@ icon water limited 2017 (abn 86 069 381...

Strategic Asset Management Plan i

@ Icon Water Limited 2017 (ABN 86 069 381 960)

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Strategic Asset Management Plan ii

Contents

1 Introduction ...................................................................................................................................... 1 1.1 Overview ................................................................................................................................. 1 1.2 Development, timeframe and review of the SAMP ................................................................. 1 1.3 Communication and usage of the SAMP ................................................................................ 1 1.4 Structure of the document ....................................................................................................... 1

2 Business context .............................................................................................................................. 3 2.1 Description of Icon Water and its assets ................................................................................. 3 2.3 Business drivers ..................................................................................................................... 5 2.2 Future directions and disruptions ............................................................................................ 9 2.3 Current asset condition ......................................................................................................... 10

3 Leadership and commitment ......................................................................................................... 11 3.1 Asset management principles ............................................................................................... 11 3.2 Roles and responsibilities ..................................................................................................... 11

4 Asset management objectives ....................................................................................................... 13 4.1 Asset management objectives and performance goals ........................................................ 13 4.2 Financial projections ............................................................................................................. 15

5 Asset management system ........................................................................................................... 16 5.1 System definition, framework and maturity journey plan ...................................................... 16 5.2 Key elements of the AMS ...................................................................................................... 19 5.3 Asset decision making .......................................................................................................... 20 5.4 Competency management and development ....................................................................... 24 5.5 Information systems .............................................................................................................. 24 5.6 Financial accounting for assets ............................................................................................. 25 5.7 Performance monitoring and continuous improvement ........................................................ 26

6 Appendices .................................................................................................................................... 27 6.1 Acronyms .............................................................................................................................. 28 6.2 ISO 55001 ‘shall’ statements map ........................................................................................ 29 6.3 Tier 2 water assets ................................................................................................................ 33 6.4 Tier 2 water objectives .......................................................................................................... 34 6.5 Tier 2 sewerage assets ......................................................................................................... 36 6.6 Tier 2 sewerage objectives ................................................................................................... 37 6.7 Detailed asset management process and system pathway .................................................. 39 6.8 Asset Management Plans (AMPs) – Contents page ............................................................ 40 6.9 Key information systems descriptors .................................................................................... 41

Strategic Asset Management Plan iii

Foreword Icon Water’s core purpose is to sustain and enhance the quality of life. This purpose is the fundamental reason for our existence and it is the foundation for our organisational objectives and priorities. Within this context, the primary activity of the organisation is the provision of high quality and efficient water and sewerage services to Canberra and surrounds.

We operate in an industry which is undergoing substantial changes in demand for services alongside technical and regulatory changes and pressure to reduce costs. The early local impacts of these industry trends are being felt and there is substantial change on the horizon.

Icon Water has directly experienced increased climate variability affecting water security, coupled with changing patterns of demand and consumption. Some of our major infrastructure is approaching the end of life and there are development pressures which are affecting the way in which we provide future services.

Whilst we have made a start, we need to continue to strengthen our understanding of our customer needs and be agile in planning for and responding to changing community and stakeholder needs as well as shifts in our regulatory environment.

As an asset-intensive organisation we have a substantial investment in our water supply and sewerage service infrastructure which enables the provision of services which are highly valued by our customers.

To meet our customer needs Icon Water must realise the maximum value from this asset portfolio throughout the lifecycle of the assets. Effective enterprise-wide asset management will facilitate Icon Water’s ability to make prudent and efficient decisions in response to changing context in which we operate.

One of our four strategic objectives is to maximise value to customers by balancing cost, risk and performance. Key to achieving this is the revision of Icon Water’s asset management system to align with the international standard ISO 55001:2014 Asset Management – Management systems – Requirements, and the Institute of Asset Management (IAM) Asset Management Maturity Framework 2015.

This Strategic Asset Management Plan (SAMP) is an essential component of an ISO 5500X centred governance framework for asset management. This SAMP provides a framework to implement Icon Water’s commitment to holistic, prudent and efficient life-cycle asset management.

Icon Water will drive continuous improvement in asset management through this SAMP and the supporting Asset Management System artefacts. The Asset Management System and the SAMP itself will evolve as Icon Water moves along the maturity pathway in asset management.

This SAMP has benefitted from input from all business groups within Icon Water. On behalf of the Executive, I would like to thank all who have contributed their understanding of the current approach and their vision for the future of asset management within this great organisation.

Amanda Lewry

General Manager Asset Management

June 2017

Strategic Asset Management Plan 1

1 Introduction

1.1 Overview

Icon Water Limited (Icon Water) is an unlisted public company, owned by the ACT Government, with assets and investments in water, sewerage and energy services and operations. Icon Water owns and manages the water and sewerage business and assets in the ACT and is a 50% owner of ActewAGL, a joint venture with AGL Energy Limited and Jemena Limited. This Strategic Asset Management Plan (SAMP) considers the first of these two activities. It describes the business drivers, principles, governance, systems and objectives of asset management (AM) within Icon Water.

In order to continually enhance enterprise-wide asset management, we will align asset management processes and practices with the ISO 55000 series of standards for asset management and the IAM Asset Management Maturity Framework 2015. This will enable us to ensure that strategic asset decision making processes achieve an agreed balance of cost, risk and asset performance that meets customer service delivery expectations, stakeholder aspirations, and the terms of applicable acts, licences and codes. It is not our intention to seek formal certification under ISO 55001 at this time.

The purpose of this SAMP is to provide a clear framework for strategic asset decision making that aligns with achievement of wider corporate performance objectives and targets set out in the Statement of Corporate Intent (SCI). The SAMP will ensure that these asset decisions are enabled through clear and comprehensive processes that reflect ‘best of breed’ asset management principles and practices.

This SAMP defines the framework for the planning, development, operation, maintenance and disposal of ‘in scope’ Icon Water assets.

1.2 Development, timeframe and review of the SAMP

This version 3.0 represents the first major revision to the initial SAMP developed in 2015.

The SAMP covers to the end of the current regulatory period, together with detailed projections for the next five year regulatory period and further projections for an additional 15 years. The SAMP, together with the other Asset Management System (AMS) documents, is reviewed and updated on an annual basis. The following change approval requirements apply for the SAMP:

administrative amendments – approved by the Manager Asset Strategy and Long Term Planning

minor amendments – approved by the General Manager (GM) Asset Management

major amendments – approved by the Executive Committee Special Executive Meeting Asset Management (AORG)1.

1.3 Communication and usage of the SAMP

A Communication Plan is developed with each revision of the SAMP and implemented to communicate the SAMP to internal and external stakeholders.

The SAMP is an enabler within the Integrated Management System (IMS) document library. It is linked to the Enterprise Asset Management (EAM) Strategy, Policy PO5 Asset management, the various Asset Management Plans (AMPs) and other asset management system documents as outlined in Chapter 5.

The SAMP is aligned to and informs appropriate asset management components within our regulatory submission.

1.4 Structure of the document

The remainder of the document is structured as follows:

1 As per Executive Committee Meeting No. 6, 31 March, 2016 (Role of the Asset Owner)


Chapter 2: Describes the current and predicted operating environment for Icon Water in order to provide context for the subsequent sections and to provide a line of sight from the corporate strategies to the Asset Management Objectives (AMOs) and demonstrate alignment with other organisational strategies. It highlights the areas of asset that are in scope for the current version of the SAMP and provides an asset condition assessment of these.

Chapter 3: Describes the organisation's commitment to asset management.

Chapter 4: Describes the high level AMOs and the process for developing lower level objectives for all assets.

Chapter 5: Describes Icon Water’s asset management system and decision making processes, together with the supporting processes and systems that ensure performance objectives are consistently met.


