Strategic-Asset-Management-Plan

Strategic Asset Management Plan —— September 2020ii • Strategic Asset Management Plan • June 2020 Document Version Control Rev. No. Date Revision Details Author Reviewer Approver 1 01/09/2020 Adopted by Council CM ...

Strategic Asset Management Plan —— September 2020ii • Strategic Asset Management Plan • June 2020 Document Version Control Rev. No. Date Revision Details Author Reviewer Approver 1 01/09/2020 Adopted by Council CM/JL DS CouncilStrategic Asset Management Plan • June 2020 • iii Table of Contents Table of Contents...................................................................................................................................... iii List of Tables ...........................................................................................................................................v List of Figures ..........................................................................................................................................v 1 Introduction........................................................................................................................................... 7 1.1 Purpose and Scope......................................................................................................................... 7 1.1.1 Goals of Plan..........................................................................................................................7 1.1.2 Scope of Plan.........................................................................................................................7 1.2 Plan Development ........................................................................................................................... 8 1.2.1 Key Contributors.....................................................................................................................8 1.2.2 Associated Documents ...........................................................................................................8 1.2.3 Standards and Guidelines.......................................................................................................8 1.2.4 Planning Horizon of Document................................................................................................8 1.3 Organisational Context .................................................................................................................... 9 1.3.1 Council Purpose .....................................................................................................................9 1.3.2 Council Vision, Mission, and Values........................................................................................9 1.3.3 Council Objectives..................................................................................................................9 1.3.4 Legislation ............................................................................................................................10 1.4 Asset Management Framework ..................................................................................................... 10 1.4.1 Overview ..............................................................................................................................10 1.4.2 Goals of Asset Management.................................................................................................11 1.4.3 Asset Management Principles...............................................................................................11 1.4.4 Asset Management Objectives..............................................................................................11 1.4.5 Structure for Service Delivery................................................................................................12 2 Leadership .......................................................................................................................................... 13 2.1 Commitment to Asset Management ............................................................................................... 13 2.1.1 Asset Management Steering Committee ...............................................................................14 2.2 Organisational Structure ................................................................................................................ 14 2.3 Roles and Responsibilities............................................................................................................. 15 2.3.1 Leadership Responsibilities ..................................................................................................15 2.3.2 Asset Management Responsibility Matrix..............................................................................17 2.4 Support for Asset Management ..................................................................................................... 17 2.4.1 Asset Management Team.....................................................................................................17 2.4.2 Asset Class Working Groups ................................................................................................18 2.4.3 Resourcing and Competence................................................................................................18 2.5 Monitoring and Reporting on Asset Management........................................................................... 19 2.5.1 Reporting on Asset Management Implementation .................................................................19 2.5.2 Asset Management Self-Assessment....................................................................................19 3 Service................................................................................................................................................. 21 3.1 Shire Services ............................................................................................................................... 21 3.2 Stakeholders ................................................................................................................................. 21iv • Strategic Asset Management Plan • June 2020 3.3 Levels of Service........................................................................................................................... 22 3.3.1 Customer Levels of Service ..................................................................................................22 3.3.2 Technical Levels of Service ..................................................................................................23 3.3.3 Current Asset Performance...................................................................................................24 3.4 Service Classification..................................................................................................................... 24 3.5 Level of Service Drivers................................................................................................................. 25 3.5.1 Community Needs and Expectations.....................................................................................25 3.5.2 Strategic and Corporate Goals..............................................................................................26 3.5.3 Legislative Requirements......................................................................................................26 3.6 Future Demand ............................................................................................................................. 27 3.6.1 Demand Drivers....................................................................................................................27 3.6.2 Demand Impacts and Demand Management Plan ................................................................27 3.6.3 Asset Programs to Meet Demand .........................................................................................28 4 Risk...................................................................................................................................................... 30 4.1 Risk Management.......................................................................................................................... 30 4.1.1 Asset Management Risk Register .........................................................................................30 4.1.2 Identified Asset Issues..........................................................................................................31 4.2 Asset Criticality.............................................................................................................................. 31 4.2.1 Asset Category Criticality......................................................................................................31 4.2.2 Critical Assets.......................................................................................................................32 5 Information.......................................................................................................................................... 33 5.1 Asset Management Information System......................................................................................... 33 5.2 Asset Data..................................................................................................................................... 34 5.2.1 Asset Hierarchy ....................................................................................................................34 5.2.2 Data Confidence...................................................................................................................35 5.3 Financial Reporting........................................................................................................................ 36 5.3.1 Fair Value.............................................................................................................................36 5.3.2 Revaluation ..........................................................................................................................37 6 Whole of Life ....................................................................................................................................... 39 6.1 Asset Planning .............................................................................................................................. 39 6.2 Asset Lifecycle .............................................................................................................................. 39 6.2.1 New/Expansion and Upgrade................................................................................................40 6.2.2 Operation and Maintenance..................................................................................................42 6.2.3 Renewal ...............................................................................................................................44 6.2.4 Disposal ...............................................................................................................................45 6.3 Financial Projection and Funding Strategy ..................................................................................... 46 6.3.1 Financial Projection ..............................................................................................................46 6.3.2 Sustainability of Service Delivery ..........................................................................................46 7 Climate ................................................................................................................................................ 47 7.1 Asset Vulnerability......................................................................................................................... 47 7.2 Asset Resilience............................................................................................................................ 47 7.3 Asset Impacts on Climate .............................................................................................................. 48Strategic Asset Management Plan • June 2020 • v 8 Implementation and Improvement ..................................................................................................... 49 8.1 Implementation and Improvement Plan.......................................................................................... 49 8.2 Communication Plan...................................................................................................................... 56 8.3 Monitoring and Reporting............................................................................................................... 56 9 References .......................................................................................................................................... 57 Appendix A. Assets That Are Not the Shire’s Responsibility ................................................................ 59 Appendix B. Asset Management Responsibility Matrix ......................................................................... 62 Appendix C. Asset Management Capability Matrix ................................................................................ 70 Appendix D. Legislative Requirements for Levels of Service................................................................ 71 Appendix E. Asset Management Risk Register ...................................................................................... 73 Glossary................................................................................................................................................... 74 List of Tables Table 1. Assets covered by this plan....................................................................................................... 7 Table 2. Responsibilities for Asset Management................................................................................... 15 Table 3. Customer Service Levels – Grading Descriptions*................................................................... 23 Table 4. Demand Drivers, Projections and Impact on Services ............................................................. 28 Table 5. Asset Category Criticality........................................................................................................ 31 Table 6. Summary of data confidence by Major Asset Class................................................................. 35 Table 7. Data confidence level descriptions .......................................................................................... 36 Table 8. Capital Works Key Evaluation Criteria..................................................................................... 41 List of Figures Figure 1. Shire Values ............................................................................................................................. 9 Figure 2. Asset Management Framework............................................................................................... 11 Figure 3. Asset Management Principles................................................................................................. 11 Figure 4. Asset Management Objectives................................................................................................ 12 Figure 5. Asset Management Framework Linkage to Service Delivery.................................................... 13 Figure 6. Mornington Peninsula Shire Organisational Structure* ............................................................ 15 Figure 7. Asset Management competency rating scale .......................................................................... 18vi • Strategic Asset Management Plan • June 2020