Introduction

Purpose

The purpose of this policy is to specify the overarching intentions and guiding principles for Asset Management within the City of Greater Geelong. 

Objectives

• To provide leadership and direction to the City’s asset management approach
• To establish a process of stewardship for the delivery of Asset Management services
• To ensure transparency and accountability for the City’s Asset Management approach. 

The sustainable delivery of the City’s services is dependent on asset infrastructure which has been developed and maintained over generations. This investment continues to grow strongly because of the City’s capital investment program and developer contributed assets. The current replacement cost of the City’s existing asset base is $4.1 billion. 

Asset Management combines management, financial, economic and technical practices with the objective of meeting required community service levels through physical assets in a financially sustainable manner.  

Scope

This policy applies to all assets owned or under the control of the City. 

Definitions 

Asset

An item that has potential or actual financial value to an organisation. This includes physical assets, such as buildings, roads, pathways, land and non-physical assets such as leases and licences, digital assets and intellectual property rights. (note that this policy relates to physical assets only).

Asset life cycle

Incorporates the following phases of the life of an asset:

• Acquisition
• Operation
• Maintenance (includes upgrade and renewal)
• Disposal.

Asset class working groups

Comprises the following representatives:

• Asset management
• Asset planning
• Service management
• Asset custodian
• Asset maintenance.

Asset management

Asset management is the coordinated activities of an organisation, carried out over an asset’s life cycle, to realise full value from assets in meeting their service delivery objectives. 

Asset management framework

The overarching asset management governance framework which guides the delivery of the asset management function. 

Asset management plan

Long term plan documenting information that specifies the activities, resources and timescales required for a defined level of service for an individual asset category or group of assets, to achieve councils asset management objectives.

Asset management steering committee

Comprises the following appointments:

• Executive director city infrastructure –chairperson
• Executive director corporate services – deputy chairperson
• Manager asset management - secretary
• Manager civil infrastructure
• Manager community experience
• Manager financial planning and analysis
• Manager it operations
• Manager major projects 
• Manager planning and growth
• Coordinator property and leasing.

Asset management strategy

A high-level action plan that gives effect to the asset management framework by documenting the approach to delivering on asset class objectives and plans with supporting systems.

Asset management system

A system used for asset management with the function of recording and facilitating the data and processes required to deliver the asset management objectives. 

Asset value

The process of balancing asset costs, risks, opportunities and performance benefits.

City

The city of greater geelong organisation led by the ceo.

Council

The city of greater geelong council comprised of elected councillors and led by the mayor.

Disposal

Activities necessary to dispose of decommissioned assets that are no longer required. 

Life cycle costing

An essential asset management function that considers the whole of life cost implications of planning, acquiring, operating, maintaining, and disposing of an asset.

New works

Expenditure on new works or acquisitions that create an asset that did not exist in any shape or form.

Renewal works

Expenditure on an existing asset which returns the service function or the life of the asset back to its original condition.

Renewal gap

The difference between the organisation’s current renewal funding and the required renewal demand. 

Service planning

A Comprehensive review and planning of a particular area of council service delivery. The focus of service planning is on quantity, efficiency and ability to sustainably meet the needs of the community/ informing provision of current and future assets. 

Sustainable asset management

The capacity to ensure meeting the needs of the future by balancing social, economic, cultural, and environmental outcomes or needs when making informed decisions today.

Upgrade works

Expenditure on an existing asset which enhances and/or improves its function and therefore, provides a higher level of service. 

Policy

The City will take a lifecycle approach to the management of its asset portfolio. It will ensure the financial sustainability of Council through a Long-Term Financial Plan and an Asset Management Plan.

In accordance with the Local Government Act, the City will prepare a 10-year Long Term Financial Plan informed by the City’s Asset Management Plan.

The Asset Management Plan will incorporate the following principles:

• Asset investment decisions will be informed by asset information and strategic asset management modelling to ensure that it is evidence (data) based. This includes the potential impacts of climate change.
• The Asset Management Strategy is to be aligned with key corporate documents. They will be informed by the 30year vision “A Clever and Creative City” and the Council Plan.
• All proposed works will be assessed against community needs and include whole of lifecycle costs as part of the project evaluation, adopting the principle of “renew before new”.
• Long term planning shall reference the Asset Renewal Gap in accordance with the class Asset Management Plans.
• Financial management and asset management reporting is to be categorised in terms of operational, maintenance, renewal, upgrade, new and disposal expenditure classifications to enable informed and sustainable Asset Management decisions.
• The City shall adopt a risk-based approach to asset management. 

Service Planning will be central to informing the City’s Asset Management decision making. Stakeholder consultation will inform Asset Management and Service Planning outcomes to meet community needs.

The City’s assets exist to support the provision of services to the community. The levels of service are determined through balancing the needs of the community, the capacity of the asset and the operations and maintenance capability of the City. Asset Management Systems and planning will be informed and integrated with Service Planning systems, data and insights across the organisation. Asset management decision making and the financial sustainability of the City are intertwined. 

The City will actively engage with all stakeholders, in determining the levels of service and drive asset utilisation and performance, within the means of the City.

Key stakeholders will include:

• The community
• Councillors
• Internal stakeholders across the organisation

The City will monitor and report on customer satisfaction with the services provided.

The City will establish and maintain a governance framework which best responds to our Asset Management needs.

The City’s governance framework will incorporate the asset management function and needs of the community. The Asset Management Strategy will document the City’s Asset Management needs.

The City will strive to ensure that Asset Management roles and responsibilities are clear and understood. The roles and responsibilities of asset owners, asset custodians, asset maintainers, service providers, asset planners and those responsible for governance at all levels will be documented and available to the organisation.   

The City will invest and resource its Asset Management System to ensure the accuracy and suitability of asset information. Asset information will be managed in accordance with the City’s information management and asset management standards and policies. Data will be shared through digital platforms. 

Key roles and responsibilities

The following are the key roles required for the effective delivery of the asset management function within the City: 

The following table represents the allocation of roles across a selection of asset classes/sub classes. 

The Asset Management Strategy lists key roles and responsibilities for all the City’s asset classes and sub classes. 

Training

The City shall ensure that all staff and contractors that are involved in asset management, including asset finance accounting staff are provided with the necessary training to perform their role. The following training matrix identifies the level of asset management training for staff and Councillors across the City:

Governance

Asset Management will be governed through the Asset Management Steering Committee. Objectives of this committee are:

• Provide asset management leadership;
• Ensure alignment between the City’s organisational strategy and:
• Asset Management Policy,
• Asset Management Strategy,
• Asset Information Strategy, and
• Asset Management Plan.
• support capital investment decision making;
• Support the development of the annual asset renewal program and recommend asset prioritisation;
• Develop risk profiles and manage high risk assets;
• Review and respond to any audit issue or regulatory change applicable to any asset class;
• Determine KPI’s in relation to strategic asset management.

The governance framework for asset management is detailed on page nine of the attached document. 

Reporting

The Asset Management Steering Committee will meet, as a minimum twice per year and will report into the Executive Leadership Team. Asset Class Working Groups will meet on a quarterly basis and report to the Asset Management Steering Committee. 

Related policies, procedures, and delegations 

• Asset Management Plan 
• Asset Management Strategy (to be issued)
• Asset Accounting Policy
• Asset Data Strategy (to be issued)
• Enterprise Risk Management Policy
• Social Infrastructure Plan
• Asset Handover Procedure
• Capital Projects Delivery Framework Management Procedure 

Legislation

Local Government Act

Local Government Regulations