Open Space Asset Management Plan 2017 revision · 2018-01-23 · documents. $14,548,948 Barbeques...

OPEN SPACE ASSET MANAGEMENT PLAN 2016-2026

REVISION HISTORY

Revision Description Date

1.0 Final AMP approved by Council following community consultation November 2016

1.1 Updates to ARRE and LTFP figures based on updated condition data, and in line with reviewed LTFP November 2017

EXECUTIVE SUMMARY

The objective of infrastructure asset management is to ensure that assets provide their required levels of services in the most cost effective manner.

This Asset Management Plan focuses on the management of the City of Burnside’s Open Space assets. This plan specifies the requirements for

effective management of this asset group and the corresponding financial implications. This plan is reviewed annually, with a formal update completed

every 4 years.

Effective asset management of the City of Burnside’s Open Space assets will contribute towards achievement of the following strategic objectives1:

> A range of high quality sport and recreational facilities that foster healthy lifestyle pursuits.

> Sustainable, engaging and functional community public spaces and streetscapes.

> Fit for purpose and cost-effective infrastructure that meets community needs.

The contribution towards achievement of theses strategic goals and asset management objectives will be achieved by:

> Stakeholder consultation to establish and confirm service standards.

> A regular program of inspections and monitoring activities to assess asset condition and performance.

> Application of a systematic analysis to prioritise renewals and establish the most cost effective works programs.

> Continuously reviewing and improving the quality of Asset Management practices.

Council’s Open Space assets are split over two asset classes: furniture and fittings, and, infrastructure.

1 City of Burnside, 2012, 'Be the Future of Burnside - Our Strategic Community Plan 2012-2025'

Furniture and fittings open space assets include:

> local history items

> park machinery

> barbecues

> benches

> bike racks

> cigarette bins

> dog bag dispensers

> dog tether bars

> drinking fountains

> flagpoles

> litter bins

> map dispensers

> map displays

> monuments

> picnic tables

> plaques

> water taps, and

> artwork.

Infrastructure open space assets include:

> fence

> paved court surfaces

> playgrounds

> pools

> sports facility equipment

> sports marking

> sports shelters

> boardwalks

> bollards

> bus stops

> council lighting

> footbridges

> gates

> irrigation

> mines

> pergolas

> posts

> retaining walls

> shoe hygiene stations, and

> stairways.

The total current replacement cost of the City of Burnside’s Open Space assets is around $43m. The projected expenditure necessary to meet the

service standards for these Open Space assets averages around $1.1m per year over the next 10 years. This is the average annual level of spend

required to ensure all assets are maintained in accordance to current standards and renewed at appropriate times. Actual annual expenditure

requirements will differ from year to year as specific assets are due to be renewed.

FREQUENTLY ASKED QUESTIONS

What is an asset?

An asset an item of property owned by the Council regarded as having

value. Council’s assets range from roads and footpaths to buildings,

playgrounds, stormwater infrastructure and street furniture.

What is an asset management plan?

The purpose of an asset management plan is to help an organisation

manage their infrastructure and other assets to an agreed standard of

service. The plan outlines what needs to be invested in each of our

asset classes in order to meet these defined service standards over

the next ten years.

This asset management plan is prepared as a core asset management

plan in accordance with the International Infrastructure Management

Manual2. It is prepared to meet legislative and organisational

requirements for sustainable service delivery and long term financial

planning and reporting.

What are the objectives of asset management?

The basic premise of infrastructure asset management is to intervene

2 Institute of Public Works Engineering Australia, 2015, 'International

Infrastructure Management Manual'

at strategic points in an asset’s life cycle to extend the expected

service life, and thereby maintain its performance. Generally speaking,

the cost of maintaining an asset decreases with planned maintenance

rather than unplanned maintenance, however, excessive planned

maintenance increases costs.

An objective of asset management is to strategically time infrastructure

renewals before unplanned maintenance costs become excessive, but

not so soon that assets are renewed before it is really needed.

Council’s goal in managing infrastructure assets is to meet the required

levels of service in the most cost effective manner for present and

future customers. The key elements of asset management are2:

> Taking a life cycle approach.

> Developing cost-effective management strategies for the long

term.

> Providing a defined level of service and monitoring

performance.

> Understanding and meeting the demands of growth through

demand management and infrastructure investment.

> Managing risks associated with asset failures.

> Sustainable use of physical resources, and

> Continuous improvement in asset management practices.

How do we determine when renewals are required?

Renewals are determined by considering the ability of an asset to meet

an agreed standard of service. This is done by regularly reviewing the

condition of assets and using this information as a basis to prioritise

renewals.

How do we determine our levels of service?

Our levels of service have been developed based on legislative

requirements, customer research and expectations, and strategic

goals.

Why does Council need an Asset Management Plan?

Under section 122 of the Local Government Act, the City of Burnside

has a legislative requirement to develop Asset Management Plans. In

addition to the legislative requirement, there is a need for the Council

to ensure effective investment in assets which need it most by having a

planned, systematic approach to Asset Management.

How does Council include community feedback into the Plan?

Council includes community feedback into Asset Management Plans in

a number of ways;

> Through information provided via our Annual Community

Survey.

> Through review of common customer requests and complaints

in our Customer Request Management (CRM) system, and

> Through a formal community engagement process where the

community is invited to provide feedback on draft Asset

Management Plans, which is then incorporated into the final

documents.

