Best Value Review Executive Summary
Department:
Division
Infrastructure Management
Environmental Sustainability
Contact:
Phone No:
Email Address
Warren Ashdown
9581 4387
warren.ashdown@kingston.vic.gov.au
Contents
1.
Background
2.
Introduction
3.
Methodology
4.
Strategic Assumptions
5.
Strategic Issues
6.
Summary of Benchmarked Performance
7.
Service Gaps
8.
Risks
9.
Recommendations
1. Background
Council is responsible for the care and maintenance of the public road and
drainage assets within the City.
As a Co-ordinating Road Authority under the Road Management Act,
Council is responsible for the management, maintenance and
development of the Municipal Road network in the City.
Council sees the management of Road Infrastructure Services as being a
core business of Council.
Road Infrastructure Services are carried out to keep the road and
drainage assets safe and functional (Routine Maintenance) and to
maximise the life of the asset. (Programmed Maintenance)
To assist in the management of the road network Council has prepared a
Road Management Plan (RMP). The Plan was adopted by Council in
December 2004.
The Plan includes:
1 establishing good road asset management practices, and
2 describing the Levels of Service to be adopted by Kingston City
Council.
The feedback from the Best Value review were used by Council in
formulating the Levels of Service to incorporate in the RMP
Road Infrastructure Services are managed as part of the responsibilities
of the Environmental and Infrastructure Department under the General
Manager City Development.
The Roads and Drains Department is responsible for the overall
management of the road asset. (The Team Leader Roads and Drains is
also responsible for Traffic Management. The Traffic Management Unit
presented their Best Value Review report to Council in April 2004.)
As custodian of the road assets it is important that sufficient funds are put
aside each year to ensure the assets are maintained at an adequate
standard and to maximise the life of the asset.
Council now requires information systems and procedures that will enable
it to be better informed about the life and cost of maintaining the assets.
The Maintenance Contracts Department is responsible for Routine
Maintenance works. For the past five years routine maintenance works
were carried out under one performance based contract which had been
awarded to Standard Roads (now FRH Pty Ltd). That contract expired on
30 June 2005. As part of the review process Council considered various
packaging options on how best to deliver the services.
The packaging options for road infrastructure maintenance service
contracts were considered by Council in a report to Council – Road
Infrastructure Maintenance Services – Service Delivery Model Report
- dated December 2004.
Council resolved to modify the packing of the services by developing
separate contracts for concrete footpath maintenance, and pavement
markings and electing to extend the FRH contract for one year with an
option for an additional 12 months.
2. Introduction
The Environmental and Infrastructure Department, led by the Team
Leader Maintenance Contracts and Team Leader Roads and Drains,
began a Best Value service review of Road Infrastructure Services in April
2004 The report was completed in August 2005.
This review was carried out at the same time that Council is preparing a
Road Management Plan (RMP). Community feed back from this review
was taken into consideration when finalising the RMP.
In addition, with the current contract for Road Maintenance Services to
expire on 30 June 2005 the Best Value review assisted in reviewing the
current contract and in considering alternative service delivery options.
3. Methodology
The Best Value review and Service Delivery Plan have been undertaken in
accordance with Best Value principles and the Kingston City Council Best
Value Framework. The results of the review have been documented
using a Department of Infrastructure template.
The review included:
o a detailed review of the services provided, the method of delivery,
resourcing and the major issues confronting delivery of the service
o consultation with key stakeholders in particular road users, community
representatives and internal departments that are associated with the
delivery of the service.
o benchmarking with adjacent Councils
The review was carried out in conjunction with:
o The preparation of the Road Management Plan
o The report on Road Infrastructure Maintenance Services – Service
Delivery Model
4. Strategic Assumptions
The review team has considered Councils future role and function with
respect to road infrastructure services and carried out the review based on
the following strategic directions:
o Road Infrastructure Asset Management professional services (asset
management, strategic planning, construction supervision and
programming) are a core business of Council, and as such these
services will not be subject to external competitive tendering.
o Council will continue to be the authority responsible for the care and
maintenance of local road infrastructure which shall include roads,
footpaths, drains, street furniture, signs, pavement markings and road
and street cleansing as per its statutory responsibility.
o Investment into Capital Roads and Drains Infrastructure is proposed to
increase over the next 5 years from in accordance with the Corporate
Plan
o The level of maintenance expenditure would move in accordance with
contract price adjustment provisions.
o The management of road infrastructure maintenance services shall be
delivered by in-house staff.
o Council will be flexible in the service delivery model for carrying out
maintenance services. This assumption is based on the fact that a
mature market exists for some of the services whilst the more reactive
services may be more efficiently delivered in-house.
o Future service standards may vary as compared to existing service
standards (Service standards are now documented and adopted by
Council in the road asset management plan)
o There will be an increasing reliance on asset management systems for
developing more cost effective maintenance programs.
o Responsibility for the management of declared main roads will lie with
VicRoads from 1 January 2005.
5. Strategic Issues
The Strategic Issues confronting Road Infrastructure Services include:
o The implementation of the road asset management systems as part of
the Asset Management Strategy
o The development of the new Depot site.
o Preparation of the Capital Works Program.
o Development of Flood Mitigation Strategy
6. Summary of Benchmarked Performance
From the information provided only broad comparisons of benchmarking
standards and costs with other councils can be made.
When making comparisons between services the different provisions and
levels of service provided, the different ways Councils package the
services and particularly in the way Councils aggregate costs against
services must be taken into consideration.
The benchmarking exercise has indicated no significant differences in the
standards, methods of delivery or costs that indicate the need for a more
detailed review of any part of the service.
A more detailed comparison is outlined at Appendix 6.
7. Service Gaps
It is considered there are no gaps in the delivery of Road Infrastructure
Services.
The responsibilities, services and activities carried out by the Roads and
Drains Department and Maintenance Contracts Department were similar
to those carried out by the other benchmarked Councils.
In addition the surveys carried out as part of the review indicated general
agreement that the services were being delivered to an acceptable
standard.
8. Risks
The Levels of Service adopted in the Road Management Plan are based
on a systematic approach to the management of risks. The approach
adopted is based on AS/NZS 4360:1999 Risk Management. Through the
use of risk management, there is a structured approach to decision
making, development of strategies, the setting of priorities and the
allocation of scares resources.
The review team also reviewed the risks documented in Sentinel and have
found them to be valid and the management responses appropriate.
9. Recommendations
That Council:
o Note the Road Infrastructure Services Best Value report dated
August 2005
o Adopt Service Standards set out in Section 3.1 Reporting by Principles
o Adopt the Service Delivery Plan set out in Section 4.3