WWC Strategic Asset Management Plan V1.2-1

ATTACHMENT F
ORDINARY MEETING
OF COUNCIL
AGENDA
OPEN MEETING
21 SEPTEMBER 2015
Draft Strategic Asset Management Plan V1.0

Waratah-Wynyard Council
Draft Strategic Asset Management Plan
Scenario 2 Version 1.0
July 2015
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Document Control
Document ID: 150223 nams.plus3 strategic amp template v3.10

Rev No Date Revision Details Author Reviewer Approver
1 2015 WWC – SAMP V1.0 JL DS MS
Picture Credits: Front Cover – Fay Hulme
© Copyright 2015 – All rights reserved.

The Institute of Public Works Engineering Australia.
www.ipwea.org/namsplus
Waratah-Wynyard Council – Strategic Asset Management Plan

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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY ...................................................................................................................................................................1
Context ...............................................................................................................................................................................................1
Current situation.................................................................................................................................................................................1
What does it Cost? ..............................................................................................................................................................................1
What we will do ..................................................................................................................................................................................1
What we cannot do ............................................................................................................................................................................1
Managing the Risks .............................................................................................................................................................................1
Confidence Levels ...............................................................................................................................................................................1
The Next Steps ....................................................................................................................................................................................1
2. ASSET MANAGEMENT STRATEGY ..................................................................................................................................................4
2.1 Asset Management System ..................................................................................................................................................4
2.2 What Assets do we have? ....................................................................................................................................................6
2.3 Our Assets and their management.......................................................................................................................................7
2.4 Where do we want to be? ..................................................................................................................................................14
2.5 Asset Management Vision..................................................................................................................................................16
2.6. How will we get there? ......................................................................................................................................................16
2.7 Asset Management Improvement Plan ..............................................................................................................................18
2.8. Consequences if actions are not completed ......................................................................................................................18
3. LEVELS OF SERVICE ......................................................................................................................................................................18
3.1 Consumer Research and Expectations ...............................................................................................................................18
3.2 Organisational Objectives ..................................................................................................................................................19
3.3 Legislative Requirements ...................................................................................................................................................20
3.4 Levels of Service .................................................................................................................................................................20
4. FUTURE DEMAND ........................................................................................................................................................................21
4.1 Demand Drivers..................................................................................................................................................................21
4.2 Demand Forecast ...............................................................................................................................................................21
4.3 Demand Impact on Assets ..................................................................................................................................................21
4.4 Demand Management Plan................................................................................................................................................22
4.5 Asset Programs to Meet Demand ......................................................................................................................................23
5. LIFECYCLE MANAGEMENT PLAN ..................................................................................................................................................23
5.1 Background Data ................................................................................................................................................................23
5.2 Infrastructure Risk Management Plan................................................................................................................................25
5.3 Routine Operations and Maintenance Plan .......................................................................................................................25
5.4 Renewal/Replacement Plan ...............................................................................................................................................27
5.5 Creation/Acquisition/Upgrade Plan ...................................................................................................................................29
5.6 Disposal Plan ......................................................................................................................................................................31
5.7 Service Consequences and Risks ........................................................................................................................................31
6. FINANCIAL SUMMARY .................................................................................................................................................................31
6.1 Financial Indicators and Projections ...................................................................................................................................32
6.2 Funding Strategy ................................................................................................................................................................32
6.3 Valuation Forecasts ............................................................................................................................................................32
6.4 Key Assumptions made in Financial Forecasts ...................................................................................................................34
6.5 Forecast Reliability and Confidence ...................................................................................................................................35
7. PLAN IMPROVEMENT AND MONITORING ...................................................................................................................................36
7.1 Status of Asset Management Practices ..............................................................................................................................36
7.2 Improvement Program .......................................................................................................................................................36
7.3 Monitoring and Review Procedures ...................................................................................................................................38
7.4 Performance Measures ......................................................................................................................................................38
8. REFERENCES .................................................................................................................................................................................39
9. APPENDICES .................................................................................................................................................................................40
Appendix A Summary Levels of Service for Services # .....................................................................................................................41
Appendix B Projected Capital Renewal Program .............................................................................................................................42
Appendix C Projected Upgrade/Exp/New Capital Works Program .................................................................................................52
Appendix D Unfunded Initiatives and Capital Works proposals # ....................................................................................................58
Appendix E Waratah-Wynyard Council Asset Management Policy .................................................................................................59

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1. EXECUTIVE SUMMARY
Context Estimated available capital funding for this period is

$2,769,000 on average per year. This is a capital
Waratah-Wynyard Council is responsible for the funding shortfall of $146,000 on average per year.
acquisition, operation, maintenance, renewal and
disposal of an extensive range of physical assets with a What we will do
replacement value in excess of $207 million.
Our aim is to provide the services needed by the
The assets covered by this plan include roads, bridges, community in a financially sustainable manner.
stormwater drainage, buildings, open space & Achieving financial sustainability requires balancing
recreation, footpaths, and associated operating assets service levels and performance with cost and risk.
and provide services essential to our community’s
Our decision making process needs to be transparent,
quality of life.
accountable and evidence-based in pursuit of best
value for money outcomes.
This Strategic Asset Management Plan takes the
organisational objectives in our Strategic Plan, and It may not be possible to meet all expectations for
develops the asset management objectives, principles, services within current financial resources. We will
framework and strategies required to achieve our continue to engage with our community to ensure that
organisational objectives. The plan summarises needed services are provided at appropriate levels of
activities and expenditure projections from individual service at an affordable cost while managing risks.
asset management plans to achieve the asset
management objectives What we cannot do
We do not have enough funding to provide all services
Current situation at the desired service levels and/or to provide new
services. Major works and services that cannot be
Our aim is to achieve a ‘core’ maturity for asset provided within the next 10 years under present
management activities by 2016 and continue maturity funding levels are:
improvement where the benefits exceed the costs.  Sealing of unsealed roads; and
Improvement tasks with costs and target dates have  Changes to the natural flow of stormwater to
been identified and documented in Table 7.2 resolve rural drainage issues.
Improvement plan.
Managing the Risks
What does it Cost?
There are risks associated with providing the service
Operating Outlays and not being able to complete all identified activities
The projected operating outlays necessary to provide and projects. No major risks have been identified as
the services covered by this Strategic Asset part of this July 2015 version strategic asset
Management Plan (AM Plan) includes operations and management plan.
maintenance of existing assets over the 10 year
planning period is $3,312,000 on average per year. Risk levels will continue to be reviewed as the
improvement plan is progressed and our asset
Estimated available funding for this period is management maturity improves.
$3,208,000 on average per year. This is a funding
shortfall of $104,000 on average per year. Inputs for
Confidence Levels
the first version SAMP were based upon historical
This SAMP is based on Low level of confidence
data, future iterations will be iterative and integral
information (i.e. primarily based on expert opinion and
with the Long Term Financial Plan updates as such
judgement
similar funding shortfalls are not expected.
Capital Outlays The Next Steps

The projected required capital outlays including
renewal and upgrade of existing assets and acquisition The actions resulting from this asset management plan
of new assets over the 10 year planning period is are:
 Production of 1 cut Service Level Dashboards;
st
$2,915,000 on average per year.
 Review and document road service levels;

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 Review of sealed road pavement useful lives;

 Formal Open Space and Recreation Planning;
 Update Asset Management Plans; and
 Review of organisational AM maturity assessment.

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2. ASSET MANAGEMENT STRATEGY
2.1 Asset Management System
Asset management enables an organisation to realise value from assets in the achievement of
organisational objectives, while balancing financial, environmental and social costs, risk, quality of
service and performance related to assets.1
An asset management system is a set of interrelated and interacting elements of an organisation

to establish the asset management policy and asset management objectives, and the processes,
needed to achieve those objectives. An asset management system is more than a ‘management
information system’. The asset management system provides a means for coordinating
contributions from and interactions between functional units within an organisation. 2
The asset management system includes:
 The asset management policy

 The asset management objectives
 The strategic asset management plan
 The asset management plans, which are implemented in
o Operational planning and control
o Supporting activities
o Control activities
o Other relevant processes.3
2.1.1 Asset Management Policy
The asset management policy sets out the principles by which the organisation intends applying
asset management to achieve its organisational objectives.4 Organisational objectives are the
results the organisation plans to achieve, as documented in its Strategic Plan. Our adopted asset
management policy is attached.
2.1.2 Asset Management Objectives
The asset management objectives, developed in this strategic asset management plan provide the
essential link between the organisational objectives and the asset management plan(s) that
describe how those objectives are going to be achieved. The asset management objectives
transform the required outcomes (product or service) to be provided by the assets, into activities
typically described in the asset management plans. Asset management objectives should be
specific, measureable, achievable, realistic and time bound (i.e. SMART objectives).5
1
ISO, 2014, ISO 55000, Sec 2.2, p 2
2
ISO, 2014, ISO 55000, Sec 2.5.1, p 5
3
ISO, 2014, ISO 55002, Sec 4.1.1, p 2.
4
ISO, 2014, ISO 55002, Sec 5.2, p 7.
5
ISO, 2014, ISO 55002, Sec 6.2.1, p 9.

