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City of Salisbury Asset Management Strategy
City of Salisbury
ASSET MANAGEMENT STRATEGY
Version 6
June 2015
City of Salisbury Asset Management Strategy
Document Control
Document Control NAMS.PLUS Asset Management
www.ipwea.org/namsplus
Document ID: asset management strategy version 5 (march 2015).doc
Rev No Date Revision Details Author Reviewer Approver
1 10/12/2014 First Draft JC
2 12/12/2014 Second Draft JC SAMG
3 13/01/2015 Third Draft JC EXEC
4 27/03/2015 Final Draft (Updated budgets for 2015/16) JC EXEC
5 02/04/2015 Included additional Strategy graphs JC EXEC
6a 30/06/2015 Minor changes and additions JC EXEC
6b 16/11/2015 Final version endorsed by Council JC EXEC Council
NAMS.PLUS Asset Management
The Institute of Public Works Engineering Australasia.
www.ipwea.org/namsplus
© Copyright 2012 – All rights reserved.
City of Salisbury Asset Management Strategy Page i
Table of Contents
Executive Summary ................................................................................................................................. 1
1. Introduction .................................................................................................................................... 4
1.1 Legislative reform ................................................................................................................... 5
1.2 Asset Management Planning Process ..................................................................................... 6
2. What Assets do we have? ............................................................................................................... 7
3. The Organisation’s assets and their management? ........................................................................ 8
3.1 State of the Assets .................................................................................................................. 8
3.1.1 Financial State of the Assets ................................................................................................... 8
3.1.2 Projected Operations and Maintenance Expenditure ............................................................ 9
3.1.3 Summary of future renewal and replacement expenditure ................................................... 9
3.1.4 Summary of future upgrade/new assets expenditure .......................................................... 10
3.1.5 Financial Statements and Projections ................................................................................... 11
3.1.6 Asset management financial indicators ................................................................................ 11
3.1.7 Asset Consumption Ratio ...................................................................................................... 12
3.2 Life Cycle Cost ....................................................................................................................... 13
3.3 Asset Management Structure ............................................................................................... 15
3.3.1 Asset Management Framework ............................................................................................ 15
3.3.2 Roles and Responsibilities ..................................................................................................... 15
3.3.3 Asset Owner Structure .......................................................................................................... 16
3.4 Corporate Asset Management Team .................................................................................... 16
3.5 Financial & Asset Management Core Competencies ............................................................ 17
3.6 Strategy Outlook ................................................................................................................... 20
4. Where do we want to be? ............................................................................................................ 21
4.1 Council’s Vision, Mission, Goals and Objectives ................................................................... 21
4.2 Asset Management Policy ..................................................................................................... 23
4.3 Asset Management Vision .................................................................................................... 23
5. How will we get there? ................................................................................................................. 24
6. Asset Management Improvement Plan ........................................................................................ 25
Tables
Table 1: Assets used for providing Services ............................................................................................ 7
Table 2: Financial Status of the Assets .................................................................................................... 8
Table 3: Life Cycle Cost for Council Services ......................................................................................... 13
Table 4: Life Cycle Expenditure for Council Services ............................................................................ 13
Table 5: Life Cycle Indicators................................................................................................................. 14
Table 6: Asset Owner Structure ............................................................................................................ 16
Table 7: Key Directions and Objectives for Infrastructure Services ...................................................... 22
Table 8: Asset Management Strategies ................................................................................................ 24
Table 9: Asset Management Improvement Plan .................................................................................. 25
City of Salisbury Asset Management Strategy Page ii
Figures
Figure 1: Asset Replacement Cost by Asset Management Plan ............................................................. 8
Figure 2: Projected Operations and Maintenance Expenditure ............................................................. 9
Figure 3: Projected Capital Renewal and Replacement Expenditure .................................................. 10
Figure 4: Projected Capital Renewal and Replacement Expenditure .................................................. 10
Figure 5: Projected Operating and Capital Expenditure ...................................................................... 11
Figure 6: Projected Operating and Capital Expenditure ...................................................................... 11
Figure 7: Asset Consumption Ratio ....................................................................................................... 12
Figure 8: Asset Management Framework ............................................................................................. 15
Figure 9: Core Asset Management Maturity Assessment (Sept 2013) ................................................. 18
Figure 10: Indicative Core Asset Management Maturity Assessment (Feb 2015) ............................... 18
City of Salisbury Asset Management Strategy Page 1
Executive Summary
This asset management strategy is prepared to assist council in improving the way it delivers services
from infrastructure including transport, drainage, fleet, buildings, parks & streetscapes, trees and
water business assets. These infrastructure assets have a replacement value of $1.4B.