OUR OPEN SPACE INFRASTRUCTURE

PROJECTED RENEWAL EXPENDITURE

$26,034,050

$14,548,948

$2,850,937

Infrastructure - OtherStructures

Infrastructure - Recreationand Sports Structures

Furniture and Fittings

TOTAL CURRENT

REPLACEMENT COST OF OPEN

SPACE ASSETS =

$43,433,934

very good

good

average

poor

very poor

CONDITION OF OPEN

SPACE ASSETS

Furniture and Fittings Barbeques Benches Bike Racks Cigarette Bins Dog Bag Dispensers Dog Tether Bars Drinking Fountains Flagpoles Litter Bins Map Dispensers Map Displays Monuments Picnic Tables Plaques Water Taps

Infrastructure – Recreation & Sports Structures Fences Paved Court Surfaces Playgrounds Pools Sports Facility Equipment Sports Shelters

Infrastructure – Other Structures Boardwalks Bollards Bus Stops Lighting Footbridges Gates Irrigation Mines Pergolas Posts Retaining Walls Shoe Hygiene Stations Stairways

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

ARRE

average ARRE

LTFP

TABLE OF CONTENTS

EXECUTIVE SUMMARY ....................................................................................................................................................................................................... ii

FREQUENTLY ASKED QUESTIONS ................................................................................................................................................................................... ii

INTRODUCTION .................................................................................................................................................................................................................... 1

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

FUTURE DEMAND ................................................................................................................................................................................................................ 5

DEMAND FORECAST ....................................................................................................................................................................................................... 5

CHANGES IN TECHNOLOGY ........................................................................................................................................................................................... 5

DEMAND MANAGEMENT PLAN ....................................................................................................................................................................................... 6

NEW ASSETS FROM GROWTH ....................................................................................................................................................................................... 6

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

STANDARDS AND GUIDELINES ...................................................................................................................................................................................... 7

ACCOUNTING/FINANCIAL SYSTEMS ............................................................................................................................................................................. 7

ASSET MANAGEMENT SYSTEMS ................................................................................................................................................................................... 7

RISK MANAGEMENT ........................................................................................................................................................................................................ 9

LIFECYCLE MANAGEMENT PLAN .................................................................................................................................................................................... 13

PHYSICAL PARAMETERS .............................................................................................................................................................................................. 14

ASSET CONDITION ......................................................................................................................................................................................................... 15

USEFUL LIVES AND UNIT RATES ................................................................................................................................................................................. 17

ASSET VALUATIONS ...................................................................................................................................................................................................... 19

MAINTENANCE PLAN ........................................................................................................................................................................................................ 22

STANDARDS AND SPECIFICATIONS............................................................................................................................................................................ 22

RENEWAL PLAN ................................................................................................................................................................................................................. 24

RENEWAL PRIORITISATION .......................................................................................................................................................................................... 24

RENEWAL STANDARDS ................................................................................................................................................................................................. 24

REQUIRED RENEWAL EXPENDITURE ......................................................................................................................................................................... 24

IMPACT OF DEFERRING RENEWAL WORKS .............................................................................................................................................................. 24

ENHANCEMENT PLAN ....................................................................................................................................................................................................... 26

SELECTION CRITERIA ................................................................................................................................................................................................... 26

FORECAST UPGRADE/NEW ASSETS EXPENDITURE ............................................................................................................................................... 26

DISPOSAL OF ASSETS ...................................................................................................................................................................................................... 26

FINANCIAL SUMMARY ....................................................................................................................................................................................................... 28

FINANCIAL STATEMENTS AND PROJECTIONS .......................................................................................................................................................... 28

FUNDING STRATEGY ..................................................................................................................................................................................................... 29

PLAN IMPROVEMENT & MONITORING ............................................................................................................................................................................ 30

MONITORING AND REVIEW PROCEDURES ................................................................................................................................................................ 30

IMPROVEMENT PLAN .................................................................................................................................................................................................... 30

GLOSSARY ......................................................................................................................................................................................................................... 31

BIBLIOGRAPHY .................................................................................................................................................................................................................. 37

1 | OPEN SPACE ASSET MANAGEMENT PLAN

City of Burnside

INTRODUCTION

The City of Burnside’s Open Space assets provide valuable services to

the area and comprise a diverse number of assets. These assets must

be properly maintained and developed to continue to provide adequate

service and benefits for generations in the future. This plan

demonstrates Council’s responsive management of Open Space assets

(and services provided from these assets), compliance with regulatory

requirements and proposed funding requirements to provide the required

levels of service.

This plan demonstrates how Council will achieve this outcome by

applying the principles of responsible Asset Management Planning, the

object of which is to:

‘Deliver the required level of service to existing and future customers in

the most cost effective way’.

The key elements of infrastructure asset management are3:

> Taking a life cycle approach. > Developing cost-effective management strategies for the long

term. > Providing a defined level of service and monitoring performance.

3 Institute of Public Works Engineering Australia, 2015, 'International

Infrastructure Management Manual'

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

> Managing risks associated with asset failures. > Sustainable use of physical resources. > Continuous improvement in asset management practices.

The contribution of Open Space asset services towards the strategic

goals and Asset Management objectives will be achieved by:

> Stakeholder consultation to establish and confirm service standards.

> A regular program of inspections and monitoring activities to assess asset condition and performance.

> Application of a systematic analysis to prioritise renewals and establish the most cost effective works programs.

> Continuously reviewing and improving the quality of Asset Management practices.

The asset management plan is to be read in conjunction with the Asset

Management Policy, Long Term Financial Plan and Annual Business

Plan and Budget.

The key elements of the asset management plan are:

> Levels of service

> Future demand

> Asset management practices

> Life cycle management

> Financial management

> Improvement and monitoring.


