arising in the

course of ordinary activities of an

entity when those outflows result in

decreases in equity, other than

decreases relating to distributions to

equity participants.

Operating expenses

Recurrent expenses continuously

required to provide a service, including

power, fuel, staff, plant equipment,

maintenance, depreciation, on-costs

and overheads.


financing ratio

Ratio of estimated budget to

projected expenditure for operations,

maintenance and renewal of assets

over a defined time (eg 5, 10 and 15

years).


gap

Difference between budgeted

expenditures in a long term financial

plan (or estimated future budgets in

absence of a long term financial plan)

and projected expenditures for

operations, maintenance and renewal

of assets to achieve/maintain

specified service levels, totalled over a

defined time (e.g. 5, 10 and 15 years).

Pavement management system (PMS)

A systematic process for measuring

and predicting the condition of road

pavements and wearing surfaces over

time and recommending corrective

actions.

PMS Score

A measure of condition of a road

segment determined from a Pavement

Management System.

Rate of annual asset consumption *

The ratio of annual asset consumption

relative to the depreciable amount of

the assets. It measures the amount of

the consumable parts of assets that

are consumed in a period

(depreciation) expressed as a

percentage of the depreciable

amount.

Rate of annual asset renewal *

The ratio of asset renewal and

replacement expenditure relative to

depreciable amount for a period. It

measures whether assets are being

replaced at the rate they are wearing

out with capital renewal expenditure

expressed as a percentage of

depreciable amount (capital renewal

expenditure/DA).

Rate of annual asset upgrade/new *

A measure of the rate at which assets

are being upgraded and expanded

per annum with capital upgrade/new

expenditure expressed as a

percentage of depreciable amount

(capital upgrade/expansion

expenditure/DA).

Recoverable amount

The higher of an asset's fair value, less

costs to sell and its value in use.

Recurrent expenditure

Relatively small (immaterial)

expenditure or that which has benefits

expected to last less than 12 months.

Recurrent expenditure includes

operations and maintenance

expenditure.

Recurrent funding

Funding to pay for recurrent

expenditure.

Rehabilitation

See capital renewal expenditure

definition above.

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Remaining useful life

The time remaining until an asset

ceases to provide the required service

level or economic usefulness. Age plus

remaining useful life is useful life.

Renewal

See capital renewal expenditure

definition above.

Residual value

The estimated amount that an entity

would currently obtain from disposal of

the asset, after deducting the

estimated costs of disposal, if the asset

were already of the age and in the

condition expected at the end of its

useful life.

Revenue generating investments

Investments for the provision of goods

and services to sustain or improve

services to the community that are

expected to generate some savings or

revenue to offset operating costs, eg

public halls and theatres, childcare

centres, sporting and recreation

facilities, tourist information centres,

etc.

Risk management

The application of a formal process to

the range of possible values relating to

key factors associated with a risk in

order to determine the resultant

ranges of outcomes and their

probability of occurrence.

Section or segment

A self-contained part or piece of an

infrastructure asset.

Service potential

The total future service capacity of an

asset. It is normally determined by

reference to the operating capacity

and economic life of an asset. A

measure of service potential is used in

the not-for-profit sector/public sector

to value assets, particularly those not

producing a cash flow.

Service potential remaining

A measure of the future economic

benefits remaining in assets. It may be

expressed in dollar values (Fair Value)

or as a percentage of total

anticipated future economic benefits.

It is also a measure of the percentage

of the asset’s potential to provide

services that is still available for use in

providing services (Depreciated

Replacement Cost/Depreciable

Amount).

Specific Maintenance

Replacement of higher value

components/sub-components of

assets that is undertaken on a regular

cycle including repainting,

replacement of air conditioning

equipment, etc. This work generally

falls below the capital/ maintenance

threshold and needs to be identified in

a specific maintenance budget

allocation.

Strategic Longer-Term Plan

A plan covering the term of office of

councillors (4 years minimum)

reflecting the needs of the community

for the foreseeable future. It brings

together the detailed requirements in

the Council’s longer-term plans such

as the asset management plan and

the long-term financial plan. The plan

is prepared in consultation with the

community and details where the

Council is at that point in time, where it

wants to go, how it is going to get

there, mechanisms for monitoring the

achievement of the outcomes and

how the plan will be resourced.

Sub-component

Smaller individual parts that make up a

component part.

Useful life

Either:

(a) the period over which an asset is

expected to be available for use by

an entity, or

(b) the number of production or similar

units expected to be obtained from

the asset by the entity.

It is estimated or expected time

between placing the asset into service

and removing it from service, or the

estimated period of time over which

the future economic benefits

embodied in a depreciable asset, are

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expected to be consumed by the

Council.

Value in Use

The present value of future cash flows

expected to be derived from an asset

or cash generating unit. It is deemed

to be depreciated replacement cost

(DRC) for those assets whose future

economic benefits are not primarily

dependent on the asset's ability to

generate net cash inflows, where the

entity would, if deprived of the asset,

replace its remaining future economic

benefits.

Source: IPWEA, 2009, Glossary

Additional and modified glossary items

shown *

197

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