asset management strategy 2019-24 - city of boroondara

Draft Asset Management Strategy 2019 - 2024 of 35

Asset Management Strategy

2019-2024

Responsible Directorate: Environment and Infrastructure Authorised by: Council Date of adoption: 26 August 2019 Review date: 26 August 2022


Contents

1. Overview ........................................................... 4

1.1. Our Community 5 1.2. Our Integrated Planning Framework 5 1.3. Our Services 5 1.4. Our Assets (Assessment of Current State) 5 1.5. Our Future 5 1.6. Our Asset Management Objectives 5 1.7. Our Team 5 1.8. Our Action Plan 5

2. Our Community ................................................ 6

2.1. History 6 2.2. Demographics 7

3. Our Integrated Planning Framework ............. 8

3.1. Context 9 3.2. Boroondara Community Plan 2017-27 9 3.3. Council Plan 2017-21 9 3.4. Long Term Financial Strategy 9

3.4.1. Asset Management Principle 9 3.4.2. Creating Community Assets Principle 10 3.4.3. Concept Master Plan Principle 10

3.5. Annual Budget 10 3.6. Asset Management Policy 10 3.7. Asset Management Strategy 10 3.8. Asset Management Plans 11 3.9. Council Department Business Plans 11

4. Our Services ..................................................... 13

5. Assessment of Our Current State .................. 14

6. Our Future ........................................................ 15

6.1. Future Demand 15 6.1.1. Population and Density 15 6.1.2. Quality of Life 15 6.1.3. Utilisation and Rationalisation 15

6.2. Business Transformation 16 6.3. Disruptors 16 6.4. Government 16

7. Our Asset Management Objectives ............... 17

7.1. Asset Management Policy 17 7.2. Inform, Enable and Influence 17


7.2.1. Inform 17 7.2.2. Enable 18 7.2.3. Influence 18

8. Our Team .......................................................... 19

8.1. Council 19 8.2. Executive Leadership Team 19 8.3. Asset Management Steering Group 19 8.4. Asset Managers and Staff 20 8.5. Asset Management Responsibility Matrix 20

9. Our Action Plan ................................................ 22

9.1. Inform 23 9.2. Enable 27 9.3. Influence 32


1. Overview

The Boroondara Community Plan 2017-27 has described our shared vision for the future.

A vibrant and inclusive city, meeting the needs and aspirations of its community.

This vision is further defined in terms of key priority themes, being:

• Your Community, Services and Facilities

• Your Parks and Green Spaces

• The Environment

• Neighbourhood Character and Heritage

• Getting Around Boroondara

• Your Local Shops and Businesses

• Civic Leadership and Governance

A number of strategic objectives have been identified within each theme, which is further translated into specific Council Plan strategies and actions. These commitments form the basis of annual budget allocations and the resultant broad and diverse range of services provided to the community. The delivery of those services is underpinned by a significant investment in the provision and management of physical assets across the municipality. Asset management practices play a crucial role in ensuring that such investment decisions are well-informed, evidence-based and, most importantly, directly aligned to the current and future service needs of the community.

The present Strategy ‘refreshes’ Council’s long standing commitment to prudent stewardship of the community’s physical assets, by taking account of our current state of asset management maturity and committing to the key actions we should undertake over the life of the strategy to further advance this maturity.

Specifically, the Strategy is focused on ensuring that our asset management practices are driven by our service needs and that all asset-related decisions are well-informed and evidence-based.

Strategy implementation will be achieved via a suite of actions, structured around our goals to inform, enable and influence the delivery of services to our community.

In ‘telling the story’ of how this will be achieved at the City of Boroondara, the Asset Management Strategy addresses a number of key elements, as briefly outlined under the sub-headings that follow:


1.1. Our Community Overviews the relevant history and demographics of the City of Boroondara.

1.2. Our Integrated Planning Framework Describes the key elements of Council’s integrated planning framework, their relative contribution and interdependencies, while positioning the Asset Management Policy, Strategy and Plans within this framework.

1.3. Our Services Demonstrates the breadth and diversity of Council’s service provision, in context of the key themes identified in the Boroondara Community Plan 2017-27.

1.4. Our Assets (Assessment of Current State) Overviews the current state of the City of Boroondara’s assets, in terms of quantum, value, condition, function and capacity.

1.5. Our Future Considers what the future of service provision and supporting asset management may entail, including a brief review of anticipated shifts in demand, business transformation processes and possible disruptors.

1.6. Our Asset Management Objectives Articulates the key objectives for advancing asset management practices in the City of Boroondara.

1.7. Our Team Describes the manner in which we will collaborate to deliver the specified asset management objectives.

1.8. Our Action Plan Outlines the specific actions that we will undertake over the life of the Strategy and specifies how we will monitor our related success.


