Maitland City Council - Buildings Asset Management Plan August 2016, Revision 2

 
Maitland City Council - Buildings Asset Management Plan August 2016, Revision 2
Maitland City Council
Buildings Asset Management Plan
                  August 2016, Revision 2
Maitland City Council - Buildings Asset Management Plan August 2016, Revision 2
Maitland City Council - Buildings Asset Management Plan August 2016, Revision 2
Executive summary
    Introduction
    This Asset Management Plan (AMP) encompasses the asset management requirements for
    Maitland City Council’s (MCC) community buildings.
    The AMP outlines requirements to deliver expected services to the community including Levels
    of Service; Future Demand and Lifecycle Management activities, informing specific asset
    investment decisions.
    This AMP builds upon the previous buildings AMP (completed in 2010) as well as planning work
    defined in other City documents. This plan has been prepared by GHD in close consultation with
    MCC staff.

    What Council provides
    MCC is expected to provide functional access to community facilities in a way that is:
         Safe and suitable
         Of appropriate quality
         Reliable
         Compliant with relevant legislation

         Delivered in a cost efficient and sustainable manner
    To meet these expectations, MCC manage a range of building assets totalling 214 individual
    buildings with a 2015 replacement value of $184m:

    Building Asset Category          Quantity      $ Cost Breakdown               % of Total
    District Buildings               5             $52,614,000                    28.6%
    Libraries                        4             $12,008,000                    6.5%
    Child Care Centres               4             $5,824,000                     3.2%
    Community Halls                  15            $18,709,000                    10.2%
    Amenities Buildings              35            $19,895,000                    10.8%
    Toilet Blocks                    25            $2,040,000                     1.1%
    Grandstands                      9             $3,755,000                     2.0%
    Kiosks                           14            $947,000                       0.5%
    Council Works Depots             16            $6,751,000                     3.7%
    Equipment Sheds                  24            $1,557,000                     0.8%
    Nursery                          2             $137,000                       0.1%
    Mt Vincent Waste Depot           2             $145,000                       0.1%
    Miscellaneous Buildings          11            $1,343,000                     0.7%
    Residence                        10            $3,199,000                     1.7%
    RFS Buildings                    11            $7,671,000                     4.2%
    Walka Water Works                7             $5,602,000                     3.0%
    Maitland Gaol                    20            $42,041,000                    22.8%
    TOTAL                            214           $184,238,000                   100.00%
    MCC informally measures performance of these assets against technical levels of service
    targets including: Safety (zero incidents/accidents); Availability (opening times, capacity); and
    Fit for Purpose (compliance, condition, user access).

                                                     Maitland City Council - Buildings Asset Management Plan | i
Maitland City Council - Buildings Asset Management Plan August 2016, Revision 2
Current asset status
       Not every asset is of equal importance to MCC or presents the same failure risk. It is therefore
       important to know which assets are most critical to service delivery. Understanding which assets
       are critical, and why, helps to focus investment decisions.
       Critical assets are those assets that have high consequences or impacts if they fail and a high
       probability or likelihood of failing. As an indication of probability of failure, the following graph
       represents the consumption of buildings based on condition and capacity data available or
       opinions of MCC buildings staff. This data illustrates that just over $5m worth of building assets
       are 100% consumed (i.e. need to be demolished, replaced or renewed) and therefore have a
       high probability of failure. Note that the Maitland Gaol and Walka Water Works are included in
       the following figure for information; however, the remainder of the data presented in this
       Executive Summary excludes these facilities.

       Figure E-1 Asset consumption distribution

       MCC’s corporate risk management framework has been used to determine the risk exposure.
       This data highlights the following:

              From the 188 MCC buildings (excluding the Gaol and the Walka Water Works), 19
               buildings (~10%) are performing below their target level of service
              Of the 19 buildings performing below their target, almost all of these buildings present a
               “high” business risk exposure, as illustrated in Figure E-2.
              This risk exposure equates to around $21.2m in renewal costs
              The buildings in this “high” risk category are listed in Table E-1.

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Maitland City Council - Buildings Asset Management Plan August 2016, Revision 2
P5    Almost Certain          0%                0%                 68%                0%                0%

     Probability of Failure
                              P4               Likely       0%                4%                 18%                9%                0%

                              P3          Possible          1%                0%                  0%                0%                0%

                              P2          Unlikely          0%                0%                  0%                0%                0%

                              P1                Rare        0%                0%                  0%                0%                0%

                                                        Insignificant        Minor            Moderate            Major          Catastrophic

                                                             C1               C2                  C3                C4                C5

                                                                                       Consequence of Failure

Figure E-2 Asset business risk exposure Matrix (Buildings Total, excluding
           Gaol and Walka Water Works)

Table E-1 Most Critical Buildings by BRE ranking (excl. Maitland Gaol and
          Walka Water Works)