The asset management strategy is to enable Council to show:
how its asset portfolio will meet the service delivery needs of its community into the future,
enable Council’s asset management policies to be achieved, and
ensure the integration of Council’s asset management with its long term strategic plan.1
Adopting this asset management strategy will assist council in meeting the requirements of national
sustainability frameworks, the South Australian Local Government Act 1999, Local Government
(Financial Management) Regulations 2011 and providing services needed by the community in a
financially sustainable manner.
The asset management strategy is prepared following a review of the council’s service delivery
practices, financial sustainability indicators, asset management maturity and fit with council’s vision
for the future outlined in the City Plan “Sustainable Futures 2020”. The strategy outlines an asset
management improvement plan detailing a program of tasks to be completed and resources
required to bring council to a minimum ‘core’ level of asset maturity and competence.
Strategy outlook
1. Council can maintain assets for the next 10 years at current funding and service levels within
the Long Term Financial Plan.
This includes:
Increased Street Trees renewal expenditure to increase the frequency of Streetscape
Renewal and prevent future increases to civil infrastructure maintenance budgets.
Air Conditioning Renewal increased expenditure to target high priority air conditioners
for renewal previously managed by sporting clubs.
Commencement of a bus shelter renewal program for bus shelters in poor condition and
nearing the end of their useful life.
2. The organisation’s current asset management maturity is nearing ‘core’ level as detailed in
section 3.5.
3. Investment is needed to:
Improve Information management - by increasing the quality of data in Council’s Asset
Management System, Confirm.
Improve Lifecycle management – by continually improving the data and assessment of
Council’s infrastructure
1 LGPMC, 2009, Framework 2 Asset Planning and Management, p 4.
City of Salisbury Asset Management Strategy Page 2
Include condition data in the Asset Management System and develop a process to maintain
the currency of condition across numerous asset categories.
Improve the collection of Key Performance Indicator data from the Community and Council
based on set levels of Service and condition.
4. Council commit to ensuring that it focuses on asset renewals and will prioritise funding to address infrastructure that is not providing a suitable level of service.
5. Focus new assets on meeting needs identified to be critical to enhancing community wellbeing and delivered sustainably across its lifecycle.
Asset Management Strategies
No Strategy Desired Outcome
1 Continued Long Term Financial Planning to achieve financial
sustainability.
The long term implications of
Council services are considered in
annual budget deliberations.
2 Develop and annually review Asset Management Plans covering at
least 10 years for all major asset classes (80% of asset value).
Identification of services needed
by the community and required
funding to optimise ‘whole of life’
costs.
3 Asset management plan expenditure projections covering 10
years to inform the Long Term Financial Plan with a sustainable
funding position outcome.
Sustainable funding model to
provide Council services.
4 Incorporate Year 1 of Long Term Financial Plan revenue and
expenditure projections into annual budgets.
Long term financial planning drives
budget deliberations.
5 Review and update asset management plans and long term
financial plans after adoption of annual budgets. Communicate
any consequence of funding decisions on service levels and
service risks.
Council and the community are
aware of changes to service levels
and costs arising from budget
decisions.
6 Report Council’s financial position relating to its assets at Fair
Value in accordance with Australian Accounting Standards,
financial sustainability and performance against strategic
objectives in Annual Reports.
Financial sustainability information
is available for Council and the
community.
7 Ensure Council’s decisions are made from accurate and current
information in asset registers, on service level performance and
costs and ’whole of life’ costs.
Improved decision making and
greater value for money.
8 Implement an Improvement Plan to realise ‘core’ maturity for the
financial and asset management competencies within 2 years.
Improved financial and asset
management capacity within
Council.
City of Salisbury Asset Management Strategy Page 3
Asset Management Improvement Plan
The program of tasks and resources required to achieve a minimum ‘core’ asset management
maturity was developed in the asset management strategy. The tasks and program are shown
below.
Ref Task Responsibility Target Date
1 Council endorsement of Asset Management Policy Council Nov 2015
2 Council endorsement of Asset Management Plans Council Nov 2015
3 Council endorsement of Asset Management
Strategy
Council Nov 2015
4 Implement a continuous improvement process to
manage the Asset Register and development of
Asset Management Plans
SAMG Ongoing
5 Undertake/update Asset Management maturity
assessment
SAMG April 2016
6 Condition assessments to be undertaken and
recorded against the discrete asset in the asset
register.
SAM Ongoing
7 Deliver objectives outlined in the Asset
Management Plan Operationalisation Project.
SAMG/AMIG/
Project Team
July 2017
8 Continue informing Elected Members and key staff
on Asset Management.
