The Case for a Regional Asset Management Service Lessons Learnt from the Wimmera Mallee Regional Asset Management Group Don Phillips Formerly Manager Engineering & Assets , Ararat Rural City Council & Convenor WMRAMG National Local Government Asset Management and Public Works Conference. May 2010

Background Wimmera Mallee Regional Asset Management Group Participating councils: Ararat, Hindmarsh, Horsham, Northern Grampians, Pyrenees, West Wimmera, Yarriambiack Small rural councils. Main towns Horsham, Ararat, Stawell

History of the Group Previously reported at the 2008 conference Developed from a STEP regional workshop in June 2006 Initiated as a sub-group of the Wimmera-Mallee Local Government Engineers Interest Group (now IPWEA) First meeting WMRAMG June 2007

Comments on WMRAMG Initial meetings as a discussion forum with good council involvement Bogged down with too many items. There is need to focus on achievable outcomes Became distracted with the Shared Services project and progress slowed Current topics include: Asset structures Service levels Asset systems. 4 councils are looking at a common system

Current AM Status Across Region 6 No. Councils

Conclusions Still many tasks still to complete Particularly in the key areas of: AMPs < 50% Service levels 26% LTFPs, one council This can be further illustrated by looking at the completion of AMPs. An indicator of asset knowledge.

Progress on completing AMP’s

Comments on AMP completion STEP commenced in late 2002 which provided the knowledge to complete an AMP Not all roads, bridges and buildings completed, our largest and key asset groups There is minimal progress on parks and recreation Despite the creation of the WMRAMG we still struggle to progress Current arrangements not working

What is going wrong? Still restricted by lack of time and skilled resources We continue to duplicate activities

Council comments on available resources Resources have not matched the growth in AM Typically remained an add-on responsibility Absence of a dedicated Asset Manager Inability to attract and retain experienced AM staff Strategic AM often accounts for only 10% EFT Suffer from economy of scale. Small councils still have the same activities as the larger councils.

Duplication of activities Whilst we have always had a sound, well practiced ability to plagiarise ‘borrow’…. In the past we have developed AM independently and duplicated effort with no consistent or collaborative approach

Collaborative approach opportunities Opportunities can fall into 3 main areas ACTIVITY BENEFIT 1 Joint discussions Increasing benefit 2 Common standards and templates 3 Shared or common systems

1. Joint discussions advantages Sharing knowledge Explore solutions to problems With savings on investigation time

2. Common standards advantages Adopt common standards, frameworks and tools: Eg. Common hierarchies, asset structures Same models for service levels, risk, capital evaluation (with councils to then populate) Avoids duplication of development Offers time savings with quicker progress Knowledge remains available within the group Enables joint tenders to be called. Ie condition surveys With cost savings in documentation, advertising, attract better rates Enables joint funding applications?

3. Shared systems advantages Same asset system Regional back-up knowledge is available Purchase savings may be achievable Common structures with single set-up opportunities Improved supplier service? Central asset system System cost savings Single storage and processing

What can a regional service offer? Convene regional group meetings: Set agenda Facilitate discussions and information sharing Monitor and report on progress against objectives

What can a regional service offer? Facilitate workshops and planning meetings: At both regional and council level Provide access to best practice library for templates, tools for common use. Eg Service level templates, risk assessment formats, capital works evaluations, etc Develop Implementation Plans Collate regional needs for joint funding applications

What can a regional service offer? Regional service as a resource: Direct assistance to Councils. Hands on. Work with council asset teams on local priorities eg. Service standards, renewal modelling Assist with the strategic role for Councils? Leaving operational tasks at the local level and going part of the way to solving staffing difficulties

What can a regional service offer? Could assist with: Setting up regional joint tenders Conduct investigations into asset systems

What can a regional service offer? Facilitate a centralised role at regional level: Collect, store and process data for use by the members. Eg capital works listings for councils to then prioritise taking into account local issues Decision making must stay at the local level

All sounds great, but..... Threat Answer Lack of Council support in resources, time, $ Convince of need and benefits. ie cost savings, progress, big sticks Perceived loss of control by Councils Ensure the separation of local and regional standards. Service levels and program delivery must remain at council level Loss of existing investments in systems Look back at lack of progress and forward to the long-term

The 10 Commandments Of making a regional service work Thy will leave your bias at the door Thy will accept the majority decision Thy will be prepared to sacrifice some of your hard earned development and start again Thy will commit to doing your ‘homework’ The Council, CEO and senior management team will support the regional group through resources and time allowances Waiting for 6, 7, 8, 9 and 10

Summary Current model of Councils acting independently is not working with very slow progress and still much to do Regional cooperation has the potential to deliver: Efficient use of scare resources Retention of knowledge locally A vehicle for rapid AM improvement Financial savings Security in future AM Credible responses to sustainability issues

Thank-you Questions?