Chapter ASSET MANAGEMENT...2. Chapter FINANCIAL MATTERS Chapter DEVELOPING LOCAL GOVERNMENT...86

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(1)Chapter 7 .......................................................................................................................2 ASSET MANAGEMENT .................................................................................................2 Chapter 8 .....................................................................................................................43 FINANCIAL MATTERS ................................................................................................43 Chapter 9 .....................................................................................................................86 DEVELOPING LOCAL GOVERNMENT .........................................................................86 Chapter 10 .................................................................................................................100 INFORMATION MANAGEMENT SYSTEMS .................................................................100.

(2) Chapter 7. Asset Management The Board Guidelines below were provided to the Council to assist it in preparation of its submission to the Review:. Board Guidelines to the Council The Board is looking for evidence of – (a) Asset Management Policy; (b) Asset Replacement Policies and Predicted Asset Failure Modelling; (c) Asset Revaluation Policies; (d) Asset Depreciation Policies. Items for consideration include:• Roads, Streets, Bridges, Footpaths, Cycleways etc • Sewerage Services • Stormwater Drainage • Waste Management • Water Supplies • Buildings • Fleet and Plant Management • Land Development • Public Amenities • Recreation Facilities and Parks • Works Depots and Store. 2.

(3) Council Submission Council’s Community Plan identifies four major areas that are the heart of all the issues the community has raised and the things Council needs to do. Three of them, the Social, Economic and Environment areas identified in that plan all assist Council with the fourth major area of ‘Building an even stronger Community”. ‘Building an even stronger Community’ is to be achieved through Community Leadership and Participation, and by Building and Maintaining the Assets of the Community. By planning, maintaining and improving our high standard infrastructure, Council recognises that our high quality of life in the City will be sustained or improved, and that we all will be able to communicate, have access to one another, to services, shops, schools and business. It is recognised in the plan that our infrastructure provides the very support we need to live in our homes, to operate our businesses and enjoy the lifestyle we choose. Our health and environment is also protected. The Community visualised a future that included amongst other things: • Traffic flowing freely, signs directing people to where they want to go and there is always ample parking; • Roads, footpaths and cycleways are safe and in good condition; • Rubbish is disposed of quickly and cleanly; and • The water is fit to drink and wastewater is promptly treated. Board Response The Board acknowledges that Council’s Community Plan drives its need to build a stronger community, and thereby improve existing infrastructure or create even further infrastructure assets. It is also aware that Council has infrastructure assets with a current replacement value of almost $500 million. The Board is also aware that the level of resources required to both plan and implement asset management plans for existing assets is a growing demand on responsible Council management. Standards of replacement modelling are lifting on a continuous basis, and one of the significant challenges for Council will be the funding of asset replacement over the next 20 years. It is for this reason that the Board recommends in this chapter a high level reassessment of the resources that Council applies to this growing concern. The Board also suggests that the Community Plan be reviewed with particular emphasis on Council’s plans to manage its almost $500 million in existing assets.. 3.

(4) 7.0 Strategic Direction 7.0.1 Background To achieve the future articulated in the Community Plan, Council’s strategic plan lists actions that will help the Community, through Council, to achieve that future. The infrastructure asset management information, practices, policies and procedures put in place are fundamental to the eventual success of ‘Building an even stronger Community’. A formalised approach to asset management commenced in 1993. Prior to this, information on asset details was either non-existent or spread over a number of differing areas, such as databases or paper base sources. A permanent Asset Committee made up of Council staff has been continually in existence since 1993. The composition of that committee has been dependant on the stage the implementation process has been at. The approach from 1993 to now was to progress asset management across the Council by undertaking a number of staged tasks. These were as follows: 1. The preparation of Asset Accounting Policies and procedures and their adoption by Council; 2. The collection of asset details for all the major asset types of Roads, Sewer, Water, Stormwater, Parks and Buildings, plant, vehicles , furniture and equipment. 3. The loading of assets into Council’s Macrosoft, and then Hansen, Asset Register / Management Systems, and then into Council’s Easy Maps GIS; 4. The compilation of asset valuation records for individual assets in accordance with Australian Accounting Standards and Council’s policies; and 5. The full or part integration of systems such as the asset registers, asset valuation, pavement management, works orders, customer service, financial, and GIS. 7.0.2 Current Situation At present, an Asset Group has been implementing the July 2000 asset accounting policies mentioned in 7.1.1 below.. 4.

(5) In terms of the 5 staged tasks listed above, the following is the current status: • The collection of asset details has been a time consuming process. The asset details for all the major asset classes have now been collected and stored in the Hansen Infrastructure Assets Software systems; • The majority of Council’s assets have been transferred on to Council’s GIS and a link enabled to the details in the Hansen asset registers; • Asset valuation records have been developed for all the significant assets in accordance with Council’s asset accounting policies; and • A full integration of the asset register, asset valuation, pavement management system, works orders and GIS has been established. A link with a customer service module has not yet been established at this stage. Other links are being looked at for the future, for instance a manual link does exist with the financial system, but it is not cost effective to establish an automatic link at present. 7.0.3 Asset Management The management of Council’s assets is delegated to officers in the specific departments whose responsibility it is to maintain the asset class. These officers, a representative from finance and also information technology form an Asset Management Group who meet regularly to discuss issues, formulate policies and action plans and share information. This group reports regularly to CMT on current issues and matters requiring management input. Within each department the responsible officers utilise internal resources to undertake the asset management functions required. These include asset database maintenance and update, valuation and depreciation, capitalisation of new works, field data collection and GIS mapping. 7.0.4 Asset Register In February 2001 Council approved the staged purchase of all asset modules of an Asset Management System supplied by Hansen Information Technologies (HANSEN). Council already had in use a module for Roads assets. Since that time data relevant to all asset classes maintained by Council has been reviewed, updated, revalued and loaded into HANSEN. In addition to the HANSEN register Council operates a Local Government Application of MapInfo GIS entitled EasiMaps which provides access to spatial data of any asset class mapped.. 5.

(6) Asset valuation, depreciation and written down valuation for all assets are provided from the HANSEN system for entry to the Council’s financial system. Crystal Reports are used to provide information from the asset registers, which when combined with field experience and performance are used for asset replacement decision making. In July 2003 a Works Order module of HANSEN was introduced to link maintenance activities to particular assets, thereby enabling detailed records to be kept on asset performance. A staged introduction to specific assets is necessary as GIS mapping of asset classes is completed and linked to HANSEN. Board Response The Board has found in other general reviews that the recognition of asset management responsibilities and the implementation of effective and comprehensive policies and processes by Tasmanian councils has generally been slow. The Board finds that the situation at Glenorchy has been consistent with most other councils and that Council has spent most of its efforts to date in establishing asset recognition and linkages within asset management systems. The Board’s view is that the strategic direction for asset management can only be determined when Council has developed an appropriate level of understanding of its infrastructure assets. The Board acknowledges that the collection of asset details is a time consuming process for all councils but has been a particular challenge for Glenorchy. This is because many of Glenorchy’s infrastructure assets are aged and had been less well documented than in many other Councils, contributing to a lengthy recognition process. The Board is encouraged by the considerable effort that has been made by Council in establishing the asset register. It examined evidence that Glenorchy is reaching a point where all of its existing infrastructure assets are now recognised, with stormwater, water and sewerage assets recognised for the first time over the last three years. However, it is the Board’s view that Council still has a long way to go before it has an acceptable strategic direction and appropriate resources for an effective asset management system. The Board makes the following observations of what Council should develop to assist it to strategically manage its infrastructure assets in a complex asset management system: • establish condition assessment of all infrastructure assets to compare with written down values and theoretical life expectancy; • testing of the accuracy and validity of the existing asset valuation and depreciation data; • establish and record detailed asset maintenance costs for all classes of assets; • establish life cycle costings for existing assets that are incurring significant levels of maintenance, to demonstrate optimum replacement strategies; • identify a costed 20 year asset replacement program based on lifecycle costing and optimum replacement cycles;. 6.

