Data and asset management

Initiatives

The National Asset Management scene

Compiled in July 2005 by:

  • John Howard, IPWEA NAMS.AU Project Manager
  • Robin Anderson, Director, Transport Policy, ALGA

This paper is a brief summary of local government roads data and asset management initiatives. It is very much a 'snapshot' as at July 2005, and it must be recognised that these projects (and new ones) will be constantly evolving.

National initiatives
DoTaRS National Transport Data Network
  • To support AusLink
    • Starting point is a trial of selected datasets by BTRE
ALGA National Local Roads Database System
  • Developed in 2 stages
  • Find out what data is available aggregated at state and national level and how it could be used for national policy development
  • National Local Road Performance Measures
    • Sealing of gravel roads
    • State of the asset
    • Expenditure on roads & bridges
    • Expenditure on roads & bridges per km for sealed and unsealed roads
    • Roads asset consumption
    • Road network sustainability
    • Road safety
  • Based on existing Austroads/ALGA Local Roads Expenditure Survey
  • Data is collected by State Grants Commissions (since 1997/98) (Tas Performance Indicators Survey)
  • Expand SGC data collection to all States (TAS, NT)
  • Modify survey forms to collect asset valuation (CRC, WDV) & depreciation data
  • Reports available from http://www.lgconnect.gov.au/index.php?path=206_240_276&nIdNode=276
National Local Roads Information Project (NLRIP)

NlLRIP is a joint initiative of LGAQ, MAV and ALGA. It will provide a mechanism for collecting local roads data from councils and its aggregation, value adding and use by stakeholders. The ability to share and compare comprehensive and reliable local roads information will provide valuable strategic and operational benefits for all levels of government.

It combines work currently being done through the Queensland Road Alliance to provide an operational system that receives, stores, aggregates and reports on an agreed local roads data. Key outcomes include a statewide agreement on the data sets to be collected (definitions), how they will be collected (process) and how they will be exchanged (transfer protocol). A "hub" will support council, regional and statewide views of the data.

MAV is also currently identifying its own minimum common dataset using the Queensland model and Western Australia's Roman system as references.

The advantage of this approach is that, whilst recognising external reporting requirements, it focuses squarely on local government roads asset outcomes. In this way the early stages of change and implementation are focussed on priority data sets that will give the greatest return for effort in terms of roads outcomes.

IPWEA NAMS.AU

National Asset Management Strategy Australia (NAMS.AU) - Technical Sub-committee of IPWEA

  • IMEA National Asset Management Committee established 1993
    • Published National Asset Management Manual 1994
    • International Infrastructure Management Manual 2000, 2002 update (joint with INGENIUM NZ)
  • NAMS.AU re-established following 2003 Hobart International Public Works Conference.
  • Its objective is to provide resources & tools to assist asset management practitioners
  • Membership comprises representatives from IPWEA State Divisions and seeks a nationally co-ordinated approach

NAMS Australia Web Site is at www.nams.au.com

NAMS.AU National Projects include:

  • Update of International Infrastructure Management Manual - Release August 2005
  • National Asset Condition and Financial Reporting Guidelines
  • DVD Councillor's awareness/training kit
  • Asset Management 101, 102 Primers
  • Adelaide International Public Works Conference Asset Management stream
  • Existing Asset Management Plan Training courses in 2004 & 2005
State initiatives
Victorian Road Management Act 2004
  • establishes a new statutory framework for the management of the road network,
  • facilitates the coordination of the various users of road reserves,
  • sets out certain rights and duties of road users;
  • establishes the general principles which apply to road management;
  • provides for the role, functions and powers of a road authority;
  • provides for the making of Codes of Practice to provide practical guidance in relation to road management;
  • facilitates the making of road management plans as part of the management system to be implemented by a road authority in the performance of road management functions;
  • provides for the construction, inspection, maintenance and repair of public roads;
  • sets out the road management functions of road authorities, infrastructure managers and works managers in providing infrastructure or conducting works; and
  • provides for issues relating to civil liability arising out of road management.
Vic Auditor-General's Report
Management of roads by local government
  • Report No 154, June 2002
  • Conclusion: " "the asset management practices of Victorian councils were not best practice, and that roads were not adequately maintained. Councils were not sure of the condition of their road assets, or whether these assets would reach their expected useful life. We also indicated that the department could provide more training and support to council staff."
MAV Step Program
Developed from SA Step by Step program
  • Helps council achieve a specified minimum level of asset management process capability within a 2 year period
  • In 4 areas
    • AM Policy
    • AM Strategy
    • AM Plans
    • Operational Plans
MAV AM Knowledge Base

Objectives

  • to make the knowledge of individual councils on the performance of their local roads and their road management practices available to all councils in Victoria.
  • designed to encourage knowledge exchange and development through the local government sector and peer councils.
  • bottom up data collection system to identify good performance and best practice at the project level.
  • knowledge base is web based with data entry and knowledge exchange through the web site www.algin.net.au/mav.
LGV AM Performance Measures
  • To measure trends in the 'renewal gap' and improvement in AM practices
  • 9 performance measures
  • State summary reports to Minister and industry
  • Individual status reports to each council
SA Infrastructure Study 2001

'A Wealth of Opportunities' www.sainfrastructure.com

Financial impacts:

