Asset Management Policy

Asset Management Document No: CPL240.1
Approval Date: 28 August 2012
Approved By: Council
Review Date: June 2015
Responsible Officer: General Manager – City Services Version No: 1.00 
Authorising Officer: Chief Executive Officer

1. Purpose

This policy provides a framework for the City of Greater Geelong to undertake the management of its infrastructure and other associated assets.

Infrastructure assets are the cornerstone of public health and safety and are necessary to meet the social, economic and recreational needs of the community.

Sound Asset Management supports infrastructure and leads to sustainable asset networks.

2. Scope

This policy applies to all Council Infrastructure assets including:

  • road and street network, including pathways
  • flood protection and stormwater systems
  • parks and recreation facilities
  • solid waste facilities
  • community facilities and civic buildings

Associated asset groups to be managed under this policy include plant and equipment, IT equipment. These are not strictly infrastructure assets, and a number of them have a much shorter life, nevertheless they serve functions that as a whole are intended to be maintained.

3. References

  • City Plan 2013-2017
  • Council Asset Management Strategy (Version 1.06 – June 2010
  • Asset Management Plans
  • International Infrastructure Management Manual – International Edition 2011
  • Asset Accounting Policy MPL505.4.1- V03 - Dec 09

4. Definitions

Asset An item that has potential value to an organisation, such as buildings, roads, paths, etc
Asset Management The systematic and coordinated activities and practices of an organisation to optimally and sustainably deliver on its objectives through the cost-effective lifecycle management of assets.
Asset Management Plan Long-term plans (usually 10-20 years or more for infrastructure assets) that outline the asset activities and programs for each service area and resources applied to provide a defined level of service in the most cost-effective way
Infrastructure Assets Infrastructure assets are stationary systems (or networks) that serve the community where the system as a whole is intended to be maintained indefinitely, or at least for the foreseeable future, to a specified level of service by the continuing replacement and refurbishment of its components.
Renewal Gap The difference between the organisations current Asset management practices and the required Asset Management practices to achieve levels of service. In most cases it is written as a financial amount.

5. Council Policy

Sustainable asset management involves managing the performance, risk and expenditure on infrastructure assets in an optimal and sustainable manner throughout their lifecycle covering planning, design, development, operation, maintenance and disposal.  Through sustainable asset management, the City will ensure that its infrastructure assets are safe, reliable, sustainable and remain available for the benefit of current and future generations.

The City will adhere to the following core principles in the planning and decision-making relating to the selection, creation/acquisition, operation, maintenance and renewal/disposal of all infrastructure assets, and require all our suppliers to adopt these principles:

  • Service delivery drives Asset Management practices and decisions

  • Asset Planning and management has a direct link with Councils corporate and business plans. (Including City Plan and the Long term Financial Plan), budgets and reporting process.

  • The Long Term Financial Plan (10yrs) shall reference the Asset Renewal Gap.

  • Application of ‘Renewal before Upgrade or New’ philosophy for assets as appropriate.

  • As a principle, asset depreciation is to be used to fund renewal and/or rehabilitation of assets.

  • Asset Management decisions shall be based on service delivery needs and the benefits and risks of assets, with an evaluation of alternative options that take into account lifecycle costs.

  • Use of a Capital works priority evaluation process for new projects. A business case will be prepared as part of the initial formulation of capital works proposals over a nominated threshold as outlined in the Capital Works Evaluation Framework.

  • New or upgrade Projects funded by grants are to include full lifecycle (whole of life costs) as part of project evaluation.

  • Asset Management plans are to be developed for the City’s assets, and they will be informed by community needs, and integrated with local government financial reporting frameworks.

  • Financial and Asset Management reporting is to be categorised in terms of operational, maintenance, renewal,  upgrade and new expenditure classification to enable sound Asset Management decisions.

  • Councillors and staff with asset and financial responsibilities will be appropriately briefed in relevant asset and financial management principles, practices and processes.

  • After creation, the condition or structural integrity of assets will be managed by application of an appropriate lifecycle activity i.e. operations, maintenance, renewal/upgrade and disposal.

The City will adopt and embed these principles and recognized best practices in developing and maintaining consistent asset management practices within the City.

The City will operate via an asset management strategy and objectives which are aligned with this Policy, which itself is consistent with CityPlan.

The City will establish suitable performance indicators to measure and monitor achievement of asset management policy and objectives.  The feedback from monitoring will be used to achieve continual improvement of asset performance and effectiveness of the Asset Management Systems.  We will actively engage with all stakeholders, especially the community, in deciding the levels of service and asset performance, and we will monitor customer satisfaction with the service provided.

Roles and Responsibilities

Asset Management requires a whole of organisation approach and involves the participation of, and is the responsibility of, the Council, Executive and Council Staff. The specific roles and responsibilities are detailed in the Asset Management Strategy.

A cross functional Asset Management Steering Committee (AMSC) shall operate to maintain,  coordinate, advise and facilitate the implementation of the adopted Asset Management Strategy.

The AMSC will report on a minimum quarterly basis to the Executive who in turn will report progress to the Council as required.

6. Quality Records

Quality Records shall be retained for at least the period shown below.

Name of Record Retained by/location Retention Period Location
Asset Data Asset owner Infefinitely AM System

7. Attachments

  • Nil

Page last updated: Monday, 25 March 2019