2 Business context

2.1 Description of Icon Water and its assets

Icon Water is the ACT’s supplier of water and sewerage services, and supplier of bulk treated water to Queanbeyan. Icon Water owns, plans for, operates and maintains a network of dams, water treatment Section 3.1 Table plants, reservoirs, water and sewage pumping stations, mains, sewage treatment plants and other related infrastructure as illustrated in Figure 1. Our assets consistently deliver safe drinking water and reliable sewage services to a community of over 393,000 people. We will ensure the effectiveness of our asset base both to meet current need, and to support future requirements based on predicted population growth, varying climate scenarios and potential business expansion plans. We will ensure that these needs are met in a way which optimises issues of cost, risk and performance that satisfies the needs of customers and stakeholders.

Icon Water recognises nine separate asset classes as the assets within scope of our Asset Management system (AMS). Six are related to water and sewerage assets, with a further three relating to ‘common assets.’ The specific asset classes are detailed in Table 1.

Figure 1 Water and sewer asset network


Table 1 Asset classes displaying net book value as at 30/6/16 (Note. Land and Buildings asset classes are expressed as a single net book value)

Asset class Net book value at 30/06/16 ($000s)

Water sources 684,401

Water treatment 122,611

Water network 483,188

Sewer network 582,007

Sewer treatment 172,056

Non-potable water 2,585

Land and buildings 24,359

Mobile plant and vehicles 1,914

Information and communication technology 2,725

TOTAL 2,075,846

Whilst this SAMP specifically addresses the six water and sewerage asset classes, Asset Management Plans (AMPs) have been produced for all nine classes of assets. Regulatory framework

Icon Water has reporting and compliance obligations under Commonwealth, ACT and NSW legislation. A total of seventy-four acts, licences and regulations govern the operations of the water and sewerage business. A legal compliance database (CMO Compliance) identifies the legislative obligations with which the business must comply. This database is managed by the Legal and Secretariat Branch within the Business Services Group. These obligations are mapped to relevant processes, procedures and responsible roles within Icon Water. A diagram of key legislation is provided in Figure 2.


Figure 2 Legislative framework governing Icon Water

Technical codes set out requirements for the design, operation and maintenance of the water supply and sewerage assets, for customer protection, dam safety and for emergency management. The codes also establish the requirements for asset management. The Utilities Technical Regulator (UTR) is currently reviewing the technical codes.

2.3 Business drivers

2.3.1 Demand and growth

The major driver for water demand is climate variability and as such, annual consumption will depend on weather patterns, especially during the peak summer period. Over the past 15 year period, there has been a reduction in water usage within the Canberra and Queanbeyan systems. This has been attributed to the following factors:

millennium drought – 2001 to 2010

introduction of volumetric water pricing

changed land-use planning with smaller residential blocks and increased density

introduction of the ACT Government’s “Think Water, Act Water” policy and water efficiency appliance programs.

By 2036 it is expected that the ACT’s population could grow to approximately 536,000 people (ABS medium, forecast), which represents a 35% increase from 2016. Population growth of this magnitude is likely to have a significant impact on demand for ACT water and sewerage services, particularly once


reductions in per capita water use has reached a plateau. Icon Water conducts system requirements modelling based on ACT population growth with additional inputs based on projected population growth for Queanbeyan. Further modelling scenarios are run to encompass potential expansions of Icon Water’s activities to other geographies including Yass. Despite, demand growth predictions, our studies indicate that the capacity of the bulk water supply system and water treatment plants are considered likely to be able to meet required needs until the 2030s (see Figure 3).

Figure 3 Demand vs capacity graph(s) with timeline to show predicted peak daily water

treatment demand growth aligned with existing capacity to service

Average sewage inflow to Canberra’s centralised sewage treatment plant (Lower Molonglo Water Quality Control Centre (LMWQCC)) has remained relatively constant over the last 10 years in spite of growth in the population served by the plant. This is attributed to the increased use of water efficient appliances and consumer behaviour which has driven a reduction in water use and a consequent large reduction in the per capita sewage flow.

As a result, and despite the projected population growth of the ACT, flow projections suggest that the average dry weather volume of liquids entering the sewage treatment plant will only increase by approximately 5% over the timeframe to 2036.

Figure 4 Demand vs capacity graph(s) with timeline to show predicted sewage growth aligned

with existing capacity to service

Reductions in flow rates will, however, impact on the quality of sewage, as the transit time through the sewerage system can increase septicity. In addition, solids movement through the system is slowed.

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This potentially results in impacts on the asset condition and performance through increased septicity and associated corrosion and odour production.

Wet weather inflows are also a major driver of capacity constraints within the sewerage system. A number of the current system augmentations at LMWQCC and within the sewerage network are the result of wet weather inflow issues.

The projected pattern of population growth in the ACT also drives asset planning decisions at Icon Water. We must be able to respond to the needs of both “greenfields” development, which will see the expansion of new suburbs and the extension of the existing network, and “infill” development occurring within inner city suburbs (see Figure 5). Greater levels of infill development will generate capacity issues within the existing network, particularly the sewerage system.

Figure 5 ACT population development plans (source ACT Government EPSDD)


2.3.2 Customer engagement

Customer engagement represents an integral component of our approach to service delivery and consequently shapes planning decisions. We engage with customers using market research and willingness-to-pay surveys and through the Community Consultative Forum (CCF). Recent market research activities show that overall customer levels of satisfaction with Icon Water are high (see Figure 6).

Figure 6 Customer satisfaction survey results 2015

Icon Water undertakes market research to understand what customers value. Unprompted questions were asked of our customers with the top five priorities, in order, identified as:

These values inform the setting of our service standards and therefore our AMOs. Understanding customer value allows us to focus our asset management practices to achieve a balanced trade-off between cost, risk and performance. For example water supply interruptions and sewage overflows were assessed using predictive modelling to determine the appropriate levels of investment to achieve the desired service standards.

2.3.2 Financial imperatives

Icon Water will continue to review our financial decision making processes to deliver optimised value for money. We are currently looking to achieve cost benefit realisations by 2026 (as set out in the ICRC Regulatory submission (Attachment 5) through the application of a series of strategic improvement projects. Our asset planning decision making will be enhanced though the implementation of a series of strategic projects that will ensure an optimised outcome for asset performance, risk and cost. Specific asset management cost drivers are set out in the EAM Strategy and require a year on year reductions in operational expenditure per kilometre of water/sewer through to by June 30 2019.

Icon Water will continue to minimise its financial risk and generate operational efficiencies through the implementation of the Energy Strategy and the initiatives identified in the EAM Strategy.

How satisfied are you with Icon Water’s service?


2.2 Future directions and disruptions

Icon Water’s current operating environment is relatively stable. However in order to meet our strategic goal of becoming the premier, most trusted water utility by 2023 and ultimately the trusted steward of the full water cycle across the capital region by 2026 we will need to be able to identify and respond to challenges and opportunities.

Icon Water undertakes a strategic environmental scan known as a STRING analysis to identify threats and opportunities under six themes. This analysis is performed on an annual basis to inform Icon Water’s SCI. The most recent STRING identified and prioritised the top 10 Icon Water wide challenges as per Table 2.

Table 2 Top 10 challenges

Top 10 challenges

1 Big data and smart networks 6 Water sensitive urban design (WSUD)

2 Better customer connection 7 Planning and development processes

3 Cross border growth 8 Workforce

4 Energy 9 Alternate revenue streams

5 Independent Competition and Regulatory Commission (ICRC)

10 New entrants

The challenges and disruptions identified through this process assist in identifying future opportunities for Icon Water to grow as an organisation. The above list provides the basis for informing the organisation in setting its strategies, further review is required to finalise and potentially reprioritise potential impacts.

Some of the key areas that will shape the future of Icon Water’s asset base are:

cross-border growth and the provision of services beyond Canberra and the ACT;

Icon Water’s role in integrated water management (IWM) and potential responsibility for the management of stormwater and drainage infrastructure;

continual improvements in data and technology, being able to take advantage of advances in Big Data, the Internet of Things (IoT) and Augmented Reality (AR);

continual investment in developing the capability of our people to be ready for disruption; and

our role within urban growth planning in the ACT, based on greater collaboration with other Government agencies to create the best value community outcomes.