(7) • •. establish the affordability of retaining the existing level of infrastructure assets; and establish criteria for the creation of new assets.. In the Board’s view, Council should consider taking asset management planning to a much higher level, with associated allocation of resources. The Board is of the view that considerable resources will be required to bring together and implement the required long term (20 year) Asset Management Plan. The Board is aware that other city councils have devoted considerable resources in developing sound asset management plans and systems. In the Board’s view, Hobart and Devonport City Councils provide leading examples of asset management planning and the Board encourages Glenorchy to consider pursuing sharing of resource, plans and techniques with those councils. The Board is of the view that the Asset Management Plan will not be able to provide all the necessary strategic direction. In noting the disaggregation of responsibility for asset management to each department at Glenorchy, the Board is concerned that this distributed focus may be contributing to a less than acceptable outcome in overall asset planning. It therefore recommends that Council revisit its organisational structure and assign the key responsibility of Asset Management to a Senior Manager. It is the Board’s view that such focus will require significant accountability for the officer and provide a better understanding of Council’s requirements for the future and its associated financial position. In later discussion in this chapter, the Board comments further on the significant level of resourcing resulting from asset management plans, policies, depreciation calculation and treatment, asset expenditure practices and techniques. Recommendation The Board recommends that: • Council develop an Asset Management Plan for at least the next 20 years • responsibility for Asset Management be assigned to a key senior manager in Council’s departmental structure. Council Submission. 7.1 Asset Management Policies 7.1.1. Asset Policies. 7.1.1.1 Asset Accounting Policy. The main asset policies that form the basis for Council’s financial reporting were adopted by Council on the 30th July 2001, effective from the 1st July 2000. The policy statements are as follows: 1. Glenorchy City Council will adopt all applicable accounting standards and generally accepted accounting principles for the. 7.

(8) 2. 3.. 4. 5.. preparation of its general-purpose financial statements for each financial year ending 30 June. All material items will be considered and an assessment made to determine if such items are assets. If expenditure on an asset improves its service potential or future economic benefits (i.e. the useful life is extended) then this expenditure will be capitalised (added to the value of the asset). If not, the expenditure will be charged to the operating statement as repairs / maintenance. Asset classes of the Glenorchy City Council are specified in the asset matrix. Asset classes will be consolidated into the following broad categories of nature or type to be disclosed in the Statement of Financial Position: • • • • • • • • • •. Land; Buildings and other land improvements; Equipment and furniture; Roads, streets and bridges; Sewage treatment and reticulation; Stormwater and drainage; Water reticulation; Plant and vehicles; Investments; and Capital work in Progress.. 6. All assets that have a cost or other value that can be reliably measured will be recorded in the statement of financial position at the end of the reporting period. 7. The Glenorchy City Council will adopt the deprival method of valuation for all assets. Assets identified, as surplus/non-core must be revalued at the end of the reporting period. 8. Assets will be recorded by identifying separately their gross carrying value and any accumulated depreciation. 9. The minimum threshold for recognising an item as an asset within a class should consider the materiality of the individual item. 10. Where a number of like items exist with individual values below the Recognition threshold for future transactions, then these items will be recognised as a group provided their total value is in excess of the group threshold for that class. 11. All non-current assets that have a limited useful life are systematically depreciated over their useful life in a manner that reflects the consumption of the service potential or future. 8.

(9) economic benefits of those assets. Land generally is not a depreciable asset. 12. Non-current assets are those that provide a benefit to the Glenorchy City Council extending beyond twelve (12) months. 13. All non-current assets are to be revalued to their current cost less accumulated depreciation in accordance with the asset matrix. Revaluations will be conducted at least once every five years. 14. All revaluation increments are credited directly to the asset revaluation reserve account. Net revaluation decrements will be debited to any previous revaluation increments for that class of assets, with any deficiency being charged to the Statement of Financial Performance. 15. The cost method of accounting is to be used for the initial recording of all assets acquired after a revaluation. Cost is to be determined as the fair value of the asset given as consideration plus costs incidental to the acquisition (e.g. architects fees, engineering design fees, administration charges, direct and indirect salary costs, overheads and all other costs incurred) in getting the asset ready for use. 16. All non-current assets that are replaced or retired are to be removed from the asset register. This will include the gross replacement cost of the asset and the related accumulated depreciation. Where the policy statement conflicts with a subsequent amendment to an accounting standard, the standard is followed and the policy will be amended at the earliest opportunity. The implementation of these policies since their adoption has had a significant impact on Council’s financial statements. Further information follows under Issue 7.3. – Asset Revaluation Policies. Board Response The Board notes that the first point in Council’s asset accounting policy is the agreement to “adopt all applicable accounting standards and generally accepted accounting principles for the preparation of its general-purpose financial statements for each financial year ending 30 June.” The Board believes many of the policy statements that follow are in fact a repeat of the current accounting standards. It therefore suggests that the policy be reviewed to highlight point 1 above. It is suggested that the policy also include the interpretation and selection of the options that Council will use in its treatment of the various expenditure categories.. 9.

(10) Council Submission 7.1.1.2 Furniture Plant and Equipment Policy. On the 21st January 2003, Council adopted a specific Furniture Plant and Equipment Policy to cover assets not covered by the main asset accounting policies listed above. The policy statements were as follows: 1. Custodianship rests with the Department having substantial control over the asset. The Custodian is the Manager or Supervisor of that Department with primary access to the asset except in the instance of computer equipment where the Custodian is the Information Technology Co-ordinator. Custodianship may be delegated by the Manager to another officer if considered appropriate. The Custodian is responsible for the maintenance and security of the assets. 2. Non-current assets will be recorded in the asset register of the financial accounting system. 3. Leased items will be recorded separately on a Lease Register. 4. An Attractive Assets Register will be maintained consisting of items that have individual values of between $200 and $1,500 and could be subject to pilferage or easily converted to cash. Items less than $200 may also be recorded in the attractive assets register if the Custodian considers the item to be of an attractive nature. 5. The attractive items register will include non-current grouped assets of an attractive nature. 6. Furniture, Plant and Equipment assets and attractive items entered in the registers will be identified with an asset number by Finance as soon as they are received. 7. All attractive items will be appropriately secured. 8. A stocktake of the financial asset registers, but only a sample stocktake of the attractive asset registers, will be undertaken at least on an annual basis. Board Response Noted Council Submission 7.1.1.3 Asset Funding Policy. As a part of a suite of Financial Management policies, Council approved the ‘Asset Funding Policy’ in March 2001. The policy statements are as follows: • Council will fund infrastructure asset replacement and renewal to ensure that the current levels of community equity. 10.

