COOLAMON SHIRE COUNCIL
ASSET MANAGEMENT STRATEGY
1. INTRODUCTION
Council is the owner and custodian of a large portfolio of assets which includes roads, drains,
buildings and facilities, plant and equipment and land. These assets enable the community to
access and enjoy all the services and facilities that Coolamon Shire Council has to offer.
These assets represent a vast investment built up over many generations, which in itself
presents a significant challenge as many assets were constructed or acquired many decades ago
with the aid of community and other government funding and as such are approaching the end
of their useful lives.
The efficient management of these assets is vital in maintaining safe, reliable and effective
services that help achieve the strategic priorities and goals of Council. Failure to adequately
plan for the replacement of existing assets and the development of new assets will result in
assets not meeting the needs of the community, now and in the future.
The environment in which local government operates is constantly changing. As assets continue
to age, Councils will need to demonstrate an accepted level of skill, expertise and also a dutyof-care in relation to management practices and maintenance of assets.
2. BACKGROUND
2.1 What is Asset Management?
Asset management is a process of logic used to guide the planning, acquisition,
operation and maintenance, renewal and disposal of assets. Its objective is to maximise
asset service-delivery-potential and manage related risks and costs over the entire life of
assets.
Asset management ensures that Council’s assets are capable of providing services, of an
agreed quality, in a sustainable manner, for present and future generations.
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2.2 Why is Asset Management Important to Council?
Asset management delivers benefits that are realized in the areas of improved
accountability, sustainable service delivery, risk reduction and financial management
and forecasting. Specific benefits can include:
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More informed decision-making.
Improved efficiency and reduction of limited capital funds and asset operation costs.
Ability to plan for present and future generations.
Improved long-term financial forecasting and management.
2.3 Asset Management Framework
Council’s asset management framework as illustrated in Figure 1 shows the relationship
between the asset management policy, this strategy and asset management plans and
operational plans. This framework will ensure a strategic approach to asset
management.
It should be noted that each asset class will have its own Asset Management Plan.
Figure 2 and Figure 3 illustrate how Asset Management combines with Long Term
Financial Planning and Workforce Management to support the Resourcing Strategy that
in turn details how Council will resource the strategies that it is responsible for within
the Community Strategic Plan, Delivery Program and Operational Plan.
Asset Management Policy
Asset Management Strategy
Asset Management Plan/Operational Plans
Figure 1: Asset Management Framework
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Resourcing
Strategy
Long Term
Financial
Management
Planning
Workforce
Management
Figure 2: Resourcing Strategy
Figure 3: Integrated Planning and Reporting
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Asset
Management
ASSET MANAGEMENT STRATEGY OBJECTIVES
The asset management strategy is to ensure that Council’s asset portfolio meets the service
delivery needs of the community and to ensure adequate provision is made for the long-term
management of infrastructure assets by:
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Taking into account all relevant legislative requirements in asset management.
Establishment of consistent Asset Management Planning for all Assets.
Service levels agreed through the budget process and defined in Infrastructure and
Asset Management Plans and funded in the annual budget estimates.
Asset renewals will be prioritised to meet agree service levels.
Estimated future life cycle costs will be reported and considered in all decisions relating
to new services and assets and upgrading of existing services and assets.
Demonstrating transparent and responsible asset management processes that align
with best practice.
Ensuring that Council’s services and infrastructure are provided in a sustainable manner,
with the appropriate levels of service to residents, visitors and the environment.
Creating an environment where Council employees take part in overall management of
Council assets by developing asset management awareness throughout the Council.
SCOPE
This strategy applies to all Council owned and managed physical assets. It will be reviewed
every four years. It does not apply to human resources.
This strategy sets guidelines for implementing consistent asset management processes for
Coolamon Shire Council.
ROLES AND ACCOUNTABILITIES
General Manager
The General Manager is responsible for operation of Council’s organisation and for
implementing the policies and decisions of the Council. In his role the General Manager is
responsible for the day-to-day management of Council, which includes exercising any functions
delegated by Council together with the appointment direction and dismissal of staff.
Reporting to the General Manager are three Executive Managers who manage the divisions of
Community and Corporate Services, Engineering and Technical Services, Planning and
Environmental Services.
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The General Manager along with the Executive Managers comprise the senior management
team (MANEX) that ensures the organisation is meeting its obligation and provide staff with
strategic direction.
Additionally the role of the General Manager is to oversee Mayoral and Council support and
legal services.