City of Burnside

LEVELS OF SERVICE – OUR DRIVERS

7.2/10

7.8/10

7.2/10

8.1/10

8.0/10

7.0/10

Overall satisfaction with council’s

performance

Providing passive recreation opportunities, such

as walking, picnic locations or pursuing hobbies

Providing active recreation opportunities, such as

playing organised sport or outdoor games

Providing and maintaining parks and reserves

Providing and maintaining playgrounds

CUSTOMER RESEARCH

4Source: City of Burnside Annual Community

Survey November 2015

CUSTOMER EXPECTATIONS4

Trees/more maintenance/check for issues,

especially around

playgrounds/parks/quicker response/too

many restrictions on pruning/even

dangerous trees/have council aware signs

on problem trees

More/better parks/play/exercise

equipment/shade/better

maintained/watered/playgrounds add

secure fences/more dog parks

LEGISLATIVE

REQUIREMENTS

Legislation Requirement

Local Government Act

1999

Sets out role, purpose, responsibilities and

powers of local governments including the

preparation of a long term financial plan

supported by infrastructure and asset

management plans for sustainable service

delivery

Australian Accounting

Standards

Set out the financial reporting standards relating

to, inter alia, the (re)valuation and depreciation

of infrastructure assets

Local Government

(Financial

Management and

Rating) Amendment

Act 2005

Impetus for the development of a Strategic

Management Plan, comprising an

(Infrastructure) Asset Management Plan and

Long-term Financial Plan

AS/NZ Risk

Management 4360-

2004

Australian Standards – Playground Equipment

safety

HB 246:2010

Guidelines for

Managing risk in sport

and recreation

organisations

Australian Standards – Playground Equipment

safety

Providing and maintaining street trees


City of Burnside

LEVELS OF SERVICE

A key objective of the Asset Management Plan is to identify the current level of service provided by the asset group. This level of service has been

developed over time as a result of customer feedback and consultation. The levels of service defined in this section will be used to:

> Clarify the level of service that our customers should expect.

> Identify works required to meet these levels of service.

> Identify the costs and benefits of the services offered.

> Enable Council and customers to discuss and assess the suitability, affordability and equality of the existing service level and to determine the

impact of increasing or decreasing this level in future.

This section defines the service for the City of Burnside’s Open Space assets. The adopted levels of service for Open Space assets are based on

legislative requirements, customer research and expectations, and strategic goals.

The primary purpose of the Open Space network is to provide Open Space assets that are convenient, safe, regularly maintained, and meet the

needs of the people who use them.

The table on the following page defines the levels of service for the Open Space assets.

LEVELS OF SERVICE ARE ESTABLISHED BASED ON:

Legislative Requirements

Customer Research and Expectations

Strategic Goals


City of Burnside

TABLE 1: LEVELS OF SERVICE FOR OPEN SPACE INFRASTRUCTURE

Service

Category

Community Service

expectation

Performance Measure

Process

Performance Target Current

Performance

Quality Assets are of a suitable

quality and quantity

Frequency of complaints

regarding quality &/or

provision of assets

Less than 5 valid complaints per year excluding

assets included in park Master Plans

NA*

Quality Nice appearance Assets are maintained in

good condition

Target average condition of all assets as 1.5 to 2

Asset renewal at condition 4

Current

average

condition is 4.4

Safety No hazards caused by

defective or damaged assets.

Identified hazardous

defects

Less than 3 incidents caused by damaged or

defective assets per year.

NA*

Safety Lights not working replaced

in a timely manner

Lights replaced quickly All lights not working replaced within 2 weeks Current

average is 29

days

Legislative All street lighting will comply

with the AS/NZS 1158

All assets meet

requirements of standard

All non-compliant streets will comply with by

2022

Approx. $660k

worth of non-

compliant

streets

NA* – New methods of monitoring these performance measures have been set up in Council’s Customer Request Management system for new

requests, however, it is not currently possible to gather this information retrospectively.


City of Burnside

FUTURE DEMAND

This section of the plan analyses potential factors effecting demand including population growth, social and technology changes. The impact of these

trends is examined and demand management strategies recommended as required to modify demand without compromising customer satisfaction.

DEMAND FORECAST

Factors affecting demand include (but are not limited to) population change, changes in demographics, seasonal factors, vehicle ownership, consumer

preferences and expectations, economic factors, agricultural practices and environmental awareness. The population for the City of Burnside was

43,986 in 2014 and is projected to grow to around 45,245 by 2031, which may realise a small increase in maintenance of our Open Space assets.

The challenges that the City of Burnside will meet with regard to Open Space assets include:

> There are areas within Burnside that require additional recreational open space assets.

> Lack of linkages between recreational open spaces, pedestrian and bicycle routes, thus reducing the use, enjoyment and environmental

benefits of open space assets.

> There is a changing community demand/need for recreational facilities and open space assets in Burnside due to changing demographics i.e.

the growing number of aged residents will mean a greater demand for seating, bus stops etc.

CHANGES IN TECHNOLOGY

The only impact likely due to technology advances is that asset lives may increase with the introduction of improved materials and manufacturing

methods.

Council aims to systematically upgrade its lighting assets to LED or solar lamps, which will reduce ongoing operating and maintenance costs.

Council is also investigating a number of sites suitable for ASR (aquifer storage and recovery) projects, which will offset Council’s current ongoing

reliance on the use of bore and mains water.


City of Burnside

DEMAND MANAGEMENT PLAN

The key long term strategy is to manage the demand so that services can still be provided into the future at a reasonable cost. Demand management

strategies may allow for the provision of key infrastructure to be deferred by changing demand.