SAMG/SAM Ongoing
City of Salisbury Asset Management Strategy Page 4
1. Introduction
Assets deliver important services to communities. A key issue facing local governments throughout
Australia is the management of ageing assets in need of renewal and replacement.
Infrastructure assets such as roads, drains, bridges, water and public buildings present particular
challenges. Their condition and longevity can be difficult to determine. Financing needs can be
large, requiring planning for large peaks and troughs in expenditure for renewing and replacing such
assets. The demand for new and improved services adds to the planning and financing complexity.2
The creation of new assets also presents challenges in funding the ongoing operating and
replacement costs necessary to provide the needed service over the assets’ full life cycle.3
The national frameworks on asset planning and management and financial planning and reporting
endorsed by the Local Government and Planning Ministers’ Council (LGPMC) require councils to
adopt a longer-term approach to service delivery and funding comprising:
A strategic longer-term plan covering, as a minimum, the term of office of the councillors
and:
o bringing together asset management and long term financial plans,
o demonstrating how council intends to resource the plan, and
o consulting with communities on the plan
Annual budget showing the connection to the strategic objectives, and
Annual report with:
o explanation to the community on variations between the budget and actual results ,
o any impact of such variances on the strategic longer-term plan,
o report of operations with review on the performance of the council against strategic
objectives.4
Framework 2 Asset Planning and Management has seven elements to assist in highlighting key
management issues , promote prudent, transparent and accountable management of local
government assets and introduce a strategic approach to meet current and emerging challenges.
Asset management policy,
Strategy and planning,
o asset management strategy,
o asset management plan,
Governance and management arrangements,
Defining levels of service,
Data and systems,
Skills and processes, and
Evaluation.5
2 LGPMC, 2009, Framework 2 Asset Planning and Management, p 2.
3 LGPMC, 2009, Framework 3 Financial Planning and Reporting, pp 2-3.
4 LGPMC, 2009, Framework 3 Financial Planning and Reporting, pp 4-5.
City of Salisbury Asset Management Strategy Page 5
The asset management strategy is to enable Council to show:
how its asset portfolio will meet the service delivery needs of its community into the future,
to enable Council’s asset management policies to be achieved, and
to ensure the integration of Council’s asset management with its long term strategic plan.6
The goal of asset management is to ensure that services are provided:
in the most cost effective manner,
through the creation, acquisition, maintenance, operation, rehabilitation and disposal of
assets,
for present and future consumers.
The objective of the Asset Management Strategy is to establish a framework to guide the planning,
construction, maintenance and operation of the infrastructure essential for council to provide
services to the community.
1.1 Legislative reform
The Local Government Act 1999 and its regulations require each Council to:
have an I&, covering the management of infrastructure and other major assets of the Council for a period of at least 10 years7
have a long-term financial plan covering a period of at least 10 years8
maintain prudential management policies, practices and procedures for the assessment of all projects9
prepare and consider a specially-commissioned report on the prudential aspects of a contemplated major asset acquisition or construction project (not required for road construction/maintenance or drainage)10
have a policy on the sale and disposal of assets11
adopt an internal control policy which safeguards assets12
maintain accounting records of assets13
maintain a register of community land14
maintain a register of public roads15.
regularly estimate its “asset sustainability ratio” and include the updated estimate in its:
5 LGPMC, 2009, Framework 2 Asset Planning and Management, p 4.
6 LGPMC, 2009, Framework 2 Asset Planning and Management, p 4.
7 Local Government Act 1999 Section 122 (1a)(b)
8 Local Government Act 1999 Section 122 (1a)(a)
9 Local Government Act 1999 Section 48 (aa1). See also Financial Sustainability Information Paper
No. 27: Prudential Management at http://www.lga.sa.gov.au/goto/fsp 10
Local Government Act 1999 Section 48(1) and 48 (3) 11
Local Government Act 1999 Section 49 (1)(d) 12
Local Government Act 1999 Section 125 13
Local Government Act 1999 Section 124(1)(a) 14
Local Government Act 1999 Section 207(1) 15
Local Government Act 1999 Section 231(1)
City of Salisbury Asset Management Strategy Page 6
o long-term financial plans16 o annual budget and17 o mid-year budget review and18
regularly revalue its material non-current assets in accordance with the requirements of Australian Accounting Standards19
1.2 Asset Management Planning Process
Asset management planning is a
comprehensive process to ensure that
assets are managed and maintained in a
way that enables affordable services from
infrastructure to be provided in an
economically optimal way. In turn,
affordable service levels can only be
determined by assessing Council’s
financially sustainability under scenarios
with different proposed service levels.