2. Our Community

2.1. History The City of Boroondara includes the suburbs of Ashburton, Balwyn, Balwyn North, Camberwell, Canterbury, Deepdene, Hawthorn, Hawthorn East, Kew, Kew East and parts of Glen Iris, Surrey Hills and Mont Albert (see Figure 1 below). This area is the traditional lands of the people of the Eastern Kulin Language Group. After surveying the area in 1837, Robert Hoddle declared it the ‘Parish of Boroondara’. As the area was densely wooded, Hoddle took the word from the Woiwurrung language, translating it as ‘where the ground is thickly shaded’. The first local government body was the Boroondara District Road Board, formed in 1854, which encompassed the areas that were to become Hawthorn, Kew and Camberwell. With the amalgamation of these cities in June 1994, the City of Boroondara was created.

Figure 1. Boroondara Local Government Area


2.2. Demographics Figure 2 below provides a summary overview of key demographic indicators as at 2017.

Figure 2. Boroondara Demographic Snapshot


3. Our Integrated Planning Framework Over the course of 2016 and 2017, the City of Boroondara (CoB) undertook a large-scale public consultation process to formulate the Boroondara Community Plan 2017-27 (BCP), which also incorporates the Municipal Public Health and Wellbeing Plan. By articulating the community’s vision and priority themes, the BCP sets the foundation for all plans, processes, strategies, budget decisions and operational actions developed and undertaken by Council through to 2027. The Asset Management Strategy (the Strategy) articulates a whole-of-organisation commitment to, and focus on, how CoB assets are managed to support the vision and priority themes articulated in the BCP. The Strategy is a companion document to the Asset Management Policy. The supporting governance framework is shown in Figure 1, below, followed by a brief description of each element’s role. Below that, Table 1 provides the linkages between the Community Plan Priority themes and the Council Plan Strategic Objectives and strategies that are directly supported by the Strategy deliverables. Figure 1. Integrated Planning Framework

Boroondara Community Plan 2017-27 Incorporating the Municipal Public Health and Wellbeing Plan

Asset Management Policy

Asset Management Strategy

Asset Management Plans

Other Council Policies, Strategies

Council Department Business Plans

Community Vision and Wellbeing Realised

Council Plan 2017-21

10 Year Long Term Financial Strategy

Annual Budget


3.1. Context The Strategy reflects the contemporary 'shift' in asset management thinking and practices at CoB, to ensure that Asset Management planning and practices explicitly acknowledge, respond to and support the service delivery needs of the community. In practice, this means that the vision and priority themes of the BCP are manifest in the services that CoB provides to the community and all assets must be managed in direct support of these services. Thus, any asset-related decision and action must be driven by service needs.

3.2. Boroondara Community Plan 2017-27 The BCP sets out the 10-year vision for our future, based on the values, aspirations and priorities the Boroondara community identified were important to them. The following 7 key themes were distilled from 11,845 community responses received during the drafting of the BCP:

• Your Community, Services and Facilities • Your Parks and Green Spaces • The Environment • Neighbourhood Character and Heritage • Getting Around Boroondara • Your Local Shops and Businesses • Civic Leadership and Governance

Strategic objectives are defined for each theme, with a number of specific strategies outlining how these objectives will be achieved. The strategies will be implemented through our policies, plans, projects, actions and budget over the life of the BCP.

3.3. Council Plan 2017-21 The Council Plan is directly aligned to the BCP via the key themes, strategic objectives and specific strategies, and describes the outcomes Council aims to achieve during its 4 year term. While it is acknowledged that asset management practices indirectly support the provision of all services provided by the City of Boroondara, Table 1 below provides an overview of those Council Plan Strategies more directly supported by the objectives articulated in the Strategy.

3.4. Long Term Financial Strategy The Long Term Financial Strategy (LTFS) demonstrates Council’s prudent and sustainable financial management of meeting service delivery needs. The LTFS is supported by a series of Financial Strategy principles, of which some are directly relevant to asset management practices, as follows:

3.4.1. Asset Management Principle Council will provide well-maintained community assets that are fit for their purpose and provide best possible community benefit. Council’s budget and LTFS will commit, with specific budget provision, an appropriate level of expenditure to ensure ongoing maintenance and renewal.

• All assets maintained fit for purpose


• Accurate asset data and condition assessments inform annual budgeting and works programs

• Risks and potential asset failures anticipated and managed • Appropriate funding allocated to ensure compliance, safety and renewal

needs are met • Combination of renewal, new and upgrade funding to ensure fit for purpose • Give regard to consequent operational, maintenance and renewal costs

3.4.2. Creating Community Assets Principle Council will ensure that the community has access to required community infrastructure, located to meet community needs and city wide priorities and designed with regard to current and future needs.

• Creation and acquisition in response to identified need • Clear and tangible benefits • Within Council’s financial and resource capacity limitations • Opportunities for community partnerships pursued • Available financial mechanisms reviewed • Give regard to public realm, environmental and social benefits

3.4.3. Concept Master Plan Principle Council will ensure that the short and long-term interests of the community are appropriately addressed. Concept Master Plans are an aid to future planning for the allocation of resources.

• Components considered annually in budget process • Must inform Asset Management Plans and future works planning

3.5. Annual Budget The Annual Budget sets out the financial and human resources required to deliver on the services, major initiatives and commitments for the respective financial year. This includes the funds required to manage the asset portfolio underpinning service delivery. It is framed in accordance with the Council Plan outcomes and includes associated performance indicators.