Rank                               Category                    Building                                          BRE          Renewal

1
                                   District Buildings          Administration Building                            19          $2,126,000

2
                                   District Buildings          Town Hall                                          16          $11,313,000

3
                                   Libraries                   Maitland Library                                   16          $1,079,000

4
                                   Libraries                   Thornton Library                                   16          $1,207,000

5
                                   District Buildings          Art Gallery                                        16          $3,178,000

6
                                   Community Halls             East Maitland Community Centre                     16          $510,000

7
                                   Community Halls             Morpeth School of Arts                             16          $104,000

8
                                   Community Halls             Scout Hall (Close Street)                          16          $147,000

9
                                   Libraries                   East Maitland Library                              15          $84,000

10
                                   Libraries                   Rutherford Library                                 15          $1,489,000

Sustaining the Asset Portfolio
The estimated cost over time to renew MCC’s building assets to the target condition or capacity
is shown in the figure below. As indicated by the horizontal red line, the average cost to renew
the building portfolio (based on long term replacement cycles) is estimated to be in the order of
$2.12m, in 2015$.

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Figure E-3 Financial projections (excluding Gaol and Walka Water Works)

       The analysis detailed in this report also indicates that MCC has a manageable backlog of
       renewal work over a short-term planning window (5 years) of $11.9m. The highest priority
       buildings (those with the highest BRE) requiring renewal investment is provided in the above
       table.
       This information now provides MCC a target for prioritising further detailed assessment for the
       short-term investments required. Risk exposure can be reduced through applying appropriate
       reduction measures, and obtaining more accurate condition data that confirms extending asset
       life is practical.
       However, each year that adequate investment is not made through risk reduction measures, the
       renewal (and risk exposure) quantity will compound. Based on the most recent 2015 operations
       and maintenance data, MCC are, however, investing an appropriate amount to manage these
       risks. For example:
       2015 Operations and Maintenance Spend:                  $1.34m
       2015 Minor Capital Works Spend:                         $0.89m
       2015 TOTAL Spend:                                       $2.22m
       Predicted Average Annual Renewal Costs:                 $2.12m

       Plans for the future
       Short term plans to assist in improving the outputs of MCC’s asset management planning
       processes include the following:
              Validate consumption and probability of failure information on “very high” and “high” risk
               assets through targeted data collection activities (e.g. condition assessments), and
               detailed cost estimation for actual renewal works required.
              Detailed assessment of the outcomes of this analysis in light of the Conservation
               Management Plans, where available, for each building.
              Implement short-term maintenance and renewal plans, prioritising “very high” and “high”
               risk assets.

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     Define and implement data management processes to facilitate AM planning decision
      making including:
      – Centralising data and reporting
      – Aligning financial and maintenance activities/reporting with the agreed hierarchy
     Identify additional or alternate funding sources and mechanisms to assist in meeting the
      average annual sustainable renewal target.
Additional AM Planning improvement activities are discussed further in Section 7 of this Plan.

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Table of contents
  1.     Introduction ...............................................................................................................................1
         1.1      Content of this Asset Management Plan ..........................................................................1
         1.2      Relationship to other city documents/outputs ...................................................................1
         1.3      Overview of Facility service delivery ................................................................................2
         1.4      Purpose of this Asset Management Plan .........................................................................3
  2.     Levels of service .......................................................................................................................4
         2.1      Introduction .....................................................................................................................4
         2.2      Customer research and expectations...............................................................................4
         2.3      Key stakeholders .............................................................................................................6
         2.1      Strategic and corporate goals ..........................................................................................6
         2.2      Legislative requirements..................................................................................................8
  3.     Current levels of service ............................................................................................................9
         3.1      Common levels of service................................................................................................9
         3.2      Facility specific target levels of service – condition based ................................................9
         3.3      Known service deficiencies............................................................................................12
         3.4      Known operating and maintenance costs....................................................................... 12
  4.     Future demand........................................................................................................................13
         4.1      Introduction ...................................................................................................................13
         4.2      Demand drivers .............................................................................................................13
         4.3      Current capacity ............................................................................................................14
         4.4      Demand forecast ...........................................................................................................15
         4.5      Demand management ...................................................................................................15
  5.     Lifecycle management plan .....................................................................................................16
         5.1      Introduction ...................................................................................................................16
         5.2      Asset hierarchy .............................................................................................................16
         5.3      Asset profiles.................................................................................................................19
         5.4      Asset lifecycle activities and cost data ........................................................................... 20
         5.5      Asset failure modes and consumption estimates............................................................ 22
         5.6      Asset risk data and risk exposure estimates .................................................................. 26
         5.7      Routine maintenance plans ........................................................................................... 33
         5.8      Creation/acquisition/upgrade plan.................................................................................. 33
         5.9      Disposal plan.................................................................................................................33
  6.     Financial summary ..................................................................................................................34
         6.1      Financial projections for asset replacement ................................................................... 34
         6.2      Financial projections for full lifecycle .............................................................................. 37
         6.3      Long term funding mechanisms ..................................................................................... 37
  7.     Plan improvement and monitoring ........................................................................................... 38
         7.1      Overview .......................................................................................................................38