Council currently manages demand in relation to Open Space assets through a number of corporate and strategic documents, including:

> Be the Future of Burnside Strategic Community Plan

> City of Burnside Open Space Strategy

> Community Land Management Plans

> Tree Management Strategy

> Environment and Biodiversity Strategy

> Playground Strategy

> Individual Master Plans and Management Plans.

NEW ASSETS FROM GROWTH

The City of Burnside is principally a fully developed urban area with relatively few new developments that occur as a result of growth.

In the next few years, the Glenside redevelopment will lead to a large number of new assets and open space areas being handed over to Council,

which will impact on the overall service level or the ability/cost to provide services. Future revisions of this Plan will include the new assets as part of

its renewal considerations and identify any additional required funding.


City of Burnside

ASSET MANAGEMENT PRACTICES

This section identifies the strategies, practices and guidelines supporting Asset Management at the City of Burnside.

STANDARDS AND GUIDELINES

Asset Management practices and processes are driven by a number of legislative requirements and assisted by developed guidelines.

> Local Government Act 1999 (sets outs Councils Asset Management responsibility and the requirement to develop asset management plans)

> Australian Accounting Standard 27 Financial Reporting by Local Governments 1996 (sets out the asset accounting requirements)

> International Infrastructure Management Manual, NAMS (Provides guidance and direction on asset management policy and plan development).

ACCOUNTING/FINANCIAL SYSTEMS

Council utilises 'TechnologyOne' software as Council’s financial management and accounting system. Incorporated into 'TechnologyOne' is the

capacity to manage fixed assets across the organisation with extensive functionality and reporting for the full lifecycle of assets, providing full

transparency from acquisition to disposal. The system also offers a total and comprehensive purchasing solution, encompassing controlling,

maintaining and streamlining of purchasing activities across the organisation.

ASSET MANAGEMENT SYSTEMS

Council utilises 'TechnologyOne' software as Council’s asset management system. This ensures there is full integration between operating and

financial functions. Council utilises a combined Financial / Operational Asset register that avoids any reconciliation issues that arise from two separate

registers.

TechnologyOne IntraMaps is the corporate GIS. The GIS is predominantly used to show information such as cadastral, topographic, aerial information

and asset location. It is a computer mapping system that graphically represents the geographic component of data that is housed within

TechnologyOne.

Assetic myData and Predictor are used for extended data capture and predictive modelling of Council’s asset network.


City of Burnside

INFORMATION FLOWS

ASSET MANAGEMENT

PLAN

Asset register data on size, age, value,

remaining life of the network

Unit rates for categories of

work/material

Adopted service levels

Projections of various factors affecting

future demand for services

Correlations between maintenance and

renewal, including decay models

Data on new assets acquired by

council

Assumed Works Program

and trends

Resulting budget,

valuation and

depreciation projections

Useful life analysis

Long term financial plan

Strategic business plan

Annual budget

Departmental business

plans and budgets


City of Burnside

RISK MANAGEMENT

The objective of the risk management process with regards to Open Space assets is to ensure that

> All significant operational and organisational risks are understood and identified.

> The highest risks that need to be addressed in the short to medium term are identified.

> Strategies and treatments to address risks are identified and applied.

An assessment of risks associated with service delivery from infrastructure assets has identified the most critical risks to Council. The risk assessment

process identifies and assesses risks, develops a risk rating and develops a risk treatment plan for non-acceptable risks.

The key risk management criteria relating to Council’s Open Space assets include:

> Public health and safety

> Service provision

> Environmental and legal compliance

> Security, theft and vandalism

> Business interruption

> Financial risk (escalating costs in deterioration)

> Asset damage through storms, flooding, water damage or events such as accidents.

Risk identification for Open Space assets can be identified from a number of resources such as:

> Routine inspections

> Reports and complaints from general public

> Information obtained from incidents

> Advice from professional bodies

> Past experience.


City of Burnside

Risk ratings are determined using the City of Burnside’s risk matrix;

TABLE 2: RISK RATING MATRIX

Consequence

Insignificant Minor Moderate Major Massive

Lik

elih

oo

d

Certain Moderate High High Extreme Extreme

Likely Moderate Moderate High Extreme Extreme

Possible Low Moderate Moderate High Extreme

Unlikely Low Low Moderate High High

Rare Low Low Low Moderate High

Once risks have been assessed and rated the most significant risks (those rated as high or extreme), are isolated for treatment/control. Those

identified as moderate or low will continue to be monitored and reviewed if circumstances change.4

Options to treat risk posed by Open Space assets include (but not limited to)5:

5 International Organization for Standardization, 2009, 'ISO 31000:2009 Risk Management – Principles and Guidelines'

> risk elimination.

> reduction in the cause or likelihood of the event occurring.

> reduction in the consequence or severity of the event if it were to

occur.

> increasing the maintenance regime.

> initiating council improvements.

> changing operating processes and procedures.

> sharing the risk through insurance or contracts.

> doing nothing and accepting the risk.


