1. 2012 International Local Government and Asset Management Conference Gary Van Driel, General Manager – City Services Wednesday 2 May – Thursday May 3 2012

2. Greater Geelong City Council Geelong is located on Corio Bay, 75 kilometres south-west of Melbourne and is a region of contrasts with coastal, rural, urban and natural environments defining a landscape rich in diversity. Geelong Melbourne

3. Geelong Today…  Victoria’s 2nd Largest City  12th Largest urban centre in Australia  Population of around 220,000  Rural, urban and coastal lifestyles  Labour force 110,000 (10% commute to Melbourne)  Manufacturing, Education, Research & Development, Health, Hospitality and Tourism

4. Geelong Assets NoThe Big FourValue 1.Road related$984 million 2.Stormwater Drainage$350 million 3.Buildings$190 million 4.Recreation and Leisure$198 million Operating Budget $260 million Capital Budget $84 million Total Replacement Value $1.7 Billion

5. Roles and Responsibilities

6. Service ManagerAsset OwnerMaintainer Develop the relevant funding proposals. Develop and implement the Asset Management Plan. Maintain the asset to the agreed standard. Plan for the acquisition, creation, modification and disposal of Assets. Establish the Level of Service for the asset. Advise of any issues relating to the performance of the asset and any opportunities to improve the efficiency of the asset. Establish the Level of Service delivery. Record/supply the data for inventory, valuation and condition. Record/supply the data pertaining to asset maintenance. Determine asset utilisation.Responsible for monitoring and reporting on their specific assets. Record/supply the data pertaining to asset use. Establish the level of maintenance required to keep the asset at an acceptable standard and availability.

7. The Journey Key Messages  Engineering professionals are geared to the “Asset Management” concept whereas Non engineering professionals were aligned more towards “Service Management”. (The Challenge was to combine these).  Asset Management at Geelong - a corporate supported– decentralized model supported by various Work Units.  There is a need to drill down into the organisation to get good “Buy In” at practitioner level.  It is most important to maintain protocols and even some sacrosanct rules for managing assets.  Black and white – negotiate away the grey.

8. The Journey Key Reflections 1.Landlord Analogy – helped understanding and “buy-in” from Non Engineering Asset Owners. 2.Financials – automation of depreciation has been a real winner. 3.Triggers to Act – Capitalization of Assets. 4.Geographic Location was the Initial determinate of accountability. Followed by agreements.

9. Special Roles Councillors 1.Potential to set up a Project Control Group. 2.Greater involvement is desirable. 3.Layman's Language – Pictorial messages. 4.New Capital vs Renewal Capital – the political imperative. Community 1.Road related survey of community – statistical sample. 2.Levels of Service.

10. Successes at Geelong In 1997 the Asset Steering Committee was formed and included three General Managers – three subgroups report upwards (Buildings, Land related, and Civil Infrastructure). A central Asset Management Unit performs roles such as Asset Reporting and facilitation of Strategic AM across the City. All of the City’s assets are in one system. This is mandatory. Asset management reporting to Government is centralised. A Support structure is in place.  Asset inventory officers.  Creation of - Polygons in GIS, Plans Scanning, Images created, Textural attributes.

11. Conclusions What has been learnt?  The Asset Management discipline is continuing to evolve and improve  AM Roles and responsibilities must be accurately defined  Relevant managers must make decisions on the ‘grey’ areas  Good Asset Systems are essential  Continuous improvement – eg “Service” is now the big ticket item  Keep looking at the big picture  Remember the 3 R’s

12. Questions?