3.6. Asset Management Policy The Asset Management Policy defines the key principles that underpin and drive the sustainable management of assets within the City of Boroondara. Specifically, to operate and manage assets in accordance with defined levels of service, whilst minimising lifecycle costs.

3.7. Asset Management Strategy The Asset Management Strategy outlines the specific objectives and supporting actions (at the portfolio level) that will be carried out over a 5 year period to advance asset management practices across the organisation.


3.8. Asset Management Plans The Asset Management Plans combine multi-disciplinary management techniques (including technical and financial) over the lifecycle of the asset in the most cost effective manner to provide specified levels of service. They are long term plans (10 years) that address the asset activities and programs required for each service area, with related financial projections being a critical component. These projections are crucial to informing and setting the Long Term Financial Strategy. They are ‘living’ plans, updated frequently over their lifespan.

3.9. Council Department Business Plans Department specific Business Plans translate the Corporate Plan strategies and commitments into annual detailed work plans for the respective business activities. Table 2. Priority Themes, Objectives and Strategies directly supported by the Strategy

Community Plan Priority

Theme

Council Plan Strategic Objective Council Plan Strategy

Your Community, Services and Facilities

Community services and facilities are high quality, inclusive and meet a variety of needs now and into the future.

Plan, maintain and renew multipurpose facilities and sports precincts to meet broad, intergenerational needs of the community now and into the future.

Create and maintain public areas, facilities, amenities, footpaths and spaces that are inviting, clean and appropriately lit to increase social connection and improve perceptions of safety.

Develop a strategic response to improving the safety of public places, Council’s facilities and events and take action as required to help protect community participation.

Your Parks and Green Spaces

Inviting and well-utilised community parks and green spaces.

Sustainably design, manage and utilise parks and green spaces to foster a connected and healthy community for all ages and abilities.

Increase and improve public amenities and facilities in open spaces to enhance functionality for a wider range of uses.


Community Plan Priority

Theme

Council Plan Strategic Objective Council Plan Strategy

The Environment

Our natural environment is healthy and sustainable for future generations.

Reduce the environmental impact of Council facilities and assets through continued greenhouse gas saving initiatives and stormwater treatment and re-use.

Neighbourhood Character and Heritage

Protect the heritage and respect the character of the City to maintain amenity and livability whilst recognising the need for appropriate, well-designed development for future generations.

Preserve the City’s history and protect heritage properties and precincts by undertaking a municipal wide heritage review and introduce heritage overlays in the Boroondara Planning Scheme.

Getting Around Boroondara

Travel options that are connected, safe, accessible, environmentally sustainable and well-designed.

Improve road safety for pedestrians, drivers and cyclists through infrastructure improvements, education and traffic management initiatives.

When choosing locations of new public facilities, consider accessibility and connectivity within the municipality, particularly access to public transport.

Your Local Shops and Businesses

A vibrant local economy and shops that are accessible, attractive and a centre of community life.

Improve and upgrade the amenity, accessibility and unique sense of place of shopping strip infrastructure and streetscapes to increase activation of local shopping areas.

Civic Leadership and Governance

Ensure that ethical, financial and socially responsible decision making reflect community needs and are based on principles of accountability, transparency, responsiveness and consultation.

Ensure transparent decision making through open governance processes.

Regularly reporting to the community on the implementation of the Asset Management Policy and Strategy principles and actions.

Ensure sound financial management while allocating resources to deliver strategic infrastructure and services that meet community need.


4. Our Services Council provides a broad and diverse range of services to the Boroondara community. Council’s asset management practices must be focused on ensuring these services are provided in the most effective and efficient manner and at the least cost to the community. The actions outlined in the Strategy are targeted at advancing the City of Boroondara’s asset management practices to this end. Of particular importance, to delivering a service based model of asset management, is clearly defining the role of, and relationship between, service managers and asset managers. Another key area of future focus is being able to clearly demonstrate an asset’s performance in relation to its service function (ability of the asset to meet service needs) and capacity (ability of the asset to meet service demand), rather than just condition (physical and technical state of the asset).


5. Assessment of Our Current State Council manages a significant portfolio of physical assets in support of delivering the services outlined in the preceding section. An overview of these assets, in terms of their quantum, value, condition, functionality and capacity, is provided in Table 2 below. Note, the relatively low confidence level in the functionality and capacity performance scores reflects an existing ‘gap’ in the explicit measurement of these criteria. This is addressed as a specific action in the Strategy and will be critical to asset related investment decisions going forward.