City of Burnside

TABLE 3: MAJOR RISKS RELATING TO OPEN SPACE ASSETS

Risk Consequence Likelihood Risk

Rating

Proposed Treatment Responsibility Completion

Date

Natural disaster Massive Unlikely High Manage through existing systems and

procedures

Emergency

Response Plan

n/a

Injury sustained as

a result of

inadequate asset

management

Moderate Unlikely Moderate Robust asset management policy and plans

Regular inspection program

Maintenance program to address defects

Engineering,

Strategy &

Assets

Open Space,

Recreation &

Property

Ongoing

Injury sustained

whilst work is

occurring to renew

or replace an Open

Space asset

Major Unlikely High Contractor management procedures

Regular site inspections and monitoring

Construction risk assessments

Engineering,

Strategy &

Assets

Open Space,

Recreation &

Property

Ongoing


City of Burnside

TABLE 4: OPEN SPACE ASSET INSPECTION REGIME

Asset Group Frequency of inspection

Open Space Assets* Weekly hazard inspection

4 Years Condition

Playgrounds Hazard inspections twice a week

Quarterly condition & compliance

Regional Playgrounds Hazard inspections three times a week

Quarterly condition & compliance

* with the exception of council lighting, which is currently inspected on a reactive basis.

As advice is received of defects, safety or otherwise, inspectors make an assessment of how that issue is to be dealt with in terms of priority of

attention. Priority of maintenance rectification is based on risk.

Prioritisation of response occurs during the inspection recording process. The response time will vary according to the hierarchy category, the location

of the defect within the open space area, and the severity of the issue.


City of Burnside

LIFECYCLE MANAGEMENT PLAN

This section outlines asset performance and condition information, and uses Asset Management principles to develop broad strategies and specific

work programs to achieve the service standards previously outlined.

It presents an analysis of available asset information and the life cycle management plans covering the three key work activities to manage the Open

Space network:

> Operations and Maintenance Plan - Activities undertaken to ensure efficient operation and serviceability of the assets. This will ensure that the

assets retain their service potential over the course of their useful life.

> Renewal Plan - Provides a program of progressive renewal of individual assets. Deteriorating asset condition primarily drives renewal needs.

> Enhancement Plan - Provides a program of system enhancements to improve parts of the system performing below target service standards and

to develop the system to meet any future demand requirements. Sub-standard asset performance primarily drives asset development needs.


City of Burnside

PHYSICAL PARAMETERS

TABLE 5: OPEN SPACE ASSET STOCK SUMMARY

Financial Class Asset Group Number Value Financial Class Asset Group Number Value

Other Structures

Boardwalks 9 $217,552.50

Street and

Reserve

Furniture

Barbecues 29 $257,950.00

Bollards 1,378 $798,740.00 Bench 429 $476,280.00

Bus Stops 81 $406,175.00 Bike Racks 71 $15,424.50

Council Lighting 467 $2,091,100.00 Cigarette Bins 15 $4,725.00

Footbridges 23 $2,744,148.00 Dog Bag Dispensers 104 $32,760.00

Gate 365 $352,712.50 Dog Tether Bar 3 $2,047.50

Irrigation 79 $3,370,500.00 Drinking Fountains 17 $49,875.00

Mines 2 $300,000.00 Flagpoles 22 $43,560.00

Pergolas 24 $524,000.00 Litter Bins 166 $139,545.00

Posts 167 $33,400.00 Map Dispensers 5 $4,462.50

Retaining Walls 672 $14,872,409.00 Map Display 30 $26,775.00

Shoes Hygiene Station 1 $1,312.50 Monuments 43 $1,238,050.00

Stairway 46 $322,000.00 Picnic Tables 54 $195,720.00

Total Replacement Cost $26,034,049.50 Plaque 277 $349,020.00

Recreation and

Sports

Structures

Fence 656 $5,337,972.75 Water Taps 54 $14,742.00

Paved Court Surfaces 60 $1,987,912.50 Total Replacement Cost $2,850,936.50

Playground 36 $3,202,650.00

Pools 2 $2,426,500.00

Sports Facility Equipment 317 $300,825.00

Sports Marking 82 No Values

Sports Shelters 52 $572,000.00

Total Replacement Cost $13,827,860.25


City of Burnside

ASSET CONDITION

Asset condition has been determined for Council’s Open Space assets. Council is committed to regular condition data collection in order to mitigate

risk and make informed decisions when formulating forward Capital Works Programs. Asset condition is usually determined through field observations

of defect parameters with all asset conditions measured using a 1-10 rating system.

1 means that the asset is “as new” and 10 means that it is totally consumed.


City of Burnside

OUR ASSET CONDITION

very good

good

average

poor

very poor

Condition

Rating Description

2 Very good: only planned maintenance required

2-4 Good: minor maintenance required plus planned maintenance

4-6 Average: maintenance required

6-8 Poor: renewal or upgrade required

>8 Very poor: significant renewal or upgrade required


City of Burnside

USEFUL LIVES AND UNIT RATES

The useful lives and unit rates for all park infrastructure assets are detailed in the ‘Valuation – Financial Reporting – Various Asset Classes’6 report

formulated by Maloney Field Services.