Executive Manager, Corporate and Community Services
The Corporate and Community Services sector of Council operation includes Community Service
programs such as child care services, family day care, services for the aged together with the
delivery of youth services and libraries. Additionally under this section the financial operations
of Council are controlled together with the human resource services.
Executive Manager, Engineering and Technical Services
Engineering and Technical Services is responsible for the delivery of infrastructure and
commercial operations. Operational activities include the maintenance of roads, footpath,
drainage and open space and parks maintenance. It is also responsible for the capital works
projects for the construction of roads and oversees the provision of road safety education
programs and manages Council’s heavy plant.
Executive Manager, Planning and Environmental Services
Planning and Environmental Services responsibilities include waste management,
environmental services and sustainability, health compliance, food surveillance, animal control
as well as control of the sewerage operations within the towns of Coolamon and Ganmain.
Additionally the control of swimming pools together with Council’s building and property
management is part of this division.
All Employees – Generally
Further to the responsibilities and accountabilities outlined under each Asset Management
category all staff have responsibilities for managing assets in their activities and work-place and
are accountable through their individual position descriptions and operation.
Employees are required to co-operated and be actively involved in the development and
implementation of the Asset Management Action Plan.
ASSET MANAGEMENT CLASSES
Council has many different and varied classes of Assets. In order to get the most value out of
these assets, maintenance programs are essential. Those programs range from minor
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maintenance or restoration to the monitoring of deterioration and identification of future
capital requirements.
1. Plant and Equipment
This asset class includes assets such as motor vehicles, trucks, construction equipment,
gardening equipment.
Current Asset Management
The plant and equipment assets are recorded in the Civica Computer System. Within this
system the following assets are recorded:
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Motor vehicles
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Construction equipment
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Garden equipment and various minor plant
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Engineering Equipment
Maintenance inspections of construction vehicles are documented using a manual paper
system of inspections. Required repairs are documented on Council’s pre-start plant check.
There are no formal procedures for the inspection of minor plant items including chainsaws,
trailers etc. and there are no documented records or a paper system of inspection being
recorded. When any repairs required are identified they are reported verbally to the plant
foreman who is then responsible to ensure the completion of the necessary maintenance
repairs.
Plant operators undertake daily condition inspections of construction vehicles and the same
applies to gardening equipment prior to the commencement of daily tasks.
Council’s plant replacement program is determined by the age or number of hours performed
by each plant item. A ten year replacement program is presented to Council in March each year
for Council’s consideration and determination. Once adopted this plant replacement program is
then referred to the Delivery Program and Operations Plan plan during its preparation and
budget considerations.
Also within Council’s Civica Computer System there exists a plant costing system which records
running expenses, income and disposal of major plant items.
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Asset Management Improvement Schedule
Action
Implementation and review of Asset Management Plan
Development of annual and 4 year and 10 year capital
works plans
Annual operation budget recommendation
Programmed and day to day maintenance
Responsible
Executive Manager, Engineering
and Technical Services
Executive Manager, Engineering
and Technical Services
Executive Manager, Engineering
and Technical Services
Works Engineer
2. Office Equipment
This asset class includes assets such as office furniture, fittings and equipment, computer
systems & equipment.
Current Asset Management System
Office equipment is recorded in the Civica Local Government Computer Program. The assets
recorded are office furniture, information technology equipment, computer systems and
programs.
Council has in place an IT strategy which outlines the desirable level of computers, printers and
other items due for replacement. This strategy is considered during budgetary processes for the
replacement of IT equipment
Asset Management Improvement Schedule
Action
Implementation and review of Asset Management Plan
Development of annual and 4 year and 10 year capital
works plans
Annual operation budget recommendation
Programmed and day to day maintenance
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Responsible
Executive Manager, Corporate
and Community Services
Executive Manager, Corporate
and Community Services.
Executive Manager, Corporate
and Community Services.
Executive Manager, Corporate
and Community Services.
3. Land
This asset class includes all Community and Operational Land, both freehold and leasehold.
Current Asset Management System
Land assets are recorded in Council’s Civica Local Government Computer Program.
Asset Management Improvement Schedule
Actions
Implementation and review of Asset Management Plan
Development of annual and 4 year and 10 year capital
works plans
Annual operation budget recommendation
Programmed and day to day maintenance
Responsible
Executive Manager,
Environmental & Planning
Services.
Executive Manager,
Environmental & Planning
Services.