(11) •. are maintained. This will require the funding of depreciation from current levels to 100% in the medium term. Any expansion of the existing infrastructure asset base will be funded by additional loan borrowings, rate increases or other sources.. This policy is discussed further as part of Issue 8.1.6 Funding of Depreciation. Board Response Noted. The Board makes a detailed comment on this matter in section 8.1.6 in Chapter 8. Council Submission 7.1.1.4 Plant Replacement Policy. This policy and associated procedures provide general guidelines, processes and basic economic parameters which, if followed, will allow decisions to be made for the purchase, lease or hire of all Council plant and equipment used for construction and maintenance functions. The end result of the application of these policy and procedure documents is that, over time, Council should own all plant and equipment where it can be demonstrated, through financial analysis, it is more economical to own rather than lease, hire or contract. The financial analysis is based on whole of life costs. Plant availability is a secondary factor that must be taken into consideration. The policy statements are as follows: •. • • •. •. A new position of Plant Coordinator has been created and that officer will be responsible for the application of this policy and the economic, efficient and effective management of Council's new or replacement major plant, light plant or minor plant and works equipment assets. The position will be funded by an administration charge included in the internal hire rates for both leased and Council owned plant and equipment. A buy, lease or hire analysis must be undertaken for all assets under the control of the Plant Coordinator. The analysis must form part of the business case to be prepared on an asset-by-asset basis. The decision of whether to buy, lease or hire will be primarily based on economic considerations, but factors such as the lack of availability of an asset on a hire or contract basis, or the commercial hire charge, would influence the final decision. Major risks in leasing or owning plant and equipment must be identified and controlled. These risks include security, storage, responsible use and operator training.. 11.

(12) •. •. • •. •. •. • •. Funds for the purchase, lease or hire of these assets must have been made available in the annual budget process (or during budget reviews) before the asset can be purchased, leased or hired. Funds for the replacement of an existing asset owned by Council should be made available at the end of the assets service life, to minimize the possibility that assets could be kept beyond their economically calculated replacement date. The purchase, lease or hire of an asset must be made in accordance with the relevant Council purchasing policies, procedures and guidelines. The service life of each asset must be reviewed annually, and steps taken to dispose of those assets at the end of their service life in accordance with the relevant Council policies, procedures and guidelines. If circumstances change (such as utilization) disposal may be recommended by the Plant Coordinator at an earlier date. An internal and external plant hire charge rate must be developed annually at budget time for those assets the Manager - Works Center & Hydraulics wants charged out. The cost of internal plant hire is included in the budget amounts for Capital Works and Maintenance programs. Internal plant hire charge rates will vary, depending on whether the asset was leased or purchased. The internal hire charge on leased assets will be the annual lease payment plus any other direct or indirect (eg. administration) costs, divided by the expected annual utilization of the asset. Assets that were bought by Council and will be used internally will have a plant hire charge rate calculated to cover all estimated direct costs (materials, fuel, depreciation, registration etc) associated with the asset for the next 12 month period, administration costs plus an additional margin for under utilization, other unforeseen costs and unexpected changes in the assets residual value. External plant charge rates will be internal plant charge rates, with indirect costs and a profit margin added. Lease charges, annual asset expenses and plant income (internal hire charge revenue) will be recorded separately in the accounts of Council for leased and purchased assets.. A full copy of the above policies and any relevant procedure documentation are provided as the main reference document for general and specific details on all individual asset classes.. Evidence/Documentation. Reference number S7.0001. Asset Policy Furniture Plant and Equipment Policy. 12. S7.0002.

(13) Furniture Plant and Equipment Procedures Plant and Equipment Management and Replacement Policy Plant and Equipment Management and Replacement Procedures. S7.0003 S7.0004 S7.0005. Board Response The Board notes the policy statements on plant replacement. In the Board’s view, however, the above policy exemplifies the Board’s comments in section 2.14 that many of Council’s policies include fine detail of processes rather than concentrating on the high level policy statements. Earlier, the Board has suggested a revision of such policies and it would include the plant replacement policy as one where the separation of high order policy from detailed procedure should occur. This comment also refers to Council’s other asset policies. Council Submission. 7.2 Asset Replacement Policies and predicted asset failure modelling 7.2.1 Replacement Modelling Council has the information within its infrastructure asset registers to indicate exactly which infrastructure assets are expected to need to be replaced and when, based on the information at hand at the time the assets were revalued. A 20 year program for new assets and the replacement / renewal of existing assets was developed in 2002 and provides guidance on short and long term financial decisions. The program was used to form the basis of the capital works program for 2003/04 and will be continually updated as performance and augmentation data is gathered. Council produces a list of assets that are falling due for replacement each year. Based on a combination of inspections, asset replacement requirements, or a review of performance history through the works order system, the Asset Managers either list the asset on the capital works program for that year for replacement, or delay the replacement for a while longer if the asset physically does not yet need replacement. There are also assets that fail before their expiry date as recorded on the register. Those are brought forward onto the capital works program and an accounting loss is recorded for their early retirement. Other assets can also be replaced for reasons other than asset life, for 13.

(14) instance asset works conducted for public amenity and business promotion reasons. Section 8.1.6 discusses in more detail Council’s policy to fund infrastructure asset replacement and renewal to ensure that current levels of community equity are maintained. The asset replacement practices commented on in this section ensure that the replacement and renewal funds are spent in the most appropriate areas. Board Response The Board notes that Council has been assessing the likely replacement/renewal of its major assets. The Board is satisfied that Council’s Asset Management System provides effective predictive modelling for the next 5 – 10 years, and that assessments are done each year on the programmed renewal of assets. As the Board has found in other general reviews, one of the challenges facing councils is to test the theoretical asset replacement from the modelling with the asset condition over a range of asset classes. While this can be a lengthy and expensive quality assurance process, the Board is aware that other councils have effectively reviewed their asset replacement modelling. The Board is also aware that the level of asset replacement modelling and the quality of such information has been improving significantly with other larger councils. The Board would like to see Council access the benefit of some excellent research of councils such as Hobart and Devonport. The Board believes that Council must be able to predict effectively and communicate its asset replacement requirements over the coming years. It is the Board’s view that Council needs to plan now how it will face the challenge of significant amounts of asset infrastructure predicted failure in the coming 15 years. The Board has earlier in this chapter, section 7.0, recommended that a 20 year Asset Management Plan be developed. This should include detail on the likely asset replacement needs, creation of new assets and how the Council intends to program and fund replacements and additional assets. Council Submission. 7.3 Asset Revaluation Policies 7.3.1 Policy statements 1. All non-current assets are to be revalued to their deprival value less accumulated depreciation in accordance with the asset matrix. Revaluations will be conducted every five years. 2. All revaluation increments are credited directly to the asset revaluation reserve account. Net revaluation decrements will be debited to any previous revaluation increments for that class of. 14.