TABLE 6: OPEN SPACE ASSET USEFUL LIVES AND UNIT RATES

Street & Reserve Furniture

Classification Group Sub Type Unit Rate Useful Life

Classification Group

Sub Type Unit Rate Useful Life

Barbecues Steel $9,350.00 15

Litter Bins Newframe $997.50 12

Barbecues Brick $7,700.00 15

Litter Bins Cylindrical $945.00 12

Bench Standard $1,260.00 20

Litter Bins Wheelie $420.00 12

Bench Esplanade $735.00 20

Litter Bins other $1,575.00 12

Bike Racks Galvanised Steel $210.00 15

Map Dispensers

$892.50 15

Bike Racks Stainless Steel $283.50 15

Map Display 45° Stand $997.50 15

Cigarette Bins

$315.00 15

Map Display Small Map $787.50 15

Dog Bag Dispensers

$315.00 10

Map Display Glass $682.50 15

Dog Tether Bar

$682.50 15

Monuments

Replacement Cost 80 & 200

Drinking Fountains Base $3,675.00 15

Picnic Tables Backrest $4,095.00 20

Drinking Fountains No Base $1,575.00 15

Picnic Tables Flat $2,940.00 20

Flagpoles

$1,980.00 30

Plaque

$1,260.00 60

6 Maloney Field Services, 2015, 'Valuation - Financial Reporting - Various Asset Classes'


City of Burnside

Water Taps

$273.00 20

Recreation & Sport

Other Structures

Classification Group Sub Type Unit Rate Useful

Life Classification

Group Sub Type Unit Rate Useful Life

Fence Galvanised steel

posts with cyclone mesh

$176.00 15

Bollards Plastic / Wood $155.00 30

Fence Powder coated

steel tubular $220.00 15

Bollards Steel regular $1,100.00 30

Fence Treated pine $275.00 15

Bollards Steel crash $2,600.00 30

Fence Various $132.00 15

Bus Stops

$3,850.00 30

Fence Brush $302.50 15

Council Lighting

$4,400.00 25

Fence Colourbond $110.00 15

Footbridges

Replacement Cost 40, 60, 80

Paved Court Surfaces Asphalt $47,250.00 20

Irrigation

Replacement Cost 30

Paved Court Surfaces Concrete $5,250.00 20

Retaining Walls

$1,680.00 60

Playground

Replacement Cost

20

Stairway

$2,500.00 40

Pools

Replacement Cost

60

Sports Facility Equipment

$525.00 60

Sports Marking Not Valued 15

Sports Shelters

Replacement Cost

15


City of Burnside

ASSET VALUATIONS

TABLE 7: OPEN SPACE ASSET VALUATION SUMMARY

Other Structures

Asset Group

Current Replacement Cost

Depreciated Amount

Depreciated Replacement Cost

Annual Depreciation

Boardwalks $217,553 $101,764 $115,789 $7,252

Bollards $798,740 $374,174 $424,566 $22,695

Boom Gates $0 $0 $0 $0

Bus Stops $406,175 $261,928 $144,247 $9,433

Council Lighting $2,091,100 $800,140 $1,290,960 $74,316

Footbridges $2,744,148 $1,726,839 $1,017,309 $36,315

Gate $352,713 $84,446 $268,266 $11,554

Irrigation $3,370,500 $1,825,467 $1,545,033 $88,950

Mines $300,000 $172,500 $127,500 $1,500

Pergolas $524,000 $195,000 $329,000 $17,467

Posts $33,400 $6,553 $26,847 $1,113

Retaining Walls $14,872,409 $5,215,475 $9,656,934 $238,777

Shoes Hygiene Station $1,313 $131 $1,181 $44

Stairway $322,000 $82,463 $239,538 $7,975

TOTAL $26,034,050 $10,846,880 $15,187,169 $517,389


City of Burnside

Street and Reserve Furniture

Asset Group


Depreciated Amount


Annual Depreciation

Barbecues $257,950 $99,953 $157,997 $17,197

Bench $476,280 $172,783 $303,497 $23,814

Bike Racks $15,425 $7,293 $8,132 $1,014

Cigarette Bins $4,725 $2,310 $2,415 $294

Dog Bag Dispensers $32,760 $15,467 $17,294 $3,276

Dog Tether Bar $2,048 $1,001 $1,047 $137

Drinking Fountains $49,875 $25,305 $24,570 $2,590

Flagpoles $43,560 $16,170 $27,390 $1,452

Litter Bins $139,545 $68,097 $71,448 $11,511

Map Dispensers $4,463 $1,190 $3,273 $298

Map Display $26,775 $13,650 $13,125 $1,652

Monuments $1,238,050 $332,283 $905,768 $13,413

Picnic Tables $195,720 $68,738 $126,982 $9,786

Plaque $349,020 $68,943 $280,077 $5,817

Water Taps $14,742 $5,979 $8,763 $682

TOTAL $2,850,937 $899,161 $1,951,776 $92,932


City of Burnside

Recreation and Sports Structures

Asset Group


Depreciated Amount


Annual Depreciation

Fence $5,337,973 $2,787,855 $2,550,118 $343,716

Paved Court Surfaces $2,709,000 $721,088 $1,987,913 $135,450

Playground $3,202,650 $499,950 $2,702,700 $160,133

Pools $2,426,500 $103,308 $2,323,192 $40,442

Sports Facility Equipment $300,825 $150,966 $149,860 $20,475

Sports Shelters $572,000 $258,133 $313,867 $36,667

TOTAL $14,548,948 $4,521,299 $10,027,648 $736,882

Grand Total $43,433,934 $16,267,340 $27,166,594 $1,347,204

$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000

Street and Reserve Furniture

Recreation and Sports Structures

Other Structures


Depreciated Amount


Annual Depreciation


City of Burnside

MAINTENANCE PLAN

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.

Maintenance includes reactive, planned and cyclic work activities.

Responsive maintenance is unplanned repair work carried out in response to service requests and management/supervisory directions.

Planned maintenance is 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.

Cyclic maintenance is replacement of higher value components/sub-components of assets, and is undertaken on a regular cycle. This typically

includes tasks such as repainting and court marking.

Maintenance expenditure trends are shown on the following page.

These figures have been extracted from the Asset Management System by allocating a ‘work type’ field (containing Reactive, Planned or Cyclic) to

each maintenance task for reporting purposes.

