Darwin City Council’s Asset Management Journey, Learning & Future Directions LUCCIO

Darwin Darwin Territory Population – 225,900 Darwin Population - 75,900 Darwin and Wider Area Population 2021 – 154,000 Average Temperature 24C – 32C Average Annual Rainfall 1719.8mm LUCCIO Territory Population – 225,900 Darwin Population - 75,900 Darwin and Wider Area Population 2021 – 154,000 Average Temperature 24C – 32C Average Annual Rainfall 1719.8mm

In The Beginning …….. Darwin was founded in 1869 and named Palmerston before being renamed in 1911. Darwin City was recognised as a Capital City in November 1979. Asset Values: 1958 – ₤114,877 ($191,744) 2009 – $692million LUCCIO Darwin was founded in 1869 and named Palmerston before being renamed in 1911. Darwin City was recognised as a capital city in November 1979. Undertaking asset management without knowing since the beginning Asset Values: 1958 – L114,877 pounds ($191,744) converted today! 2009 – $692million

Darwin City's Infrastructure Assets 2009 Replacement Value $692 million LUCCIO Slide shows a make up of assets. S/W $278m – 400km – 9500 pits Roads $199m – 436km Buildings $109m – 95 Handover I will now handover to tom who will lead us through the development of our current AM System.

Darwin City Council’s Asset Management Journey In 2001 GHD commissioned to undertake a review of Council’s asset management practices. Key outcome to advise Council how it can improve asset management by applying best practice principles to its asset portfolios. TOM The key objectives of the review were: To review the approach to the management of Council’s assets and how well this supports the delivery of service to its customers and stakeholders; Provide a holistic view for asset management and deliver a cohesive and logical improvement strategy that coordinates process, systems, data, tactics, organisational and people issues; Identify the cost and benefits of improvements; Develop an improvement programme (action plan), timeframe for completion and costs to implement (including ongoing costs); And to Review whether an integrated asset management system would be appropriate for Darwin City Council and if so recommend the most appropriate type of package including costs and benefits.

2001 Asset Management GHD GAP ANALYSIS Information Systems Gap Analysis Knowledge of Assets Data Management Valuation, Depreciation & Effective Lives Service Levels Specification & Measurement Strategic Planning Works Management (Renewals / Maintenance) Review Audit and Continuous Improvement Asset Register Systems Strategic Planning Systems Works Management Systems Asset Costing Systems Spatial Mapping Systems Customer Management Systems Plans & Records Management Commercial Tactics Organisational Issues People Issues Overall 100 95 XXX 90 85 80 75 70 65 60 55 50 45 40 35 30 25 20 15 10 5 Legend Current Score August 2001 Appropriate Score Top 15% Australian Councils Processes TOM

44 AM Improvement Projects Identified TOM 44 AM Improvement Projects were Identified by GHD for Darwin’s Asset Management Journey that covered areas identified on this slide : Most of these projects have been delivered at various levels: In the Knowledge of Assets Area this covered projects such as: Documenting Policy and Procedures for Asset Management; and Establishing Data Collection and Condition Assessment programs for all asset classes. For the Financials this included: Reviewing Valuation and Capitalisation Procedures; Asset Revaluations; ; and Defining and measuring asset standards for service levels. In Strategic Planning it covered : Establishing Asset Renewal Reports from a Corporate Register ; and Establishing a Process for Prioritising Budget Submissions Information Support Systems related to: The Evaluation, Selection and Implementation of a Corporate Asset Register For Organisational & People Issues this included: Establishing an Asset Management Steering Committee; and Training Staff & Elected Members in Asset Management Practises and Associated Systems Financials Knowledge of Assets Service Levels Supply Management Strategic Planning Asset Creation & Renewals Information Support Systems Review Audit & Continuous Improvement Organisational Issues People Issues

Asset Data Collection & Condition Surveys TOM One of the areas Council has successfully progressed in the Asset Management journey; is in cyclic Asset Data Collection and Condition Surveys So we : Get a good picture of what Assets Council Owns and what condition they are in; Understand the LOS they are expected to deliver for the community; Get a picture of when they are likely to cost $’s through forward works projections; and so we can satisfy legislative requirements for financial reporting for revaluations and auditor assessments A key outcome has been the introduction of the Authority AIM System to become Council’s single repository for asset information. This software was introduced in 2005.