Table 2. State of Our Assets

1 Traffic Management Devices 2 Water Sensitive Urban Design

Asset GRV $K Number Length (km)

Area (sq. m)

Condition Functionality Capacity

Score Confidence Score Confidence Score Confidence

Roads

Roads 532,422 565 Good High Good Medium Fair Medium

Lanes 39,245 78 Fair - Poor High Good Medium Good Medium

Kerb and Channel 165,229 1,280 Fair High Good Medium Good Medium

TMDs1 NA 1,478 Good - Fair High Good Medium Good Medium

Car Parks 16,500 432,900 Fair High Good Medium Fair Medium

Bridges 7,304 4,094 Good High Good Medium Good Medium

Buildings

Buildings/Structures 423,607 226 Good Medium Good Low Good Low

Paths

Paths - All Types 176,458 1,283 Good Medium Good Medium Good Medium

Drainage

Pipes 401,854 751 Good - Fair Low Fair Low Fair Low

Brick Drains 23,798 24 Good Medium Fair Medium Fair Medium

Pits 48,594 41,024 NA NA Fair Low Fair Low

WSUD2 NA 50 NA NA Fair Medium Good Medium

Open Space

Furniture 3,495 2,129 Very Good - Good High Good Medium Good Medium

Lighting 4,752 813 Very Good - Good High Good Medium Good Medium

Playgrounds 12,660 118 Very Good High Good Medium Good Medium

Signs 600 1,677 Very Good - Good High Good Medium Good Medium

Sports Assets 4,535 430 Very Good - Good High Good Medium Good Medium

Structures 6,604 1,749 Very Good - Good High Good Medium Good Medium


6. Our Future Prudent asset investment and management decisions must be guided by an awareness of future changes to service needs and delivery methods. A brief review of key future oriented considerations follows.

6.1. Future Demand

6.1.1. Population and Density There are a number of factors that can influence future demand for services and therefore management of the asset portfolio that supports those services. The most obvious, and perhaps simplest, of these to predict and respond to is population growth. Our demographic modelling allows us to predict the scale, location and rate of population growth with reasonable accuracy. In the case of Boroondara, over the 10 years to 2027, it is forecast that approximately 15,000 more residents will call the area home. As all of this growth will be accommodated as ‘infill’ densification, rather than ‘greenfield’ development, the resulting impact will be an increase in demand for services and use of existing surrounding assets, rather than the creation of significant numbers of new assets. Consequently, this increase in population density and resultant increase in a demand for services, requires asset investment and management decisions to take clear account of the functionality and capacity of existing infrastructure, in addition to monitoring of physical condition.

6.1.2. Quality of Life Boroondara is well regarded for its high quality services and amenities, which equates to a high quality of life. The key challenge for asset management is to determine whether and how these service and amenity expectations can be sustained into the future. In particular, it is imperative that whole-of-lifecycle asset costs are reliably determined, forecast and directly identified against the services provided. Any challenges to the ongoing sustainability of service levels will need to be identified and actively managed.

6.1.3. Utilisation and Rationalisation In determining how desired service levels can be reliably sustained into the future, there is a clear need to examine the utilisation levels of existing physical assets. In instances of underutilisation, opportunities to repurpose and rationalise existing physical assets, as well as delay or forgo the creation of new assets, should be pursued. Future service delivery models will need to take greater account of other non-Council service provider options, thereby maximising the utilisation of existing capacity within the community, rather than investing in the creation of new assets. It is also important to note that population increases and densification issues discussed above will also influence utilisation and demand characteristics within service ‘catchments’, with investment and management decisions needing to take account of these future shifts in service needs.


6.2. Business Transformation Customer Experience Improvement Strategy In a demonstrated commitment to the provision of quality services to the Boroondara community, the Customer Experience Improvement Strategy (CEIS) is transforming the way in which customers interact with Council. By setting a customer-centric vision for the future that provides a seamless, convenient and empowering experience for all customers, the CEIS will:

• Improve our online information. • Align and improve our customer channels. • Improve our customer interactions. • Streamline our customer touch-points. • Develop a culture of evaluation. • Simplify and clarify our customer processes.

This business transformation process will influence the nature, scale and location of physical assets required to support customer-centric service interactions, as well as placing specific demands on the breadth, quality, currency and availability of asset related information.

6.3. Disruptors Given the relatively long service life of most physical assets and the considerable investment in their creation and management, perhaps the most significant future challenges (and opportunities) come in the form of ‘disruptors’. By their nature, these influences are not obvious to us at any specific point in time and require us to vigilant in terms of monitoring their emergence. While we ‘don’t know what we don’t know’, examples such as: ‘Smart Cities’; ‘Internet of Things’; Drones/Automation; Mobility Technology; ‘Big Data’; and ‘Open Data’ have, and could continue to have a direct impact on how we manage our services and the physical assets that support them.

6.4. Government Being subject to, and sometimes constrained by, the agenda and priorities of Federal and State Government, presents future challenges and opportunities in service provision and asset management, of which two recent examples are as follows. Rate Capping The introduction of rate capping legislation by the Victorian Government has challenged Councils to clearly examine the services they provide to their communities and the related true costs of provision. This re-emphasises the importance of robust asset management practices that demonstrate and guide the long term financial sustainability of Council services. Legislative Changes Future legislative changes, such as those proposed for the new Local Government Act will similarly provide both challenges and opportunities for future service provision and it is imperative that asset management anticipates and responds accordingly.


