Asset Management Policy

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Asset Management Policy

October

2011


1


Asset
Management
Policy

Octo
ber

2011














Responsible Directorate:

Environment and Infrastructure

Authorised
b
y:

Council

Date of
a
doption:

3 October 2011

Review
d
ate:

30
September 2014

Expiration
date:
30 September 2017

Policy
t
ype:

Council




Asset Management Policy

October

2011


2

Table of c
ontents

1.

Introduction
................................
......................

3

1.1.

Purpose

3

1.2.

Scope

3

1.3.

Corporate framework

3

2.

Background
................................
......................

3

2.1.

Policy environment

3

2.2.

Policy context

4

3.

Methodology

................................
....................

4

3.1.

Consultation

4

4.

Policy statement

................................
..............

4

4.1.

Asset Management Vision

4

4.2.

Asset Management Goals

4

4.3.

Framework

4

4.4.

Roles and responsibilities

5

5.

Implementation and monitoring

.....................

6

5.1.

Evaluation

6

5.2.

Accountabilities

6

6.

References

................................
.......................

6

6.1.

Related documents

6

6.2.

Definitions

6







Asset Management Policy

October

2011


3

1.

Introduction

1.1.

Purpose

To define the key principles that underpin the asset management practices of the City of Boroondara
.

1.2.

Scope

The scope of this policy applies to Council and
to
all Council staff in
volved with
the management of
p
hysical assets. These assets include roads, footpaths, street furniture, buildings, bridges, drainage,
playgrounds, parks and sports facilities.

The key

principles of the policy are arranged under the following headings:



the asset management vision



the goals for asset management



the asset management framework



roles and responsibilities

1.3.

Corporate framework

This policy supports Council’s Mission and Vision

by addressing the following objectives in the Council
Plan
June 2011
:



Ensuring liveability and amenity



Providing facilities and assets

2.

Background

2.1.

Policy environment

In March 2009 the Local Government and Planning Minister's Council,
which consists of Loca
l
Government and Planning Ministers from across Australia,

endorsed the implementation of a National
Asset Management Framework. The purpose was to develop a nationally consistent framework to
support improvements in local governments' asset management pe
rformance and sustainability. The
framework outlines seven key principles of good asset management:

1.

Development of an asset management policy

2.

Strategy and planning

3.

Governance and management arrangements

4.

Defining levels of service

5.

Data and systems

6.

Skill an
d processes

7.

Evaluation

At

the meeting held on 10 December 2001 Council adopted an Asset Management Strategy for a phased
approach to the implementation of best practice asset management. T
he
corporate asset management
objectives
outlined in this strategy
are still applicable to current asset management practices. However,
the Asset Management Strategy is limited in its extent

and it
does not define the key principles of asset
management
. This policy
sits between the Council Plan 2011 and the Asset Manage
ment Strategy, and it
defin
es the

key principles and the framework of

asset management practice

at the City of Boroondara
.




Asset Management Policy

October

2011


4

2.2.

Policy
c
ontext

The Commonwealt
h Government has indicated that

future grant funding may be tie
d to the
implementation of the National

Asset Management F
ramework. The City of Boroondara currently
undertakes most aspects of what is considered to be good asset management practice and meets the
core requirements of the National Asset Management Framework. The adoption of this policy will
enable
Council to comply with the formal requirements of the first principle of the
f
ramework and it will contribute
to meeting the requirements of advanced asset management
as

defined by the framework.

The need to implement a structured approach to asset
management practices and the need to have a
policy are key issues highlighted by various guides and reports over the past decade. These include the
International I
nfrastructure Management Manual
, the Municipal Association of Victoria STEP Asset
Management Improvement Program, the Department of Infrastructure Facing the Renewal Challenge
report and the Victorian Auditor
-
General Managing Infrastructure Assets report.

3.

Methodology

3.1.

Consultation

This i
s an internal policy outlining
the key principles of

asset management
of

the City of Boroondara
.

Managers from Council's
Infrastructure and
Corporate Services

area
s hav
e provided input into this policy.


4.

Policy statement

4.1.

Asset Management Vision

We will pr
oactively manage the ongoing maintenance and development of Council's assets and facilities
to meet our community's current and future needs.