Asset Data Collection & Condition Surveys TOM In 2006 DCC Staff commenced using loggers as part of a Footpath and Driveway condition survey

TOM From this we were rapidly able to gain a picture of where our footpaths and driveways were and what issues and gaps there were Quick explain of the map… The use of mapping software allows us to graphically display the information for ease of use.

Footpaths TOM We were able to quantify the network and establish a 4 year forward works program Summarise the above

Data Consistency: Footpath Types Pen and Paper Survey PDA based Survey TOM By using the data loggers we were able to improve the consistency of the data considerably when compared to previous pen and paper surveys where there was a multitude of footpath type descriptions. We ended up with just 5 clearly defined footpath types: Asphalt; Concrete; None; Pavers; Exposed Aggregate; and a small number of sites that needed further verification. This electronic process has helped minimise other areas of human error; such as improved location descriptions by correct spelling of suburb and street names and the like!

TOM Moving forward using the loggers we established a program of recording our street signs , why and when they have been replaced etc We are currently establishing a line marking and street tree register. We have around 44,000 trees on road verges that we are responsible for

Darwin City Council Sealed Road Network Predicted Condition 2007 - 2017 $465K P.A $705K P.A TOM Another area Darwin City Council has had a focus on, relates to the condition of its road network. We conduct 4 year, cyclic condition surveys on the network, through an assortment of means such as roughness and rutting assessments by consultants, and visual surveys by Council staff. We have then used pavement management software for predictive modelling to provide Council with cost benefit analysis of various treatment options so we are able to derive an optimal solution and expenditure programme over a decade. The financial implications depended on the budget chosen by Council, and if insufficient funds were provided, a legacy may well be left for future generations. These modelling charts provided an indication of the long term pavement condition outcomes depending on the amount of annual expenditure allocated for resurfacing works What we were able to identify from the last survey was that expenditure needed to be increased to maintain or improve the current condition of the network as a result Council increased the budget by 30% to $850k p.a. We are currently completing the next survey ~ it will be interesting to see how this compares to the previous survey

Asset Data Collection & Condition Surveys TOM Moving on As part of the 2001 Asset Management Review, it was recognised that little data was held on the condition of Darwin’s stormwater network. An ongoing inspection programme was established. With the Benefits being: Minimising the exposure to risk by having a better understanding of the condition of this key assets class. Getting a better picture of future expenditure liability for these assets; and A better assessment of the life expectancy of these concealed assets. Some initial assessments were carried out that gave a very basic appreciation of the network, but it was recognised that considerably more work was needed to gain a clearer picture of the extent and condition of the stormwater network In 2006, it was resolved to commence a project to develop a more detailed inventory; conduct ongoing condition assessments and build a clearer map of or our stormwater system. Consequently we implemented a CCTV and manual inspection program. Too date We have found some interesting aspects in our existing network… next slide

Asset Data Collection & Condition Surveys TOM Ya just never know what ya gunna find when ya go up a stormwater pipe do ya 

Darwin City Council’s Corporate Asset Management Plan Consolidation of corporate and commonly held information for Council’s major classes of assets (Buildings, Roads and Stormwater). Analysis of planned and projected expenditure over next 2 decades. Identifies where and how improvements need to be made; TOM In 2007/08 I participated in the IPWEA NAMS PLUS programme resulting in the development of Council’s 2009 Corporate Asset Management Plan. The plan: identifies and documents existing asset management practises; Provides a Holistic view of asset management; It also Identifies a number areas to improve asset management processes; that include : The Need to fine-tune asset data and condition information: Improve asset management systems; Refine asset knowledge; and Improve staff access to up to date information;

TOM As part of the development of the Corporate AM Plan we established and Age profile of our major asset classes. What this gave us was a good picture that the majority of these high value assets were constructed around the 1970’s ~ the time of Cyclone Tracey. These assets are mainly stormwater and road infrastructure relating to subdivision developments in Darwin’s Northern Suburbs

TOM As part of the NAMS Plus modelling for our Roads, buildings and stormwater assets, we developed a 20 year financial forecast, for planned capital new, and renewals, and projected renewals and operation and maintenance costs, The significant planned capital new and renewals from 2010 to around 2015 relate to the possible renewals of councils 3 swimming pools, which are all but at the end of their useful lives, and also, the possible construction of another multi storey carpark in the city. In the late 20’s, the significant increase in projected renewals, relate to one of Council’s multi-storey carparks and the Civic Centre, which are predicted be at the end of their useful life and will be up for major renewals, or maybe even replacements by then. Our next phase is to refine these predictions and financial models!