STANDARDS AND SPECIFICATIONS

Typically all Open Space assets are maintained to manufactures standards or to a condition level 4 or higher.


City of Burnside

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

2013/14 2014/15 2015/16

OUR MAINTENANCE EXPENDITURE

Average = $503,117


City of Burnside

RENEWAL PLAN

Renewal expenditure is major work that does not increase the asset’s design capacity but restores, rehabilitates, replaces or renews an existing asset

to its original service potential. Work over and above restoring an asset to original service potential is considered enhancement or new works

expenditure.

Assets requiring renewal are identified from estimates of remaining life obtained from the asset register. Proposed renewals are inspected to verify

accuracy of remaining life estimate and to develop a preliminary renewal estimate. Verified proposals are ranked by priority and available funds and

scheduled in future works programmes.

RENEWAL PRIORITISATION

Renewal priority is based on the condition of individual assets, their relative importance and related risk.

RENEWAL STANDARDS

Renewal work is always carried out to current standards and capacity unless a reduced capacity can be justified.

REQUIRED RENEWAL EXPENDITURE

The current renewal expenditures are shown on the following page. This expenditure is as per the current Long Term Financial Plan.

IMPACT OF DEFERRING RENEWAL WORKS

Renewal works identified in terms of renewal strategies may be deferred if the cost (or aggregate cost) is beyond the current financial ability to fund it.

This can occur when there are short term renewal profile peaks, or higher priority works are required on other infrastructure asset groups. When

renewal works are deferred, the impact of the deferral on the assets ability to still provide the required level of service will be assessed. Although the

deferral of some renewal works may not impact significantly on the short-term operation of the assets, repeated deferral will create a liability (backlog)

in the longer term.


City of Burnside

REQUIRED RENEWAL EXPENDITURE EXPENDITURE

This is the amount of investment required to renew existing assets that are not currently meeting service levels. It can be seen that there is a large backlog of infrastructure requiring renewal in 2017. As it is not practical to address this all in the one year, funding has been distributed over the next 10 years to address the backlog and prevent accumulation of any further backlog.

-

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

3,500,000

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

ARRE Average ARRE LTFP


City of Burnside

ENHANCEMENT 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 Council from land

development, or through ‘gifts’ provided to the Council.

SELECTION CRITERIA

The need for new assets and upgrade/expansion of existing assets arises from various sources, including Councillor or community requests,

proposals identified by Strategic Plans, or partnerships with other organisations. Potential proposals are inspected to verify need and to develop

preliminary estimates. Verified proposals are ranked by priority and available funds and scheduled in future works programmes.

FORECAST UPGRADE/NEW ASSETS EXPENDITURE

Planned upgrade/new asset expenditures are summarised on the following page. This expenditure is as per the current Long Term Financial Plan.

DISPOSAL OF ASSETS

Council has no Open Space assets proposed to be decommissioned. As such, there is no funding required or expected from the decommissioning of

any assets at this point in time.


City of Burnside

FORECAST ENHANCEMENT EXPENDITURE

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026


City of Burnside

FINANCIAL SUMMARY

This section contains the financial requirements resulting from all the information presented in the previous sections of this infrastructure and asset

management plan. The financial projections will be improved as further information becomes available on desired levels of service and current and

projected future asset performance.

FINANCIAL STATEMENTS AND PROJECTIONS

Figure 1 highlights the financial projections for capital expenditure (renewal and upgrade/expansion/new assets).

FIGURE 1: FORECAST EXPENDITURE FOR OPEN SPACE ASSETS

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Maintenance

New / Upgrade

Renewal LTFP


City of Burnside

FUNDING STRATEGY

Projected expenditure is to be funded from Council’s maintenance, operating, and capital budgets. The funding strategy is detailed in Council’s 10-

year Long Term Financial Plan (LTFP).

$-

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

ARRE

average ARRE

LTFP


City of Burnside

PLAN IMPROVEMENT & MONITORING

MONITORING AND REVIEW PROCEDURES

This infrastructure and asset management plan will be reviewed during annual budget preparation and amended to recognise any changes in service

levels and/or resources available to provide those services as a result of the budget decision process.

The Plan has a life of 4 years and is due for revision and updating within 2 years of each Council election.

IMPROVEMENT PLAN

The asset management improvement plan generated from this infrastructure and asset management plan is shown below.

TABLE 8: IMPROVEMENT PLAN

ID Task Responsible Department Target Date Conceptual

Costs

1. Develop an Open Space Asset Business Process manual that documents

how conditions are measured, what the intervention levels are and the

hierarchies used.

Open Space, Property, and

Recreation

30 June

2018

Internal resources


City of Burnside

GLOSSARY Annual Required

Renewal Expenditure

(ARRE)

The amount needed to be spent in a given year to maintain assets to their agreed level of service.

Annual service cost

(ASC)

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 operating, maintenance, depreciation, finance/ opportunity and

disposal costs, less revenue.

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 group Grouping of assets of a similar nature and use in an entity's operations (AASB 166.37)

Asset management 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.

Assets Future economic benefits controlled by the entity as a result of past transactions or other past events (AAS27.12).

Property, plant and equipment including infrastructure and other assets (such as furniture and fittings) with benefits expected to

last more than 12 month.

Average annual asset

consumption (AAAC)

The amount of a local government’s asset base consumed during a year. This may be calculated by dividing the Depreciable

Amount (DA) by the Useful Life and totalled for each and every asset OR by dividing the Fair Value (Depreciated Replacement

Cost) by the Remaining Life and totalled for each and every asset in an asset category or class.