Icon Water continues to monitor wider industry trends, including disruptive technologies that may impact on its future ability to collect revenue (for example decentralised sources or private investments). Icon Water has recently assessed the case for smart water metering and has concluded that the business case for intelligent network implementation is not attractive now or during the next regulatory period. However, we will continue to monitor for events that impact the business case and reassess the economic model, intangible benefits and broad risks as required to ensure the optimal implementation time is identified.

Icon Water will also look outside our industry to monitor the impacts of off-grid technologies within the energy sector and develop strategies to proactively meet changes from these sectors that may be adopted within the water industry. This includes decentralised reuse schemes, third party providers and various system innovations.


2.3 Current asset condition

Knowledge of the current condition of our asset portfolio is an important consideration in determining whether our assets can meet and will continue to maintain our customer service levels. Icon Water undertakes comprehensive condition assessment and monitoring for selected asset classes that provide a detailed understanding of the condition of our asset base.

The methodology for inspections follows the Institute of Public Works Engineering Australasia guidelines. Asset monitoring and inspection methods vary with the type of assets involved, their criticality, accessibility and the inspection methodology. Assets are given a condition score between 1 (good condition) to 5 (poor condition and unsupported). Figure 7 shows the condition of the overall water and sewerage asset systems.

Figure 7 Asset condition assessment


3 Leadership and commitment

3.1 Asset management principles

Icon Water’s asset management principles are set out in PO5 Asset management and interpreted in the EAM Strategy 2016-17 to 2021-22 (see Table 3). The EAM Strategy has recently been revised by the Executive to reflect its commitment to continuous improvement in asset management. These principles guide the management of assets and the approach to implementation as set out in this SAMP and implemented in the AMS.

Table 3 Asset management principles

Principle Application in Icon Water

Systemic Asset management should look at assets in their systems context, for net total value.

Holistic Asset management should be cross-disciplinary and apply asset management capability to the whole asset base across the full asset lifecycles and product value chain.

Integrated Asset management should integrate all business functions and activities to work as a whole – which is more than the sum of parts.

Risk-base Asset management should incorporate risk appropriately into all decision-making, support sage work practices and contribute to a safe community.

Optimal Asset management should seek the best balance between conflicting objectives, primarily around cost, risk and performance.

Sustainable Asset management plans should deliver optimal asset life cycles, ongoing systems performance, environmental and other long term benefits.

Systematic Asset management should be applied consistently, though a structured management system.

The implementation of the asset management principles listed above is supported by key organisational strategies which target improvements in people management, customer engagement, environmental sustainability and ICT capability.

3.2 Roles and responsibilities

The roles and responsibilities for asset ownership and asset management are defined in PO5 Asset management (see Figure 8).

Figure 8 Asset management system roles


Icon Water’s Executive has adopted the role of Asset Owner for the assets that are in scope of the SAMP. The Executive Committee (AORG) meet on a quarterly basis. The role of the AORG is to:

1) Agree and maintain the asset management objectives within the AMS;

2) Ensure there is sufficient support, resources and an engaged and competent workforce to deliver the AMS; and

3) Review, monitor and report performance of the AMS.

Figure 9 Organisational structure and asset management responsibilities

Asset management activities are undertaken across the business. Each member of the Executive has specific responsibility for a set of assets (see Figure 9). Staff within each respective business Group is responsible for the management of those assets.

Service provision and business support for the various assets is undertaken across multiple areas of the business using in-house professional and trade based staff and is augmented via arrangements with external specialist contractors and other delivery partners. These services are managed by the General Manager Project Delivery, Maintenance and Operations.

ActewAGL provides support services through two long term agreements; the Corporate Service Agreement (CSA) and the Customer Service and Community Support Agreement (CSCSA) The agreements are framed as partnerships and are managed by the General Manager Finance and the General Manager Business Services respectively.


4 Asset management objectives

4.1 Asset management objectives and performance goals

Icon Water has developed Asset Management Objectives derived from:

1) The strategic goal and strategic objectives set out in the SCI (see Figure 10 below);

Figure 10 Icon Water strategic goal and objectives (Diagram from SCI)

2) Specific goals set out within the EAM Strategy;

3) Adherence to relevant legislation, codes, licences and technical standards (as described in Chapter 2.2);

4) Demand requirement forecasts;

5) Application of Icon Water’s risk assessment tables (WI07.01.01); and

6) An analysis of the various elements defined within the business drivers (see Chapter 2.3 and 2.4).

AMOs for water and sewerage assets are described in terms of a tiered hierarchy that is based on a logical decomposition of the assets (see Figure 11). The hierarchical approach establishes specific cost, risk and performance requirements at each level which are directly used as the foundation for asset capital, maintenance and operating plans.

Figure 11 Asset management objectives hierarchy


4.1.1 Tier 1 objectives (stakeholder requirements)

Two sets of objectives have been identified – one for water assets and one for sewerage assets, as shown in Table 4.

Table 4 Tier 1 Asset Objectives

Tier 1 Asset Management Objectives

Cost Risk Performance

Water supply

Deliver a sustainable financial return

Comply with the risk management framework including personnel and environmental safety requirements.

Meet water quality, demand, pressure and flow requirements as per acts, codes, licences and customer requirements.

Targets

Financial return delivered as per Finance Strategy

Achievement against risk tables 100% LTIFR: <10 SIFR: <6

% water quality compliance 100% Water restrictions 1 in 20 years Meet pressure and flow requirements per WS&S2 code 100% Total water complaints <5 per 1000 customers

Sewerage system

Deliver a sustainable financial return

Comply with corporate risk management framework including personnel and environmental safety requirements.

Meet network flow capacity, licenced discharge and environmental protection requirements and availability requirements as per acts, codes and licences and customer requirements3.

Targets

Financial return delivered as per Finance Strategy

Achievement against risk tables 100% LTIFR: <10 SIFR: <6

% licence and environmental discharge achievement 100% Meet average dry weather flow requirements of 105Ml/day 100% Total sewerage complaints <5 per 1000 customers

4.1.2 Tier 2 objectives: (system level)

The Tier 2 AMOs are an extension of the Tier 1 requirements relevant to the Tier 2 asset systems of Icon Water. The Tier 2 asset decomposition aligns with the AMPs. Water supply is split into its three constituent ‘value chain’ elements, namely sources, treatment and distribution. The sewerage system is similarly decomposed into collection, treatment and non-potable water. AMPs have also been

2 Water Supply & Sewerage (WS&S) Code Sections 7:7.1;7.2 3 Utilities Act 200 (ACT): Environmental Protection Act 1997 (ACT); WS&S Code 13;14.1

Personnel Safety

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developed for the three common asset classes: mobile plant and vehicles, land and buildings and Information and Communication Technology (ICT).

Figure 12 Asset management value chain decomposition

Tier 2 assets provide a functional model of how assets work together to achieve the Tier 1 outcomes. The Tier 2 objectives and targets are set out in appendices 6.4 and 6.5. These Tier 2 objectives/targets have been developed based on an analysis of asset criticality and have been expressed in terms of required asset availability and reliability which will deliver the overarching objectives described previously at the Tier 1 level (see Section 4.1.1). Detailed cost objectives are included within the specific AMPs. Tier 2 objectives will be further reviewed in the next update to the SAMP.

4.1.3 Tiers 3-5 objectives (subsystem to asset level)

The AMOs at Tiers 3 – 5 define specific requirements for the assets which are then translated into operating, maintenance and capital plans through the AMPs, the Reliability Centred Maintenance (RCM) process and the Process Operating Plans (POP). Further detail of the development of the lower tier objectives is contained within the various system AMPs.