Corporate Asset Management Plans Council’s Strengths Long term asset management improvement program. Ten Year Works Programs. Project Prioritisation System for prioritising budget submissions. High Level Asset Management Steering Group. Dedicated Asset Team. TOM What we were able to identify in the development of the Corporate Asset Management Plan is the DCC has a number of AM Strengths that include: Long term asset management improvement program. Ten Year Works Programs. Project Prioritisation System for prioritising budget submissions. High Level Asset Management Steering Group. Dedicated Asset Team. Now I will hand you on to Luccio to wrap things up …

Council’s Learning So Far Need to refine our understandings of Councils Assets. Establish a Corporate wide awareness and adoption. Continuation and improved data collection and analysis. This all feeds to Council needing to understand what the next phase of our journey is an will involve. LUCCIO Why? To ensure we are in a financially sustainably position to provide services for future generations Asset Management is a responsibility of whole of organisation To ensure we are basing decisions on adequate knowledge This all feeds to Council needing to understand what the next phase of our journey is an will involve. Need to refine our understandings of Councils Assets. Establish a Corporate wide awareness and adoption. Continuation and improved data collection and analysis.

The Way Forward Darwin City Council Asset Management and Financial Sustainability Review – 2009. (Access Economics and JRA) Project Objectives. (AM) the appropriateness of current asset management processes, including the Asset Management Plan. the linkage between the AMP the Council’s long-term financial planning processes Outcome was 6 main Recommendations for improvement of AM. LUCCIO Darwin City Council Asset Management and Financial Sustainability Review – 2009. (Access Economics and JRA) Project Objectives. (AM) the appropriateness of current asset management processes, including the Asset Management Plan. the linkage between the AMP the Council’s long-term financial planning processes Outcome was 6 main Recommendations for improvement of AM.

LUCCIO The key objectives of this review included: Reviewing the approach to the management of Council’s assets, and how well this supports the delivery of services to its customers and stakeholders Comparing the results of this review with the one previously carried out in 2001 Identifying where improvements have been made and are still to be made Reviewing the strategy used to implement past improvement projects and refine the approach, if necessary, to achieve desired outcomes Developing a revised improvement programme, with a timeframe for completion and costs to implement (including ongoing costs) over say the next 2 years. This chart provided a broad overview of where Council currently is at in relation to AM and where we should try and get too.

How was Darwin City Council Placed ? Theme Target Darwin City Council Average Maturity Score AM Accountability & Direction 3.0 2.8 Asset Information Management 2.2 Asset Lifecycle Management 2.6 Service Management 2.7 LUCCIO Four major AM themes Based on 27 Practice areas.

Summary of Findings Current AM Practices close to core maturity in governance and service planning. Current AM planning represents a first generation AM plan. Asset information is fragmented. High dependence on key people. Council should target development of second generation asset management plans. LUCCIO Current AM Practices close to core maturity in governance and service planning. Current AM planning represents a first generation AM plan. Asset information if fragmented. Departmental in key people. Council should target development of second generation asset management plans.

Asset Management Improvement Projects Ongoing development and maintenance of Councils Corporate Asset Register. Improving Council’s knowledge management strategy. Asset management to be undertaken within a strategic framework. Integration into long-term financial planning. LUCCIO Ongoing development and maintenance of Councils Corporate Asset Register. Improving Council’s knowledge management strategy. Asset management to be undertaken within a strategic framework. Integration into long-term financial planning.

Concluding Comments Council’s have a stewardship role to ensure that the City’s assets are cared for and protected for future generations. Effective asset management is a whole of Council responsibility. Long-term asset management and financial planning are critical to ensure our on-going viability and sustainability. Ensure that AM activities reflect the “Local Context.” Asset management is never “finished” – it is an on-going process. LUCCIO Council’s have a stewardship role to ensure that the City’s assets are cared for and protected for future generations. Effective asset management is a whole of Council responsibility. Long-term asset management and financial planning are critical to ensure our on-going viability and sustainability. Ensure that AM activities reflect the “Local Context.” Asset management needs to take into consideration whole of life costs, service levels, community expectations, risks and sustainability. Asset management is never “finished” – it is an on-going process.

LUCCIO By Progressing Darwin’s Asset Management Journey one day we hope to be as smart as our Queensland counterparts who have their systems so refined they can accurately predict down to the date when their roads are gunna fail …..