Long Term Capital Works Planning - An Evidenced Based Process Vivek Kangesu BSc Eng (Hons), MBA, MIEAust, CPEng, RPEQ Key Asset Management Areas for Financial success - Townsville City Council

Long Term CapEx Planning - Key Areas for Success AM Financial Success - Key Areas: Corporate Asset Management structure Strategic Planning Operate and maintain the assets - AM Systems ( catalogue, independent systems, databases, integrated/linked systems Condition / risk evidence assessments – Understand the corporate vision and implement bottom up approach. Upgrade / renewal / New CapEx Plan – efficient and effective – communications between delivery departments / weather/ resources / rate impacts…etc… Engineering view and financial view – cost cutting , Have to be done , can deliver?

Long Term CapEx Planning - Key Area: Leadership & Team AM Financial Success - Key Areas: Corporate Asset Management structure Strategic Planning Operate and maintain the assets - AM Systems ( catalogue, independent systems, databases, integrated/linked systems Condition / risk evidence assessments – Understand the corporate vision and implement bottom up approach. Upgrade / renewal / New CapEx Plan – efficient and effective – communications between delivery departments / weather/ resources / rate impacts…etc… Engineering view and financial view – cost cutting , Have to be done , can deliver?

Lead without removing responsibilities Key Area 1 Corporate & Operational Asset Management Corporate AM – Lead without removing responsibilities Economies of Scale Asset Management Projects Team decisions Communication Goals & Success Corporate Directions Legislative requirements Annual Returns / performance Mgt Consolidate, Analyse, Prioritise Capital Works Training Systems & models …. Corporate & Operational Asset Management One AM department Vs Corp & Oper. AM Departments , SWOT, CAM lean structure, Authority, Leadership Benefits

Long Term CapEx Planning - Key Area: Works Management Operate, Maintain and maintain LOS: Maintain the LOS / Improve the level of services Define operations Vs Maintenance Understand the current maintenance pattern ( cost / customer calls) Reactive maintenance definition – asset / equipment function failure or customer calls for service Pro-active maintenance – preventive / planned Maintenance budget allocation – Council commitment for major failures and less budget for proactive and reactive maintenance costs The impact on preventive maintenance Maintenance monitoring – monthly reports, alerts, MTBF ..etc….

Long Term CapEx Planning - Key Area: Works Management Operate, Maintain and Improve LOS

Long Term CapEx Planning - Key Area: Works Management Operate & Maintain One paradigm in one year improvement Improve up to cost effective level (RCM – high cost) Risk based maintenance – Risk / consequences/likelihood methodology Vs Failure/Mode/Cause/Effect analysis ( bottom up approach) Innovative / creative – operators maintenance / history / QA forms / alerts / Indirect cost savings 20% invest 80% results

Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP) Key Area 2 Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP) Assets register (Fixed Assets) Equipment registers (Component) Works management ( Operation & Maintenance) , Calls Management Project management Purchasing module Financial module (General Ledger, Accounting payable, receivable) Pavement Management System Condition Monitoring / Risk assessment / Failure Modes, Causes capture modules/ Inspections records Pips Condition - CCTV System Asset/equipment description Location, facility Replacement value Current value Economic life Remaining life Age Condition Risk score Reactive maintenance cost Planned maintenance cost Preventive maintenance costs New/upgrade capital works Renewal costs Depreciation Failure modes and cause Maintenance history Customer calls for services Service costs AM Systems Evidences Condition / risk / Evidence Based Assessment

Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP) Key Area 2 Condition / risk / Evidence Based Assessment

Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP) Key Area 2 Condition / risk / Evidence Based Assessment

Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP) Key Area 2 Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP) 10 Year Renewal CapEx Plan Maintenance Optimisation / Remaining Life Assessment Condition / risk / Evidence Based Assessment

Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP) Key Area 2 Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP) Condition / risk / Evidence Based Assessment

Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP) Key Area 2 Long Term CapEx Planning - Evidence Based Treatment Projection (EBTP) Condition / risk / Evidence Based Assessment