4.2 Financial projections

Based on projected growth and demand (see Chapter 2.3), asset condition (see Chapter 2.5) and current and future asset performance requirements, expected asset expenditure is likely to focus more heavily on asset renewal and maintenance, rather than on major new asset infrastructure creation. However, as the asset base ages, the need to monitor asset condition will become increasingly important in order to review the spend mix.

Capital expenditure (Capex) projections identify renewal activity as the most significant component in the majority of years during the next 20 year period. Other components of Capex are analysed into growth (expansion of the network), efficiency (based on achieving performance improvements) and regulation required (from external stakeholders) elements.

Operational expenditure (Opex) projections are developed for the 5 year period to 2022-23. They are further split into water and sewerage, and within these two areas are identified by controllable and non-controllable elements. Per business drivers (see section 2.3) the EAM Strategy has determined a need to reduce Opex over the next two years. This has been factored into financial projections.


5 Asset management system

5.1 System definition, framework and maturity journey plan

The Asset Management System (AMS) ‘directs, coordinates and controls asset management activities’ (ISO 55000 cl 2.4.3). This section of the SAMP describes the AMS structure and artefacts and sets out the journey plan to move to a fully developed system which is able to meet the requirements of ISO 55001.

The AMS is incorporated into the existing Integrated Management System (IMS), components of which are certified to ISO 9001, ISO 14001, AS 4801 and the Codex Alimentarius (HACCP).

The IMS includes several levels of documentation as described in EN11.03.01 IMS conceptual overview:

IMS requirements - documents which describe the requirements for conduct and management of key business functions. IMS requirements are documented in policies, procedures, work instructions and forms.

IMS enablers - documents which enable or support conformance with IMS requirements.

IMS records - records of results achieved or evidence of activities performed.

The AMS uses the same documentation structure to establish appropriate asset management artefacts. The governance mechanisms of the AMS are the same as the IMS, in that it utilises the existing approval, document control and records management framework.

Our AMS is monitored against the subject areas described in the Institute of Asset Management ‘anatomy’ (see Figure 13) by the Asset Lifecycle Reporting Officer.

Figure 133 Asset management subject area model

Our AMS is undergoing a series of transformation programmes intended to deliver an enhanced asset management environment. A preliminary assessment has reviewed asset management maturity level by subject area.

From this assessment, we have determined to reach a ‘competent’ level in each of the subject areas by end of FY 2019. This transition forms part of a longer term asset management strategy where future development to higher target maturity levels by end FY 22 has been determined as shown in Figure 14.


Figure 144 Enterprise asset management maturity development journey plan

In its future state, the AMS capability will support ISO 55001 requirements. Key initiatives to achieve this progression are documented in the EAM Strategy. Specific initiatives from the EAM Strategy to be concluded by end FY 19 are detailed in Table 5.

Table 5 Key initiatives


Icon Water will track its progress towards asset management maturity, as well as its achievement in optimising asset performance, risk and cost decision making, through a ‘strategy map’ approach which integrates process and capability drivers together with the delivered asset outcomes (see Figure 15).

Figure 155 Asset management strategy map

The elements (‘objectives’) of the strategy map are each supported by Key Performance Indicators (KPIs) which provide for monthly and quarterly performance reporting. The strategy map enables tracking of asset management Tier 1 objectives which align with the key performance indicators and targets defined in the SCI.

In addition to the Tier 1 KPIs and targets (see Section 4.1.1), the strategy map provides a basis for developing KPIs and targets which allow for effective monitoring of the processes and enablers needed to deliver success. These additional KPIs are in process of final development and review. The full range of outcome and process KPIs will form the basis for a new monthly management report within AM. This will be used to shape decision making as well as tracking progress towards the future AM target state. A subset of the most critical KPIs (The vital few) will be reported to the Executive Committee – Asset Owner on a monthly and quarterly basis.


5.2 Key elements of the AMS

Icon Water develops and implements the AMS through a series of interlinked processes which generate a series of artefacts to support and document asset management objectives and decision making (Figure 16).

Figure 166 Key elements of the AMS

Development of the future state AMS will involve enhancement and additions to these existing processes and artefacts, coupled with enhanced integration throughout the end to end cycle.

A detailed diagram of key system and process interactions within the asset management system is shown in Appendix 6.7.

An overview of existing critical artefacts supporting the current end to end process is described below.

The SCI sets the overarching corporate goals for the organisation. Further strategy documents in customer management, economic regulation, finance, ICT, people and workforce health and safety also inform the highest level of objective setting for asset management.


The EAM Strategy 2016-17 to 2021-22 sets out the capabilities that will be necessary to effectively manage assets and establishes a performance improvement agenda through an identified set of initiatives to achieve this future state.

Policy P05 Asset management documents Icon Water’s commitment to asset management sets asset management principles and gives high level direction on asset management practices. The policy sets out requirements for the AMS which align to ISO 55001 and defines the key roles and responsibilities of Asset Owner, Asset Manager and Asset Service Provider.

Policy P07 Risk management documents Icon Water’s risk management framework. It is supported by Risk Assessment Tables documented in work instruction W107.01.01. The Risk Assessment Tables set out how risk likelihood and consequence is assessed to determine a risk rating and identifies associated risk responses.

Both P05 and P07 also guide in the preparation of the SAMP and in the related AMPs.

This SAMP is further informed by the various external acts, licences and codes (see Section 2.2). The SAMP develops an overarching strategy for asset management which includes objectives and tier 1 and 2 performance criteria for our asset base. This asset strategy development process seeks to achieve an appropriate balance between customer expectations (performance), corporate risk exposure (risk) and effective use of financial resources (cost).

The SAMP subsequently provides the guiding input document for the development of more granular asset management documents including our individual AMPs and our operational asset management plan (OAMP).

Icon Water develops AMPs that relate to the delivery of a service at the tier 2 hierarchy level. Each AMP covers a grouping of assets that contribute to achieving the asset management objectives through delivery of the service. AMPs describe a 20 year strategy for each asset grouping. A template contents page for the AMPs is included as Appendix 6.8.

Lifecycle delivery incorporates detailed planning for acquisition, maintenance, operation and disposal activities to ensure that our assets meet the management objectives as outlined in this SAMP and the corresponding AMPs. This includes detailed Process Operating Plans (POPs) and Maintenance Plans for each asset group.

5.3 Asset decision making

Icon Water makes many and varied asset-related decisions to enable service provision. These decisions are made within frameworks that enable assessment of safety, risk, sustainability and cost. Strategic plans for Icon Water’s assets are created in line with the regulatory submission cycle.

Our asset management decision making involves defining the optimal balance of cost, risk and performance to maximise customer value of our assets. Icon Water’s AMPs provide an overview of the lifecycle asset activities required to maintain customer service levels. Figure 17 shows the key factors that are considered in the determination of the optimal balance of investment across our asset portfolio.

Icon Water utilises a number of advanced data analytics tools to aid in the understanding of complex relationships between asset information and asset planning decisions. Data-driven decision will be aided through the implementation of a number of the key initiatives documented in the EAM Strategy.


Figure 177 Developing an optimised funding scenario to meet customer and stakeholder needs

Two of the major decision making processes are described below in sections 5.3.1 and 5.3.2. The first describes the processes that support the development of the capital works programs; the second describes those that support development of maintenance and operational plans.

5.3.1 Development of CAPEX plans

Prioritised capital works are developed within Asset Management and overall budget is approved by the Independent Competition and Regulatory Commission (ICRC) as part of the five yearly regulatory submission. Capital projects (both planned and unplanned) are routinely approved through the Investment Review Committee (IRC) and form the basis for the prioritised capital works program.

The key factors identified in Figure 17 are considered in the determination of whether there is a need to modify, augment or construct a new asset. The factors that are considered differ depending on the capital investment driver. Capital investment decisions involve identifying, quantifying and influencing the current and desired levels of costs, risks, and performance.