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2.1.3 Strategic Asset Management Plan
This strategic asset management plan is to document the relationship between the organisational
objectives set out in the Waratah-Wynyard Council Strategic Plan 2009 - 2015 and the asset
management (or service) objectives and define the strategic framework required to achieve the
asset management objectives.6 Figure 1 shows how this Strategic Asset Management Plan fits
within the organisation’s broader strategic and operational planning framework.
Figure 1: Strategic and Operational Planning Framework
Council is currently in the process of developing a 25 year community plan and a 10 year strategic
plan. The development of version 2 of this strategic asset management plan will occur in
conjunction with the development of these plans.
This strategic asset management plan encompasses the following services:
 Roads
 Bridges
 Stormwater
 Buildings
 Open Space and Recreation
 Footpaths
Council’s other service areas will be incorporated into this plan in future revisions.
6
ISO, 2014, ISO 55002, Sec 4.1.1, p 2.

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The strategic asset management framework incorporates strategies to achieve the asset
management objectives. The strategies are developed in 4 steps:
 What assets do we have?

 Our assets and their management
 Where do we want to be?
 How will we get there?7
2.1.4 Asset Management Plans
Supporting the strategic asset management plan are asset management plans for major
service/asset categories. The asset management plans document the activities to be implemented
and resources to be applied to meet the asset management objectives. The strategic asset
management plan summarises the key issues from following asset management plans:
 Transport Infrastructure Asset Management Plan

 Stormwater Infrastructure Asset Management Plan
 Buildings Infrastructure Asset Management Plan
 Recreation Infrastructure Asset Management Plan
 Draft Footpaths Infrastructure Asset Management Plan
Asset management/service plans for Council’s other service areas will be incorporated into this
plan in future revisions.
2.2 What Assets do we have?
We manage a lot of assets to provide services to our community. The assets provide the
foundation for the community to carry out its everyday activities, while contributing to overall
quality of life. The assets covered by this plan are shown in Table 2.2:
Table 2.2: Assets covered by this Plan
Asset Class/Category Dimension

Transport - Sealed Roads 283 km (1,836,000 m2 )
Transport - Unsealed Roads 242 km (1,248,000 m2 )
Transport - Kerb and Channel 125 km
Transport - Bridges 114 Bridges (5,500 m2 )
Stormwater Drainage - Mains 96 km
Stormwater Drainage – Pits/headwalls 3,056 pits/headwalls
Buildings 93 Buildings
Open Space and Recreation - Parks/Reserves 122 Parks/Reserves (124 Ha)
Open Space and Recreation - Playgrounds 19 Playgrounds
Open Space and Recreation - Sporting Fields 7 Sporting Fields (20 Ha)
Transport - Footpaths 78 km (108,000 m2 )
7
LGPMC, 2009, Framework 2, Sec 4.2, p 4.

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2.3 Our Assets and their management
2.3.1 Asset Values
This infrastructure assets covered by this plan are shown in Table 2.3.1. These assets are used to
provide services to the community.
Table 2.3.1: Assets covered by this Plan
Asset Class/Category Total Current Current Value Annual Asset

Replacement Cost Consumption
(Depreciation)
Roads 112,124,000 54,767,000 2,054,000
Bridges 19,456,000 10,216,000 284,000
Stormwater 44,564,000 25,134,000 621,000
Buildings 12,143,000 11,816,000 327,000
Open Space and
7,879,000 5,452,000 273,000
Recreation
Footpaths 11,159,000 6,863,000 147,000
TOTAL 207,325,000 114,248,000 3,706,000
Figure 2 shows the replacement value of our assets.
Figure 2: Asset Replacement Values

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2.3.2 Asset Condition
In general we do not yet have any high confidence, up-to-date data on the condition of all of our
assets with the exception of:
1. Bridges - monitored using twice-yearly inspections by an independent expert, and
2. Sealed Road Surfaces, for which a visual condition inspection was carried out in 2012.
The condition of these assets is shown in Figure 3.
Figure 3: Condition of Bridge Assets Condition of Sealed Road Surface

Assets
Good
Fair
Poor
2.3.3 Lifecycle Costs
Lifecycle costs (or whole of life costs) are the average annual costs that are required to sustain the
service levels over the longest asset life. Lifecycle costs include operations and maintenance
expenditures plus asset consumption (depreciation). Life cycle costs can be compared to lifecycle
expenditure to give an indication of sustainability in service provision.
Lifecycle expenditures include operations and maintenance expenditures (excluding depreciation)

plus capital renewal expenditure. The capital renewal component of lifecycle expenditure can vary
depending on the timing of asset renewals.
The lifecycle costs and expenditures averaged over the 10 year planning period are shown in Table
2.3.3.

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Table 2.3.3: Asset Lifecycle Costs
Asset Class/Category Lifecycle Cost Lifecycle Expenditure Lifecycle

($M/yr) ($M/yr) Sustainability
Indicator
Roads 3.62 3.32 0.92
Bridges 0.3 0.25 0.79
Stormwater 0.77 0.30 0.38
Buildings 1.04 0.79 0.76
Open Space and
1.02 0.88 0.85
Recreation
Footpaths 0.26 0.11 0.44
TOTAL 7.01 5.56 0.81

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2.3.4 Asset Management Indicators
An asset management objective is to provide the services that the community needs at the
optimum lifecycle cost in a financially sustainable manner. Figure 4 shows the projected
operations, maintenance, capital renewal, capital upgrade/new expenditure balanced against the
financial outlays in the long-term financial management plan.
Figure 4: Balanced Position Projected Operating and Capital Expenditure
The large projected renewal spikes shown in 2030 and 2031 are misleading and merit the
following explanation:
 Council’s 2010 Transport Infrastructure Asset Management Plan showed $6 million worth of
road pavement assets already fully depreciated with a further $10 million due to reach full
depreciation by 2020 heavily contributing to the renewals forecast to 2020. Field inspection
found these assets to be in good condition with no signs of failure suggesting that they had
considerable remaining lives. Due to the difficulty of predicting (with any certainty) the
remaining lives of road pavement assets, a conservative approach of extending the estimated
renewal dates by twenty years from the date of inspection was adopted. While this solved the
problem of an overestimated renewals burden throughout the first 10 years of the plan, it
created the projected renewal spikes shown above in years 2030/31. Further work to improve
our understanding of the useful lives of our road pavement assets is required and is a key
element in the Asset Management Improvement Plan (refer to s7.2).
The purpose of this strategic asset management plan is to develop the strategies to achieve the
asset management objectives through balancing of asset service performance, cost and risk.

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2.3.5 Opportunities and Risks
We have identified opportunities relevant to the services included in this strategic asset
management plan for the future including:
 Technological advancement – (i) potential for reduced operating costs through more effective
use of IT (software and hardware) and (ii) emergence of improved engineering design and
construction practices (modern equivalent asset) to provide better value for money for
customers; and
 Open space and recreation planning.
Further opportunities are expected to be identified after revision of Council’s community/strategic

plans in 2016 and will be included in the next iteration of this plan.
Relevant risks to the strategic asset management plan in the future are:
 Further freezing or reduction of Financial Assistance Grants and/or Roads to Recovery Funding;
 Uninformed community expectations for increased service delivery;
 Population decline and aging effecting community’s capacity to pay for services; and
 Climate change impacting on development and maintenance of infrastructure in coastal areas.
Infrastructure risk management plans for these and other relevant risks are summarised with risk
management activities and resource requirements incorporated in the relevant asset management
plans.
2.3.6 Asset and Financial Management Maturity
We have taken steps to improve our asset and financial management performance including the
assessment of our asset management maturity against the 3 Frameworks of the Local Government
Financial Sustainability National Consistent Frameworks. Our initial target is to achieve ‘core’
maturity against these Frameworks. Figure 5 shows the current and target ‘core’ and ‘advanced’
maturity scores for the eleven elements of the National Frameworks for asset and financial
management. The results shown below represent a June 2015 review of the baseline maturity
assessment initially undertaken by Jeff Roorda & Associates in March 2012. Further review and
update of our maturity assessment is included as an item for action in the improvement plan (s.
7.2).

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Figure 5: Maturity Assessment – Waratah-Wynyard Council (ID 438)
Improvement in ‘core’ maturity is indicated by movement of the blue (current maturity) line to the
red (‘core’ maturity) and green line (desired maturity).
Elements with low maturity scores are:
 Strategic Plan;
 Asset Management Strategy; and
 Levels of Service.