Executive Manager,
Environmental & Planning
Services.
Executive Manager,
Environmental & Planning
Services.
4. Buildings Facilities and Other Structures
This asset class includes assets such as Library, Community Halls, Community Facilities, Public
Toilets, Houses, Museum, Council offices, Pre-schools, Childcare Centres, Aged Care Facilities,
Swimming Pools, Waste Facilities, Emergency Service Buildings, Skate Park. It also includes
parks, gardens, play equipment, irrigation systems, park furniture, trees and gardens.
Current Asset Management System
These assets are recorded in the Civica Local Government accounting system. Council has a plan
of management for its operational land which includes recording all of the assets associated
with the operational land. Council also has a plan of management for its community land which
also includes the assets associated with community land. These assets are inspected on an
annual basis with a report being presented to the February meeting of Council.
Council has a parks and gardens asset management plan which outlines the level of service
required for the ongoing maintenance including mowing and horticultural activities of Council’s
parks and gardens.
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Maintenance inspections for playground equipment are undertaken by trained staff on an
annual basis and is recorded using a manual paper system of inspections carried out. Required
repairs are documented by Council’s parks staff who then refer them to the OH&S co-ordinator
or Parks Supervisor for the necessary attention.
Additional to the annual inspections of Council’s playground equipment all playground
equipment and irrigation systems are visually inspected by Council staff when normal
maintenance operations are being performed.
Asset Management Improvement Schedule
Action
Implementation and review of Asset Management Plan
Development of annual and 4 year and 10 year capital
works plans
Annual operation budget recommendation
Programmed and day to day maintenance
Responsible
Executive Manager,
Environmental & Planning
Services/Executive Manager,
Engineering & Technical Services
Executive Manager,
Environmental & Planning
Services/Executive Manager,
Engineering & Technical Services
Executive Manager,
Environmental & Planning
Services/Executive Manager,
Engineering & Technical Services
Executive Manager,
Environmental & Planning
Services/Executive Manager,
Engineering & Technical Services
5. Infrastructure Assets – Roads, Bridges, Footpaths & Bulk Earthworks
This asset class includes assets such as sealed roads, unsealed roads, bulk earthworks, carparks,
bridges, footpaths, kerb and guttering, bus shelters, bike paths and signage.
Current Asset Management System
A number of the above assets are recorded in a series of Excel spreadsheet format which is
used to calculate replacement values, written down values and depreciation of various roads,
bridges and major culvert assets. A sealing register in the Excel spreadsheet format is also used
to determine the re-seal and condition reports for reconstruction programs for both Local &
Regional roads.
Road condition assessments are carried out for all mentioned categories of roads recognising
the established priorities according to the hierarchical road system. The assessments are
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undertaken by Council staff. The road condition assessments are all recorded in the Reflect
computer operating system. Any defects identified are passed to the various maintenance
gangs through the Reflect computer operating system. Once maintenance has been carried out
it is recorded as an accomplishment in that system.
Maintenance inspections on roads within the various urban areas of Council’s are carried out by
the road maintenance crew. No documentation in relation to repairs carried out is presently
being recorded.
Maintenance inspections on footpaths within the urban areas are carried out by Council staff.
These inspections are recorded in computer program known as Reflex computer operating
system. The required repairs are identified and when repairs are accomplished they are
recorded in the Reflex Computer Program.
There is no official inspection regime or maintenance records currently recorded in relation to
kerb and gutter and median strip repairs.
Asset Management Improvement Schedule
Actions
Implementation and review of Asset Management Plan
Development of annual and 4 year and 10 year capital
works plans
Annual operation budget recommendation
Progression of the Asset Management Plan
Programmed and day to day maintenance
Responsible
Executive Manager, Engineering
and Technical Services
Executive Manager, Engineering
and Technical Services
Works Engineer
Works Engineer
Works Engineer
6. Infrastructure Assets – Stormwater drainage
This asset class includes assets such as drains (underground), pipes, culverts, pits, letter traps,
retarding basins and table drains.
Current Asset Management System
The assets are recorded in Excel spreadsheets.
Council has implemented a programmed inspection regime on it’s stormwater drainage assets
utilizing the specialized services of external contractors.