Alternative options (including do nothing, maintenance and operating options) for achieving the desired set of asset management objectives are analysed and evaluated. The option that best represents the appropriate balance of lifecycle cost, risk and impacts on established performance measures forms the basis of our initial capital works program.

The initial capital works program is then prioritised see Figure 18 and run against a series of scenarios prior to finalisation of the most prudent and efficient program that provides the appropriate balance of cost and levels of service for Icon Water’s asset portfolio.


Figure 18 Primary and secondary project prioritisation

The capital plans are documented in the AMPs and a consolidated view is established in the Program summary report that is prepared as part of the budgeting process. Capital works are undertaken only when there is not a cost-effective lifecycle operational alternative available.

5.3.2 Development of maintenance and operational plans

Icon Water identifies its planned maintenance works through a proactive inspection schedule. This involves assessing the condition of the asset against documented level of service criteria and prioritising, scheduling and actioning the work to be undertaken within documented time frames.

Asset reliability strategy, maintenance standards and procedures have been developed for defect elimination, analysis of failures, condition monitoring, and improvement to maintenance strategies. These are routinely updated to continuously improve cost efficiency, plant reliability and performance.

Icon Water undertakes comprehensive condition assessment and monitoring for selected asset classes to provide a detailed understanding of the condition and performance of our assets. Asset monitoring and inspection methods reflect functional criticality of assets and asset age. The approach promotes proactive maintenance rather than reliance on manufacturer specifications for maintenance.

Operating and maintenance requirements are determined to reduce the severity of the effect of specific failure modes, which involves:

• identifying potential failure modes for a product or process;

• assessing the risk associated with those failure modes, to rank the issues in terms of importance; and

• determining and carrying out corrective actions to address the most serious concerns.

The method identifies weak areas in asset design, the safety-critical components, or critical maintenance and test procedures. The process enables the best maintenance to be determined to achieve design reliability at minimum cost.

Icon Water is currently renewing its works management system. The renewed system will provide a greater data granularity and this will inform enhanced asset maintenance investment decisions.

Maintenance plans are further informed through Maintenance Requirements Analysis using Failure Mode Effect and Criticality Analysis, Reliability Centred Maintenance and Level of Repairs Analysis techniques. The objective is to optimise the design or the operating, inspection and maintenance strategies to enable efficient asset management (cost, risk, performance). The optimisation analysis will assess the likely failure modes and identify weak areas in the design, the safety-critical components, or critical maintenance and test procedures.

The efficient and effective operation of water and sewerage assets is a core function for Icon Water. To enable this throughout the asset lifecycle, a process operating plan (POP) is developed for asset systems.

The POP is developed by defining the asset management objectives including function, performance requirements, functional significance, consequences of asset failure, maximum outage times for asset


per functional area, operating parameters and limitations. The POP also considers interactions with capital project delivery work that may have an impact on the process performance and could require temporary flows or parameter changes.

The POP provides direction to treatment and network operations personnel, defining the operational parameters, required operational activities and guidance for planned responses to abnormal events (wet weather events). The operators use the POP in planning the delivery of their daily operating activities.

Lessons learnt from process trend analysis and asset performance during abnormal events are captured as feedback to continuously improve the POP and optimise the performance envelope for the assets.

Specific plans for the water and sewerage assets are developed by the Asset Planning Branch, periodically, based on the needs identified in the AMPs. The Reliability and Maintenance team are responsible for the development of maintenance plans and process engineers are responsible for the development of POPs.

5.3.3 Lifecycle delivery governance

Capital and major maintenance programmes are governed and managed through our Investment Planning and Decision (IPaD) stage and gate process (see Figure 19). The IPaD Manual describes the processes required for the approval of all significant investment projects. The internal Investment Review Committee (IRC) is responsible for approvals major investment decisions.

The governance framework depends on a thorough, end-to-end gated process that achieves consistent and repeatable decision making, identifies and manages risks and achieves efficiency of project delivery. The gating process is a system where there is a requirement for authority at each “gate” to be received for a project to proceed according to the investment planning and delivery lifecycle.

The lifecycle consists of three main phases: initiate, implement and integrate. Each of the seven stages of the project lifecycle: envisage, evaluate, plan, develop, execute, accept and monitor, corresponds to a stage gate for assessing the prudency and efficiency of investment decisions.

Plan stage

Accept stage

Execute stage

Develop stage

Evaluate stage

Envisage stage

Gate 1 Gate 2 Gate 3 Gate 4 Gate 5 Gate 6 Gate 7

Initiate

Implement Integrate Initiate phase Implement phase Integrate phase

Monitor stage

• The problem and need are identified

• Project is registered and prioritise

• Stakeholders are identified

•Potential solutions to resolve problems are identified and evaluated

•Concept design is performed

•An option is recommended

• Project scope is detailed

• Project management plan is developed

• Detail design is performed

• Handover is planned

• Construction Build activitie

• Project handover acceptance

•Post-implementatio reviews are performed

•Project closure documentation is developed

• Defects management • Formal

closure

Figure 19 IPaD stage and gate project delivery framework for capital and major maintenance


Evaluation of the current risks at each stage underpins our decisions to proceed with a project compared with the do-nothing option. Project classification involves defining the scope, cost, and complexity at the initiation stage of project planning. Assessments determine the risk profile of the project.

5.4 Competency management and development

Icon Water aspires to foster a culture that recognises and values the significant contribution of its people. To achieve this goal, one of the organisation’s four strategic objectives is to ‘protect, engage and develop our people’.

Two business level strategies have been developed to meet this strategic objective:

• The People strategy 2017-20 aims to ensure Icon Water has the diverse, engaged and agile workforce with the skills and capability necessary to enable Icon Water to meet current and future challenges.

• The Work, health and safety strategy 2016–17 to 2018–19 is aimed at ensuring a safer workplace supported by best practice work health and safety management.

We will continue to develop our people to meet our target state of excellence in asset management. Initiatives identified in the EAM Strategy will inform how we assess our people against the key competencies relevant to their roles to ensure that we have the right skills in the right areas and provide opportunities for training and development to meet these requirements.

In recognising the competencies for successful asset management, we will enable a culture that appreciates the value of ‘good data’ and pursues data-driven decisions.

5.5 Information systems

ICT and its incorporation into business processes and decision-making are considered essential to efficiently analyse, manage and optimise our assets for the benefit of consumers and stakeholders. Icon Water utilises a number of systems and databases to support the operation of the AMS and to store information on its asset base. Icon Water’s systems architecture is evolving through the Business Transformation Program and Figure 20 provides a systems view of the key elements of ICT architecture for the organisation. Descriptions of each of these systems can be found in Appendix 6.9.


IT Application Infrastructure(Servers, Databases, Switches, Comms, Security)

Information Technology (IT) Applications Operational Technology (OT) Applications

Managed by ActewAGLthrough the CSA

Managed by ActewAGLthrough the CSCSA Managed by Icon Water

OT Application Infrastructure (Virtualised cloud-based IaaS)(Servers, Databases, Switches, Comms, Security)

Managed by third party

Office Equipment(PC’s, Laptops, Printers, Phones, Tablets, Switches, Cables)

Geographic Information System

(Esri ArcGIS)

Asset Analytics

WorksManagement(Oracle WAM)

Customer Case Management

Asset Management(Oracle WAM)

Enterprise Data Warehouse

Business Analytics

Icon Customers

Water & wastewater network assets

Technical Drawing(AutoCad)

Building Management CCTV

Drawing Management

(Meridian)

Building Access Control Advanced Metering

Infrastructure (AMI)

Time Series Historian

(Wonderware)

Industrial Control System (SCADA)(Schneider Citect)

Industrial Internet of Things (IIoT)

(PLC’s, RTU’s, Sensors)

Telemetry Bus

Risk Management

(Guardian)

DirectoryManagement(Active Directory)

Firewall

Human Resources

(Aurion)

Financial Management

(Oracle EBS)

DirectoryManagement(Active Directory)

PC Management

(Win10, MS/Office)

Email Management(MS/Exchange)

Icon Intranet (Iconnect)

Records Management (RecordPoint)

DocumentManagement(MS/SharePoint)

Mobility Management

(Vmware/AirWatch)

Digital Customer

PaymentGateway

CustomerBilling

(Gentrack Velocity)

Enterprise Service Bus (ESB / ETL)

Software as a Service

(Telogis, …)

Software as a Service

(Telogis, ACL, …)

Project Management

(PMIS, MS/Project)

Collaboration Applications

(MS/SharePoint)

Collaboration Applications

(MS/SharePoint)

Figure 20 ICT architecture

5.6 Financial accounting for assets

Financial information on Icon Water’s assets is included in a number of databases, as follows:

Assets are recorded in the financial accounting system (Oracle) to comply with practices prescribed by the Australian Accounting Standards Board and the International Accounting Standards Board and in accordance with Icon Water accounting policies (fair value).