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The risk to the organisation presented by the current maturity is shown in Figure 6.
Figure 6: Maturity Risk Assessment – Waratah-Wynyard Council (ID 438)
Reduction in risk from current maturity is indicated by movement of the red (current risk) line to
the green line (desired risk).
Elements with high maturity risk to the organisation are:
 Governance and Management;
 Strategic Longer Term Plan;
 AM Policy, Strategy and Plans; and
 Annual Budget.
2.3.7 Strategy Outlook
1. We are not certain of our ability to maintain current levels of service over the next 10
years.
2. We are not certain of our ability to fund current infrastructure lifecycle costs at current
levels of service and available revenue.
3. Our current asset and financial management maturity is below ‘core’ level and investment
is needed to improve information management, lifecycle management, service
management and accountability and strategic direction.

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2.4 Where do we want to be?
2.4.1 Community Expectations
It is critical to be able to assess community expectations in respect to service levels. Community

engagement is critical to ensure that informed decisions are made on future levels of service and
costs and that service and risk consequences are known and accepted by stakeholders.
While the Community Satisfaction Survey undertaken in 2014 represents a definite forward step in
this direction, it only represents a snapshot in time. Further efforts (i.e. more targeted community
engagement) are required in this area and the service level dashboards will be an important tool
as our level of community engagement develops.
In the meantime it is assumed that community expectations for service levels are generally
consistent with current levels of service.
2.4.2 Organisational Objectives
The organisational objectives are developed in the Waratah-Wynyard Strategic Plan 2009-2015
under Vision, Mission, Values and Priority Areas as shown below.
Vision
Waratah-Wynyard municipality will continue to be a thriving and prosperous

municipality, with opportunities for all.
Mission
Waratah-Wynyard Council will work to create an environment where its people can
prosper and take advantage of the municipality’s unique advantages to the benefit
of the community.
Values
 Good Governance: We will have open, accessible and accountable governance in touch
with the existing and changing needs of our community.
 Fairness and Responsiveness: We will ensure that all people are treated with dignity,
respect and fairness. Our staff is critical to the achievement of our goals and we are
committed to their continual development.
 Service Excellence: We are here to serve our community and will strive to meet its needs
through the provision of service excellence based on a continuous improvement approach.
 Continuous improvement: We will continually look for ways to improve our services to
enhance community benefit.
 Communication and Engagement: We will deliver accurate, timely and relevant
information involving the open exchange of ideas and information with the community.
 Environmental Sustainability: We aspire to become environmentally sustainable and
maximise opportunities for all people and future generations to enjoy social and physical
well-being.
 Leadership: We will effectively advocate the needs and aspirations of the community.

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Priority Areas
 Economic Prosperity: Addition to the wealth and diversity of our economy

 Our Community: Enhancement of the physical, social and cultural well-being of our
community
 Environment: Sustainable management of our natural and built environment
 Civic Leadership and Governance: a well-managed Council that services the
municipality with integrity and has a strong voice in the region
The organisational objectives developed for priority areas are shown in Table 2.4.2.
Table 2.4.2: Strategic Priority Areas and Organisational Objectives
Strategic Priority Area Organisational Objective

Economic prosperity 1.2 Road, rail and air transport opportunities are maximised
Our Community 2.1 The community is supported in its recreational pursuits
2.3 Facilities and services cater for the changing population
3.1 Council built infrastructure is constructed and maintained
Environment
to a high standard
3.2 Towns and settlements are attractive places
3.3 Coastal links are recognised and celebrated
Civic Leadership and
4.3 Council is managed in a financially sustainable manner
Governance
4.5 Council resources are utilised efficiently
2.4.3 Asset Management Objectives (Strategies)
The asset management objectives (or strategies) translate the organisational objectives (as stated
in the Community Strategic Plan) into the required service outcomes to be provided by
infrastructure assets and activities described in the asset management plans. Council is currently
in the process of developing a 25 year community plan and a 10 year strategic plan. Version 2 of
this strategic asset management plan will incorporate the asset management objectives of these
plans and outline the actions to achieve them along with performance targets and timelines.

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2.5 Asset Management Vision
To ensure the long-term financial sustainability of the organisation, it is essential to balance the
community’s expectations for services with their ability to pay for the infrastructure assets used to
provide the services. Maintenance of service levels for infrastructure services requires appropriate
investment over the whole of the asset life cycle. To assist in achieving this balance, we aspire to:
Develop and maintain asset management governance, skills, process, systems and data
in order to provide the level of service the community need at present and in the future,
in the most cost-effective and fit for purpose manner.
In line with the vision, the objectives of the strategic asset management plan are to:
 ensure that our infrastructure services are provided in an economically optimal way, with the
appropriate levels of service to residents, visitors and the environment determined by
reference to our financial sustainability;
 safeguard our assets including physical assets and employees by implementing appropriate
asset management strategies and appropriate financial resources for those assets;
 ensure continuous improvement and seek innovative ways of meeting service delivery
requirements;
 adopt the long term financial management plan as the basis for all service and budget funding
decisions;
 ensure that Council budgeting and reporting are categorised in terms of operational,
maintenance, renewal, upgrade and new expenditure classifications;
 meet the training needs in financial and asset management practices for councillors and staff;
 ensure resources and operational capabilities are identified and responsibility for asset
management is allocated;
 provide high level oversight of financial and asset management responsibilities through Audit
Panel/GM reporting to Council on development and implementation of the Strategic Asset
Management Plan, Asset Management Plans and Long Term Financial Management Plan;
 ensure appropriate risk management processes are considered and implemented; and
 meet legislative requirements for asset management.
Strategies to achieve this position are outlined in Section 2.6.
2.6. How will we get there?
The strategic asset management plan proposes strategies to enable the organisational objectives
and asset management policies to be achieved. Council has already commenced some of these
strategies but most depend on further iterations of Council’s long term financial management plan
and strategic asset management plan in order to be progressed.

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Table 2.6: Asset Management Strategies
No Strategy Desired Outcome

1 Move from annual budgeting to long term financial The long term implications of all
planning. services are considered in annual
budget deliberations.
2 Incorporate Year 1 of long term financial plan revenue Long term financial planning
and expenditure projections into annual budgets. drives budget deliberations.
3 Report our financial position at Fair Value in Financial sustainability
accordance with Australian Accounting Standards, information is available for
financial sustainability and performance against Council and the community.
organisational objectives in Annual Reports.
4 Develop and annually review asset management plans Identification of services needed
and strategic asset management plan covering at least by the community and required
10 years for all major asset classes (80% of asset funding to optimise ‘whole of life’
value). costs.
5 Review and update asset management plans, strategic We and the community are aware
asset management plan and long term financial plans of changes to service levels and
after adoption of annual budgets. Communicate any costs arising from budget
consequence of funding decisions on service levels and decisions.
service risks.
6 Develop and maintain a long term financial plan Sustainable funding model to
covering 10 years incorporating asset management provide our services.
plan expenditure projections with a sustainable
funding position outcome.
7 Ensure Council decisions are made from accurate and Improved decision making and
current information in asset registers, on service level greater value for money.
performance and costs and ’whole of life’ costs.
8 Report on our resources and operational capability to Services delivery is matched to
deliver the services needed by the community in the available resources and
annual report. operational capabilities.
9 Ensure responsibilities for asset management are Responsibility for asset
identified and incorporated into staff position management is defined.
descriptions.
10 Implement an improvement plan to realise ‘core’ Improved financial and asset
maturity for the higher risk financial and asset management capacity within the
management competencies within 2 years. organisation.
11 Report six monthly to Council by Audit Panel/GM on Oversight of resource allocation
development and implementation of strategic asset and performance.
management plan, AM Plans and long term financial
plans.