  • Councils revenue growth in real terms in past 5 years has been low (1.5%)
  • Real growth in grants has been flat
  • If trend continues, Councils will
    • receive $251M in extra revenue in next 5 yrs
    • but face increased asset renewal costs of $466M.$215m shortfall ($43m p.a.)
SA Step by Step

Mentoring and assistance to 20 councils to improve AM performance

  • To go from where they are
  • To where they what to be in 2 year time
  • Targets are set by each council
  • Assistance is specific to each Council
    • Recognises that all Councils are different
  • Initial 2 day visit and 7 quarterly visits over 2 years plus telephone support.
SA LG (Financial Management & Rating) Amendment Bill 2004
  • Govt. response to public concern on level and impact of council rates and perceived lack of accountability for them.
  • Recognises council are 'facing a serious dilemma'
    • Historical under investment in maintenance and replacement of community infrastructure
    • Councils have taken on additional roles and responsibilities (Hawker Report)
  • Mandatory for councils to undertake long term infrastructure, asset management and financial planning to address annual and long-term revenue in a strategic view.
  • Annual consultation with ratepayers in their budgets, rating strategies and business plans
  • Ratepayers to have before them information about
    • Council's objectives for their area
    • Revenue needs and how it is to raised
    • How the proposed expenditures will contribute to their achievement
    • Consequences of not raising the required revenue
  • Will make it possible for people to make it clear to the council the level of rates and services they believe should be the council's aim
  • Ref: www.localgovt.sa.gov.au/legislation_index.html
LGSA Financial Sustainability of Local Government in SA

Terms of reference are

  1. establish the key issues impacting on the financial sustainability of the Local Government system in SA and the current financial position of Councils in this State; and
  2. identify trends and future challenges which may impact negatively or positively on the outlook for the financial sustainability of South Australian Local Government into the future.

The following matters are to be reviewed:

  1. Current infrastructure and services provided to communities and maintained by Local Government, including the condition of infrastructure, costs and trends related to such infrastructure and services;
  2. Local Government's current financial position including external funding, rates revenue; debt management, fees and fines and other revenue/infrastructure sources including developer responsibilities and trends in these revenue/infrastructure sources;
  3. The relevance to SA communities of issues raised in the report of the House of Representatives Standing Committee on Economics, Finance and Public Administration Inquiry into Local Government and Cost Shifting ("the Hawker Committee") to the Commonwealth Parliament "Rates and Taxes: A Fair Share for Responsible Local Government" (October, 2003); and
  4. Any other such matter as may be relevant
Qld Road Alliance
  • Between Qld Main Roads/LGAQ
  • Objective
    • Promote sound asset management practices across Main Roads and all Local Governments in Queensland that will require a minimum set of road data inputs and outputs that are consistent statewide.
    • To use a minimum common data set to provide a simplified way of rating roads in a consistent manner for the primary purpose of providing a relative ranking score for each road segment.
    • To provide a comparison, at a strategic network level, of road conditions across the state.
  • Recommends allocation of MRQ road funds to Roads of Regional Significance
    • 3rd level Main Roads and
    • council Local Roads of Regional Significance
  • Regional Road Group (Mayors)
    • Supported by Technical Advisory Group
WALGA Road Expenditure Report
  • Annual snapshot 'Report on Local Government Road Assets & Expenditure' outlining the commitments of local governments to maintaining and upgrading the local road network. Based on three asset related values:
    • Replacement value is the current cost of replacing the road assets. It provides a datum from which the consumption of roads can be assessed.
  • Written down value is the current value after allowing for depreciation. The difference between replacement value and written down value represents the amount consumed.
  • Status quo cost is the estimated cost of maintaining the roads at their current condition. It provided a datum against which actual expenditure performance can be compared. The status quo cost is the estimated funding required for maintenance and renewal of existing roads.
NSW Special Schedule 7
  • Section 428 (2) (d) of the Local Government Act
  • Councils report on the condition of the public works (including public buildings, public roads and water, sewerage and drainage works) under the control of the council as at the end of that year, together with:
    1. an estimate (at current values) of the amount of money required to bring the works up to a satisfactory standard, and
    2. an estimate (at current values) of the annual expense of maintaining the works at that standard, and
    3. the council's program of maintenance for that year in respect of the works,
Tasmania TAMI
  • LGAT Tasmania Asset Management Improvement Program
  • Based on Vic STEP program - 4 councils participating
    • Hobart and King Island participate in Vic STEP
Tasmania Infrastructure Review
  • Strategic Infrastructure Review
    • State and Local Government have agreed to work together to develop a high-level strategic infrastructure policy framework, incorporating principles and criteria, to guide the management of existing infrastructure, and the priority and delivery of new infrastructure to achieve the best economic development outcomes for the State.
Tasmanian Auditor-General's Report 2004

Recommendations

  • All local government authorities be required to adopt 'fair values' when accounting for long lived assets with lives of 10 years or more
  • from 1 July 2005 with International Financial Reporting Standards
  • Implemented by Regulation under LG Act 1993
  • 'Fair value' option for valuing non-current assets be mandated for long lived infrastructure assets with lives > 10 years for GBEs, Govt. Depts and State owned companies

Recommendation not accepted by Minister.

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Page last updated: 17 June 2007