7. Our Asset Management Objectives

7.1. Asset Management Policy Our Asset Management Policy sets the primary objective: To sustainably operate and manage City of Boroondara assets in accordance with defined levels of service, whilst minimising lifecycle costs. The key principles are to:

1. Clearly demonstrate how City of Boroondara assets and asset management practices are directly aligned to, and in support of, the delivery of defined community services (i.e. service planning drives asset management planning and practice).

2. Define, deliver, monitor and periodically adjust levels of service in accordance with the Boroondara Community Plan 2017-27 and any relevant governance and strategic planning instruments.

3. Give appropriate regard to defined levels of service and lifecycle costs when making asset related investment decisions (i.e. acquisition, operation, maintenance, renewal, upgrade and disposal).

4. Ensure that asset related investment decisions are financially sustainable and both inform and are consistent with the City of Boroondara Long Term Financial Plan.

5. Establish, review and maintain monitoring/reporting processes that ensure asset performance and management practices are consistent with defined levels of service.

6. Identify and maintain a single point-of-truth for all asset-related information. 7. Identify, collect and maintain asset related information at a level of detail, currency

and completeness that supports relevant decision making processes. 8. Clearly allocate responsibilities for the management of assets at all levels of the

organisation and build competency through the provision of targeted and structured training.

9. Develop, document and review plans and processes at a frequency and level of detail relevant to the asset types in question.

7.2. Inform, Enable and Influence The Asset Management Policy statement and key principles, above, have been translated into a set of asset management objectives that have been framed around 3 asset management goals of: Inform, Enable and Influence.

7.2.1. Inform • Establish and maintain a single point of truth for all asset related information.

• Only collect information that meets our business requirements.

• Ensure our information is current and complete.

• Maximise the benefits realised from our information.


• Replace static point-in-time asset related information with dynamic business intelligence.

• Increase awareness of and engagement with asset management across the organisation.

• Increase awareness of and engagement with asset management across the community.

7.2.2. Enable • Have clear responsibilities and accountabilities for asset management practices.

• Ensure knowledge, competence and skill in asset management principles and practices.

• Have clear reconciliation between our physical and financial asset registers.

• Clearly establish our range and levels of service.

• Clearly align our assets to the services they support.

• Monitor and report asset performance relative to the services they support.

• Maximise the benefits realised from our systems.

• Maximise our mobility and in-field capability.

7.2.3. Influence

• Reinforce asset management within our integrated planning framework.

• Forecast future asset needs and related costs to ensure long term financial sustainability.

• Establish objective, evidence-based decision making aligned to our service needs.

• Demonstrate prudent management of asset related risks.

• Consistently monitor our performance and identify enhancement opportunities.


8. Our Team Realising the tangible community benefits to be derived from advancing asset management practices requires a coordinated and collaborative organisation wide response.

8.1. Asset Management Responsibilities Following is a brief overview of the relevant organisation responsibilities, as defined by the Asset Management Policy.

8.1.1. Council The Council is comprised of elected Councillors, representing each of the 10 Wards in the City of Boroondara. Key asset management responsibilities are as follows:

• To act as stewards of the physical assets for current and future generations.

• To adopt the Asset Management Policy.

• To adopt the Asset Management Strategy.

• To adopt the Council Plan, Annual Budget and Strategic Resource Plan.

• To allocate appropriate resources for asset management practices.

8.1.2. Executive Leadership Team The organisation’s peak leadership group, comprised of the Chief Executive Officer and all Directors. Key asset management responsibilities are as follows:

• To provide leadership and direction in the implementation of the Asset Management Policy and the Asset Management Strategy.

• To ensure that community needs and the outcomes of service reviews are incorporated into asset management planning and the Strategic Resource Plan.

• To report on asset management performance and outcomes to Council.

• To ensure that the training needs of councilors and staff in financial and asset management practices are provided.

8.1.3. Asset Management Steering Group The Asset Management Steering Group is comprised of internal service and asset managers responsible for coordinated asset management practices and performance across the organisation. Key asset management responsibilities are as follows:

• To oversee implementation of the Asset Management Policy and Strategy.

• To ensure service plans and asset management plans are developed and reviewed.

• To ensure that community needs and the outcomes of service reviews are incorporated into asset management plans.

• To monitor asset management performance, issues and opportunities across the organisation and report outcomes to the Executive Leadership Team.


• To ensure asset management is integrated with the corporate governance framework.

• To ensure training of staff in financial and asset management practices is provided.

8.1.4. Asset Managers and Staff Responsible officers tasked with ensuring the effective planning, development and delivery of sustainable asset management practices in accordance with strategic objectives and funding constraints. Key asset management responsibilities are as follows:

• To implement the Asset Management Strategy.

• To review and regularly update asset management plans for all physical assets.

• To develop and deliver maintenance, renewal, upgrade and new capital programs in accordance with the Asset Management Policy, the Strategy, Asset Management Plans and allocated budgets.

• To ensure compliance with legislative and statutory obligations.

• To deliver agreed service levels.