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2.7 Asset Management Improvement Plan
The tasks required to achieve a ‘core’ financial and asset management maturity are shown in
priority order in the asset management improvement plan in Section 7.2
2.8. Consequences if actions are not completed
The consequences for the Council if the improvement actions are not completed are as follows:
 Inability to achieve strategic and organisational objectives;
 Inability to achieve financial sustainability for the organisation’s operations;
 Current risks to infrastructure service delivery are more likely to eventuate and response
actions may not be appropriately managed; and
 We may not be able to accommodate and/or manage future changes in demand for
infrastructure services.
3. LEVELS OF SERVICE
3.1 Consumer Research and Expectations
The expectations and requirements of various stakeholders were considered in the preparation of
asset management plans summarised in this strategic asset management plan. Table 3.1 shows
current available community satisfaction levels for relevant services identified by the 2014
Community Satisfaction Survey carried out by Insync Surveys. The survey asked respondents to
rate the importance of each of the identified service elements as well as their perception of
Council’s performance in delivering that service element. This allowed calculation of a mean gap
score for each element where a large gap score signifies a perceived poor performance by Council
in a service area relative to its importance to the community.
According to Insync Surveys, the mean gap score can be interpreted as follows:
Good Mean gap score <2

Average Mean gap score 2.0 – 2.99
Poor Mean gap score >3

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Table 3.1: Community Satisfaction Levels
2014 Community Satisfaction

Asset Survey
Management Service Element Importance Performance Mean
Plan (max score (max score Gap
7) 7) Score
ROADS Rural sealed roads 5.72 4.81 0.91
Roadside management - Rural 5.81 4.48 1.32
Urban roads 5.71 4.91 0.80
Rural unsealed roads 5.51 4.32 1.19
Street signage 5.84 4.90 0.94
Street lighting 5.79 4.89 0.90
BRIDGES Bridges Not covered by survey
STORMWATER Stormwater drainage system 5.87 4.79 1.07
BUILDINGS Public toilet amenities 6.01 4.81 1.20
Tourism services, facilities &
5.45 4.99 0.47
museums
Physical access to Council 5.55 5.33 0.22
buildings
Public halls and council facilities 5.24 4.71 0.53
OPEN SPACE AND Parks & Reserves incl foreshore 5.99 5.07 0.91
RECREATION areas
Walking tracks 5.55 4.69 0.86
Cemeteries 5.35 4.89 0.46
Sports grounds & facilities 5.27 4.87 0.40
Urban gardens, flowers & trees 5.60 5.38 0.22
Playground equipment 5.32 4.89 0.43
Boat ramps & wharf 5.27 5.21 0.07
FOOTPATHS Footpaths 5.92 4.67 1.24
3.2 Organisational Objectives
Sections 2.4.2 and 2.4.3 of this strategic asset management plan reported the organisational
objectives from the Strategic Plan and asset management objectives developed from the
organisational objectives.
The organisational and asset management objectives provide focus for the community and
technical level of service tables in Section 3.4.

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3.3 Legislative Requirements
We are required to meet many legislative requirements including Australian and State legislation
and State regulations. These are detailed in the various asset management plans summarised in
this strategic asset management plan.
3.4 Levels of Service
We have defined service levels in two terms.
Community Levels of Service measure how the community receives the service and whether the
organisation is providing community value.
Community levels of service measures used in the asset management plan are:
Quality How good is the service?

Function Does it meet users’ needs?
Capacity/Utilisation Is the service usage appropriate to capacity?
Our current and projected community levels of service for the services covered by this strategic
asset management plan are shown in the AM Plans summarised in this strategic asset
management plan.
Technical Levels of Service - Supporting the community service levels are operational or technical
measures of performance. These technical measures relate to the allocation of resources to
service activities that the organisation undertakes to best achieve the desired community
outcomes and demonstrate effective organisational performance.
Technical service measures are linked to annual budgets covering:
 Operations – the regular activities to provide services such as availability, cleansing, mowing,
etc.
 Maintenance – the activities necessary to retain an assets as near as practicable to an
appropriate service condition (eg road patching, unsealed road grading, building and structure
repairs),
 Renewal – the activities that return the service capability of an asset up to that which it had
originally (eg road resurfacing and pavement reconstruction, pipeline replacement and
building component replacement),
 Upgrade – the activities to provide an higher level of service (eg widening a road, sealing an
unsealed road, replacing a pipeline with a larger size) or a new service that did not exist
previously (eg a new library).
Service managers plan, implement and control technical service levels to influence the customer
service levels.8
Together the community and technical levels of service provide detail on service performance,
cost and whether service levels are likely to stay the same, get better or worse.
8
IPWEA, 2011, IIMM, p 2.22

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Our current and projected technical levels of service for the services covered by this strategic asset
management plan are shown in the AM Plans summarised in this strategic asset management
plan.
It is important to note that Council’s current documented service levels are not fully reflective of
the technical service measures outlined above. In this respect our technical levels of service
remain ‘to be developed’ pending service level review.
Tables summarising the current and desired technical levels of service for services will be shown in
Appendix A in future iterations of this strategic asset management plan.
4. FUTURE DEMAND
4.1 Demand Drivers
Drivers affecting demand include population change, changes in demographics, seasonal factors,
climate change, vehicle ownership rates, consumer preferences and expectations, government
decisions, technological changes, economic factors, agricultural practices, environmental
awareness, etc.
The drivers of future demand for council services have not yet been determined with appropriate
confidence levels. The Sustainable Murchison 2040 Community Plan will contain greater detail in
this respect and those outputs will be included in future versions of this document.
4.2 Demand Forecast
The present (low confidence) position and projections for demand drivers that may impact future
service delivery and utilisation of assets have been identified as shown in Table 4.3.
4.3 Demand Impact on Assets
The impact of demand drivers that may affect future service delivery and utilisation of assets are
shown in Table 4.3.

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Table 4.3: Demand Drivers, Projections and Impact on Services
Projection Impact on services

Population
The population is expected to This trend of low population growth is not expected to impact
increase slightly over the next significantly on demands for service delivery
10 years at a rate of 0.25% per
annum.
Demographics
Population continues to age Increased usage of footpaths
with increased proportion of Demand to widen footpaths and provide DDA compliant access
persons over 60 years of age. ramps
Sea Change
Increased demand for small Increased demand for high quality services with resulting higher
coastal residential allotments. costs
Land use
Change to zonings to facilitate Increased access to new subdivisions may create pressure to
new domestic subdivisions. increase existing service levels
Climate Change
Changes to the coastal Impact on the development and maintenance of infrastructure
environment in these areas
Potential cost shifting by other levels of Government
4.4 Demand Management Plan
Demand for new services will be managed through a combination of managing existing assets,
upgrading of existing assets and providing new assets to meet demand and demand management.
Demand management practices include non-asset solutions, insuring against risks and managing
failures.
Non-asset solutions focus on providing the required service without the need for the organisation
to own the assets and management actions including reducing demand for the service, reducing
the level of service (allowing some assets to deteriorate beyond current service levels) or
educating customers to accept appropriate asset failures9. Examples of non-asset solutions
include providing joint services from existing infrastructure such as aquatic centres and libraries
that may be in another community area or public toilets provided in commercial premises.
Council is currently engaged in a shared services model with Circular Head Council to increase the
capacities (skills and expertise) of both organisations. Further opportunities to manage demand
are expected to be identified through the Sustainable Murchison 2040 Community Plan and these
will be documented here in future versions of the plan.
9
IPWEA, 2011, IIMM, Table 3.4.1, p 3|58.

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4.5 Asset Programs to Meet Demand
The new assets required to meet growth will be acquired free of cost from land developments and
constructed/acquired by the organisation. New assets constructed/acquired by the organisation
are discussed in Section 5.5.
Acquiring these new assets will commit the organisation to fund ongoing operations, maintenance
and renewal costs for the period that the service provided from the assets is required. These
future costs are identified and considered in developing forecasts of future operations,
maintenance and renewal costs in Section 5.
5. LIFECYCLE MANAGEMENT PLAN
The lifecycle management plan details how the organisation plans to manage and operate the
assets at the agreed levels of service (defined in Section 3) while optimising life cycle costs.
5.1 Background Data
5.1.1 Physical parameters
The assets covered by this strategic asset management plan are shown in Tables 2.2 and 2.3.1.
5.1.2 Asset capacity and performance
The organisation’s services are generally provided to meet design standards where these are
available.
Asset capacity and performance is monitored for 3 community service measures, condition
(quality), function and utilisation/capacity in a State of the Assets report. Low confidence state of
the assets data is shown in Figure 7 against the asset classes for which it has been developed.

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Fig 7: State of the Assets

Good
Fair
Poor
Asset Class Condition Function Capacity
Roads
Bridges
Stormwater
Buildings
Open Space and

Recreation
Footpaths

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5.2 Infrastructure Risk Management Plan
The purpose of an assessment of risks associated with service delivery from infrastructure assets
conducted for each relevant asset management plan is to identify critical risks that will result in
loss or reduction in service from infrastructure assets or a ‘financial shock’ to the organisation.
The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the
consequences should the event occur, develops a risk rating, evaluates the risk and develops a risk
treatment plan for non-acceptable risks.
Critical risks, being those assessed as ‘Very High’ - requiring immediate corrective action and ‘High’
– requiring prioritised corrective action identified in the Infrastructure Risk Management Plan(s)
and the adopted treatment plan are summarised in Table 5.2. These risks will be regularly
reported to the Executive Management Team and Council.
A low confidence assessment – based on expert opinion and judgement – has identified no critical
risks under the current resourcing levels. As our asset management maturity improves we will be
in a position to revise this and this will be completed in a future version of this plan.
Table 5.2: Critical Risks and Treatment Plans
Service or Asset at Risk What can Happen Risk Rating (VH, H) Risk Treatment Plan
ROADS – No critical risks identified
BRIDGES – No critical risks identified
STORMWATER – No critical risks identified
BUILDINGS – No critical risks identified
OPEN SPACE & RECREATION – No critical risks identified
FOOTPATHS – No critical risks identified
5.3 Routine Operations and Maintenance Plan
Operations include regular activities to provide services such as public health, safety and amenity,
eg cleansing, utility services, street sweeping, grass mowing and street lighting.
Routine maintenance is the regular on-going work that is necessary to keep assets operating,
including instances where portions of the asset fail and need immediate repair to make the asset
operational again.
5.3.1 Operations and Maintenance Plan
Operations activities affect service levels including quality and function, such as cleanliness,
appearance, etc., through street sweeping and grass mowing frequency, intensity and spacing of
street lights and cleaning frequency as well as opening hours of building and other facilities.
Maintenance includes all actions necessary for retaining an asset as near as practicable to an
appropriate service condition including regular ongoing day-to-day work necessary to keep assets
operating, eg road patching but excluding rehabilitation or renewal.