Asset management planning commences
with defining stakeholder and legal
requirements and needs, incorporating
these needs into the organisation’s strategic
plan, developing an asset management
policy, strategy, asset management plan
and operational plans, linked to a long-term
financial plan with a funding plan.20
16 Local Government (Financial Management) Regulations 2011 Regulation 5(c)
17 Local Government (Financial Management) Regulations 2011 Regulation 7(d)
18 Local Government (Financial Management) Regulations 2011 Regulation 9(2)
19 Local Government (Financial Management) Regulations 2011 Regulation 12
20 IPWEA, 2009, AIFMG, Quick Guide, Sec 4, p 5.
Asset Management Planning Process
Legal and Stakeholder Requirements
and Expectations
Organisational Strategic PlanVision, Mission, Goals & Objectives,
Levels of Service, Business Policies, Risk
ASSET MANAGEMENT POLICY
ASSET MANAGEMENT STRATEGY Objectives, level of service target and plans
Asset
Management
Philosophy &
Framework
Service
Delivery OPERATIONAL PLANSService delivery in accordance with asset
management plans
Asset solutions – operate, maintain, renew,
enhance, retire
Non-asset solutions – partnerships, demand
management, insurance, failure management
KNOWLEDGE MANAGEMENTAsset data and information systems
Knowledge
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ASSET MANAGEMENT PLANS Services & service levels to be provided,
funds required to provide services
City of Salisbury Asset Management Strategy Page 7
2. What Assets do we have?
Council uses infrastructure assets to provide services to the community. The range of infrastructure
assets and the services provided from the assets is shown in Table 1.
Table 1: Assets used for providing Services
Asset Management Plan Description
Transportation The Transportation Asset Management Plan includes; Roads, kerbing, footpath,
traffic devices, signage, lighting etc.
Building The Building Asset Management Plan includes; sporting clubs, reserve shelters,
libraries, recreation centres, municipal offices,
Parks and Streetscape The Parks & Streetscapes Asset Management Plan includes; playgrounds,
fencing, furniture, irrigation, landscaping, sporting reserves etc.
Drainage & Waterways The Drainage & Waterways Asset Management Plan includes; stormwater pits
& pipes, open drains, dams etc.
Salisbury Water The Salisbury Water Asset Management Plan includes; distribution &
harvesting pipes, pipes, filtration equipment, wells, bores, tanks pumps etc.
Street Trees The Street Trees Asset Management Plan includes street trees/streetscapes
Fleet The Plant and Fleet includes: heavy vehicles, light vehicles and trailers
City of Salisbury Asset Management Strategy Page 8
3. The Organisation’s assets and their management?
3.1 State of the Assets
3.1.1 Financial State of the Assets
The financial status of the organisation’s assets is shown in Table 2.
Table 2: Financial Status of the Assets
Asset
Management
Plan
Replacement
Cost
Residual
Value
Depreciable
Amount
Depreciated
Replacement
Cost
Depreciation
Expense
Transportation 765,757,000 0 765,757,000 460,396,000 11,241,000
Drainage &
Waterways
388,823,000 0 388,823,000 262,917,000 4,151,000
Buildings 98,037,000 49,936,000 48,101,000 73,679,000 1,068,000
Fleet 9,326,000 269,000 7,057,000 5,195,000 1,059,000
Parks &
Streetscapes
76,421,000 2,381,000 74,040,000 35,636,000 2,261,000
Street Trees 332,000 7,000 325,000 67,000 1,000
Salisbury Water 68,941,000 1,457,000 67,484,000 57,511,000 1,516,000
Total 1,407,637,000 54,050,000 1,351,587,000 895,317,000 21,297,000
Figure 1 shows the replacement values of Council’s assets of each Asset Management Plan as a
proportion of the total asset replacement value.
Figure 1: Asset Replacement Cost by Asset Management Plan
City of Salisbury Asset Management Strategy Page 9
3.1.2 Projected Operations and Maintenance Expenditure
Future operations and maintenance expenditure is forecast to trend in line with the value of the asset stock as shown in Figure2. Note that all costs are shown in current 2015 dollar values (i.e. real values).
Figure 2: Projected Operations and Maintenance Expenditure
3.1.3 Summary of future renewal and replacement expenditure
Projected future renewal and replacement expenditures are forecast to increase over time as the
asset stock increases from growth. The expenditure is summarised in Fig 3. Note that all costs are
shown in current 2015 dollar values (i.e. real values).
The projected capital renewal and replacement program is shown in Appendix A of each Asset
Management Plan.
City of Salisbury Asset Management Strategy Page 10
Figure 3: Projected Capital Renewal and Replacement Expenditure
3.1.4 Summary of future upgrade/new assets expenditure
Figure 4: Projected Capital Renewal and Replacement Expenditure
Projected upgrade/new asset expenditures are summarised in Fig 6. The projected upgrade/new
capital works program is shown in Appendix B of each Asset Management Plan. Note that all costs
are shown in current 2015 dollar values (i.e. real values).
