IPWEA NSW Division Annual Conference 2005
ASSET MANAGEMENT - A STRATEGIC CORPORATE
OBJECTIVE FOR CAMPBELLTOWN CITY COUNCIL
Garry Mitchell garry.mitchell@campbelltown.nsw.gov.au
Asset and Supply Manager, Campbelltown City Council, NSW, Australia
Paper Summary
The paper provides information on an approach by Campbelltown City Council towards
managing and raising the importance of asset management as a corporate objective of Senior
Management and the Elected Members of Council.
Campbelltown City Council embarked on this journey in 2001, which focused on the
development of a policy towards centralising asset management functions. This activity
highlighted a the need to adopt a system that would provide a central asset register, asset value,
condition assessment standards, continuous review, long-term financial, integration to corporate
strategies and systems across all asset types as a total asset management system.
Introduction
Local, State and Federal Governments have inconsistent approaches to asset management and
in many cases it is left to the individual government authority to adopt an approach to asset
management that meets their requirements.
In 2000, Campbelltown City Council was facing the same dilemma regarding the management of
its assets. The asset types were segmented, under different software systems, condition
assessment practices were inconsistent, accuracy of information was questionable, no
prioritisation of funding, and budgets were historically based.
The paper identifies important elements that Campbelltown City Council considered in elevating
Asset Management as a corporate objective. These are:
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Asset Management Culture within the organisation
Asset Management Project Approach
Objectives, Action Plans, Performance Measures and Responsibilities
Assets Standards
Assessment to Levels of Service
Campbelltown Levels of Service Examples
Asset System Selection
Asset System
Benefits of a Corporate Asset Management System
Summary
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IPWEA NSW Division Annual Conference 2005
Campbelltown City Council's Attitudinal Culture Change
During 2001, Campbelltown City Council management acknowledged that it needed to focus on
an asset system therefore it elected to form a Asset Management Taskforce that included nine
representatives from areas within Council. Taskforce representation included staff from Council's
Senior Executive Management group as well as prominent users of Council's assets.
The charter of the Taskforce was to implement a Total Asset Management system, which would
provide accurate information on Councils assets for now and into the future.
Campbelltown City Council had also embarked on a variety of community consultation
processes, which emphasised the concern of the community that condition of Council's assets
would be maintained.
Asset Management Project
The corporate approach to Council's Asset Management project was:
Outcomes of 2025 Vision, Community Consultations, and existing Management Plans
relative to Council's Assets