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Maintenance expenditure levels are considered to be adequate to meet projected service levels,
which may be less than or equal to current service levels. Where maintenance expenditure levels
are such that will result in a lesser level of service, the service consequences and service risks have
been identified and service consequences highlighted in the respective AM Plan and service risks
considered in the Infrastructure Risk Management Plan.
5.3.2 Operations and Maintenance Strategies
We will operate and maintain assets to provide the defined level of service to approved budgets in
the most cost-efficient manner. The operation and maintenance activities include:
 Scheduling operations activities to deliver the defined level of service in the most efficient
manner;
 Undertaking maintenance activities through a planned maintenance system to reduce
maintenance costs and improve maintenance outcomes. Undertake cost-benefit analysis to
determine the most cost-effective split between planned and unplanned maintenance
activities (50 – 70% planned desirable as measured by cost);
 Maintain a current infrastructure risk register for assets and present service risks associated
with providing services from infrastructure assets and reporting Very High and High risks and
residual risks after treatment to management and Council;
 Review current and required skills base and implement workforce training and development to
meet required operations and maintenance needs;
 Review asset utilisation to identify underutilised assets and appropriate remedies, and over
utilised assets and customer demand management options;
 Maintain a current hierarchy of critical assets and required operations and maintenance
activities;
 Develop and regularly review appropriate emergency response capability; and
 Review management of operations and maintenance activities to ensure we are obtaining best
value for resources used.
5.3.3 Summary of future operations and maintenance expenditures
Future operations and maintenance expenditure is forecast to trend in line with the value of the
asset stock as shown in Figure 8 with estimated available operating budget funding. Note that all
costs are shown in current dollar values (ie real values).

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Figure 8: Projected Operations and Maintenance Expenditure and Budget
The consequences of deferred maintenance (ie works that are identified for maintenance and
unable to be funded) are to be included in the risk assessment and analysis in the infrastructure
risk management plan(s).
5.4 Renewal/Replacement Plan
Renewal and replacement expenditure is major work which does not increase the asset’s design
capacity but restores, rehabilitates, replaces or renews an existing asset to its original or lesser
required service potential. Work over and above restoring an asset to original service potential is
upgrade/expansion or new works expenditure.
5.4.1 Renewal and Replacement Strategies
We will plan capital renewal and replacement projects to meet level of service objectives and
minimise infrastructure service risks by:
 Planning and scheduling renewal projects to deliver the defined level of service in the most
efficient manner;
 Undertaking project scoping for all capital renewal and replacement projects to identify
o the service delivery ‘deficiency’, present risk and optimum time for renewal/replacement
o the project objectives to rectify the deficiency
o the range of options, estimated capital and life cycle costs for each options that could
address the service deficiency
o and evaluate the options against evaluation criteria adopted by Council, and
o select the best option to be included in capital renewal programs;
 Using optimal renewal methods (cost of renewal is less than replacement) wherever possible;

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 Maintain a current infrastructure risk register for assets and service risks associated with
providing services from infrastructure assets and reporting Very High and High risks and
residual risks after treatment to management and Council;
 Review current and required skills base and implement workforce training and development to
meet required construction and renewal needs;
 Maintain a current hierarchy of critical assets and capital renewal treatments and timings
required; and
 Review management of capital renewal and replacement activities to ensure we are obtaining
best value for resources used.
Renewal ranking criteria
Asset renewal and replacement is typically undertaken to either:
 Ensure the reliability of the existing infrastructure to deliver the service it was constructed to
facilitate (eg replace a bridge that has a 5 t load limit), or
 ensure the infrastructure is of sufficient quality to meet the service requirements (eg
roughness of a road).10
It is possible to get some indication of capital renewal and replacement priorities by identifying
assets or asset groups that:
 Have a high consequence of failure;

 Have a high utilisation and subsequent impact on users would be greatest;
 The total value represents the greatest net value to the organisation;
 Have the highest average age relative to their expected lives;
 Are identified in the AM Plan as key cost factors;
 Have high operational or maintenance costs; and
 Where replacement with modern equivalent assets would yield material savings.11
The ranking criteria used to determine priority of identified renewal and replacement proposals is
detailed in the respective asset management plans.
5.4.2 Summary of future renewal and replacement expenditure
Projected future renewal and replacement expenditures are forecast to increase over time as the
asset stock increases from growth. The projected expenditure and estimated available capital
renewal budget funding is summarised in Fig 9. Note that all amounts are shown in real values.
10
IPWEA, 2011, IIMM, Sec 3.4.4, p 3|60.
11
Based on IPWEA, 2011, IIMM, Sec 3.4.5, p 3|66.

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Fig 9: Projected Capital Renewal and Replacement Expenditure and Budget
Where renewal projections are based on estimates of asset useful lives, the useful lives are
documented in the relevant asset management plan(s). Projected capital renewal and
replacement programs are shown in Appendix B.
5.5 Creation/Acquisition/Upgrade Plan
New works are those works that create a new asset that did not previously exist, or works which
upgrade or improve an existing asset beyond its existing capacity. They may result from growth,
social or environmental needs. Assets may also be acquired at no cost to the organisation from
land development. These assets from growth are discussed in Section 4.5.
5.5.1 Selection criteria
New assets and upgrade/expansion of existing assets are identified from various sources such as
councillor or community requests, proposals identified by strategic plans or partnerships with
other organisations. Candidate proposals are reviewed to verify need and to develop a preliminary
renewal estimate. Verified proposals are ranked by priority and available funds and scheduled in
future works programmes. The priority ranking criteria is detailed in the respective asset
management plans.
5.5.2 Capital Investment Strategies
We will plan capital upgrade and new projects to meet level of service objectives by:
 Planning and scheduling capital upgrade and new projects to deliver the defined level of
service in the most efficient manner;

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 Undertaking project scoping for all capital upgrade/new projects to identify

o the service delivery ‘deficiency’, present risk and required timeline for delivery of the
upgrade/new asset
o the project objectives to rectify the deficiency including value management for major
projects
o the range of options, estimated capital and life cycle costs for each options that could
address the service deficiency
o management of risks associated with alternative options
o and evaluate the options against evaluation criteria adopted by Council, and
o select the best option to be included in capital upgrade/new programs;
 Reviewing current and required skills base and implement training and development to meet
required construction and project management needs; and
 Reviewing management of capital project management activities to ensure we are obtaining
best value for resources used.
Standards and specifications for maintenance of existing assets and construction of new assets
and upgrade/expansion of existing assets are detailed in relevant asset management plans.
5.5.3 Summary of future upgrade/new assets expenditure
Projected upgrade/new asset expenditures and estimated available budget are summarised in Fig
10. The projected upgrade/new capital works program is shown in Appendix C. All amounts are
shown in real values.
Fig 10: Projected Capital Upgrade/New Asset Expenditure and Budget

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5.6 Disposal Plan
Disposal includes any activity associated with disposal of a decommissioned asset including sale,
demolition or relocation. Assets identified for possible decommissioning and disposal are shown
in the respective asset management plans summarised in this strategic asset management plan.
5.7 Service Consequences and Risks
Outlining service consequences and risks from resourcing decisions forms an important part of an
organisation’s strategic asset management framework.
The organisation must prioritise decisions made in adopting the asset management plans
summarised in this strategic asset management plan to obtain the optimum benefits from its
available resources.
The asset management plans must be based on balancing service performance, cost and risk to
provide an agreed level of service from available resources in our long-term financial plan.
The improvement plan (section 7.2) lists the formal documentation of current service levels as a
priority in the short term. This needs to be done before service consequences and risks can be
assessed and this will occur in a future version of this plan.
5.7.1 What we cannot do
There are some operations and maintenance activities and capital projects that are unable to be
undertaken within the next 10 years such as:
 Sealing of unsealed roads; and

 Changes to the natural flow of stormwater to resolve drainage issues in rural areas.
Considerable further work is required in this space and will be undertaken as part of the ongoing
service level review process that is currently being established. The service and risk consequences
will be documented here and activity details will be shown in Appendix D in future versions of this
plan.
The risks will be included with the Infrastructure Risk Management Plan summarised in the
relevant asset management plan and risk management plans actions and expenditures included
within projected expenditures.
6. FINANCIAL SUMMARY
This section contains the financial requirements resulting from all the information presented in the
previous sections of this strategic asset management plan. The financial projections will be
improved as further information becomes available on desired levels of service and current and
projected future asset performance.