• To monitor asset management performance, issues and opportunities across the organisation and report outcomes to the Asset Management Steering Group.

8.2. Asset Management Responsibility Matrix Building on the general responsibilities outlined above, Table 3, below, provides an overview of organisational roles, responsibilities and contributions to the various asset management functions. Note, this is presented at a portfolio wide level, with more specific responsibilities by asset type detailed in the respective Asset Management Plans.


Table 3. Asset Management Responsibility Matrix

Planning Acquisition Operation Disposal

Com

mun

ity P

lan

Cou

ncil

Plan

Long

Ter

m F

inan

cial

Pla

n

Serv

ice

Plan

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Ass

et M

anag

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t Pla

ns

Ass

et In

form

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stem

s

Ass

et In

form

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New

Ass

et /

Upg

rade

Pr

ogra

m

Ass

et R

enew

al P

rogr

am

Cap

ital W

orks

Del

iver

y

Con

tribu

ted

Ass

ets

As C

onst

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ed

Subm

issi

ons

Ass

et C

apita

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ion

Ass

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tions

Rea

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spec

tions

Inci

dent

Insp

ectio

ns

Ris

k In

spec

tions

Con

ditio

n In

spec

tions

Ass

et M

aint

enan

ce

Dis

posa

l Pro

gram

Phys

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Dis

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Fina

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l Dec

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Council ● ● ● ● ● ○ ● ● ○ ○ ● Chief Executive Officer ○ ○ ○ ● ○ ○ ○ Director Environment and Infrastructure ○ ○ ○ ● ● ● ○ ○ ● ● ○ ● ○ ● ● ● ● ● ● ● ● ○ Manager Environment and Sustainable Living

○ ○ ○ ● ○ ●

Group Manager Parks and Infrastructure ○ ○ ○ ● ○ ○ ○ ● ● ● ○ ● Manager Projects and Strategy ○ ○ ○ ○ ○ ○ ● ● ● ○ ○ ○ ○ ● Manager Commercial and Property Services

○ ○ ○ ● ○

Manager Traffic and Transport ○ ○ ○ ● ○ ○ ● ● ● ○ Manager Asset Management ○ ○ ○ ○ ● ● ● ○ ● ○ ○ ○ ○ ○ ● ● ● ● ○ ● ○ ○ Director Community Development ○ ○ ○ ● ○ ● ● ● Manager Family Youth and Recreation ○ ○ ○ ● ○ ● Manager Arts Facilities Business ○ ○ ○ ● ○ ● Chief Financial Officer ○ ○ ● ○ ○ ● ● Manager Community Planning and Development

○ ○ ○ ● ○ ○

Manager Community Information and Libraries

○ ○ ○ ● ○ ●

Manager Health Active Aging and Disability Services

○ ○ ○ ● ○ ●

Director Customer Experience & Business Transformation.

○ ○ ○ ○ ○ ● ○

Chief Information Officer ○ ○ ○ ○ ○ ● ○ Business Process Optimisation Lead ○ ○ ○ ○ ○ ○ ○ Digital Systems and Data Integration ○ ○ ○ ○ ○ ○ ○ Director City Planning ○ ○ ○ ● ○ ● ○ Manager Economic Development ○ ○ ○ ● ○ ○ Manager Statutory Planning ○ ○ ○ ● ○ ●

● Accountable

○ Contributor


9. Our Action Plan Asset Management Action Plan This section outlines how a coordinated and collaborative asset management response is to be achieved by the Strategy, acknowledging that some of these actions (or components of) are already underway. Table 4, below, provides the list of positions, and their acronyms, to be used in conjunction with the following section, in determining accountability for the various actions which will deliver the objectives of the Strategy. Table 4. Asset Management Responsibility Matrix

Acronym Position Title Acronym Position Title

CIO Chief Information Officer CFO Chief Financial Officer

MAM Manager Asset Management MPS Manager Projects and Strategy

SMs Service Managers AMs Asset Managers

Implementation and Monitoring Action Plan progress will be monitored in relation to the timelines outlined below, with quarterly status reports provided to the Asset Management Steering Group.


9.1. Inform We will establish and maintain single points of truth for all asset related information. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Inconsistent application of a metadata standard to asset information.

9.1.1

Prepare a metadata standard for asset information and table to the Asset Management Steering Group for review. MAM

CIO

Formal metadata standard for asset information established and implemented.

9.1.2 Formalise and implement Asset Information metadata standard.

Inconsistent processes for the recording of new, modified and disposed assets in Council’s physical asset register.

9.1.3

Prepare Asset Handover Guidelines and table to the Asset Management Steering Group for review.

MAM MPS

All new, modified and disposed assets are updated in Council’s physical asset register. 9.1.4 Formalise and implement

Asset Handover Guidelines. MAM MPS

Inconsistent review of data and business needs alignment. 9.1.5

Annually review asset information alignment with current and emerging business requirements, and table findings to the Asset Management Steering Group.

MAM SMs

Annual tabled review of asset information and business needs alignment.