4.2.

Asset Management Goals

The goals of this policy are:



The alignment of assets to the services that are required to
meet community needs



To facilitate informed decision making based on the lifecycle needs of assets



To ensure the appropriate funding of the maintenance and renewal of existing assets before that
of new assets
,

unless justified



The provision of funding and
support for assets in a sustainable manner



The implementation of asset management in a structured and coordinated way

4.3.

Framework

Asset management will be implemented under a framework that includes the following:

The strategic direction set by Council



The C
ouncil Plan



Strategic Resource Plan



Asset Management Policy



Asset Management Strategy



Fixed Asset Accounting Policy



Master Plans




Asset Management Policy

October

2011


5

Council officers will
give effect to the strate
gic direction by preparing and implementing



Service plans and agreements



Asset
m
anagement
p
lans



R
elevant operational
plans and strategie
s



A
sset guidelines, standards and practices

4.4.

Roles and responsibilities

Council:



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



To adopt the Council Plan, the Annual B
udget and Strategic Resource Plan



To allocate appropriate resources for asset management activities through the Annual Budget and
Long Term Financial Strategy



To
adopt

the Asset Management Policy



To
adopt

the Asset Management Strategy



To endorse new and r
evised asset management plans


Director Environment and Infrastructure
, with the support of the Executive Management Group:



To provide leadership and support in the implementation of the Asset Management Strategy



To monitor asset management across the
organisation and to report on the outcomes to Council



To ensure that asset management is incorporated into the corporate governance framework



To
ensure that

the asset management plans

are
regularly reviewed and updated



To ensure that community needs and th
e outcomes of service reviews are incorporated into asset
management plans


Asset Managers



To
review

and implement the Asset Management Strategy



To develop and to regularly update asset management plans for the major asset categories



To develop and
implement maintenance, renewal and capital works programs in accordance with
the asset management policy, the asset management strategy, the asset management plans and
the allocated budgets.



To ensure compliance with legislative and statutory obligations



T
o document the required
levels of service
in consultation with ser
vice managers and the
community

and
to
deliver them
to
the

agreed risk and cost standard
s



To report to the Executive Management Group on asset management outcomes and performance




Asset Management Policy

October

2011


6

5.

Implementat
ion and monitoring

5.1.

Evaluation

The policy will be evaluated using
the following performance measures:




The funding of the renewal of existing assets in accordance with the long term resource
requirements outlined in the asset management

plan
s



Council's asse
t management performance as measured against the eleven key elements of the
National Framework Core Competency Report Card

5.2.

Accountabilities

Contact
Department


Contact number

Contact
email

Asset Management

9278 4
504

Boroondara@boroondara.vic.gov.au

6.

References

6.1.

Related documents



Council Plan June 2011



Local Government Act 1989



International Infrastructure Management Manual 2006



State Government Asset Management Policy Guidelines 2004

6.2.

Definitions

Include a list of key terms and definitions if required

Asset

-

a physical component or item that has a value, that enables services to be provided and that has
an economic life of greater than one year.

Asset Manager
s

-

Council officers that have the primary responsibility to manage or maintain one or
more cat
egories of assets.

Asset Management

-

the combination of management, financial, economic, technical and other practices
that are applied to physical assets with the objective of providing the required level of service in the most
cost effective manner.

Ass
et Management

Plan

-

a tactical plan for managing one or more asset categories to an agreed level
of service over the life cycle of the asset.

Asset Management Strategy

-

a strategy covering the development
, improvement

and implementation of
plans and prog
rams for asset creation, operation, maintenance, rehabilitation, replacement, disposal and
performance monitoring to ensure that the desired levels of service and other operational objectives are
achieved at the optimum cost.

Level of Service

-

the defined

service quality for a particular activity or service area against which a
service performance may be measured. Service levels usually relate to quality, quantity, reliability,
responsiveness, environmental acceptability and cost.

Lifecycle

-

the cycle of

activities that an asset goes through from planning and design to
decommissioning or disposal.

Renewal

-

Works to refurbish or replace existing asset with assets of equivalent capacity or performance.


Service Manager
s

-

Council officers that have the pri
mary responsibility to deliver services

to the
community

that rely on council facilities and assets.