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6.1 Financial Indicators and Projections
Asset Renewal Funding Ratio
The Asset Renewal Funding Ratio indicates whether projected capital renewal and replacement
expenditure are able to be financed in the long-term financial plan. It is calculated by dividing the
projected capital renewal expenditure shown in the AM Plans by the estimated capital renewal
budget provided in the long-term financial plan. Over the next 10 years, we are forecasting that
we will have 97% of the funds required for the optimal renewal and replacement of assets.
However, it is important to note that this forecast is heavily dependent on historical levels of
funding and is NOT linked to defined (and measureable) levels of service because this work has not
yet been completed (refer s7.2 Improvement Plan).
6.2 Funding Strategy
The funding strategy to provide the services covered by this strategic asset management plan and
supporting asset management plans is contained within the organisation’s 10 year long term
financial management plan.
6.3 Valuation Forecasts
Asset values are forecast to increase as additional assets are added to the asset stock from
construction and acquisition by the organisation and from assets constructed by land developers
and others and donated to the organisation. Figure 11 shows the projected replacement cost
asset values over the planning period in real values.

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Figure 11: Projected Asset Values
Depreciation expense values are forecast in line with asset values as shown in Figure 12.
Figure 12: Projected Depreciation Expense

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The depreciated replacement cost will vary over the forecast period depending on the rates of
addition of new assets, disposal of old assets and consumption and renewal of existing assets.
Forecast of the assets’ depreciated replacement cost is shown in Figure 13. The depreciated
replacement cost of contributed and new assets is shown in the darker colour and in the lighter
colour for existing assets.
Figure 13: Projected Depreciated Replacement Cost
6.4 Key Assumptions made in Financial Forecasts
This section details the key assumptions made in presenting the information contained in this
strategic asset management plan and in preparing forecasts of required operating and capital
expenditure and asset values, depreciation expense and carrying amount estimates. It is
presented to enable readers to gain an understanding of the levels of confidence in the data
behind the financial forecasts.
Key assumptions made in this plan and the associated risks that these may change are shown in
Table 6.4.

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Table 6.4: Key Assumptions made in AM Plan and Risks of Change
Key Assumptions Risks of Change to Assumptions

Current estimates of replacement cost and May affect future depreciation and renewal
useful life of infrastructure assets are accurate. costs.
There will be no external market fluctuations to May affect future operational and capital costs
cost inputs over the life of the plan. of service delivery.
Increases to asset replacement costs over the May affect future depreciation and renewal
life of the plan are not linked to relevant costs.
industry indices.
Current service levels will remain constant for Raising or lowering service levels (eg
the life of the plan. maintenance intervention levels) are likely to
increase or decrease operating and
maintenance expenditure projections
accordingly.
There will be no new assets from growth over Significant new assets from growth may
life of plan increase capital renewal, depreciation,
operating and maintenance expenditure
projections.
Legislative compliance requirements will remain Changes in legislation and regulations may
constant over the life of the plan. increase operating and maintenance
expenditure projections.
6.5 Forecast Reliability and Confidence
The expenditure and valuations projections in this strategic AM Plan are based on best available
data. Currency and accuracy of data is critical to effective asset and financial management.
The estimated confidence level for and reliability of data used in this AM Plan is shown in Table
6.5.
Table 6.5: Data Confidence Assessment for AM Plans summarised in Strategic AM Plan
AM Plan Confidence Assessment Comment

Transport Infrastructure Primarily based on expert opinion and
Asset Management Plan LOW judgement – with the exception of Bridge
assets which have a HIGH confidence level
Stormwater Infrastructure Primarily based on expert opinion and
LOW
Asset Management Plan judgement
Buildings Infrastructure Primarily based on expert opinion and
LOW
Recreation Infrastructure Primarily based on expert opinion and
LOW
Footpaths Infrastructure Primarily based on expert opinion and
LOW

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Over all data sources, the data confidence is assessed as LOW confidence level for data used in the
preparation of this strategic AM Plan.
Actions to mitigate the adverse effects of data quality are included within Table 7.2 Improvement
Plan.
7. PLAN IMPROVEMENT AND MONITORING
7.1 Status of Asset Management Practices
Waratah-Wynyard Council is committed to sustainable service delivery into the future. To this end
Council has made very real and significant progress in recent times towards improving the
maturity level of its asset management practices. However, we still have a good deal of work to
do before we can claim to be at a ‘core’ level of maturity as measured against the national
strategic asset management framework. In fact, in order to be able to demonstrate long term
financial sustainability, we must progress beyond the ‘core’ level of maturity for some of the
performance elements relating to asset and financial management.
A strategic and coordinated, organisation-wide approach to asset management and service

delivery is critical. This is achieved through the development of an asset management framework
where the organisation’s Long Term Financial Plan (LTFP) is meaningfully integrated with its
Strategic Asset Management Plan (SAMP) to inform Council’s strategic planning framework,
including ongoing resourcing decisions via the annual plan and budget process.
In this way Council can provide a transparent, accountable and evidence-based approach to the
provision of value-for-money services while at the same time communicating the service level and
risk consequences of various funding scenarios as it engages with the community to identify
agreed levels of service.
7.2 Improvement Program
The asset management improvement tasks identified from an asset management maturity
assessment and preparation of this strategic asset management plan are shown in Table 7.2.

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Table 7.2: Improvement Plan
Task Task Responsibility Resources

Timeline
No Required
1 Review of stormwater drainage
Eng Services Staff time 2014/15
depreciation
2 Production of 1st cut Service Level
Dashboards
3 Review of sealed road pavement useful
lives
4 Review and document road service levels Eng Services Staff time 2015/16
5 Develop and adopt an Open Space and General Staff time +
2015/16
Recreation Plan Manager Consultancy
6 Revision of Asset Management Plans Eng Services Staff time 2015/16
7 Review of organisational AM maturity Cross-Org AM
assessment steering Staff time 2015/16
group
8 Further priorities to be identified as Cross-Org AM
improvement plan progresses steering Staff time 2015/16
group
9 Review of asset valuation methodologies Eng Services
including external benchmarking across all & Finance Staff time 1-4 years
asset classes Services
10 Develop and adopt formal service levels
(including maintenance intervention levels) Eng Services Staff time 1-4 years
across all service areas
11 An Infrastructure Risk Management Plan
needs to be developed to provide a
framework within which ‘critical’ risks are
identified and risk treatment plans, actions
and funding for required works are Cross-Org AM
included within future maintenance and steering Staff time 1-4 years
capital works programs. The review of risks group
is an on-going, iterative process and the
framework will need to be refined as the
maturity of Council’s assets management
practices increases over time.
12 As the maturity of our approach to asset
management increases, the process of
Cross-Org AM
refining Council’s Levels of Service (LOS) Staff time +
steering 1-4 years
should involve consultation with the Consultancy
group
community (eg “we require this LOS and
recognise the cost of having it”)

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7.3 Monitoring and Review Procedures
The Strategic Asset Management Plan is intended to have a life of 4 years (Council election cycle)
and is due for complete revision and updating within 12 months of each Council election. Minor
annual review will be required over the short to medium term as the improvement plan is
progressed and the levels of confidence improve.
7.4 Performance Measures
The effectiveness of the strategic asset management plan can be measured in the following ways:
 The degree to which the required projected expenditures identified in this strategic asset
management plan are incorporated into the organisation’s long term financial plan;
 The degree to which 1-5 year detailed works programs, budgets, business plans and
organisational structures take into account the ‘global’ works program trends provided by the
summarised asset management plans;
 The degree to which the existing and projected service levels and service consequences (what
we cannot do), risks and residual risks are incorporated into the organisation’s Strategic Plan
and associated plans; and
 The Asset Renewal Funding Ratio achieving the target of 100%.