Action

Action

Review Review Review Review Review


We will ensure our information is current and complete. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

At times, unreliable and/or incomplete data that impedes informed decision making.

9.1.6 Develop and implement annual data quality reporting for asset information.

MAM

Ongoing focused review and actioning of asset data quality gaps.

9.1.7

Scope, prioritise and deliver specific data quality enhancement projects, with updates tabled annually to the Asset Management Steering Group.

MAM

We will maximise the benefits realised from our information. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Not fully aware of data availability, its alignment to our business needs, or the benefits that can be realised from its use.

9.1.8

Prepare an Asset Management Information Needs Analysis and Strategy and table to the Asset Management Steering Group.

MAM AMs SMs

Increased information use and benefits realisation.

9.1.9 Implement actions identified in the Asset Management Information Needs Strategy.

MAM AMs SMs

Develop Report Report Report Report

Scope Deliver Deliver Deliver Deliver

Action


We will replace static point-in-time asset related information with dynamic business intelligence. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Time consuming review and update of static (soon out-of-date) Asset Management Plans, not aligned to our (soon to be) legislated annual review.

9.1.10

Develop and implement Asset Management Plans as dynamic, near real time business intelligence interfaces/dashboards.

MAM CIO

Transparent, near real time asset management information presented as web-based business intelligence interfaces, compiled directly from source data and driving related decisions.

We will increase awareness of and engagement with asset management across the organisation. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Inconsistent messaging about asset management direction.

9.1.11

Prepare an Asset Management Internal Communication and Engagement Strategy and table to the Asset Management Steering Group.

MAM AMs SMs

Increased awareness of and engagement with asset management across the organisation.

9.1.12

Implement actions identified in the Asset Management Internal Communication and Engagement Strategy.

MAM AMs SMs

Scope Deliver 25%

Deliver 50%

Deliver 75%

Deliver 100%

Action


We will increase awareness of and engagement with asset management across the community. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Community not engaged on how asset management practices support Council’s service delivery.

9.1.13

Prepare an Asset Management Community Engagement Strategy and table to the Asset Management Steering Group.

MAM AMs SMs

Increased awareness of and engagement with asset management across the community.

9.1.14

Implement actions identified in the Asset Management Community Engagement Strategy.

MAM AMs SMs

Prepare

Action


9.2. Enable We will have clear responsibilities and accountabilities for asset management practices. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Asset management responsibilities across all asset classes are not clear.

9.2.1

Implement an Asset Management Responsibilities Matrix, with review and update on an annual basis.

MAM AMs SMs

Clear, comprehensive and up-to-date Asset Management Responsibilities Matrix.

Asset related processes are reviewed on adhoc basis.

9.2.2 Model and publish all asset related processes, with an annual review and update.

MAM AMs SMs

Published, comprehensive and up-to-date asset related processes.

Opportunity to review the role of the Asset Management Steering Group in governance of organisation-wide asset management.

9.2.3

Establish a clear terms of reference for the Asset Management Steering Group, with meetings on at least a quarterly basis.

MAM AMs SMs

Asset Management Steering Group is engaged and supportive of advanced asset management practices across the organisation.

Review Review Review Review

Develop Review Review Review Review

Meet x4

Meet x4

Meet x4

Meet x4

Meet x4


We will ensure knowledge, competence and skill in asset management principles and practices. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Inconsistent training for staff in asset management principles and practices.

9.2.4

Prepare an Asset Management Training Needs Analysis and Strategy and table to the Asset Management Steering Group.

MAM AMs SMs

Staff knowledgeable, competent and skilled in asset management principles and practices. 9.2.5

Implement actions identified in the Asset Management Training Strategy.

MAM AMs SMs

We will clearly establish our range and levels of service. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Limited asset management line of sight to proposed or actual service level changes.

9.2.6

Review service levels annually1, and report any recommended changes to the Asset Management Steering Group.

SMs MAM

Clear asset management line of sight to proposed or actual service level changes.

1 Noting that specific timing is contingent on the delivery of the organisational Service Catalogue.

Action



We will clearly align our assets to the services they support.

Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Limited explicit alignment of assets to services.

9.2.7 Clearly align and identify all assets to the service/s they support1.

SMs MAM

All assets are explicitly aligned to services, allowing clear monitoring of cost, performance & opportunities for asset optimisation.

We will monitor and report asset performance relative to the services they support. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Limited measures for, and measurement of, asset performance relative to service needs.

9.2.8 Establish clear performance indicators that reflect an asset’s condition, functionality and capacity relative to service needs.

SMs MAM

All assets have clear indicators that reflect their performance relative to service needs.

Limited understanding of asset-related service costs.

9.2.9

Establish ability to identify and report all asset related costs against the service/s they support.

SMs MAM

All asset related costs are reported against the service/s they support.

Limited direct recognition of asset related costs in service plans.

9.2.10

Annually update service plans to recognise all asset related costs.

SMs

All service plans directly recognise asset related service costs.