Identify Structure and Generic Asset systems

System Selection, Design, Implementation and Integration

Data Collection and Valuations

Identify Council’s Asset Standards

Apply Asset Condition Assessment

Produce Financial Impacts Against Agreed Standards

Model Financial Impacts of Consequence of Deprival

Develop Asset Management Plan to Objectives and Corporate Goals
Asset Management Plan is a key component of the Council planning process and will be
linked with the following documents.
Strategic Plan
Cultural Plan
Financial Plan
Social Plan
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IPWEA NSW Division Annual Conference 2005
Objectives, Action Plans, Performance Measures and Responsibilities
To enable Council to proceed with its Total Asset Management plan, the taskforce developed
objectives and then linked the objectives to actions, performance measures and responsibilities.
An example of some of the objectives that Campbelltown City Council has adopted are:Objectives
Action Plan
To effectively manage a
level of service and
condition for Council’s
infrastructure assets.
Review Levels of
Service, Standards for
all asset categories in
conjunction with
community expectations,
funding availability.
Review Processes and
procedures twice a year
so as to introduce
improvements.
Whole of life Cycle
approach should be
considered to determine
budget
To minimise ongoing
replacement and
maintenance costs.
To determine future cash
flows requirements for
replacement and
rehabilitation of
infrastructure assets
Performance
Measure
Levels of Services
for each category
of asset should be
available
Responsible
Officer
Assets Manager,
Director City
Works, Asset
Management Task
Force.
Two reviews to be
undertaken each
financial year.
Asset Manager,
Assets Coordinator
Life Cycle
Modelling to be
completed prior to
budget
determination
Process.
Assets
Coordinator,
Manager Assets,
Manager Finance.
To adopt appropriate
renewal and maintenance
programs to maintain the
low life cycle costs for the
communities.
To maintain infrastructure
assets at all times in
accordance with adopted
maintenance rules and
procedures to maximise
Council’s maintenance
dollars.
Establish prioritised
maintenance programs
for all categories of
assets
Provision of a
prioritised
maintenance
program.
Assets Specialists,
Assets Coordinator
Prepare project wise
briefs and tender
documents for approved
program maintenance.
Issuing project
specific contracts
rather than Annual
contracts
Assets
Coordinator,
Works Contract
Officer.
To develop rational and
realistic strategies for
community assets to
achieve maximum value
from the infrastructure
assets
Develop long-term asset
management Strategies
using Conquest data for
asset rationalisation
Strategy and Policy
available by the
end of 2004-05.
Assets Manager,
Asset
Management
Taskforce,
Executive, Elected
Members
Assets Standards
It is important that Council's elected members have reassurance that asset maintenance and
refurbishment activities are linked to accredited standards for the purposes of assessment and
quality.
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IPWEA NSW Division Annual Conference 2005
Standards adopted by Campbelltown City Council are:Asset Type
Council Standard
Roads
Pavement Condition Index using SMEC
System to ARRB and RTA specifications
Buildings
Department of Public Works and Conquest
Asset Management System
Drainage
Condition Assessment based on using
Sydney Water and CCTV inspection
Parks and Sporting Fields
Condition
Assessment
to
Ausspec
standard
and
Conquest
Asset
Management system
Bridges
ARRB and AustRoads specifications using
Bridge Assyt Condition assessment
system
Fleet and Plant
IPWEA Fleet and Plant Management
system incorporated into Conquest asset
management system
Signs
Pavement Condition Index using SMEC
System to ARRB and RTA specifications
Kerb and Gutter
Condition
Assessment
to
Ausspec
standard
and
Conquest
Asset
Management system
Footpath
Condition
Assessment
to
Ausspec
standard
and
Conquest
Asset
Management system
Assessment to Levels of Service
Council has determined that within it's "Standards" there are levels of service that have been
accepted by the elected members as representatives of the community. These levels of service
have been generated through the consultative process such as the 2025 vision, the
development of Council's Corporate Strategic Plan and Social Plan as mentioned previously.
A key objective of asset management is to match the level of service provided by the asset, with
customer expectations. This enables the relationship between the level of service and cost of
the service to be determined. This level and cost of service can be evaluated in consultation with
the community and stakeholders to determine the optimum level of service they are prepared to
commit to expenditure.
Defined levels of service can then be used to:
1. Inform the public of the proposed level of service to be offered
2. Develop AM strategies to deliver the required level of service
3. Measure performance against these defined levels of service
4. Identify the costs and benefits of the service offered
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IPWEA NSW Division Annual Conference 2005
5. Enable customers to assess suitability, affordability and equity of the services offered
Current levels of services may not entirely meet customer expectations in terms of cost and/or
quality. However, it is important to begin the process of documenting the current levels of
service. As further information becomes available on customer expectations and costs, asset
management strategies and plans can be altered and adjusted.
Infrastructure assets within the municipality have different levels of service requirements. The
current service levels (for routine maintenance) and agreed standards are those adopted after
the most recent Best Value review of the service. Budgetary constraints often determine the
optimum level of service in relation to maintenance and rehabilitation works.
Council Levels of Service Examples
Road Network Assets (Road Pavement)
For the purpose of summarising the road pavement condition for Council's consideration and
agreement the SMEC’s Pavement Condition Index (PCI) has been used. Up to sixty Councils
use this system to access road pavement condition that defines the rehabilitation treatment to
RTA or ARRB standards
This system provides a scale of 0 to 10 with 10 representing a pavement in excellent condition
and 0 representing a pavement in a failed condition. In this paper, road sections have been
categorised in terms of PCI as follows:
Poor Category
Roads with PCI less than or equal to 4.0
Fair Category
Roads with PCI greater than 4.0 but less than or equal to 7.9
Good Category
Roads with PCI greater than 7.9 but less than or equal to 10
Council has accepted a PCI of 7.0 therefore on average Campbelltown City Road Pavement
condition would be rated as "Fair". The average network PCI is 6.71 Fair.
Council's Asset management database has recently been linked with a financial modelling tool
for use with asset types like footpaths, bridges, kerb & gutter, storm water pipes for future years
based on current condition, useful life and expenditure level. The system calculates average
condition on the basis of condition score.
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IPWEA NSW Division Annual Conference 2005
Building and Facilities
Current standards and desired levels of service provided by each asset type are tabulated
below.
Category of Building
A
B
C
D
E
Assessment Priority Rating
1
2
3
4
5
Standard (DPWS)
Exceptional As New (Council Chambers)
High Quality (Council Civic Building)
Medium Quality (Council Hall)
Low Quality (Council Toilet Amenity Block)
Mothball (Demolition or (Removal)
Service Level
OH & S Related (Must Fund in Budget)
High Risk Business Affecting (Must Fund in Budget)
Asset Refurbishment (to agreed Standard )
Low Risk (Only Consider if Funding Available)
No action(Consider only if any OH & S issues for
funding)
Eg Sampling of buildings
Facility
Name
Required Number of Number
Standard Facilities
of
Facilities
Meeting
Required
Standard
Number of
Facilities
Below
Required
Standard
Civic Centre
C
4
3
1
Baby Health
Centres
B
3
1
2
NOTES
All Civic Centre buildings except the
Disabled Resource Centre meet
required standard
Ingleburn BHC meets required
standard however Campbelltown &
Macquarie Fields centres are showing
signs of age and deterioration
Important Elements of Asset System
Campbelltown City Council undertook an assessment of many asset systems with the aim of
selecting a program that provided elements which were considered critical for the development
of Campbelltown City Council's Asset Management are as follows:  Asset Register
 Flexibility for Self Design
 High Benefit Cost Ratio
 Ease of Use
 Prioritisation Capability
 Centralisation of Data
 Condition Weighting
 Financial Modelling Over Time
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IPWEA NSW Division Annual Conference 2005
Asset System
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IPWEA NSW Division Annual Conference 2005
Benefits of a Centralised Corporate Asset Management System
Having selecting the appropriate asset management system, Campbelltown City Council have
experienced the following benefits:
Asset Information Under One System