Assets are recorded in the Fixed Asset Register (FAR) and net book values are displayed in the Statement of Assets and Liabilities (Balance Sheet).

Assets are recorded in the WASP asset database (to be replaced by Axle – see Table 8). The database contains an Engineering Asset Register (EAR), with information on the replacement value of a proportion of assets listed alongside technical information. The EAR does not currently cover the entire asset base.

The TM1 business information tool is used for reporting with a large portion of source information from Oracle. In the future state, linkages between these systems will be enhanced, as described below.

Assets are initially captured in the FAR at historical cost. From time to time assets or asset classes may be subject to revaluations and the cost will then be the value at which the asset is recorded. If assets are improved the value of improvements will be included in the FAR.

All assets are depreciated in the financial system over the shorter of their expected life or the expected period of future benefit anticipated to be derived from the asset. The difference between the historical cost of the asset and the accumulated depreciation is displayed in the financial statements as the Net Book Value (NBV).

The details captured against assets in the FAR allow for analyses to be performed and asset groups to be isolated. Table 6 identifies the main groupings available.


Table 6 Fixed asset register groupings of assets

Water Sewerage Common and corporate

Dam structure Sewer reticulation Remote monitoring and control

Transfer mains LMWQCC – Treatment SCADA

Raw water pumping LMWQCC – Site services Asset management information systems

Water treatment plants LMWQCC – Electrical supply Corporate and office IT

Water service reservoirs Fyshwick STP Corporate buildings

Treated water pumping Remote STP Water allocation licences

District and retic water mains Sewerage pump stations Vehicles

Connectors and meters Non-potable water reuse Land

Other assets Odour control and network structures Other assets

Other assets

5.7 Performance monitoring and continuous improvement

Icon Water generates and leverages performance information to inform business decisions. A wide variety of metrics are currently in place to enable measurement of the performance of Icon Water’s assets. Many are based on regulatory requirements, and they are documented in reports to the ICRC, UTR, the Department of Health, the Environment Protection Authority (EPA) and other regulators.

A new framework of internal performance monitoring is being introduced to support the ‘strategy map’ approach to strategic performance reviews (see Section 5.1). This framework will monitor asset performance outcomes against predetermined business outcome targets per the SAMP and the other artefacts that inform asset management. The framework will also support review of the critical business processes and organisational enablers that need to function effectively in order to deliver the business outcomes.

Performance reporting will support a variety of ‘evidence based’ decision making through a process of ‘double loop’ learning:

• learning loop 1 – short term amendments to process operating plans, maintenance plans and budgets, and process performance improvements

• learning loop 2 – medium to long term updates to AMPs, SAMP and wider asset management and business strategy planning.

Icon Water further seeks to improve its underlying asset management capability through continuous improvement to its processes and systems. Such improvements will be informed by both assessing the applicability of external best practice developments, as well as through the feedback on existing processes and systems enabled through the performance monitoring described previously in this section. Major changes to these processes and systems will be documented in periodic updates to the SAMP as described in Section 1.2.

Table 7 Identified improvement areas

Improvement area Responsibility Timeframe

Review and update tier 2 objectives General Manager AM 2018 (SAMP update)

Development of new KPI reporting Business Officer AM End 2017

Convergence of SAMP and EAM Strategy content to single document

Executive Committee 2019


6 Appendices


6.1 Acronyms

ADWF Average dry weather flow AM Asset management AMP Asset management plan AMS Asset management system AR Augmented Reality BSG Business Services Group CCF Community Consultative Forum EAM Enterprise Asset Management EAR Engineering Asset Register FAR Fixed Asset Register FBD Functional Block Diagram GFMAM Global Forum on Maintenance and Asset Management GIS Geographical Information System GL Gigalitre ICRC Independent Competition and Regulatory Commission ICT Information and Communication Technology IMS Integrated Management System IIoT Industrial Internet of Things IPaD Investment Planning and Development IRC Investment Review Committee ISO International Standards Organisation IWM Integrated Water Management KPI Key Performance Indicator LMWQCC Lower Molonglo Water Quality Control Centre LTIFR Long Term Injury Frequency Rate ML Megalitre NBV Net Book Value OAMP Operational asset management plan PD Project Delivery RBD Reliability Block Diagram SAMP Strategic Asset Management Plan SCADA Supervisory Control and Data Acquisition SCI Statement of Corporate Intent SIFR Serious Injury Frequency Rate STP Sewage Treatment Plant STRING Social, customer and community, Technology and innovation, Regulation and legal,

Industry, Natural environment and resources, Government UTR Utilities Technical Regulator WASP Works, Asset, Solutions and People (Works Management System) WS&S Water supply and sewerage


6.2 ISO 55001 ‘shall’ statements map

ISO 55001 contains 71 ‘shall’ statements (mandatory requirements). Icon Water has determined that 28 of the ‘shall’ statements must be undertaken by the Executive Committee (asset owner) and cannot be undertaken by a contractor.

The 28 asset owner ‘shall’ statements are addressed in Icon Water’s SAMP as described in the table below. Note that several of the statements are not addressed in the SAMP and that others are only partially addressed. These statements are addressed by other parts of the AMS which may be under development.

Table 5: ISO 55001 'shall' statement map

Clause ‘Shall’ statement SAMP reference

4.1 The organisation shall determine external and internal issues that are relevant to its purpose and that affect its ability to achieve the intended outcome(s) of its asset management system.

2.1, 2.2,2.3

4.2 The organisation shall determine: • the stakeholders that are relevant to the asset management system • the requirements and expectations of these stakeholders with respect

to asset management • the criteria for asset management decision making • the stakeholder requirements for recording financial and non-financial

information relevant to asset management, and for reporting on it both internally and externally.

2.2, 3.2 2.2 3.1, 5.3 5.5, 5.6

4.3

The organisation shall determine the boundaries and applicability of the asset management system to establish its scope.

2.1, 5

4.3

The organisation shall define the asset portfolio covered by the scope of the asset management system.

2.1

4.4

The organisation shall develop a SAMP which includes documentation of the role of the asset management system in supporting achievement of the asset management objectives.

5

5.1

Top management shall demonstrate leadership and commitment with respect to the asset management system by:

• ensuring that the asset management policy, the SAMP and asset management objectives are established and are compatible with the organisational objectives

• ensuring the integration of the asset management system requirements into the organisation’s business processes

• ensuring that the resources for the asset management system are available

• communicating the importance of effective asset management and of conforming to the asset management system requirements

• ensuring that the asset management system achieves its intended outcome(s)

• directing and supporting persons to contribute to the effectiveness of the asset management system

• promoting cross-functional collaboration within the organisation • promoting continual improvement • supporting other relevant management roles to demonstrate their

leadership as it applies to their areas of responsibility • ensuring that the approach used for managing risk in asset

management is aligned with the organisation’s approach for managing risk.