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8. REFERENCES
ISO, 2014, ISO 55000, Asset management – Overview, principles and terminology, International
Organization for Standardization, Geneva.
ISO, 2014, ISO 55001, Asset management – Management systems - Requirements, International
Organization for Standardization, Geneva.
ISO, 2014, ISO 55002, Asset management – Management systems – Guidelines for the application
of ISO 55001, International Organization for Standardization, Geneva.
IPWEA, 2014, ‘NAMS.PLUS3 Asset Management’, Institute of Public Works Engineering Australia,
Sydney, www.ipwea.org/namsplus.
IPWEA, 2015, ‘Australian Infrastructure Financial Management Guidelines’ 2nd Edition, Institute of
Public Works Engineering Australia, Sydney, www.ipwea.org/AIFMG.
IPWEA, 2011, ‘International Infrastructure Management Manual’, Institute of Public Works

Engineering Australia, Sydney, www.ipwea.org/IIMM
Waratah-Wynyard Council Strategic Plan 2009-2015
Waratah-Wynyard Council Annual Plan and Budget 2014/15 & 2015/16
Waratah-Wynyard Council – Asset Management Plans
Waratah-Wynyard Council – Draft Long Term Financial Plan 2015/16-2024/25
Waratah-Wynyard Council – Draft Asset Management Maturity Assessment – June 2015

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9. APPENDICES
Appendix A Levels of Service Summaries for Services
Appendix B Projected 10 year Capital Renewal and Replacement Works Program
Appendix C Projected 10 year Capital Upgrade/New Works Program
Appendix D Unfunded Initiatives and Capital Works proposals
Appendix E Waratah-Wynyard Council Asset Management Policy

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Appendix A Summary Levels of Service for Services #
Table A1: Summary Technical Levels of Service
Service Service Objective Activity Measure Current Performance * Desired for Optimum Agreed Sustainable Position
Attribute Process Lifecycle Cost ** ***
TECHNICAL LEVELS OF SERVICE
Operations
Budget
Maintenance
Budget
Renewal
Budget
Upgrade/New
Budget
Note: * Current activities and costs (currently funded).

** Desired activities and costs to sustain current service levels and achieve minimum life cycle costs (not currently funded).
*** Activities and costs communicated and agreed with the community as being sustainable (funded position following trade-offs,
managing risks and delivering agreed service levels).
# To be developed

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Appendix B Projected Capital Renewal Program
Roads
($000)
Year Item Description Estimate
2015 Network Renewals

1 Re-Sheeting $477
2 Rural Reseals $331
3 Urban Reseals $323
4 Kerb & Channel renewal $388
5 Rural Roads - Other - renewal component $18
6 Rural Roads - Pavement renewal $9
2015 Total $1,545

1 Re-Sheeting $227
3 Rural Roads - major patching $200
7 Urban Roads - Pavement renewal $250
8 Other Urban Infrastructure renewal $8
2016 Total $1,819

1 Re-Sheeting $556
7 Urban Roads - Pavement renewal $50
8 Other Urban Infrastructure renewal $10
2017 Total $1,999
2018 Network Renewals Estimate

1 Re-Sheeting $430
2018 Total $1,473

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($000)

1 Re-Sheeting $737
2019 Total $1,520

1 Re-Sheeting $388
7 Rural Roads - Pavement renewal
2020 Total $2,114

1 Re-Sheeting $530
2021 Total $1,857

1 Re-Sheeting $1,005
2022 Total $2,065

1 Re-Sheeting $565
2023 Total $1,399

1 Re-Sheeting $385

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($000)
2024 Total $1,757
Bridges
($000)

1 Zig Zag Road - Inglis Rv - Repair spalled concrete & strengthen blade pier $20
2 Lowries Road - Blackfish Crk - renewal $65
3 Margetts Road - Unnamed Crk- renewal $140
4 Bridge Barrier Renewals $137
2015 Total $362

1 Pages Road - Inglis Rv - Renewal Component $520
2016 Total $664

2017 Total $53
2018 1 Bridge Barrier Renewals $53

2018 Total $53

1 Lapoinya Road - Flowerdale Rv - Renewal Component $385
2019 Total $393

1 Takone Road - Inglis Rv - Renewal Component $206
2020 Total $259

1 Oonah Road - Cam Rv - Renewal Component $126
2 Kinchs Road - Garners Crk - Renewal Component $93

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($000)
2021 Total $267

2022 Total $43

2023 Total $43

2024 Total $43
Stormwater
($000)

1 Renew manhole lids - Wynyard $23
2 Renew manhole lids - Somerset $23
3 Renew grated pits - Wynyard $40
4 Renew grated pits - Somerset $25
2015 Total $111

5 39A Raglan St - Renewal component $16
6 11 Goldie St & 51 Jackson St - Renewal component $35
7 Depot - 900mm damaged main renewal $34
8 Opp 92 Saunders St - 300mm main renewal $28
2016 Total $223


- 46 -
($000)
5 Gordon Street beach outfall - renewal component $10
2017 Total $111

5 Dart St beach outfall - renewal component $10
2018 Total $111

2019 Total $101

5 Bowick St - Stage 1 - Bass Hway to ocean outfall - renewal component $135
2020 Total $236

1 Renewal allowance based on average of exp in 2016-20 inclusive $156
2021 Total $156

2022 Total $156

2023 Total $156


- 47 -
($000)
2024 Total $156
Buildings
($000)

1 Wynyard Office Refurbishment - Renewal component $63
2 Cam River Toilet block - refurbishment $85
3 Wynyard Squash Centre - repair and repaint exterior $17
4 Frederick Street Kitchen - renewal $11
5 Somerset Tennis Club - reclad old building $7
6 Somerset Indoor Rec - renew floor $10
7 Railway Institute Hall - cladding and painting $16
2015 Total $208

1 Wynyard Council Offices - office renewal $120
2 Wynyard Depot Records Shed - roof renewal $10
3 Wynyard Childcare - Little Goldie - toilet renewal $5
4 Senior Citizens - kitchen renewal $15
5 Cam River Reserve - BBQ shelter renewal $20
6 Langley Park public toilet - roof renewal $5
2016 Total $175

1 Wynyard Council Offices - Carpet renewal $75
2 Waratah Camping Ground - picnic table shelter renewal $10
3 Wynyard Wharf - BBQ shelter renewal $10
4 Artscape - 45 Jackson St - roof renewal $25
2017 Total $120
2018 Network Renewals Estimate

1 Puddle Duck playcentre - kitchen renewal $5
2 Wynyard Squash Centre - asbestos removal $40
2018 Total $45

1 Waratah Depot Ammenities - office renewal $3
2 Puddle Duck playcentre - roof renewal $20
3 Moorleah Hall - roof renewal $10

- 48 -
($000)
4 Wynyard Squash Centre - floor covering renewal $5
2019 Total $38

1 Wynyard Council Offices - Roof and facia renewal $200
2 Residence - 41 Dodgin St - Roof Renewal $30
2020 Total $230

1 Boat Harbour Beach Toilets - roof renewal $25
2 Wynyard Police Station - roof renewal $20
3 Somerset Tennis Courts - kitchen renewal $8
4 Wynyard Rec Ground - Public Toilet building - renew hot water $15
2021 Total $68

1 Nil
2022 Total $0

1 Nil
2023 Total $0

1 Nil
2024 Total $0
Open Space & Recreation

($000)

1 Bin replacements $20
2 Playground renewal program $10
3 Exercise equipment renewal program $5
4 Parks furniture renewal program $10
2015 Total $45

2 Playground renewal program $10

- 49 -
($000)
3 Parks BBQ renewal program $10
5 Exercise equipment renewal program $5
6 Wynyard Foreshore Playgound (Rotary Park) renewal $80
7 Wynyard Foreshore Playgound (adj toilets) renewal $70
8 BHB Playground (in front of surf club) renewal $35
2016 Total $230

4 Oonah Crescent Playground renewal $80
5 Cam River 2 additional BBQ renewals $20
6 BHB Playground (in reserve area) renewal $50
7 Sisters Beach - pedestrian bridge #1 renewal $35
8 Wynyard Rec Ground - boundary fence renewal $100
2017 Total $315

4 Gutteridge Gardens - stone wall renewal $50
5 Anzac Park playground (site 2) renewal $50
6 Cam River Reserve - pathway renewal $30
2018 Total $175

4 Petunia Street playground renewal $70
5 Camp Creek - pedestrian bridge renewal $80
6 Ronald Crescent playground renewal $50

2019 Total $253


- 50 -
($000)
4 Sisters Beach playground #1 (adj creek) renewal $50
2020 Total $80

4 Inglis River walking track stage 1 - renewal $915
5 Cam River Reserve playground renewal $80
2021 Total $1,025

4 Waratah Tyre Park playground renewal $30
2022 Total $60

4 Sisters Beach playground #2 (adj creek) renewal $50
2023 Total $80

4 Lowe Street playground renewal $40
2024 Total $70
Footpaths
($000)

1 Nil

- 51 -
($000)
2015 Total $0

Renewal portion of footpath and handrail renewal - Camp Ck Bridge, Old
1 $49
Bass Hwy
2016 Total $49

1 Nil
2017 Total $0

Renewal portion - Upgrade Gutteridge Gardens - gravel to concrete
1 $4
from carpark east to river walkway
2018 Total $4

1 Nil
2019 Total $0

1 Nil
2020 Total $0

1 Nil
2021 Total $0

1 Nil
2022 Total $0

1 Nil
2023 Total $0

1 Nil
2024 Total $0

- 52 -
Appendix C Projected Upgrade/Exp/New Capital Works Program
Roads
($000)
2015 1 Rural Roads - Other - renewal component $18