Capital expansion

expenditure

Expenditure that extends an existing asset, at the same standard as is currently enjoyed by residents, to a new group of users.

It is discretional expenditure, which increases future operating, and maintenance costs, because it increases council’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.


City of Burnside

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 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

Refer capital expenditure

Capital new expenditure Expenditure which creates a new asset that is additional to Council’s previous asset complement.

Capital renewal

expenditure

Expenditure on an existing asset where a previously existing asset is replaced - giving a new asset with a new useful life -

without enhancement of the service capability except where this is incidental and unavoidable.

Capital upgrade

expenditure

Expenditure, in where an upgraded asset replaces a previously existing asset with enhanced capability or functionality, where

an option existed for replacement without the enhanced capability or functionality. The replacement of a 300mm stormwater

pipe with a 500mm stormwater pipe results in an upgraded asset. The replacement of a model 135J grader with a model 135K

grader where the model 135J grader is no longer available, would not result in an upgraded asset, despite any improvement in

operational capability.

Component An individual part of an asset which contributes to the composition of the whole and can be separated from or attached to an

asset or a system.

Componentisation The practice of considering the components of a fixed asset individually, to account for the fact that these components have

unique physical and economic lives.

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, plus any costs necessary to place the asset into service. This includes one-off design and project

management costs.


City of Burnside

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.

Current replacement cost

‘as new’ (CRC)

The current cost of replacing the original service potential of an existing asset, with a similar modern equivalent asset, i.e. the

total cost of replacing an existing asset with an as NEW or similar asset expressed in current dollar values.

Cyclic maintenance Replacement of higher value components/sub-components of assets that is undertaken on a regular cycle including repainting,

building roof replacement, cycle, 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.

Depreciable amount The cost of an asset, or other amount substituted for its cost, less its residual value (AASB 116.6)

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 Refer useful life

Expenditure The spending of money on goods and services. Expenditure includes recurrent and capital.

Fair value The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties, in an arms-

length transaction.

Group of assets Refer asset group

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.

Infrastructure assets Physical assets of the entity or of another entity that contribute to meeting the public's need for access to major economic and

social facilities and services, eg. roads, drainage, footpaths and cycleways. These are typically large, interconnected networks


City of Burnside

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 market value.

Level of service The defined service quality for a particular service against which service performance may be measured. Service levels usually

relate to quality, quantity, reliability, responsiveness, environmental, acceptability and cost).

Maintenance and renewal

gap

Difference between estimated budgets and projected expenditures for maintenance and renewal of assets, totalled over a

defined time (eg 5, 10 and 15 years).

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.

Modern equivalent asset A structure similar to an existing structure and having the equivalent productive capacity, which could be built using modern

materials, techniques and design. Replacement cost is the basis used to estimate the cost of constructing a modern equivalent

asset.

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.

Operating expenditure Recurrent expenditure, which is continuously required excluding maintenance and depreciation, eg power, fuel, staff, plant

equipment, on-costs and overheads.

Pavement management

system

A systematic process for measuring and predicting the condition of road pavements and wearing surfaces over time and

recommending corrective actions.

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.

PMS score A measure of condition of a road segment determined from a Pavement Management System.


City of Burnside

Rate of annual asset

consumption

A measure of average annual consumption of assets (AAAC) expressed as a percentage of the depreciable amount

(AAAC/DA). Depreciation may be used for AAAC.


renewal

A measure of the rate at which assets are being renewed per annum expressed as a percentage of depreciable amount (capital

renewal expenditure/DA).


upgrade

A measure of the rate at which assets are being upgraded and expanded per annum expressed as a percentage of depreciable

amount (capital upgrade/expansion expenditure/DA).

Reactive maintenance Unplanned repair work that carried out in response to service requests and management/supervisory directions.

Recoverable amount The higher of an asset's fair value less costs to sell and its value in use.

Remaining life The time remaining until an asset ceases to provide the required service level or economic usefulness. Age plus remaining life

is economic life.

Renewal Refer capital renewal expenditure

Residual value The net amount which an entity expects to obtain for an asset at the end of its useful life after deducting the expected costs of

disposal.

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 capacity to provide goods and services in accordance with the entity's objectives, whether those objectives are the

generation of net cash inflows or the provision of goods and services of a particular volume and quantity to the beneficiaries

thereof.


City of Burnside

Service potential

remaining

A measure of the remaining life of assets expressed as a percentage of economic life. 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 (DRC/DA).

Strategic management

plan (SA)

Documents Council objectives for a specified period (3-5 yrs), the principle activities to achieve the objectives, the means by

which that will be carried out, estimated income and expenditure, measures to assess performance and how rating policy

relates to the Council’s objectives and activities.

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. It

is the same as the economic life.

Value in use The present value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at

the end of its useful life. 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 new cash flows, where if deprived of the asset its future

economic benefits would be replaced.

Source: DVC 2006, Glossary


City of Burnside

BIBLIOGRAPHY

City of Burnside, 2012. Be the Future of Burnside - Our Strategic Community Plan 2012-2025. Adelaide: City of Burnside.

Institute of Public Works Engineering Australia, 2015. International Infrastructure Management Manual. Wellington: National Asset Management

Steering Group.

International Organization for Standardization, 2009. ISO 31000:2009 Risk Management – Principles and Guidelines.

Maloney Field Services, 2015. Valuation - Financial Reporting - Various Asset Classes. Adelaide.

New Focus, 2015. Annual Community Survey 2015 - City of Burnside.

Date post:	06-Apr-2020
Category:	Documents
Upload:	others
View:	0 times
Download:	0 times