Foreword, 1.3, 3.2, 4.1, 4.2, 5.2, 5.7



5.2

Top management shall establish an asset management policy that: • is appropriate to the purpose of the organisation • provides a framework for setting asset management objectives • includes a commitment to satisfy applicable requirements • includes a commitment to continual improvement of the asset

management system.

3.1

5.2

The asset management policy shall: • be consistent with the organisational plan • be consistent with other relevant organisational policies • be appropriate to the nature and scale of the organisation’s assets and

operations • be available as documented information • be communicated within the organisation • be available to stakeholders, as appropriate • be implemented and be periodically reviewed and, if required, updated.

1.3, 3.1

5.3

Top management shall ensure that the responsibilities and authorities for relevant roles are assigned and communicated within the organisation.

3.2

5.3

Top management shall assign the responsibility and authority for: • establishing and updating the SAMP, including asset management

objectives • ensuring that the asset management system supports delivery of the

SAMP • ensuring that the asset management system conforms to the

requirements of this International Standard • ensuring the suitability, adequacy and effectiveness of the asset

management system • establishing and updating the asset management plan(s) (see 6.2.2) • reporting on the performance of the asset management system to top

management.

1.2, 5,

6.2.1

The organisation shall establish asset management objectives at relevant functions and levels.

4.1

6.2.1

The organisation shall retain documented information on the asset management objectives.

4.1

6.2.2

The organisation shall ensure that its asset management related risks are considered in the organisation’s risk management approach including contingency planning.

3.1

7.1

The organisation shall determine and provide the resources needed for the establishment, implementation, maintenance and continual improvement of the asset management system.

5.7

7.1 The organisation shall provide the resources required for meeting the asset management objectives and for implementing the activities specified in the asset management plan(s).

3.2, 5.7

7.4

The organisation shall determine the need for internal and external communications relevant to assets, asset management and the asset management system including:

• on what it will communicate • when to communicate • with whom to communicate • how to communicate.

1.3



7.5

The organisation shall determine the requirements for alignment of financial and non-financial terminology relevant to asset management throughout the organization.

5

7.5

The organisation shall ensure that there is consistency and traceability between the financial and technical data and other relevant non-financial data, to the extent required to meet its legal and regulatory requirements while considering its stakeholders’ requirements and organisational objectives.

5.5, 5.6

8.2

The organisation shall ensure that such risks are managed in accordance with 6.1 and 6.2.2.

3.2, 3.1

8.3

When the organisation outsources any activities that can have an impact on the achievement of its asset management objectives, it shall assess the associated risks.

Not addressed

8.3 The organisation shall ensure that outsourced processes and activities are controlled.

Not addressed

8.3 The organisation shall determine and document how these activities will be controlled and integrated into the organization’s asset management system.

Not addressed

8.3 The organisation shall determine: • the processes and activities that are to be outsourced (including the

scope and boundaries of the outsourced processes and activities and their interfaces with the organisation’s own processes and activities)

• the responsibilities and authorities within the organisation for managing the outsourced processes and activities

• the processes and scope for the sharing of knowledge and information between the organisation and its contracted service provider(s).”

Not addressed

8.3 When outsourcing any activities, the organisation shall ensure that: • the outsourced resources meet the requirements of 7.2, 7.3 and 7.6 • the performance of the outsourced activities is monitored in

accordance with 9.1.

Not addressed

9.3 Top management shall review the organisation’s asset management system, at planned intervals, to ensure its continuing suitability, adequacy and effectiveness.

1.2

9.3 The management review shall include consideration of: • the status of actions from previous management reviews • changes in external and internal issues that are relevant to the asset

management system • information on the asset management performance, including trends

in: o nonconformities and corrective actions o monitoring and measurement results o audit results o asset management activity o opportunities for continual improvement o changes in the profile of risks and opportunities.

1.2, 5.1, 5.7

9.3 The outputs of the management review shall include decisions related to continual improvement opportunities and any need for changes to the asset management system.

5.7

9.3 The organisation shall retain documented information as ISO artefact of the results of management reviews.

5.7


6.3 Tier 2 water assets


6.4 Tier 2 water objectives

Water asset name Designed performance

Reliability Availability

WATER SOURCES

Water supply dams GL

Googong 124 98% 50%

Corin 72 98% 90%

Bendora 11 98% 90%

Cotter 78 98% 90%

Headworks ML/day

Bendora gravity main 247 (300 max) 98% 90%

Cotter to Stromlo mains 49 150 247 98% 90%

Murrumbidgee to Googong pipeline

100 90% 10%

Googong dam to treatment plant mains

300 (total) 98% 60%

Raw water pumping stations ML/day

Cotter pump station 150 98% 40%

Murrumbidgee river (M2C) 150 98% 90%

Googong pump station 250 98% 60%

Murrumbidgee river (M2G) low lift pumps

100 90% 10%

Murrumbidgee river (M2G) high lift pumps

100 90% 10%

WATER TREATMENT

Water treatment plants ML/day

Stromlo water treatment plant (Reliable)

230 98% 90%

Googong water treatment plant (Reliable)

240 98% 60%

WATER DISTRIBUTION AND RETICULATION

Bulk distribution mains ML/day


Water asset name Designed performance


Googong trunk mains 369 98% 98%

Red Hill offtake 115 98% 98%

Stromlo - Higgins main 195 98% 98%

Stromlo - Belconnen main 114 98% 98%

Stromlo Red Hill mains 103 98% 98%

Black Mountain main 27 98% 98%

Stromlo - Woden mains 110 98% 98%

Woden – Symonston 49 98% 98%

Tuggeranong mains 49 98% 98%

Tuggeranong link main 76 98% 98%

Aranda - Gungahlin (Kaleen valve farm) mains

49 98% 98%

Spence - Higgins mains 62 98% 98%

Higgins-Harcourt mains 49 98% 98%

Queanbeyan offtakes 1 and 2 76 98% 98%

Service reservoirs ML

Black Mountain 6.8 98% 98%

Lower Red Hill tank A 9.1 98% 98%

Lower Red Hill tank B 9.1 98% 98%

Deakin 12.8 98% 98%

Mugga 35.5 98% 98%

Campbell 32.6 98% 98%

Spence 70.5 98% 98%


6.5 Tier 2 sewerage assets


6.6 Tier 2 sewerage objectives

Sewerage asset name Designed performance


SEWAGE TREATMENT PLANTS

ADWF ML/d

Lower Molonglo Water Quality Control Centre

100 99% 99.9%

Fyshwick sewage treatment plant 4.6 98% 98%

Uriarra sewage treatment plant 0.066 98% 98%

SEWAGE COLLECTION AND TRANSFER

Sewage pipelines, syphons and tunnels

ML/day

Molonglo valley interceptor sewer (MVIS)

510 907 (average)

99% 99%

Ginninderra sewer tunnel (GST) 588 99% 99%

Main outfall sewer (MOS) 138 99% 99%

Tuggeranong tunnel 359 99% 99%

Belconnen trunk sewer (BTS) 216 (average) 138 (average) 181 (average)

99% 99%

Gungahlin trunk sewer (GTS) 147 99% 99%

Woden Valley trunk sewer (WVTS)

73 99% 99%

Weston Creek trunk sewer (WCTS)

35 (average) 73 (average)

99% 99%

Wentworth Ave interceptor 10 – 18 99% 99%

Acton syphon 30 (total) 99% 99%

Major structures ML

City West extreme storm flow (ESFLOW) tank (or Turner tanks)