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7.2      Status of asset management practices .......................................................................... 38
          7.3      Improvement program ...................................................................................................40
          7.4      Monitoring and review procedures ................................................................................. 41

Table index
  Table E-1        Most Critical Buildings by BRE ranking (excl. Maitland Gaol and Walka Water
                   Works) ........................................................................................................................... iii
  Table 2-1        Typical customer expectations for building facility management .......................................4
  Table 2-2        Strategic and corporate goals summary table ..................................................................6
  Table 2-3        Legislative requirements..................................................................................................8

  Table 3-1        Facility specific condition levels of service...................................................................... 10
  Table 3-2        Current operating & maintenance service levels as expenditure..................................... 12
  Table 4-1        Demand drivers .............................................................................................................13

  Table 4-2        Current available capacity and usage data.....................................................................14
  Table 5-1        Asset hierarchy – building facility services ..................................................................... 16
  Table 5-2        Maximum Potential Life and Usage Target by asset class .............................................. 18

  Table 5-3        Asset class assignment to building hierarchy ................................................................. 18
  Table 5-4        Replacement costs by asset category ............................................................................ 19
  Table 5-5        Maximum potential life ...................................................................................................22

  Table 5-6        Condition rating scale ....................................................................................................23
  Table 5-7        Condition rating residual life factors ............................................................................... 23
  Table 5-8        Buildings with asset consumption >90% ........................................................................ 24

  Table 5-9        Value of asset at target condition ................................................................................... 26
  Table 5-10 Minimum condition rating by building category ............................................................... 27
  Table 5-11 PoF determination for LoS(Condition) ............................................................................ 28

  Table 5-12 PoF determination for LoS(Capacity) ............................................................................. 28
  Table 5-13 Probability of failure scale ..............................................................................................29
  Table 5-14 Consequence of failure scale......................................................................................... 29
  Table 5-15 ‘Top 15’ BRE buildings ..................................................................................................31
  Table 5-16 Top 15 BRE ranking buildings requiring renewal (excl. Maitland Gaol and Walka
             Water Works) ................................................................................................................32
  Table 7-1        Recommended improvement program ........................................................................... 40

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Figure index
  Figure E-1 Asset consumption distribution ........................................................................................ ii

  Figure E-2 Asset business risk exposure Matrix (Buildings Total, excluding Gaol and Walka
             Water Works) ................................................................................................................. iii
  Figure E-3 Financial projections (excluding Gaol and Walka Water Works) ...................................... iv

  Figure 1-1       AM plan relationship to other Maitland City Council documents........................................2
  Figure 2-1       Excerpt from MCC Community Research Report, Nov 2014 ............................................5
  Figure 5-1       Replacement cost profile ...............................................................................................19

  Figure 5-2       Asset installation profile .................................................................................................20
  Figure 5-3       Asset consumption distribution, by building categories ................................................... 24
  Figure 5-4       BRE matrix and risk ranking .......................................................................................... 26

  Figure 5-5       Renewal costs, by BRE (all buildings excluding Gaol and Walka Water Works) ............. 31
  Figure 6-1       Replacement costs financial projection .......................................................................... 35
  Figure 6-2       Replacement costs financial projection, excluding Maitland Gaol and Walka
                   Water Works .................................................................................................................36
  Figure 7-1       Confidence level rating - maturity................................................................................... 38

Appendices
  Appendix A – Asset Consumption Distributions
  Appendix B – BRE Matrices of Renewal Costs

  Appendix C – Sequenced BRE and Renewal Costs for all Buildings
  Appendix D – Replacement Cost Financial Projections

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1.   Introduction
     1.1      Content of this Asset Management Plan
     This asset management plan (AM Plan) seeks to: demonstrate responsive management of
     assets and associated services, comply with regulatory requirements, and communicate the
     level of funding necessary to provide the required levels of service for community facility assets.
     Maitland City Council (MCC) own and operate a number of buildings (214 assessed within this
     AM Plan) varying in age from new to over 100 years of age (such as the Town Hall). The
     buildings have a wide range of uses such as libraries, office buildings, community buildings,
     childcare centres, historic and heritage buildings (such as Morpeth Court House), and sporting
     facilities (inclusive of amenities blocks, sporting oval buildings, and grandstands).
     The AM Plan outlines the general approach and methodology taken in preparing the Plan, as
     well as a discussion on key outputs. The specific sections included in the Asset Management
     Plan are as follows:
          Levels of service – specifies the services and levels of service to be provided by council.
          Future demand – how this will impact on future service delivery and how this is to be
           met.
          Lifecycle management – how Council are/will manage its existing and future assets to
           provide the required services.
          Financial summary – what funds are required to provide the required services.
          Improvement and monitoring plan – Next steps required to enable continuous
           improvement of AM Planning outputs.