City of Salisbury Asset Management Strategy Page 11
3.1.5 Financial Statements and Projections
The financial projections are shown in Fig 5 for projected operating (operations and maintenance)
and capital expenditure (renewal and upgrade/expansion/new assets). Note that all costs are shown
in current 2015 dollar values (i.e. real values).
Figure 5: Projected Operating and Capital Expenditure
3.1.6 Asset management financial indicators
Figure 6 shows the asset management financial indicators over the 10 year planning period and for the long term life cycle.
Figure 6: Projected Operating and Capital Expenditure
City of Salisbury Asset Management Strategy Page 12
3.1.7 Asset Consumption Ratio
The asset consumption ratios of Council’s assets (average proportion of ‘as new’ condition left in
assets) are shown in Figure 7.
Figure 7: Asset Consumption Ratio
Note: Street Tree assets have not previously been capitalised and therefore the value in the asset register is
relatively low. There are 70,000 street trees in the City of Salisbury which will be capitalised as streetscape
renewal programs are completed.
The asset consumption ratio graph shows as expected that the Salisbury Water assets are relatively
new, fleet assets tend to be older due to deferring replacement of items while the remaining asset
classes are around halfway through their lifecycle.
City of Salisbury Asset Management Strategy Page 13
3.2 Life Cycle Cost
Life cycle costs (or whole of life costs) are the average costs that are required to sustain the service
levels over the longest asset life. Life cycle costs include operating and maintenance expenditure
and asset consumption (depreciation expense). The life cycle cost for the services covered in this
asset management plan is shown in Table 3.
Table 3: Life Cycle Cost for Council Services
Asset Management
Plan
2015/16 Expenditure 2014/15 Life Cycle Cost
($’000s/yr)
Operations
($’000s)
Maintenance
($’000s)
Depreciation Exp
($’000s)
Transportation 3,365 6,019 11,241 20,969
Drainage &
Waterways
272 2,212 4,151 6,858
Buildings 2,205 2,621 1,068 6,322
Fleet 1,774 837 1,059 3,692
Parks &
Streetscapes
2,725 12,049 2,261 17,290
Street Trees 0 2,730 1 2,731
Salisbury Water 2,119 809 1,516 4,443
All Services 12,460 27,277 21,297,000 62,305
Life cycle costs can be compared to life cycle expenditure to give an indicator of sustainability in
service provision. Life cycle expenditure includes operating, maintenance and capital renewal
expenditure in the previous year or preferably averaged over the past 3 years. Life cycle
expenditure will vary depending on the timing of asset renewals. The life cycle expenditure at the
start of the plan is shown in Table 4.
Table 4: Life Cycle Expenditure for Council Services
Asset
Management Plan 2015/16 Expenditure
Renewal Exp
($’000s/yr)
Life Cycle Exp
($’000s/yr)
Operations
($’000s)
Maintenance
($’000s)
Transportation 3,365 6,019 9,356 18,740
Drainage &
Waterways
272 2,212 1,335 3,819
Buildings 2,205 2,621 4,985 9,811
Fleet 1,774 837 1,484 4,095
Parks &
Streetscapes
2,725 12,049 1,315 16,089
Street Trees 0 2,730 1,100 3,830
Salisbury Water 2,119 809 147 3,075
All Services 12,460 27,277 19,722 59,459
The life cycle costs and life cycle expenditure comparison highlights any difference between present
outlays and the average cost of providing the service over the long term, If the life cycle expenditure
City of Salisbury Asset Management Strategy Page 14
is less than the life cycle cost, it is most likely that outlays will need to be increased or cuts in
services made in the future.
Knowing the extent and timing of any required increase in outlays and the service consequences if
funding is not available will assist organisations in providing service to their communities in a
financially sustainable manner. This is the purpose of the AM Plans and long term financial plan.
A shortfall between life cycle cost and life cycle expenditure gives an indication of the life cycle gap
to be addressed in the asset management and long term financial plan.
The life cycle gap and life cycle indicator for services covered by this asset management plan is
summarised in Table 5.
Table 5: Life Cycle Indicators
Asset Management
Plan
Life Cycle Cost
($’000s /yr)
Life Cycle Expenditure
($’000s /yr)
Life Cycle Gap *
($’000s /yr)
Life Cycle
Indicator
Transportation 20,969 18,740 -2,229 89%
Drainage &
Waterways
6,858 3,819 -3,039 56%
Buildings 6,322 9,811 3,489 155%
Fleet 3,692 4,095 403 111%
Parks &
Streetscapes
17,290 16,089 -1,201 93%
Street Trees 2,731 3,830 1,099 140%
Salisbury Water 4,443 3,075 -1,368 69%
All Services 62,305 59,459 -2,846 95%
Note: * A life cycle gap is reported as a negative value.
