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LGA ‘Infrastructure and Asset Management (Policy and Planning) Information Paper

  • -

    August 2006

service needs of the communities (whilst being mindful of the ‘duty of care’ that Councils have towards their communities) and in accordance with their adopted strategic management plans and budgets.

The following steps set out the process for good asset management in support of Councils’ asset management policies.

  • 1.

    In consultation with the community, define the outcomes to be achieved and the service levels that will achieve those outcomes.

  • 2.

    Where necessary, establish minimum service standards based on the Councils’ duty of care.

  • 3.

    Incorporate the service level and outcomes into Councils’ strategic management plans (including the financial implications into the long term).

  • 4.

    Assess alternative methods of providing the service levels (including lower cost assets and non-asset methods where possible) and decide on the best solution. This includes an assessment of the lifecycle costs and benefits for each of the alternatives.

  • 5.

    If appropriate, acquire the assets to meet the required service levels.

  • 6.

    Operate and maintain the assets to achieve required service levels and minimise life-

cycle costs.

  • 7.

    Review asset performance and condition.

  • 8.

    Renew assets that will continue to be required to meet community needs.

  • 9.

    Dispose of surplus assets or assets no longer able or required to meet community needs.

Supporting the above steps are two key elements:

  • Information – about a range of matters:

    • o

      community needs;

      • o

        service levels;

      • o

        asset performance and condition;

      • o

        performance targets and measures;

      • o

        impact on future operating budgets (i.e. maintenance and depreciation costs).

  • a Decision Support System which can perform:

      • o

        life cycle costing;

      • o

        modelling of proposed solutions;

      • o

        trend analysis;

      • o

        forecasting – short and long term.

The Local Government Association recommends that Councils use the International Infrastructure Management Manual (IIMM 2006) to assist them in the preparation of their Infrastructure and Asset Management Policies and Plans. The LGA is currently undertaking the preparation of templates for Infrastructure and Asset Management Policies and Plans that will draw on the content of the IIMM, and will be making these available to Councils from late August 2006.

The degree of complexity of asset management will differ according to an individual Council’s corporate needs. Typically Councils will start at a core level (focusing on current practices)

5

DME 25101

LGA Financial Sustainability Program – www.lga.sa.gov.au/goto/fsp

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