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Asset Management  Staff, Asset Condition, Systems (Mydata, Etc)  Finance  Staff, LTFP (Asset Based)  Procurement, Contracts, Etc

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Asset Management  Staff, Asset Condition, Systems (Mydata, Etc)  Finance  Staff, LTFP (Asset Based)  Procurement, Contracts, Etc Does it have a place in Local Government? Why is ARCC using it? By: Don Cole - Ararat Rural City Council Brief History In 1857, Chinese miners travelling from Robe on the SA coast to the Central Victorian Goldfields discovered gold. The Canton Lead was one of the world's richest shallow alluvial goldfields – and it was ~8km in length. The Chinese called it Gum San (Gold Mountain) The Ararat Goldfields grew to 30,000+ people in just a few weeks. Gum San – Gold Mountain Ararat Performing Arts Centre Ararat Rural City Council (ARCC) Population » 11,297 Area » 4,230 km2 (~1 million acres) Rateable properties » 7,017 Employees » 126.6 EFT Councillors » 7 Rate revenue » $11.836m (2011-12) Total revenue » $32.065m (2011-12) Length of sealed local roads » 917 km Length of unsealed local roads » 1,466 km A Generalist VS My first 18 months Studying ARCC and Council processes Staff, Services, Business Systems, BEF, ELG, etc I.C.T. “Just fix I.T.” Waste Management Staff, kerbside contract, landfill, waste management groups Asset Management Staff, Asset Condition, Systems (MyData, etc) Finance Staff, LTFP (Asset based) Procurement, contracts, etc. Looking at strategic procurement, shared services, etc Initial Thoughts… Asset Management Team No Assets Manager Two Technical Officers (under utilised) Highly dedicated depot staff – reactive maintenance Asset Management Systems Bespoke business systems ○ SQL, Excel, Road Corridor, other AMS (MyData) not used ○ Numerous issues, including ○ Poor quality and missing data, unknown support for future capabilities Documentation Out of date, lack of ownership Initial Thoughts (Continued)… Council Gradual hollowing-out of villages Council making short-term decisions - based on insufficient data High level of community dissatisfaction (rates too high) Physical Assets Roads – generally seem OK Buildings – most neglected (poor data) Other assets – poor data 2013 -14: VAGO Audit ! One of 5 Councils: Ararat Rural City Council Cardinia Shire Council Kingston City Council Port Phillip City Council Wodonga City Council. 2014 VAGO Audit Fully embraced VAGO audit Audit managed across entire team Executive Leadership Group Management Team Financial Team Fully support all recommendations Asset Management During the course of the VAGO audit: We hired two new Assets Managers Get the right people (strategic + operational)! One AM redeployed to manage ICT Progressed development of a business framework - to be applied across the entire organisation: Based on ISO / AS / Industry Best practice Alignment with standards i.e. not certification! Progressing with evaluation of proposed intranet solution As-Is State Understand and document “As-Is” Legal Requirements Status of AM business application/s Main AM Issues (renewal gap, data, etc) Current state of documentation ○ Asset Management Plans ○ End to end processes ○ Standard Operating Procedures Current state of physical assets Industry standards for AM (eg. STEP) Local Terminology ○ eg Strategy vs Continuous Improvement, Strategy vs Plan To-Be State Develop and document our “To-Be” State (4-pronged strategic approach – more details later) 1) Asset Management as a stand-alone service Effectiveness of documentation, processes, practices etc 2) Interactions with other Council services Financial services, reception, payroll, procurement, etc 3) Interactions with the outside world Legal requirements, MAV directions, other Councils, etc 4) Future state (1, 3 & 5-year horizon) Industry Analysis ○ Asset Management ○ IT (Cloud, Mobility, etc) ○ Legal and other requirements ○ Vendors (flexibility, affordability, support, etc) Other knows / unknowns eg: Community consultation, population trends, economics Service-centric Approach Council delivers 200+ diverse services Each service (group) will require: A Service Policy (CEO) A Service Strategy (To-Be) (Director) A Service Operations Plans (As-Is) (Managers) E2E Processes (Manager) SOPs (Team Leaders) Work Instructions (Officers) Forms and Templates (Managers), and Clearly defined Compliance & Reference documents Proposed Document Hierarchy Mayor CEO CEO Director Director Manager Director Manager Manager Team Leader T/Leader Officer Service Strategy 4-pronged strategic approach Management Systems: Requirements First Edition: 15 January 2014 ISO 55000 What is it? ISO 55000: Asset Management Application of standards enables a consistent approach across all Council Services Other ISO Standards we will use… ISO 9000 Quality Management System (default) ISO 14000 Environmental Management System ISO 31000 Risk Management System Australian Standards we will use… AS/NZS 4801, Occupational Health and Safety Management Other non-“Standards” PMBOK ISO 55000 ISO 9000 ISO 14000 ISO 55000 > Policy 5.2 Policy Top management shall establish an asset management policy that: a) is appropriate to the purpose of the organization; b) provides a framework for setting asset management objectives; c) includes a commitment to satisfy applicable requirements; d) includes a commitment to continual improvement of the asset management system. The asset management policy shall: o be consistent with the organizational plan; o be consistent with other relevant organizational policies; o be appropriate to the nature and scale of the organization's assets and operations; o be available as documented information; o be communicated within the organization; o be available to stakeholders, as appropriate; o be implemented and be periodically reviewed and, if required, updated. Asset Management Policy ARCC’s Objective Consistency across all Council Services Closing Thoughts QDE: Quality, Delivery, Efficiency (and cost) ARCC is small, so this approach may not suit every Council We're learning as we go, and we are happy to share our experiences. Questions or Comments? .
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