The table above shows a $2.85M life cycle gap overall with the majority of this gap being present in
the asset categories with longer lives and/or newer assets. The Drainage & Waterways AMP shows
limited expenditure required in the short term but significant expenditure is required starting from
2040. The Salisbury Water AMP assets are generally new and are reflected in the lifecycle gap which
also indicates significant future expenditure. The Street Trees AMP shows an excess of $1.1M which
is due to the fact that street trees have not been historically capitalised and therefore have very little
depreciation.
The Life Cycle Gap is determined using the expenditure in the first year compared to the average
expenditure required for the life of the asset. As described above long lived assets with high value
such as drainage pipes & pits, road pavement and kerbing are still in generally good condition and
limited expenditure has occurred on these assets. As such an overall life cycle gap currently exists
but will not in the future when expenditure will increase as these assets near the end of their useful
lives.
City of Salisbury Asset Management Strategy Page 15
3.3 Asset Management Structure
3.3.1 Asset Management Framework
The Asset Management Policy, Strategy and Plans will be provided to Council for adoption. The
relationships between the Asset Management Policy, Strategy and Plans are outlined in Figure 8
below.
Figure 8: Asset Management Framework
3.3.2 Roles and Responsibilities
Council
Key Stakeholder
Responsible for adopting the Asset Management Policy, Strategy and Plans.
Chief Executive Officer
Responsible for implementing the Asset Management Policy, Strategy and Plans.
Strategic Asset Management Group
Responsible for developing strategic and systematic approach to the sustainable
management of Council’s Assets.
Asset Management Implementation Group
Responsible for developing the operational links and processes which enable the
implementation of the strategic management of Council’s Assets.
AM Strategy AM Objectives, AM
Practices, Action Plans for AM
Improvement, Audit and Review processes.
AM Policy Principles, requirements and
responsibilities for AM inked to
organisational strategic objectives.
AM Plan Asset/Service Description,
Levels of Service, Demand Forecasts,
Lifecycle Activities, Cash flow Forecasts
City of Salisbury Asset Management Strategy Page 16
3.3.3 Asset Owner Structure
The majority of infrastructure assets are managed with the City Infrastructure Department. As a
consequence the City Infrastructure Department has organisational responsibility to maintain the
Policy and Strategy as well as facilitate the continual improvement of Council’s Asset Management
System (Confirm).
The Asset Owners responsible for management and reporting on each asset class is provided in
Table 6 below.
Table 6: Asset Owner Structure
Asset Management Plan Asset Owner
Transportation Manager Civil & Waste
Drainage & Waterways Manager Civil & Waste
Buildings Manager Property & Buildings
Fleet Manager Business Support
Parks & Streetscapes Manager Parks & Landscape
Street Trees Manager Parks & Landscape
Salisbury Water Manager Salisbury Water
3.4 Corporate Asset Management Team
A ‘whole of organisation’ approach to asset management is led by the Strategic Asset Management
Group, in Technical Services. This team co-ordinates with Asset Owners, Finance, IT and Executive to
deliver Corporate Asset Management. The benefits of a corporate asset management team include:
demonstrate corporate support for sustainable asset management,
encourage corporate buy-in and responsibility,
coordinate strategic planning, information technology and asset management activities,
promote uniform asset management practices across the organisation,
information sharing across IT hardware and software,
pooling of corporate expertise
championing of asset management process,
wider accountability for achieving and reviewing sustainable asset management practices.
The role of the asset management team will evolve as the organisation maturity increases over
several phases.
Phase 1
strategy development and implementation of asset management improvement program,
Phase 2
asset management plan development and implementation,
reviews of data accuracy, levels of service and systems plan development,
Phase 3
asset management plan operation
evaluation and monitoring of asset management plan outputs
ongoing asset management plans review and continuous improvement.