15 98% 98%

Sewage pump stations Pumping specification

Commonwealth Avenue (CAPS) SPS03

2 x 39 ML/day @ 400 kPa 46 kL storage

99% 99%


Sewerage asset name Designed performance


Fyshwick (Mildura St) SPS13 1 x 6 ML/day @ 220 kPa 31 kL storage

99% 99%

Kingston SPS17 2 x 4 ML/day @ 270 kPa 6 kL storage

99% 99%

Majura (Fyshwick) SPS23 2 x 14 ML/day @ 330 kPa 38 kL storage

99% 99%

Stranger Cr Bonython SPS45 2 x 7 ML/day @ 190 kPa 11 kL storage

99% 99%

Point Hut 1 Gordon SPS46 2 x 7 ML/day @ 321 kPa 14 kL storage

99% 99%

Point Hut 2 Gordon SPS52 2 x 5 ML/day @ 300 kPa 7 kL storage

99% 99%

Kambah Golf SPS54 2 x 5 ML/day @ 460 kPa 11 kL storage

99% 99%

NON-DRINKING WATER

Performance Risk

Recycled water Maintain 11-13% re-use

System to remain at “low” risk and on conditional standby


6.7 Detailed asset management process and system pathway


6.8 Asset Management Plans (AMPs) – Contents page

1. Executive Summary a. Assets in scope b. Business context summary c. Levels of service and future demand d. Asset condition and performance e. Asset activity plan f. Financial summary

2. Introduction a. Document hierarchy b. Governance

3. Asset overview a. Assets in scope b. Financial overview

4. Business context a. Roles and responsibilities b. Stakeholders and customers c. Goals of asset ownership

5. Levels of service a. Drivers affecting levels of service b. Asset objectives

6. Future demand a. Utilisation of existing assets b. Growth impacts c. Changing customer needs d. Changes in technology

7. Asset condition and performance a. Condition and performance assessments b. Asset condition c. Asset performance d. Asset integrity

8. Capital plan and projected costs 9. Logistic support requirements

a. Operations plans and projected costs b. Maintenance plan and projected costs c. Safety plan and projected costs d. Environmental plan and projected costs e. Asset revaluations f. Disposal plan and projected costs

10. Financial plan a. Financial movement summary b. Asset financial status June 20xx c. Current CAPEX plan d. Future funding requirements


6.9 Key information systems descriptors

Application Description

Information Technology (IT) applications

ICT applications that are generic to a modern business, but not specific to a water utility. These are shared by ActewAGL and Icon Water and are managed by ActewAGL’s corporate services.

Operational Technology (OT) applications

Asset and equipment-oriented ICT applications specific to a water utility. The function and development of these applications will be controlled by Icon Water. However, the infrastructure on which these applications reside is outsourced.

Business analytics One or more business intelligence tools such as online analytical processing (OLAP) applications that provide general business reporting and data mining capabilities for business modelling.

Asset analytics A suite of asset analysis and modelling tools for asset planning. This includes predictive analytical tools and engineering analysis tools to support engineering techniques, scenario modelling, options analysis simulation and asset management planning.

Asset management Provides the master engineering asset register and overall asset management capability. It integrates network operations, asset works and asset monitoring for network analysis.

Works management Manages project delivery, operations and maintenance works. This includes works packaging, activation, scheduling, dispatching, job completion and time management.

Customer case management

Manages the different types of consumer and community contacts and related case information in an integrated fashion. This application draws on the billing information maintained in the customer billing application and provides a case management capability to integrate and understand all interactions the business may have with a customer.

Digital customer Provides a unified, seamless customer experience to access information about the performance of the business, asset network and interaction with stakeholders. This integrates with digital platforms, such as mobile devices, web portals, and social media. Provide Icon Water’s public web sites. This is implemented using the Sitecore product. This is provided by ActewAGL Distribution under the CSA.

Payment gateway An on-line secure capability to accept customer payments from a range of sources.

Customer billing ActewAGL’s Gentrack Velocity billing application providing a customer account and bill/payment history. This will be provided by ActewAGL Retail under the CSCSA.

Software as a service (SaaS)

A range of applications licenced on a subscription basis that deliver specific capability on-demand.

Geographic information System

The location-aware representation of assets and the supporting spatial data infrastructure to maintain and support a connected network of assets. This incorporates a connected hydraulic model.



Drawing management A document control system of information in the form of drawing files or raster images relevant to the operation and maintenance of water and sewerage assets.

Technical drawing Tools for the creation and modification of technical drawing describing the assets of the business.

Time series historian The repository and single source of truth for all timeseries data across the organisation.

Industrial control system (SCADA)

The industrial control systems (ICS) and supervisory control and data acquisition (SCADA) application that operate and tracking performance of the water and waste-water asset network providing performance reporting, event identification and network control.

Telemetry bus

The two-way communications infrastructure by which monitoring and control devices communicate between each other and the applications that manage them.

Industrial internet of things (IIoT)

The physical monitoring and control devices that connect to, or monitor the environment of, our water and waste-water assets. These convert analogue asset and environment information into digital form that support the internet protocol (IP) to allow communication remotely.

Advanced metering infrastructure

Advanced metering infrastructure (AMI) is an integrated system of smart meters, communications networks, and data management systems that enables two-way communication between the business and smart meters.

Risk management ActewAGL Guardian corporate risk management application providing management and reporting of risk across the business. This is provided by ActewAGL Distribution under the CSA.

Financial management ActewAGL Oracle R12 application providing budget and investment management, financial costing and accounting, statutory reporting, accounts payable and receivable This is provided by ActewAGL Distribution under the CSA.

Human resources The ActewAGL Aurion human resources application. This is provided by ActewAGL Distribution under the CSA.

PC management A standard operating environment (SOE) consisting of an operating system and application set configured in a standard and consistent way that is remotely maintained on all PC’s and laptops. This also manages software updates and service packs.

Mobility management Manages security, content, applications and email on all mobile devices.

Email management Provides the secure management and distribution of email across all the devices used by the business.

Directory management Provides a directory service to applications in a distributed environment to provide single sign-on security across heterogeneous applications. It is a centralized and standardised system that



automates network management of user data, security, and distributed resources, and enables interoperation between applications.

Document management A controlled, version managed repository for all documents across the business. It securely stores, tracks and manages documents while providing collaboration capabilities.

Collaboration applications Small independent applications built from lists and forms within the document management application to capture and disseminate information where a core application or a SaaS application is not available.

Project management Manages project schedules, resources and cost forecasts. It also provides a repository of issues and lessons learned

Icon intranet Provides the collaborative environment to share information across the business. This includes a number of small forms-based SharePoint applications.

Records management RecordKeeper application required for systematically controlling the creation, distribution, use, maintenance, and disposition of recorded information maintained as evidence of business activities and transactions. Supports the Territory Records Act through centralised management of all documents across the business.

Enterprise data warehouse (EDW)

A unified database that holds business information derived from operational applications that is accessible in a consistent form across the company. This provides a unified approach for organising/representing data and the ability to classify data according to subject.

Enterprise service bus (ESB)

Implements a communication ‘middleware’ framework to enable integration of applications across an enterprise using a service-oriented architecture (SOA). This implements distributed computing to provide enterprise application integration (EAI), promoting strategic agility and flexibility.

IT application infrastructure

The common infrastructure that supports the applications shared across the Joint Venture partnership.

A virtualised physically controlled and secure environment supported by the servers, data stores and communications equipment required to host applications. This includes the switches and firewalls to connect to the office equipment environment. This provides a loosely coupled capability that is flexible and scalable.

OT application infrastructure

The infrastructure that supports the applications solely used by Icon Water.

A virtualised physically controlled and secure environment supported by the servers, data stores and communications equipment required to host applications. This includes the switches and firewalls to connect to the office equipment environment. This provides a loosely coupled capability that is flexible and scalable.



Office equipment The ICT equipment that resides within an office environment. This includes the PC’s, laptops, printers, phones, tablets and the communications switches and the cabling to connect them together.

Building management Manages the building environment and air-conditioning

Building access control Provides electronic controlled access to offices and assets. This also manages security passes and access control lists.

CCTV Closed circuit TV and the infrastructure to provide de-centralised monitoring.


Talk to us

[email protected]

02 6248 3111

@iconwater

GPO Box 366, Canberra ACT 2601

iconwater.com.au

http://www.iconwater.com.au/

@ icon water limited 2017 (abn 86 069 381...

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