(15) assets, with any deficiency being charged to the operating statement. Council has adopted the deprival method of valuation for all assets. Assets identified as surplus/non-core, are revalued at the end of the reporting period. In applying the deprival value methodology, assets that are considered core, or integral, to Council’s operations, are identified from those that are non-core, or surplus, to Council’s operations. Where Council considers that an asset is a core asset, that is where the asset would be replaced if Council were deprived of it, the asset should be valued at its written down current cost. Council considers two methods that are appropriate to determine deprival value: (i) Current market buying price Reference is made to the market-buying price of an identical or similar item. This method is suitable for use with items of plant and equipment, furniture and fittings etc. ( ii ) Current replacement cost Reference is made to the cost per unit of service potential of the most appropriate modern facility that would be used to replace the asset. If the replacement item is of different capacity or constructed of more advanced materials, the value can be adjusted accordingly. Where the asset is considered non-core or surplus, which is an asset that Council would not replace it if deprived of its service potential, then that asset is valued at its recoverable amount. Only two options are considered: (i) Net present value of future cash flows This value represents the present value in today’s dollars of the future cash flows which would be received through the assets continued use and eventual sale. ( ii ) Current net market selling price This equates to the amount that could be recovered through the sale of the asset on the open market less any costs incurred in the sale. Revaluations of all non-current assets are dealt with in accordance with Australian Accounting Standards and Urgent Issues Group pronouncements. Assets are recorded at fair value in Council’s annual General Purpose Financial Report. Assets are recorded by identifying separately their gross carrying value and any accumulated depreciation. The revaluation program for each class is on a rolling basis to minimise the impact of revaluing assets on the workforce. The frequency of the revaluations depend on a number of factors, including, the cost benefit. 15.

(16) of obtaining relevant up to date information. The reality has been that even though Council does not have to conduct revaluations for less than 5 years, revaluations of some asset groups have been conducted on a much more regular basis since the introduction of AAS 27 in 1996. The following table demonstrates the history of, and results of, revaluations on assets fair value since then: -. 1st July Reval Roads Water Sewer Stormwater Building etc. Land Plant & Veh. Furn & Equip. • •. •. 1996 ($ml) $117.3 $39.5 $89.5 $58.6 $31.9. 1997 ($ml). 1998 ($ml) $120.9. 1999 ($ml). 2000 ($ml) $149.5 $71.0. $74.3 $75.6. 2001 ($ml). 2002 ($ml) $160.0. $126.9 $135.3. $42.9. $48.3 $19.5 $0.9 $6.3. It is important to note the following when referring to this table: The main motivation behind all the revaluations since the 1 July 2001 has been the implementation of the new asset accounting policies; A large proportion of the increase in fair value in all asset groups since the 1 July 2001 has been the recognition for the first time in the accounts of Council, assets owned but not yet formally recognised at the time of the revaluation in the asset register; and Only a small number of property assets are considered by Council to be considered non-core or surplus. Council has been very active in improving the information held in the asset registers since 1996 and now has a very solid base on which to base financial modelling and asset management into the future.. Board Response The Board acknowledges that considerable effort has been required to bring the Asset Registers to an appropriate current status. The revaluations already adopted in Water, Sewerage and Drainage highlight the growing importance and significance of asset management. The associated depreciation changes from significantly higher asset recognition and values will continue to create challenges for Council in funding its asset replacement requirements. Council Submission. 7.4 Asset Depreciation Policies 7.4.1 Policy Statements 1. All non-current assets that have a limited useful life are systematically depreciated over their useful life in a manner that. 16.

(17) reflects the consumption of the service potential or future economic benefits of those assets. Land generally is not a depreciable asset. 2. Non-current assets are those that provide a benefit to the Council extending beyond twelve (12) months. Council complies with the Australian Accounting Standards (AAS 4) and Urgent Issues Group (UIG) pronouncements on accounting for depreciation. All assets are depreciated on a straight-line basis; with the depreciation expense being calculated for the majority of assets by taking the replacement value and dividing it by the useful life of the asset. No retirement/disposal value is recognised in the calculation. The useful life of Council’s assets falls within the following range: -. Nature/Type of Asset Class of Asset (Years) Roads, Streets & Bridges Road Pavement Surface Road Pavement Base Road Pavement Earthwork Kerb & Channel Footpaths & Cycle ways Signalised or Roundabout Intersections Islands Car Parks Bridges Sewerage Treatment & Reticulation Reticulation – Pipes Reticulation – Manholes Reticulation - Mechanical Plant & Equipment Reticulation - Electrical Reticulation - Buildings & Other Land Improvements Treatment Plants – Pipes Treatment Plant - Nodes Treatment Plant - Mechanical Plant & Equipment Treatment Plant – Electrical Treatment Plant - Treatment Structures Stormwater & Drainage Pipes Nodes Natural Water Course Improvements Silt Basins Concrete Culverts & Spoon Drains Water Reticulation Pipes Nodes Property Connections Reservoirs. 17. Useful Life 10 to 50 5 to 50 200 50 to 70 5 to 70 15 to 50 35 to 50 5 to 60 40 to 80 60 to 80 80 to 120 25 to 80 10 to 25 10 to 80 50 to 80 20 to 120 15 to 50 10 to 40 60 to 100 60 to 80 80 80 30 to 80 50 to 80 40 to 80 5 to 80 20 to 50 50 to 80.

(18) Mechanical Plant & Equipment Electrical Building & Other Land Improvements Building and Land Improvements Freehold Buildings Other Land Improvements Plant & Vehicles Infrastructure Plant Fleet Mobile Plant Minor Plant Equipment & Furniture Furniture Fittings & Office Equipment Computer Systems & Technical Equipment. 25 to 80 10 to 25 10 to 80 10 to 95 5 to 50 5 to 20 3 to 5 5 to 20 3 to 5 3 to 20 3 to 5. These lives are very similar to the economic lives recommended in the Tasmanian Audit Office report titled “Accounting for Road Assets and Associated Depreciation Practices” issued in April 2002. A lack of adequate records makes it difficult to determine exactly when many infrastructure assets were taken over by Council. A fair estimation can and has been made though, by looking at Records relating to when the subdivision containing the infrastructure asset was first taken over by Council, or when the area was first developed. The Accumulated Depreciation was then derived from that information. It can be seen from the following table that most of Council’s infrastructure assets are currently less than half way through their lives. Please refer to the next page for table:. 18.

(19) Asset Group. Date of Reval. Fair Value $ millions. Accum. Deprec. $ millions. W.D.V. $ millions. Roads. 1/7/96 1/7/98 1/7/00 1/7/02 1/7/96 1/7/00 1/7/96 1/7/98 1/7/01 1/7/96 1/7/98 1/7/02 1/7/96. $117.3 $120.9 $149.5 $160.0 $39.5 $71.0 $89.5 $74.3 $126.9 $58.6 $75.6 $135.3 $31.9. $60.5 $58.6 $67.4 $71.9 $20.6 $31.9 $33.7 $27.1 $43.1 $19.3 $27.2 $51.5 $15.9. $56.5 $62.3 $82.1 $88.1 $18.9 $39.1 $55.8 $47.2 $83.8 $39.3 $48.4 $83.8 $16.0. 1/7/97 1/7/01 1/7/00 1/7/01. $42.9 $48.3 $19.5 $0.9. $15.8 $20.7 n/a $0.5. $27.1 $27.6 $19.5 $0.4. 36.8% 42.9%. 1/7/01. $6.3. $4.1. $2.2. 65%. Water Sewer. Stormwater. Building & Land Imp’s. Land Plant & Vehicles. Furniture & Equipment. Accum. Deprec as % of Fair Value. 51.6% 48.5% 45% 44.9% 52.2% 44.9% 37.7% 36.5% 34% 32.9% 36% 38% 49.8%. 55%. Board Response The Board has compared the State of the Assets of Council with other similar Tasmanian councils. The State of the Roads and Footpaths asset for Glenorchy of 54.2% at 30 June 2002 compares with Clarence 60.8%, Hobart 68.9%, and Launceston 46.4%. The Board notes that with each successive revaluation of Roads, Water and Sewer Assets, the State of the Asset has increased, with predicted longer lives than previously registered. The Board, therefore, believes that this area of assessment needs to be further examined as the State of the Asset may be much better than currently thought. The Board has previously recommended a review of the Asset Accounting Plan and Policies so that they are more reflective of the lives and valuation of the assets. Such a review is likely to result in extending the lives of assets, which would reduce depreciation charges and thereby reduce the current decreases in operating capability to more accurate levels. If, as a result of the review of asset lives and values, the State of the Asset is found to be in a better overall condition than currently recorded, the impact on operating losses is likely to be significantly favourable. Council Submission. 19.