2 General - upgrades $40
2015 Total $58
2016 1 Rural Roads - Other - upgrade/new $45

2016 Total $45

2017 Total $21

2018 Total $225
2019 1 Rural Roads - major patching - upgrade $198

2 Rural Roads - Other - upgrade/new $70
2019 Total $268
2020 1 Nil
2020 Total $0
2021 1 Nil
2021 Total $0
2022 1 Nil
2022 Total $0
2023 1 Nil
2023 Total $0
2024 1 Nil
2024 Total $0

- 53 -
Bridges
($000)
2015 1 Bridge Barrier Upgrades $137

2015 Total $137
2016 1 Pages Road - Inglis Rv - Upgrade Component $230

2 Bridge Barrier Upgrades $144
2016 Total $374
2017 1 Bridge Approach Seals for unsealed roads $10

2017 Total $63
2018 1 Bridge Approach Seals for unsealed roads $10

2018 Total $63
2019 1 Lapoinya Road - Flowerdale Rv - Upgrade Component $212

2 Bridge Approach Seals for unsealed roads $10
2019 Total $230
2020 1 Takone Road - Inglis Rv - Upgrade Component $38

2 Bridge Approach Seals for unsealed roads $10
2020 Total $101
2021 1 Oonah Road - Cam Rv - Upgrade Component $12

2 Kinchs Road - Garners Crk - Upgrade Component $29
2021 Total $89

2022 Total $43

2023 Total $43

2024 Total $43

- 54 -
Stormwater
($000)
2015 1 Doctors Rocks Drainage Upgrade Stage 2 $504

2 Hepples Road Drainage Upgrade $88
3 Bowick Street Drainage Upgrade $40
2015 Total $632
2016 1 39A Raglan St - Upgrade component $21

2 11 Goldie St & 51 Jackson St - Upgrade component $45
2016 Total $66
2017 1 Gordon Street beach outfall - Upgrade component $15

2 Serrata Cres - subsoil drainage upgrade $19
3 George St open drain upgrade $190
4 3-5 Stockdale Ave - upgrade to pipe open drain $34
2017 Total $258
2018 1 Dart St beach outfall - upgrade component $15

2 Lagoon Ave - drainage upgrade $33
3 Pine Street - drainage upgrade $40
2018 Total $88
2019 1 Nil
2019 Total $0
2020 1 Bowick St - Stage 1 - Bass Hway to ocean outfall - upgrade component $105
2020 Total $105
2021 1 Upgrade allowance based on average of exp in 2016-20 inclusive $103

2021 Total $103

2022 Total $103

2023 Total $103

2024 Total $103

- 55 -
Buildings
($000)
2015 1 Wynyard Office Refurbishment - Upgrade component $63

2 Frederick Street - Improvements $20
2015 Total $83
2016 1 Gutteridge Gardens Toiltes - S/steel lining $10

2 Somerset Tennis Courts - DDA toilet upgrade $10
3 Wynyard Sports Centre - LED light upgrade $20
Yolla Recreation Ground - Upgrade umpires changeroom and
4 scoreboard $50
2016 Total $90
2017 1 Langley Park - Upgrade umpires changerooms and scoreboard $50

2 Somerset Indoor Recreation Centre - LED light upgrade $25
2017 Total $75
2018 1 Nil
2018 Total $0
2019 1 Boat Harbour Beach Toilets - S/steel lining $15

2019 Total $15
2020 1 Sisters Beach Toilets - S/steel lining $15

2020 Total $15
2021 1 Nil
2021 Total $0
2022 1 East Wynyard Toiltes - S/steel lining $15

2022 Total $15
2023 1 Somerset Tennis Courts - DDA building access $15

2023 Total $15
2024 1 Nil
2024 Total $0

- 56 -
Open Space & Recreation

($000)
2015 1 Anzac Park Masterplan $5

2 Council Chambers gardens upgrade stage 2 $7
3 Sisters Beach Foreshore - tree removal and erosion protection works $25
2015 Total $37
2016 1 Somerset Rec Ground - underground irrigation $60

2016 Total $60
2017 1 Somerset Rec Ground - fencing upgrade $29

2017 Total $29
2018 1 Gutteridge Gardens - 2 new drinking fountains $11

2 Anzac Park - DDA compliant swing $8
3 Anzac Park fencing upgrade $8
2018 Total $27
Inglis River walking track stage 4 (nth side of river continuation of

2019 1 upgrade works) $40
2019 Total $40

2 Somerset Rec Ground - seal carparking area $58
2020 Total $93

2021 Total $52
2022 1 Waratah Tyre Park playground - drainage upgrade $36

2022 Total $36
2023 1 Nil
2023 Total $0
2024 1 Nil
2024 Total $0

- 57 -
Footpaths
($000)
2015 1 Upgrade DDA compliant ramps $15

2 Upgrade Footpath crossings for prams and gophers $10
2015 Total $25
Upgrade portion of footpath and handrail renewal - Camp Ck Bridge,

2016 1 Old Bass Hwy $49
2 New footpath - Bridge St, Sisters Beach $45
2016 Total $94
2017 1 Upgrade 69 Pelissier St - infill 70LM of conc footpath $14

2 Missing and non-compliant kerb ramps $55
2017 Total $69
Upgrade Gutteridge Gardens - upgrade gravel to concrete from

2018 1 carpark east to river walkway $13
2 Missing and non-compliant kerb ramps $55
2018 Total $68
2019 1 Missing and non-compliant kerb ramps $55

2019 Total $55

2020 Total $55

2021 Total $55

2022 Total $55

2023 Total $55

2024 Total $55

- 58 -
Appendix D Unfunded Initiatives and Capital Works proposals #
"[ Enter service area ]"
Insert a listing of service initiatvies and capital renewal and upgrade proposals unable to be accommodated within this strategic asset
management plan.
management plan.
management plan.
management plan.
management plan.
management plan.
# To be developed

- 59 -
Appendix E Waratah-Wynyard Council Asset Management Policy

WWC Strategic Asset Management Plan V1.2-1

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ATTACHMENT F

Draft Strategic Asset Management Plan V1.0

Draft Strategic Asset Management Plan

Scenario 2 Version 1.0

Document ID: 150223 nams.plus3 strategic amp template v3.10

Picture Credits: Front Cover – Fay Hulme

© Copyright 2015 – All rights reserved.

Waratah-Wynyard Council – Strategic Asset Management Plan

Waratah-Wynyard Council – Strategic Asset Management Plan

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Waratah-Wynyard Council – Strategic Asset Management Plan

Context Estimated available capital funding for this period is

Capital Outlays The Next Steps

Waratah-Wynyard Council – Strategic Asset Management Plan

 Review of sealed road pavement useful lives;

Waratah-Wynyard Council – Strategic Asset Management Plan

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Waratah-Wynyard Council – Strategic Asset Management Plan

2. ASSET MANAGEMENT STRATEGY

2.1 Asset Management System

An asset management system is a set of interrelated and interacting elements of an organisation

The asset management system includes:

 The asset management policy

2.1.1 Asset Management Policy

2.1.2 Asset Management Objectives

Waratah-Wynyard Council – Strategic Asset Management Plan

2.1.3 Strategic Asset Management Plan

Figure 1: Strategic and Operational Planning Framework

This strategic asset management plan encompasses the following services:

Waratah-Wynyard Council – Strategic Asset Management Plan

 What assets do we have?

2.1.4 Asset Management Plans

 Transport Infrastructure Asset Management Plan

2.2 What Assets do we have?

Table 2.2: Assets covered by this Plan

Asset Class/Category Dimension

Waratah-Wynyard Council – Strategic Asset Management Plan

2.3 Our Assets and their management

2.3.1 Asset Values

Table 2.3.1: Assets covered by this Plan

Asset Class/Category Total Current Current Value Annual Asset

Figure 2 shows the replacement value of our assets.

Figure 2: Asset Replacement Values

Waratah-Wynyard Council – Strategic Asset Management Plan

2.3.2 Asset Condition

The condition of these assets is shown in Figure 3.

Figure 3: Condition of Bridge Assets Condition of Sealed Road Surface

2.3.3 Lifecycle Costs

Lifecycle expenditures include operations and maintenance expenditures (excluding depreciation)

Waratah-Wynyard Council – Strategic Asset Management Plan

Table 2.3.3: Asset Lifecycle Costs

Asset Class/Category Lifecycle Cost Lifecycle Expenditure Lifecycle

Waratah-Wynyard Council – Strategic Asset Management Plan

2.3.4 Asset Management Indicators

Figure 4: Balanced Position Projected Operating and Capital Expenditure

Waratah-Wynyard Council – Strategic Asset Management Plan

2.3.5 Opportunities and Risks

 Open space and recreation planning.

Further opportunities are expected to be identified after revision of Council’s community/strategic