City of Salisbury Asset Management Strategy Page 17
A large improvement project to operationalise the asset management plans is currently being
scoped. Some of the key objectives of the project are;
to ensure that CoS has correct and accurate data to deliver Asset Management modelling in
the future
to ensure that CoS has an accurate and complete asset register
to deliver efficiency improvement by
o Allowing for more realtime budget line management
o Deliver mobility in the field
o Reduce manual, paper based systems
o Reduce duplication of effort and data entry
to review, document and implement standardised business processes for repetitive asset
management tasks
3.5 Financial & Asset Management Core Competencies
The National Frameworks on Asset Planning and Management and Financial Planning and Reporting
define 10 elements. 11 core competencies have been developed from these elements to assess
‘core’ competency under the National Frameworks. The core competencies are:
Financial Planning and Reporting
Strategic Longer Term Plan
Annual Budget
Annual report
Asset Planning and Management
Asset Management Policy
Asset Management Strategy
Asset Management Plan
Governance & Management
Levels of Service
Data & Systems
Skills & processes
Evaluation
Council’s maturity assessment for the core competencies is detailed in Appendix A and summarised
in Figure 9. The current maturity level is shown by the blue bars. The maturity gap to be overcome
for Council to achieve a core financial and asset management competency is shown by the red bars.
City of Salisbury Asset Management Strategy Page 18
Figure 9: Core Asset Management Maturity Assessment (Sept 2013)
A maturity assessment was undertaken in September 2013 (Figure 10) from which a project was
implemented to review and develop an Asset Management Policy, Strategy and Plans for major asset
classes. The adoption of this strategy, plans and policy will result in achieving core maturity for these
areas.
The maturity assessment has been updated to reflect the Asset Management Improvement Process
that has been undertaken and pending Council endorsement of the Asset Management Policy,
Strategy and Plans.
Figure 10: Indicative Core Asset Management Maturity Assessment (Feb 2015)
Core maturity will be achieved by implementing:
City of Salisbury Asset Management Strategy Page 19
a continuous improvement strategy to assess and report on the performance of council
controlled assets , and
a rigorous assessment of the asset register ensuring it satisfies the accounting valuation,
insurance and operational requirements of the organisation.
City of Salisbury Asset Management Strategy Page 20
3.6 Strategy Outlook
Strategy outlook
1. Council is able to maintain assets for the next ten years at current funding and service levels
within the Long Term Financial Plan.
This includes:
Street Trees renewal increased expenditure to increase the frequency of Streetscape
Renewal and prevent future increases to civil infrastructure maintenance budgets.
Air Conditioning Renewal increased expenditure to target high priority air conditioners
for renewal.
Commencement of a bus shelter renewal program for bus shelters in poor condition and
nearing the end of their useful life.
2. The organisation’s current asset management maturity is nearing ‘core’ level.
3. Investment is needed to:
Improve Information management - by increasing the quality of data in Council’s Asset
Management System, Confirm.
Improve Lifecycle management – by continually improving the data and assessment of
Council’s infrastructure
Include condition data in the Asset Management System and develop a process to maintain
the currency of condition across numerous asset categories.
Improve the collection of Key Performance Indicator data from the Community and Council
based on set levels of Service and condition.
4. Council commit to ensuring that it focuses on asset renewals and will prioritise funding to address infrastructure that is not providing a suitable level of service.
5. Focus new assets on meeting needs identified to be critical to enhancing community wellbeing and delivered sustainably across its lifecycle.
City of Salisbury Asset Management Strategy Page 21
4. Where do we want to be?
4.1 Council’s Vision, Mission, Goals and Objectives
Council has adopted a Vision and values for the future in the Council Strategic Plan.
‘Excellence in building a community of opportunity and spirit in a quality environment’.21
Our Values:
‘The City Plan articulates five core organisational values. These values are the principles we use to define what is critical to the City of Salisbury, both as a community and an organisation. They influence our behaviour and provide clear guidance on what is important for service delivery at both the strategic and operational level.’22
This is achieved via Salisbury’s City Plan – Sustainable Futures and the following four Key Directions:
The Strategic Plan sets goals and objectives to be achieved in the planning period. The Key
Directions set out where the organisation wants to be. The objectives are the steps needed to get
there. Goals and objectives relating to the delivery of services from infrastructure are shown in
Table 7.
21 City of Salisbury Annual Plan 2014/15
22 Sustainable Futures 2020
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Table 7: Key Directions and Objectives for Infrastructure Services
Key Direction Objectives
The Prosperous City To enhance and create quality urban areas with high
amenity and
integrated infrastructure
To deliver suitably integrated infrastructure that
maximises economic
efficiencies and opportunities for the community
The Sustainable City To have sustainable and resilient natural
environments that support
biodiversity and contribute to quality amenity
To reduce corporate carbon emissions via mitigation
as well as optimising
renewable energy options
To reduce resource consumption and minimise waste
generation
To deliver sustainable water management and
improve water security for
the city
To have sustainable and resilient built environments
that contribute to
quality amenity
The Living City To have a community that embraces healthy and
active lifestyles
To have a city where a quality of life is achievable
Achieving Excellence To deliver sustainable, creative and innovative
solutions that enable
excellent operations and service delivery
To ensure informed and transparent decision-making
that is accountable
and legally compliant
To apply business and resource management that
enables excellent
service delivery and financial sustainability
Council’s Asset Management Policy defines the council’s vision and service delivery objectives for
asset management in accordance with legislative requirements, community needs and affordability.