(20) 7.5 Roads, streets, bridges, footpaths, cycleways, etc 7.5.1 Goals, Strategies, and Action Plans Council’s Strategic Plan supports a goal of “A City where roads, footpaths and cycleways are safe and in good condition.” From the strategy “Manage traffic flow to ensure a balance between resident amenity, business, growth and safety” comes the following Action Plans associated with transportation assets. • “Maintain a rolling five year capital works program that balances infrastructure development and maintenance needs” • “Continue the development of comprehensive Precinct road maintenance and traffic management plans that include footpaths, lighting and signage.” 7.5.2 Asset Details Council is responsible for an extensive and diverse road infrastructure network that includes the following major assets: • 280 kilometres of sealed road • 17 kilometres of unsealed road • 28 bridges including pedestrian bridges and those in parks • 413 kilometres of footways • 452 kilometres of kerb and channel • 6 kilometres of cycleway • 23 car parks to supplement on-street parking (this does not include car parks situated within Council reserves, playgrounds etc) • 23 roundabouts • 14 sets of traffic lights including 2 sets of pedestrian lights • Various miscellaneous roadside furniture items such as road islands, guide posts, guard rail, litter bins, street signs, bus shelters and street lights. 7.5.3 Asset Management Planning 7.5.3.1Asset Management Plan for Road Infrastructure. In 2001 Council developed an asset management plan for the road infrastructure that briefly covered the following areas: • System and asset overview • Financial details • Levels of service • Maintenance management • Risk management The plan was undertaken as a ‘first attempt’ of addressing, to varying levels of detail, many of the key issues involved with the management. 20.

(21) of the transportation assets. This plan is due for review in 2003, however a copy of the current document is attached for reference. 7.5.3.2 Condition Assessments. All road infrastructure assets are visually inspected on an ongoing basis throughout each year as part of development of maintenance and future capital works programs. More formalised inspections of the roads, bridges, footpaths and kerb and channel are undertaken on a regular basis as follows: •. • •. Roads are visually assessed on a regular basis, the last two being in 1998 and 2002. The assessment process involves collecting data on individual defects for every road segment and an overall rating for each footpath and kerb and channel, a sample sheet is attached. Roughness surveys were undertaken in 1998 and 2002 on the high trafficked roads of the network, a sample sheet is attached. Bridges are assessed twice per year by Tas Span, refer to attachment for a sample of the type of information collected.. The information from these condition assessments is used as a primary input into developing long term replacement programmes and for determining trends in network deterioration. As an added value process to the above condition assessments, Council recently commissioned an independent report on the condition of some of the recently constructed footpaths in the City. This project has allowed Council to recognise and work towards overcoming some deficiencies in our current management practices for footpaths. The outcome will be an improvement in our service delivery for this asset type. 7.5.4 Maintenance Management Council’s maintenance tasks on the road network can be broadly classified into two areas as follows: 7.5.4.1 Scheduled. Tasks that have been clearly identified and programmed fit into this category eg road and footpath resealing. Undertaking these tasks, at regular intervals, throughout the life of the asset are critical to ensure the design life of the asset is reached. 7.5.4.2 Unscheduled. Tasks that have not been individually identified but have been budgeted for as a group eg pothole repair. These tasks are not undertaken on the entire asset, however, failure to perform them in a. 21.

(22) timely fashion can lead to a gradual erosion of the useability of the asset and may create safety concerns. Unscheduled tasks are managed via a computerised work order system; this system is linked with an asset register and the GIS. Scheduled tasks are managed as appropriate on a case by case basis, for example:. Annual Road and Footpath resealing program This program is developed and prioritised by considering the following inputs: • Asset condition data • Community input • Knowledge of various Council Officers. Road Sweeping This program is developed based on the most efficient use of the road sweeper to achieve a set of agreed upon sweeping cycles.. Evidence/Documentation. Reference number. Sample sheet of road condition data Sample sheet showing roughness data. S7.0006 S7.0007. Board Response See Board comment following section 7.9. Council Submission. 7.6 Footpath and Street lighting policies Council has recently developed two policies that complement the management of the road assets. Both policies were developed after consultation with the community and all other relevant stakeholders. 7.6.1 Footpath policy This policy was developed due to the lack of suitable guidelines on footpath maintenance and construction. The main elements of the policy include: • Recommendations on the types of footpath construction to be used for different locations • A set of prioritisation guidelines for the provision of new footpaths and for the replacement of existing footpaths 22.

(23) Adoption of this policy will ensure a more equitable and sustainable service provision. 7.6.2 Lighting Policy A number of factors prompted the development of a lighting policy including the following: • Changing lighting standards • Changing Council strategic directions • The need to provide a safer and more aesthetically pleasing night time environment for the community The process involved in developing the policy provided Council with an improved understanding of the lighting asset stock and how best to manage and improve it. It is expected that the adoption of this policy will provide a number of long term benefit including consistent lighting patterns, lighting that caters for high night time use areas and for areas used by vulnerable members of the community, lighting that encourages night time use and safer night time use areas. Board Response See Board comment following section 7.9. Council Submission. 7.7 Transportation Services 7.7.1 Background The Transportation Services unit of the Roads and Recreation Department is responsible for parking management and providing efficient, effective, safe and equitable movement of people and goods through and within the City of Glenorchy. The ongoing investigation and implementation of Local Area Traffic Management is a key activity for this unit to improve road safety, amenity and aesthetic character of Glenorchy’s urban roads. The unit is also responsible for managing the safe and efficient use of the arterial roads that link to highways connecting Tasmania’s regional centres. The unit manages the provision and regulation of on-street and offstreet car parking in the central business districts and suburban areas. The unit is responsible for the daily management of parking operations, including the daily reconciliation of infringement notices, management. 23.