Scope Deliver 25%

Deliver 50%

Deliver 75%

Deliver 100%

Scope Deliver 25%

Deliver 50%

Deliver 75%

Deliver 100%

Scope Deliver 25%

Deliver 50%

Deliver 75%

Deliver 100%

Scope Deliver 25%

Deliver 50%

Deliver 75%

Deliver 100%


We will have clear reconciliation between our physical and financial asset registers. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Time consuming reconciliation of physical and financial asset registers, resulting in a duplication of information and a drain on resources.

9.2.11 Prepare a Physical /Financial Asset Register Reconciliation Model and table to the Asset Management Steering Group.

MAM CFO

Ongoing clear and simplified reconciliation of physical and financial asset 9.2.12 Formalise and implement

the Physical/Financial Asset Register Reconciliation Model.

MAM CFO

We will maximise the benefits realised from our systems. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Asset Management systems need to be leveraged to support business needs now and into the future2.

9.2.13 Prepare an Asset Management Systems Needs Analysis and Strategy and table to the Asset Management Steering Group.

MAM, AMs, SMs

Increased systems use and benefits realisation.

9.2.14 Implement actions identified in the Asset Management Systems Strategy.

MAM, AMs, SMs

2 Noting that specific timing is contingent on timing of the Customer First Roadmap

Action

Action


We will maximise our mobility and in-field capability. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Limited mobility and in-field capability for asset related activities3.

9.2.15 Prepare an Asset Management Mobility Needs Analysis and Strategy and table to the Asset Management Steering Group.

MAM CIO

Asset Management Mobility Needs Analysis and Strategy drives increased mobility and in-field capability.

9.2.16 Implement actions identified in the Asset Management Mobility Strategy.

CIO MAM

3 Noting that specific timing is contingent on timing of the Customer First Roadmap

Action


9.3. Influence

We will reinforce asset management within an integrated planning framework. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Moderate level of asset management integration with other organisational planning instruments.

9.3.1 Clearly demonstrate how the Asset Management Policy, Strategy and Plans integrate with the Community Plan, Council Plan, Service Plans and Business Plans.

MAM

Asset management demonstrably integrated within the organisation’s overall planning framework.

Inconsistent approach to recognition of asset management related impacts from other Council planning instruments.

9.3.2 Annually review

changes/additions to Council planning instruments and table any identified implications to the Asset Management Steering Group.

MAM Staff

Asset management implications consistently identified as changes or additions to planning instruments occur.

Asset Management Policy, Strategy and Plans are updated at irregular intervals.

9.3.3

Annually review and update (if required) the Asset Management Policy, Strategy and Plans in accordance with business requirements.

MAM

Annual review and update (if required) of the Asset Management Policy, Strategy and Plans.

Align




We will demonstrate prudent management of asset related risks. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Long Term Financial Plan is updated with asset management forecasts on irregular basis.

9.3.4 Produce all asset related financial forecasts annually and submit to the CFO for incorporation in the Long Term Financial Plan.

MAM

Annual asset management forecasts produced and used to update (as necessary) the Long Term Financial Plan.

9.3.5

Update the Long Term Financial Plan to incorporate asset related financial forecasts.

CFO

We will establish objective, evidence-based decision making aligned to our service needs. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Limited acquisition, renewal, upgrade and disposal methodologies linked to service needs and related asset performance indicators.

9.3.6 Establish acquisition, renewal, upgrade and disposal methodologies for all asset types, linked to service needs and related asset performance indicators.

MAM MPS SMs

Acquisition, renewal, upgrade and disposal methodologies exist for all asset types, linked to service needs and asset performance indicators, & with annual review and update (if required).

9.3.7 Annually review and update (if required) all acquisition, renewal, upgrade and disposal methodologies and resultant forecasts.

MAM MPS SMs

F'cast F'cast F'cast F'cast F'cast

Update Update Update Update Update

Scope Deliver 25%

Deliver 50%

Deliver 75%

Deliver 100%

Review Review Review Review


We will demonstrate prudent management of asset related risks. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Asset related risks are analysed and recorded on irregular basis.

9.3.8 Establish, review and annually update asset related risk registers for all asset types.

MAM AMS SMs

Asset related risk registers are reviewed and updated annually for all asset types.

Asset inspection and condition assessment methodologies are reviewed irregularly.

9.3.9

Establish, review and annually update inspection and condition assessment methodologies for all asset types, with all recommendations tabled to the Asset Management Steering Group.

MAM AMS SMs

Asset inspection and condition assessment methodologies are reviewed and updated annually for all asset types.




We will consistently monitor our performance and identify enhancement opportunities. Current State Action Accountability 2020 2021 2022 2023 2024 Future State

Inconsistent approach to improving organisation-wide asset management performance.

9.3.10 Establish a comprehensive Asset Management Improvement Plan, with review and update on an annual basis.

MAM AMs SMs

Comprehensive asset management improvement planning, implementation and performance monitoring.

9.3.11 Prepare a quarterly Asset Management Improvement Plan progress report and table to the Asset Management Steering Group.

MAM

Develop Review Review Review Review

Report Report

x4 Report

x4 Report

x4 Report

x4

asset management strategy 2019-24 - city of boroondara

Documents