Long Term CapEx Planning - Department/ Asset Class / Major Project) Key Area 3 Long Term CapEx Planning - Department/ Asset Class / Major Project) Evidenced Based Treatment Projection – ebtp / renewal Pavement Management System – Renewal Planning Reports New/Upgrade Council Committed Projects Subdivisional assets/ funding/IF charges/PIP 10 Year CapEX Planning - Department/Asset Class / Major Project

Long Term CapEX Planning - Key Area 3 Long Term CapEX Planning - Asset Information Consolidation & Evaluation- AiCE 10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

Long Term CapEX Planning - Asset Information Consolidation & Evaluation- AiCE Key Area 3 10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

Long Term CapEX Planning - Asset Information Consolidation & Evaluation- AiCE Key Area 3 10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

Long Term CapEX Planning - Key Area 3 Long Term CapEX Planning - Asset Information Consolidation & Evaluation- AiCE 10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

Long Term CapEX Planning - Asset Information Consolidation & Evaluation- AiCE Key Area 3 10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

Long Term CapEX Planning - Asset Information Consolidation & Evaluation- AiCE Key Area 3 10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

Long Term CapEX Planning - Asset Information Consolidation & Evaluation- AiCE Key Area 3 10 Year CapEX Planning – Big picture Asset information Consolidation & Valuation- AiCE

Long Term CapEX Planning Key Area 3 Long Term CapEX Planning - Prioritisation 10 Year CapEX Planning - Analysis & Prioritisation Under Improvements

Long Term CapEX Planning Key Area 3 Long Term CapEX Planning - Prioritisation 10 Year CapEX Planning - Analysis & Prioritisation Under Improvements

Long Term CapEX Planning Key Area 3 Long Term CapEX Planning - Prioritisation 10 Year CapEX Planning - Analysis & Prioritisation Under Improvements

Long Term CapEX Planning Key Area 3 Long Term CapEX Planning - Prioritisation 10 Year CapEX Planning - Analysis & Prioritisation Under Improvements

Long Term CapEX Planning Key Area 3 Long Term CapEX Planning - Prioritisation 10 Year CapEX Planning - Analysis & Prioritisation Under Improvements

Long Term CapEx – New/Upgrade Key Area 3 Long Term CapEx Planning - Performance Long Term CapEx – New/Upgrade Acquisition Year / Funding / Subsidy/Grant/Donation/ Nett /O&M impacts Donated assets Infrastructure Charges (PIP) /Year/O&M impacts Plan & Acquire : Plan for new/upgrade/renewal… Renewal – Evidence based, condition based, risk based models… New – donated assets, identify estimated costs for FMP, understand the IFCs, the funding trunk infrastructure, .. New/upgrade – understand the O&M impacts, rate increase, demonstrated achievability, population growth, approximate calculations for rate impact, New/upgrade/renewal planning indicators.. Communications with project deliver departments Internal & external resources, weather pattern, suppliers, contractors, etc.. Current year budget and capex reconcile

Long Term CapEx Planning - Performance Key Area 3 Plan & Acquire : Plan for new/upgrade/renewal… Renewal – Evidence based, condition based, risk based models… New – donated assets, identify estimated costs for FMP, understand the IFCs, the funding trunk infrastructure, .. New/upgrade – understand the O&M impacts, rate increase, demonstrated achievability, population growth, approximate calculations for rate impact, New/upgrade/renewal planning indicators.. Communications with project deliver departments Internal & external resources, weather pattern, suppliers, contractors, etc.. Current year budget and capex reconcile

Long Term CapEx Planning - Key Areas for Success Evidence Based Treatment Projection [EBTP] for renewal projection, residual life assessment, and proactive maintenance optimisation Prioritise capital works to support Financial Planning Assess the capital works planning process for sustainability TCC AM Standard Model - End in Mind

Questions Vivek.kangesu@townsville.qld.gov.au Vivek Kangesu M: 0438 742 614 Plan & Acquire : Plan for new/upgrade/renewal… Renewal – Evidence based, condition based, risk based models… New – donated assets, identify estimated costs for FMP, understand the IFCs, the funding trunk infrastructure, .. New/upgrade – understand the O&M impacts, rate increase, demonstrated achievability, population growth, approximate calculations for rate impact, New/upgrade/renewal planning indicators.. Communications with project deliver departments Internal & external resources, weather pattern, suppliers, contractors, etc.. Current year budget and capex reconcile