(24) of car parks, public enquiries, written correspondence, management of legal services such as the issuing of summonses and prosecutions. A total of four Parking and Information Officers work in the field, undertaking patrols of city and suburban areas five days a week between the hours of 8:15 am and 5:25 pm. All enforcement is carried out under the Australian Road Rules (Regulations) 1999. 7.7.2 Commercial Precincts Parking Strategy (Stage 1 – Glenorchy) Council adopted this Strategy on 23 March 1998. The major aims of the Strategy were to: • Stimulate Commercial Activity • Ensure competition with other centres • Encourage development and/or redevelopment within the boundaries of the commercial precinct • Provide a service to the community • Ensure a safe and secure environment Most of the recommendations of the Strategy have been adopted and the management of parking in Glenorchy has followed the strategies from the document. Stages 2 and 3 of the Commercial Precincts Parking Strategies are yet to be developed and will cover the areas of Moonah and Claremont. 7.7.3 City of Glenorchy Traffic Study 1999 In 1999/ 2000 Council undertook a major traffic study providing an assessment of actions needed to improve the safety, efficiency and amenity of the road and traffic system in the City of Glenorchy. The report reviewed previous traffic studies and involved extensive consultation with the Community. The report made many traffic engineering recommendations that have largely been implemented. 7.7.4 Integrated Land Use Transportation Study The need for an Integrated Land Use Transport plan was identified in Council’s Strategic Plan. This report is in the process of being completed and aims to integrate the transportation requirements for the City of Glenorchy with the associated land uses and the Planning Scheme. 7.7.5 Brooker Highway Operational Review This report was prepared under the Partnership Agreement with the State Government to provide guidelines for the future management of. 24.

(25) the Highway within the City of Glenorchy and to identify any deficiencies that exist in its operation. The report examined the conflicting through and cross Highway movements and made recommendations on how best to manage these. Council is working with State Government to adopt the report and prioritise the recommendations from the report. 7.7.6 Local Area Traffic Management Plans The development of local area traffic management plans for each of the twelve precincts is in various stages of completion. The plans include the modification of residential roads to improve road safety and residential amenity. Consultation for the eight precincts that border onto the Brooker Highway was carried out in conjunction with the Operational Review of the Highway. Projects from these precincts are in the process of being prioritised and implemented. The remaining four precincts are currently being developed. Board Response See Board comment following section 7.9.. Council Submission. 7.8 Sewerage services 7.8.1 Goals, Strategies and Action Plans Council’s Strategic Plan supports a goal of “A City where water is fit to drink and waste water is promptly treated”. From the strategies “Ensure the equitable provision of clean water and innovative use of waste water” and “Ensure the provision of a sewerage system that meets community expectations” comes the following Action Plans associated with sewerage services. • • •. Investigate effluent reuse as a means of water conservation. Monitor the sewerage piped system and replace as required to ensure safe, efficient and effective disposal of sewage and compliance with relevant standards. Monitor the sewage treatment plants and pump stations and maintain and replace as required to ensure safe, efficient and effective disposal of sewage and compliance with relevant standards.. 25.

(26) • • • • •. Investigate options for the reuse of bio-solids from the sewage treatment plants. Investigate opportunities to commercialise wastewater treatment. Progressively investigate, evaluate and remove instances where stormwater is being directed in to the sewer system. Investigate and correct reported instances of sewage being directed into the Stormwater system. Investigate, program and up grade under sized pipe systems to prevent sewer over flows into our creeks and waterways.. 7.8.2 Asset Details Council’s sewer infrastructure assets comprise: • 384 km of sewer reticulation pipes • 8 km of sewer pressure mains • 8844 manholes • 29 sewer pump stations • 2 Sewage treatment Plants with a combined capacity of 15 Ml per day. 7.8.3 Asset Management Planning The review and subsequent loading of Council’s sewer asset register into Hansen IMS in June 2002, completion of the sewer infrastructure mapping on Council’s MapInfo-GIS, the linking of these two information systems and the introduction of the Hansen work order module in July 2003 has now provided a means to progress maintenance initiatives formulated in a report done in 1996. The scanning of 10,000 reticulation system field sketches and linking these to the asset data on the GIS will also enhance the availability of sewer system information across Council. In regard to extension of the sewer system, a series of reports were commissioned between 1999 and 2001 on the options available to address serious pollution of ground water and local creeks from failing septic tank systems in Collinsvale. Public meetings were held through this period with Council deciding on a package treatment plant and reticulation system. To augment Council’s budget allocation in 2002 Federal Government NHT funding was granted and 85% of the reticulation pipe work installed. 2003-2004 will see completion of this treated effluent pumping line and storage lagoon and site preparation for the package treatment plant.. 26.

(27) Recognition of possible major infrastructure augmentation works necessary to serve the growing Northern Suburbs (accentuated by the sewering of Blacksnake and Granton areas in 1998-2001) will be addressed 2003-2004. This will entail an on site data collection project followed by a consultation report on future strategies and options on serving the area. 7.8.4 Asset Maintenance Management In 1996 Council’s Hydraulics section developed a proactive maintenance program to manage the sewer system. This plan consisted of. • Continuing the smoke testing program • Developing and implementing a drain cleaning program • Developing and implementing a root foaming program • Developing and implementing a plan for gathering information on the condition of the pipe work, cause of the blockages and assessment of the sewerage network to prevent future blockages. The following data maps and tables are being developed and maintained in the GIS and will form the basis of future proactive maintenance programs: • • •. Root Foaming- line and date Sewer Blockage reports – location, date and reason Low gradient pipe cleaning.. Evidence/Documentation. Reference number S7.0008. Smoke testing program. S7.0009. Root foaming program. S7.0010. CCTV reports Cleaning and maintenance programs. S7.0011 S7.0012. Effluent quality reports. S7.0013. Sludge quality reports Trade waste policy and Trade Waste By-law. S7.0014 S7.0015. Sewage Overflow Procedure. 27.

(28) Board Response See Board comment following section 7.9. Council Submission. 7.9 Stormwater drainage 7.9.1 Goals, Strategies and Action Plans Council’s Strategic Plan supports a goal of “A City where water is fit to drink and waste water is promptly treated”. From the strategies “Ensure the equitable provision of clean water and innovative use of waste water” and “Ensure the maintenance of high standard stormwater infrastructure” comes the following Action Plans associated with stormwater services. • • • • • • •. Continue to develop Council’s community consultation and participation progress and to maintain the Council role in this regard. Work with Council’s precincts and other community groups to implement strategies for increasing civic pride. Develop a strategy to encourage water conservation and re-use of stormwater. Develop an integrated catchment management plan. Monitor the stormwater system and replace and maintain as required to ensure satisfactory standards including impacts on catchment areas. Progressively investigate, evaluate and remove instances where stormwater is being directed to the sewer system. Investigate and correct instances of sewage being directed into the stormwater system.. 7.9.2 Asset Details. • • • • •. Council’s stormwater assets comprise the following main elements: 349.5 km of stormwater pipe 5615 stormwater inlets 3 storage basins 6916 sqm of rock gabions in creeks and rivulets 1 Gross Pollution Trap. 7.9.3 Asset Management Planning A 20-year program for new assets and replacement/renewal of existing assets was developed in 2003. This was incorporated into a corporate financial model to provide guidance on short and long term financial 28.