Minimisation of System Support

Complete Condition Assessment and Review Process

Prioritise Funding over all Asset Categories

Location and Condition based Assets Reporting
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Minimised Training and Implementation

Integration to other Corporate Systems (SQL Server)

Work Order Systems used across all Assets

Better Legislative Reporting (AAS27, 428 (d))

Added Value Functionality (eg. IT, Security, Electrical Tagging, Artworks)

Better Risk Management

Maintenance Prediction on agreed Standards

Assist Determination of Asset Stock (both new and disposal)

System can be Audited and Verified

Provide “What If” Scenarios for Asset considerations
Conclusion
Assets are extensive and complex. Effective management with a focus on ongoing continuous
improvement requires an appropriate level of skilled and qualified resources with a corporate
focus.
Future resource management should include recruitment and training of appropriate staff, whole
of life approach to asset cost, asset rationalisation programs, asset system enhancements and
the utilisation of technology.
This corporate approach will need to be reviewed at regular intervals and take into consideration
the effects of legislative requirements, other corporate system implementations, as well as the
ongoing development of Council polices directly related to the management of assets in a
changing and aging community.
Correct approach at a corporate level that considers asset management elements such as
outlined in this paper will assist Councils in meeting their objectives and provide an effective
corporate asset management system.
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IPWEA NSW Division Annual Conference 2005
References
1. International Asset Management Manual
2. Campbelltown City Council Asset Management Plan
3. Asset Management Plan for Road Assets, Bankstown City Council.
4. Facilities Maintenance Planning, Advanced Asset Solutions.
5. Local Government Asset Accounting Manual
6. Local Roads Bridge Management Manual
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IPWEA NSW Division Annual Conference 2005
Author Biography
Garry Mitchell
Asset Manager for Campbelltown City Council, responsible for
Asset, Contract, Fleet and Supply management functions. Major role
is to provide asset management activities across all asset
types covering an asset base of approximately $600M. Occupied the
position for a period of three and half years. Main responsibility of
employment with Campbelltown City Council was to implement an
centralised Asset Management section.
Have formal Qualifications in Logistics and Materials Management.
Previous experience includes Australian and Asia Pacific logistics
management positions with AT &T, Lucent Technologies and
Contract management positions with NSW Supply Department, now
known as the Department of Commerce .
Postal Address: Campbelltown City Council, PO Box
57, Campbelltown NSW 2560
Tel:
02 46454664
Fax:
02 46454381
Mobile:
0407298795
E-mail:
garry.mitchell@campbelltown.nsw.gov.au
Website:
www.campbelltown.nsw.gov.au
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