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4.2 Asset Management Policy
Council’s Asset Management Policy defines the council’s vision and service delivery objectives for
asset management in accordance with the Strategic Plan and applicable legislation. This Policy has
been approved by the Strategic Asset Management Group and awaits endorsement by Council.
The asset management strategy is developed to support the asset management policy and is to
enable council to show:
how its asset portfolio will meet the affordable service delivery needs of the community into
the future,
enable Council’s asset management policies to be achieved, and
ensure the integration of Council’s asset management with its long term strategic plans.
4.3 Asset Management Vision
To ensure the long-term financial sustainability of Council, it is essential to balance the community’s
expectations for services with their ability to pay for the infrastructure assets used to provide the
services. Maintenance of service levels for infrastructure assets requires appropriate investment
over the whole of the asset life cycle. To assist in achieving this balance, Council aspires to:
Develop and maintain asset management governance, skills, process, systems and data in order to
provide the level of service the community need at present and in the futures, in the most cost-
effective and fit for purpose manner.
In line with the vision, the objectives of the asset management strategy are to:
ensure that the Council’s infrastructure services are provided in an economically optimal
way, with the appropriate level of service to residents, visitors and the environment
determined by reference to Council’s financial sustainability,
safeguard Council’s assets including physical assets and employees by implementing
appropriate asset management strategies and appropriate financial resources for those
assets,
adopt the long term financial plan as the basis for all service and budget funding decisions,
meet legislative requirements for all Council’s operations,
ensure resources and operational capabilities are identified and responsibility for asset
management is allocated,
provide high level oversight of financial and asset management responsibilities through
Audit Committee/CEO reporting to council on development and implementation of Asset
Management Strategy, Asset Management Plans and Long Term Financial Plan.
Strategies to achieve this position are outlined in Section 5.
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5. How will we get there?
The Asset Management Strategy proposes strategies to enable the objectives of the Strategic Plan,
Asset Management Policy and Asset Management Vision to be achieved.
Table 8: Asset Management Strategies
No Strategy Desired Outcome
1 Continued Long Term Financial Planning to achieve financial
sustainability.
The long term implications of
Council services are considered in
annual budget deliberations.
2 Develop and annually review Asset Management Plans covering at
least 10 years for all major asset classes (80% of asset value).
Identification of services needed
by the community and required
funding to optimise ‘whole of life’
costs.
3 Asset management plan expenditure projections covering 10
years to inform the Long Term Financial Plan with a sustainable
funding position outcome.
Sustainable funding model to
provide Council services.
4 Incorporate Year 1 of Long Term Financial Plan revenue and
expenditure projections into annual budgets.
Long term financial planning drives
budget deliberations.
5 Review and update asset management plans and long term
financial plans after adoption of annual budgets. Communicate
any consequence of funding decisions on service levels and
service risks.
Council and the community are
aware of changes to service levels
and costs arising from budget
decisions.
6 Report Council’s financial position relating to its assets at Fair
Value in accordance with Australian Accounting Standards,
financial sustainability and performance against strategic
objectives in Annual Reports.
Financial sustainability information
is available for Council and the
community.
7 Ensure Council’s decisions are made from accurate and current
information in asset registers, on service level performance and
costs and ’whole of life’ costs.
Improved decision making and
greater value for money.
8 Implement an Improvement Plan to realise ‘core’ maturity for the
financial and asset management competencies within 2 years.
Improved financial and asset
management capacity within
Council.
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6. Asset Management Improvement Plan
The tasks required to achieve a ‘core’ financial and asset management maturity are shown in priority
order in Table 9.
Table 9: Asset Management Improvement Plan
Ref Task Responsibility Target Date
1 Council endorsement of Asset Management Policy Council Nov 2015
2 Council endorsement of Asset Management Plans Council Nov 2015
3 Council endorsement of Asset Management
Strategy
Council Nov 2015
4 Implement a continuous improvement process to
manage the Asset Register and development of
Asset Management Plans
SAMG Ongoing
5 Undertake/update Asset Management maturity
assessment
SAMG April 2016
6 Condition assessments to be undertaken and
recorded against the discrete asset in the asset
register.
SAM Ongoing
7 Deliver objectives outlined in the Asset
Management Plan Operationalisation Project.
SAMG/AMIG/
Project Team
July 2017
8 Continue informing Elected Members and key staff
on Asset Management.
SAMG/SAM Ongoing