(29) decisions. The program was used to form the basis of the capital works program for 2003/2004 and will be continually updated as performance and augmentation data is gathered. This process has been improved since the relocation of the hydraulic services staff to the Work Centre enabling closer liaison with the plumbing crews. 7.9.4 Asset Maintenance Management In 2003 Council formed a Stormwater Management Committee to focus on developing and implementing comprehensive proactive maintenance programs for the current infrastructure. This includes recording and documenting those procedures and to continue to upgrade and improve those procedures. This will enable Council to • Identify hot spots • Assess current asset condition • Minimise migration activities to prevent the impact of stormwater on specific sites. • Develop a five-year capital works program for the renewal and extension to the stormwater infrastructure throughout the City including the costs. • Develop a sustainable stormwater system for the City. • Engage the community in facilitating the development of the stormwater action plan • Identify where stormwater is impacting on significant environmental values • Implement an environment management plan In addition to the Strategic Plan there are a number of external drivers that determine the scale and scope of the services the drainage assets supply to the community. Over the last few years the focus of the drainage programme has shifted from management of hydraulic issues on a drain-by-drain basis to a more integrated catchment management approach with the main focus on environmental issues. In particular the State Policy on Water Quality Management has resulted in the determination of Protected Environmental Values for the catchments within the City. Council has the following catchment management plans: • • • •. Prince of Wales Bay Newtown Rivulet Management Plan Goulds Lagoon State of Environment Report.. Flood studies have also been undertaken for a number of major rivulets and creeks that pass through the city and suburban areas. These have been prompted by the destructive flood events in 1995 and 1996.. 29.

(30) These have been done for Newtown, Humphrey’s, Barossa and Islet Rivulets and for Prince of Wales Bay. Another measure that has been implemented since the floods is an early warning system on the Humphrey’s Rivulet catchment. This consists of a number of rain gauges and a telemetry system connected to the Hobart Weather Bureau and Council’s Work Centre. Additionally Council is a member of the Derwent Estuary Programme (DEP). The DEP is a joint initiative of Clarence, Brighton, Derwent Valley, Glenorchy, Hobart and Kingborough Councils, the State Government and private enterprise. The purpose of the programme is to develop and implement an integrated environmental management plan for the Derwent Estuary. Stormwater Reports for the City of Glenorchy •. Creek out falls. •. River outfalls. •. Water Quality Reports. •. Weed management / Rehabilitation.. As part of its commitment to improving stormwater quality Council has installed a gross pollutant trap (GPT) at Prince of Wales Bay Outfall. In addition to the GPT Council is to commence trialing litter traps for roadside pits in commercial areas and around Council work sites. The 2003/2004 budget includes an amount for installation of an additional 20 litter baskets through out the city. Evidence/Documentation. Reference number S7.0016. Prince of Wales Bay study. S7.0017. Flooding study. S7.0018. Catchment management plans. S7.0019. Creek studies. S7.0020. Creek maintenance program. S7.0021. Litter and gross pollutant traps Stormwater Management Group = Strategic Action Plans. Board Response. 30. S7.0022.

(31) In all of the asset classes from 7.5 to 7.9, the Board is pleased to see the significant detail on studies, management, management plans and reviews. It is the Board’s view that the detail covered in these studies will be a valuable resource for the community and provide much of the rationale of Council’s existing asset practices. The Board is particularly impressed with the catchment management plans for stormwater drainage and commends Council for its proactive action and studies on this important area of responsibility. Council Submission. 7.10 Waste management This topic has been covered in section 3.2.5 of this report.. 7.11 Water supplies 7.11.1 Goals, Strategies and Action Plans Council’s Strategic Plan supports a goal of “A City where water is fit to drink and waste water is promptly treated”. From the strategies “Ensure the equitable provision of clean water and innovative use of waste water” and “Ensure the provision of appropriate catchment planning” comes the following Action Plans associated with water services. • • • • • • •. Monitor the water system and replace and maintain as required to ensure provision of water at an acceptable pressure and quality. Review the water restriction policy Monitor the appropriateness of Council’s water pricing policy. Implement long term efficient and effective proactive maintenance procedures for the water systems that improve customer service and the environment. Develop a prioritised list of required extensions to the hydraulic systems and incorporate into a 5-year capital works programme. Develop a strategy to encourage water conservation and re-use of stormwater. Develop and implement a strategy for the progressive construction of new reticulation reservoirs to serve the central and southern end of the city to augment/replace Tolosa and Limekiln reservoirs.. 7.11.2 Asset Details Council’s water assets consist of: • 12 reticulation reservoirs (total capacity 53.7 ML). 31.

(32) • • • •. 773 kms of water pipes 2621 fire hydrants 4 pump stations approximately 20800 water connections (including Council facilities).. 7.11.3 Asset Management Planning The identification of augmentation works for the capital works program has been facilitated to a large degree by water modelling software owned and operated by Council. All 11 water reticulation zones have been modelled to predict adequate pressure and flow requirements. The modelling software has been critical to the reservoir augmentation program, which commenced with the construction of Merton Reservoir in June 2003 (as a replacement for Limekiln Dam). Council has, since 1994, required all new subdivisions to have water meters installed but the recording of these (date, size and address) has only recently been retrieved. A process for ongoing recording has been put in place. Although no decision has been made to embark on a water meter installation program (with the ultimate aim of introducing a user pays charge system) these measures are seen as responsible over the long term. Council is currently developing standards of system and operational performance and material specifications that will be used for all future works and as a guide for developers. The establishment of a Water District for the Glenorchy municipality was initiated some years ago but lapsed during the period of formation of Hobart Water. The need to re-establish this has been recognised as a necessary part of the planning and regulation process and work is currently underway to define the boundaries. A Water Supply Policy and associated procedures will be introduced to complement this. 7.11.4. Asset Maintenance Management A telemetry system monitors the level of all reservoirs plus status conditions at the pump stations. These are displayed on a SCADA system at the Work Centre and both Sewage Treatment Plants and after hours alarms are sent to Council’s paging service. The sewage pump station operator also has responsibility for efficient operation of the water pump stations and the Sewer Treatment Plant/Pump Station crew maintain the telemetry systems. The Plumbing crews maintain reservoirs and reticulation systems. The Plumbing Supervisor and the Hydraulics Officer coordinate proactive maintenance programs. These are being formalised through 32.

(33) the use of programmed generation of Work Orders on a periodic basis and inspections. Council has not undertaken any condition assessments of water lines. Maintenance tasks include reservoir cleaning, water flushing, valve pit and PRV checking plus hydrant cleaning and marking.. Evidence/Documentation. Reference number S7.0023. Draft Water System Policy. S7.0024. Water Restrictions Policy. S7.0025. Emergency supply plan. S7.0026. Water modelling (H2O net) Water Sewer and Drains by-law No 3 of 1998. S7.0027 S7.0028. Flushing Program. Board Response Noted. The Board inspected the new reservoirs on its tour of the municipal area. It is encouraged to see the proactive augmentation of reticulation reservoirs. The Board is pleased to see that Council has required installation of water meters for all new subdivisions and encourages further installation of water meters for suspected high users of water.. Council Submission. 7.12 Property assets 7.12.1 General property assets Items included in this asset class include buildings, landscaping, trees, playgrounds, parks, furniture, sporting fixtures, fencing and gates. Council’s Property Services section has responsibility for an extensive inventory of varying assets. A summary of assets is as follows: Facility Group. No.. Council Facilities Leased Facilities. 21 5. Community Facilities. 11. Approximate Area (Ha). Description Council owned and operated facility Facilities which are leased from Council Facilities which may be hired on a short term basis. 33.