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Asset Management Improvement Schedule
Action
Implementation and review of Asset Management Plan
Development of annual and 4 year and 10 year capital
works plans
Annual operation budget recommendation
Programmed and day to day maintenance
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Responsible
Executive Manager, Engineering
and Technical Services
Executive Manager, Engineering
and Technical Services
Executive Manager, Engineering
and Technical Services
Works Engineer
7. Infrastructure Assets - Sewerage Network
This asset class includes pump stations, gravity reticulation system, sewerage treatment works
and effluent reuse assets.
Current Asset Management System
The above assets are recorded in an Excel spreadsheet which is used to calculate replacement
values, written down values and depreciation.
Council has implemented a programmed inspection regime on it’s sewerage network assets
utilizing the specialized services of external contractors.
Asset Management Improvement Schedule
Action
Implementation and review of Asset Management Plan
Development of annual and 4 year and 10 year capital
works plans
Annual operation budget recommendation
Progression of the Asset Management Plan
Programmed and day to day maintenance
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Responsible
Executive Manager, Engineering
and Technical Services/Executive
Manager, Planning &
Environmental Services
Executive Manager, Engineering
and Technical Services/Executive
Manager, Planning &
Environmental Services
Executive Manager, Engineering
and Technical Services/Executive
Manager, Planning &
Environmental Services
Executive Manager, Engineering
and Technical Services/Executive
Manager, Planning &
Environmental Services
Executive Manager, Engineering
and Technical Services/Executive
Manager, Planning &
Environmental Services
8. Restoration Assets
This asset class includes assets such as Gravel Pits.
Current Asset Management System
Gravel pits owned by Council are recorded in the Civica Local Government Computer Program.
A large number of gravel pits are located on private property for which Council pays the
landowner a royalty when winning gravel from these pits. All pits are registered.
Asset Management Improvement Schedule
Actions
Development of annual and 4 year and 10 year capital
works plans
Annual operation budget recommendation
Programmed and day to day maintenance
Responsible
Executive Manager, Engineering
and Technical Services
Executive Manager, Engineering
and Technical Services
Executive Manager, Engineering
and Technical Services
GENERAL
Library
Coolamon Shire is part of the Riverina Community Library services and as such library books and
equipment comprise part of the Riverina Community Library assets and are recorded in their
records.
A small number of public art work is owned but there is no procedure in place for the ongoing
maintenance of these assets. There is no register which records the assets owned by Council.
Miscellaneous
An asset register exists in Council’s Civica Computer System and Council’s finance manager is
responsible for maintaining this asset register. This asset register holds records for buildings,
plant and equipment, motor vehicles, IT equipment and office furniture. It records acquisition
costs, disposable assets, accumulated depreciation and written down value.
Council has an extensive record of the public assets in various formats such as Excel, Word,
Civica Computer System, these records are somewhat disjointed and do not provide Council
with a complete picture in relation to the management of its assets. By compiling the necessary
information on all of its assets this will enable Council to provide the community with an
improved level of customer service to meet their expectations.
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ASSET CONDITION
By understanding the condition of Council’s assets and the various types of pressures that they
are placed under, Council would be able to utilise the data to assist in maintaining the level of
service the community desires, in the context of affordability, and minimise the risk of asset
failure.
Assets may fail or deteriorate for many reasons. When this occurs, the asset is unable to
maintain the level of service the community expects. Some of the more common reasons for
not meeting performance standards or community expectations are detailed hereunder:
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Damaged by the various service authorities when installing / constructing their
infrastructure within Council’s road reserve.
Movement of the underlying soils.
Suitability of the asset to meet changing demographics and needs eg refurbishment of a
building that was once used as a bowling club to be upgraded to a childcare centre to
cover the closure of a privately owned childcare centre.
Increase in the allowable vehicle road limits on Council’s roads.
Increase in the number of developments placing additional loads on assets not designed
for the level of the new development.
Perhaps Council’s greatest challenge in the immediate future is the ageing infrastructure of its
swimming pools and Coolamon treatment works. All of these assets range from 30 – 50 years
old and do not comply with the current standards as defined by Government. The challenge in
future years will be providing for either the replacement or refurbishment of these assets which
will more than likely be beyond Council’s financial capacity to fund.
Although Council has major concerns in relation to the swimming pools and Coolamon
treatment works, Council’s assets overall are currently estimated to be in a satisfactory
condition.
FUTURE RENEWAL PROFILE
Assets are necessary products that provide a service to an end-user, in Council’s case, the
community. Even though the service may be required indefinitely, like a residential street or
park, no asset will last forever without proper management. Even with good maintenance,
assets may deteriorate well before reaching the end of their design life (useful life) dependent
upon many unplanned factors, such as ground conditions and the environment.