(34) Playgrounds Significant Areas. 61 6. 849.476. Community Parks. 15. 44.182. Neighbourhood Parks. 74. 28.777. 7. 11.838. Developed play areas Significant open space Informal recreational areas serving a group of suburbs Informal recreational areas within a suburb Major contribution to sporting opportunities Minor contribution to sporting opportunities Areas of remnant native vegetation Area of limited passive recreational use Utility reserves or reserves for carparking Properties identified for sale Recreational areas adjoining creeks etc.. Significant Sportsgrounds Secondary Sportsgrounds Bushland Areas Amenity Reserves. 2. 5.946. 6 48. 368.973 13.596. Utility Reserves. 86. 109.772. Surplus Properties Recreational Linkages. 2 17. 0.137. Total properties. 263. 1,432.817. Hectares. Council manages a wide variety of land from natural bushland areas to developed parks, sports grounds, freehold land and crown leased areas. Land recognised on Council’s asset register is determined by ownership and only freehold land and land parcels to which Council has title are recorded. Land acquired for use as part of Council’s road network is not included, as such land value will be expensed on the basis that once purchased that land has no value. Land values are as provided by the Valuer General representing an estimate of current market value without improvements. Board Response The Board notes the significant number of Council facilities, parks, playgrounds and reserves. The Board has found in many other councils that there is a limit to how many facilities can continue to be supported as assets age and required standards of equipment improve. The Board suggests that Council undertake a study on the relative lifecycle costs of its many facilities, and take appropriate action to program cost effective replacements. The Board also suggests that any new playground, parks and sportsground developments be accompanied with full life-cycle costing reports, so that Aldermen are fully informed of the long term commitments related to such assets. 7.12.2 Buildings Glenorchy City Council maintains a significant number of buildings throughout the city including: • •. Administrative office building Community halls/Facilities 34. 8 13.

(35) • • • • • •. Public toilets Buildings associated with Sports facilities Municipal pool complex Child care centres/Family Day Care Entertainment Centre Heritage facility. 19 25 1 4 1 5. All buildings are generally maintained on a programmed maintenance basis including a preventative maintenance program for high use facilities. Board Response The Board notes the significant number of Council buildings, public toilets, sports buildings and community facilities. The Board suggests that Council undertake a study on the relative lifecycle costs of it many buildings, and take appropriate action to program cost effective maintenance. The Board is aware that Council maintains both a significant number of public buildings and substantial buildings. The Board believes that Council needs to continually assess its level of public buildings and associated expenditure in order to demonstrate that it can continue to afford them or that the buildings are providing a cost effective service and value for money.. Council Submission. 7.13 Fleet and Plant Management To effectively carry out the duties and functions of all departments Council requires the use of the following list of plant and equipment. 61 3 30 3 1 3 6 200. Light passenger vehicles (including utilities) Light tool-of-trade vehicles Trucks Backhoes Excavator Large Tractors Mowers (Tractor type or gang type) (approx) Plant of equipment items (value generally $5000). The subject of ownership or lease, management and allocation of all plant and equipment has recently been subject to a number of reviews. A different approach was taken for the light passenger vehicles and the fleet of construction vehicles with a number of new policies being. 35.

(36) formulated and adopted. All vehicles and plant have been renumbered to comply with a new structured number system. The lease of light passenger vehicles has been tendered recently with a number of options still under consideration. The total organisation costs of a fully operational cost lease will be compared with arrangements where Council will cover the costs of repairs, service and fuel. Council monitors and co-ordinates its light vehicle fleet using the current suppliers “efax” software for fleet management. Charges for light vehicles are based on full operational costs. Contracts are generally for a 2 or 3 year period and costs are tracked by department and vehicle annually. The future lease or purchase of tool-of-trade vehicles, trucks and heavy plant will be based on economic considerations taking into consideration usage operating cost and residual value. Council has recently purchased a 6-tonne excavator previously sourced from contractors on an hourly hire basis and a tractor and backhoe have been repurchased at favourable terms on termination of their lease. A new position of Plant Coordinator has been filled. Internal hire rates for all major and high utilisation plant and equipment is calculated on annual usage, total operating costs, amortisation or depreciation plus an administration charge to support the new position. Usage is recorded on employee time sheets and generates income to leased or Council owned plant accounts from maintenance of capital accounts. A parallel set of accounts is kept for plant expenditure. Maintenance is scheduled and monitored by the Plant Coordinator and the lease company, leased fleet being serviced by the nominated agent and Council plant through distributors or at the Work Centre workshop. Items that are specialised and used infrequently but are readily available from external organisations are included in a two-year tender for registration for approved suppliers, subject to standard conditions and tendered rates. A review of plant usage is conducted annually which includes external providers. If an item of plant is used frequently and an economic case for purchase can be justified funds will be included in the annual budget or during a budget review in November. Council owns all its small construction plant and equipment and this strategy will continue in the future with a replacement program maintained by the Plant Co-ordinator. Council has also determined that plant that is vital to its activities but is not readily available will be also be purchased. Evidence/Documentation. Reference number. 36.

(37) S7.0030. Annual Plant Costs Plant Hire Registers and Schedules. S7.0031. Board Response Noted. The divestment or retention of a council owned fleet is a matter of policy for each council. The Board notes, however, that divestment of light motor vehicles, while a valuable source of working capital, can work against councils in the longer term, due to the need to find fresh capital funding if ownership options are to be reinstated. The Board is aware that some councils have sold their light vehicles fleet only to find that the economics of leasing change rapidly. On many occasions the councils are in a position of paying high lease fees after they have spent limited capital resources. Council Submission. 7.14 Land development When constructing subdivisions developers are required to fund all works associated with connecting to Council’s infrastructure. After subdivision completion, assets such as roads, water, drainage etc are added to Council’s asset register and maintenance of the assets vests with Council. Subdivision open space is assessed against the proximity of other developed open space, land topography and the need to obtain cash in lieu for development of other spaces that could service the proposed development site. Board Response Noted Council Submission. 7.15 Public amenities These assets include public toilets, boat ramps, playgrounds (refer section 7.14), skate parks, cycle tracks, and other assets such as bus shelters and street furniture. Council’s assets have been individually listed and valued under the asset management program. Development of public toilets, playgrounds and other major recreational facilities have been developed in accordance with the recommendations of the City of Glenorchy Recreation Strategy and Open Space Plans of Management 1996.. 37.

(38) Street Furniture is considered and provided when infrastructure upgrades occur. Consultation with stakeholders is undertaken prior to commencement of projects. Bus Shelters and boat ramps are included in Council’s programmed maintenance schedule and Council has been involved in audits of the facilities. Attachments are provided detailing Council reports for the upgrading of public toilets and playground management. Council’s Community Plan (sections 2.4, 2.5 and 2.8) identifies the need to continue and improve the development and management of public amenities. Strategies 7.2.1, 7.2.3, 7.4.1 and 7.4.4 of Council’s Strategic Plan determines the level of provision, safety and accessibility. Evidence/Documentation. Reference number. Public toilet update strategy-Council report April 2003 Playgrounds-Council report March 2003 Risk assessment- Annual review by CMP. S7.0032 S7.0033 S8.0003 S7.0035. Street furniture-Asset register Urban design-Streetscape infrastructure – Asset register, tree database Precinct committees- Minutes of meetings. S7.0036 S7.0037. Board Response Noted Council Submission. 7.16 Recreational facilities and parks 7.16.1 Playgrounds Glenorchy City Council undertakes continuous improvement in the area of playgrounds ensuring assets contained within parks are well maintained and reflect current community need and are constructed in accordance with Australian Standards. Assets contained within parks, reserves and sporting facilities are detailed within the Council’s asset management information system.. 38.

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