All assets have a pre-defined life-cycle, from planning, creating, operating, maintaining and
renewing or disposing. These life-cycle phases have a direct influence on one another, i.e.
limiting maintenance on an asset can result in the asset requiring renewal or replacement
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earlier than expected. This may be suitable in the short term but will add significantly to the
life-cycle cost of the asset.
The expenditure on assets currently falls within the following categories:
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New
New works create an asset that did not previously exist. This includes new assets
created by Council in response to demand requirements, community expectations and
strategic planning.
Renewal
Renewal work is a substantial replacement of the asset or a significant asset component
to its original size and capacity.
Upgrade
Upgrade work is related to the extension of an asset in response to growth or an
increase in defined levels of a service.
Operation
Asset operation expenditure has no effect on asset condition but is necessary to keep
the asset appropriately utilised.
Maintenance
Asset maintenance is the day-to-day work required to keep assets operating at required
service levels. (Maintenance expenditure is not distinguished from operational
expenditure in Council’s financial systems)
WHERE DO WE WANT TO BE
Council’s goals are in relation to asset management are:
1. Sustainability
Ensuring that Council’s infrastructure assets are maintained in a manner that is
sustainable whilst minimizing risk and our open space is presented in a safe condition
that encourages use and participation.
2. Meeting Community Needs
Assets that meet community needs ensuring infrastructure and major project delivery is
co-ordinated and driven by clear strategic planning and sustainable funding.
3. Protecting the Environment
Ensure that the effect on the environment is considered during the life cycles of all
assets.
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ASSET MANAGEMENT IMPROVEMENT PROGRAM
To deliver the goals and outcomes of Council’s plan and the goals of the asset management
policy, Council will need to implement a number of actions to deliver the required outcomes.
Objective 1
Promote the importance of asset management to Councillors and Council Officers to ensure
understanding and delivery of the asset management strategy.
Key Actions
MANEX Committee to be
responsible for Asset
Management
Develop and Implement
Asset Management
Promotion and Training
Programs (eg Plant
Maintenance Programs)
Document and
Communicate Asset
Management roles and
responsibilities
Record Asset Management
Improvements to
demonstrate the benefits
of implementing the Asset
Management Strategy
Responsibility
MANEX Committee
Time Frame
Ongoing
MANEX Committee
Ongoing
MANEX Committee
Ongoing
MCC, MET, MPE & FM
Annually
Objective 2
Ensure Council’s assets are responsibly managed in a financially sound manner, to enable
provision of appropriate levels of service to the community, while sustaining use of available
resources.
Key Actions
Responsibility
Review Asset Management MANEX Committee
roles and responsibilities
Ensure the Asset
MANEX Committee
Management framework is
implemented through the
guidance of MANEX
Committee
Incorporate Life Cycle
Finance Manager
Costing into Asset
Management Plans
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Time Frame
Annually / Ongoing
Ongoing
Four Yearly
Incorporate Life Cycle
Finance Manager
Costing into all Capital
Works Projects
Develop and Prepare
MANEX Committee
specific Asset
Management Plans for all
of Council’s Asset
Categories
Incorporate into forward
MANEX Committee
planning possible provision
for new and desirable
assets
Objective 3
Improve work practices and processes to ensure Council’s
effective and efficient system.
Key Actions
Develop Asset Registers
for all Categories and
Classes
Ensure Asset Registers are
kept up-to-date regarding
the condition, creation
/acquisition, maintenance
renewal refurbishment
and disposal of assets
Annually
December 2020
Ongoing
assets are managed in a cost
Responsibility
MANEX Committee
Time Frame
December 2020
MANEX Committee
December 2020
Objective 4
Minimise Council’s exposure to risk due to asset failures.
Key Actions
Undertake regular
condition assessment
surveys of all assets of all
asset categories and
classes
Revalue assets at intervals
in accordance with
Australian Accounting
Standards
Develop implement and
review risk management
processes
Develop and document a
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Responsibility
Time Frame
Ongoing
MANEX Committee
As per standards
OH&S Officer
Ongoing
MANEX Committee
December 2020
system for forward
planning of capital and
major maintenance works
Version 1 Adopted: Council Meeting held 17 March 2011 (Minute No 58/03/2011)
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Appendix 1
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Appendix 2
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Coolamon Shire Council
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