     Council also owns a number of buildings and complexes which are managed by other divisions
     within Council or externally and subsequently are not covered by this Plan. These facilities
     include:

          Rangers Headquarters
          Aquatic Centres
          Playground equipment

          Tennis courts, grounds and other sporting facilities
          Fencing
          External lighting and associated equipment

          Some minor Miscellaneous buildings not otherwise covered in this assessment

     1.2      Relationship to other city documents/outputs
     The relationship of this AM Plan to other MCC documents and planning outputs is illustrated in
     the figure below. The AM Plan is the base framework to assist MCC in developing appropriate
     direction and inputs to budget forecasts, master plans, and associated studies/outputs for
     maintaining and operating the various facilities.

                                                     Maitland City Council - Buildings Asset Management Plan | 1
Figure 1-1 AM plan relationship to other Maitland City Council documents

       The AM Plan is to be read with the following associated planning documents:
              Maitland City Councils Annual Report 2013/14
              Maitland City Council Operational Plan 2014-15
              Maitland +10 Community Strategic Plan 2013
              Maitland Delivery Program 2013-2017 (Revised)
              Asset Management Policy 2014

              Asset Management Strategy 2014
              NSW 2021 (NSW Strategic Business Plan)
              Hunter Local Action Plan

              Maitland City Council’s Strategies and Plans
              Review of Open Space and Recreation
              Building specific conservation management plans

       1.3         Overview of Facility service delivery

       1.3.1       Overview

       MCC is responsible for providing a range of building facility services to its community under the
       portfolio of assets. To support the goals of meeting increased levels of service council engages
       the necessary resources to meet the community needs and has adopted key infrastructure
       asset management practices that satisfy the facility requirements. These are broadly specified
       throughout this plan including:
              Taking a life cycle approach in managing the building facility assets.
              Developing cost-effective long term, risk-based management strategies.
              Defining level of service and monitoring performance of the building facilities against this
               level.
              Understanding and meeting the demands of growth through demand management and
               upgrade investment priorities.
              Proactively managing risks associated with the assets.

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       Sustainable use of physical resources.
       Continuous improvement in asset management practices.
This AM plan is prepared under the direction of Council’s vision, mission, goals and objectives.

1.3.2      Service Delivery Program

To meet the strategic outcomes of delivering adequate services to the community each asset is
rated in terms of criticality. Criticality assists lifecycle management by defining which assets are
most important to the service delivery program. The AM plan provides:
       Details of the community expectations and known policy requirements.
       Lifecycle management strategies and/or suggestions on the building facilities (capital
        rehabilitation or replacement projects and/or maintenance works) commensurate with
        asset data available.
       High level recommendations for short term actions based on asset criticality.

       Indications of long-term sustainable funding amounts for maintaining adequate services.

1.4        Purpose of this Asset Management Plan
The purpose of the AM plan is to demonstrate responsive management of building facility
assets (and services provided from those assets), compliance with regulatory requirements, and
to communicate risks to the required levels of service.

It provides a rational framework that enables systematic and repeatable processes to manage
costs, risks and levels of service for each asset or asset group. The AM Plan identifies expected
future costs and assists in predicting future barriers to efficient and effective service delivery.

1.4.1      Core and advanced asset management

This AM plan is prepared as a ‘core’ AM plan in accordance with the International Infrastructure
Management Manual. It is prepared to meet minimum legislative and organisational
requirements for sustainable service delivery and long term financial planning and reporting.
Core asset management is a ‘top down’ approach where analysis is applied at the ‘system’ or
‘network’ level.
Future revisions of this asset management plan will improve the quality of asset information to
provide optimised long term planning and implementation of the building facilities asset
management strategy.

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2.          Levels of service
            2.1           Introduction
            One of the basic cornerstones of sound asset management is to provide the level of service
            that current and future communities want and are prepared to pay for.
            To achieve this, the Council needs to plan for the provision of desired service levels, for the
            least cost, over the life span of its assets. Establishing levels of service requires knowledge of
            customers and stakeholders, and an understanding of their expectations and requirements in
            terms of the building facilities services.
            This section of the AM Plan covers the following:
                     Customer Research and Expectations
                     Strategic and Corporate Goals
                     Legislative Requirements
                     Current Levels of Service
                     Desired Levels of Service
                     Known/Suspected Service Deficiencies

            2.2           Customer research and expectations
            An understanding of MCC’s building facility customers and their expectations is a key input into
            determining the required levels of service. This understanding will be balanced against
            legislative requirements and the customers’ ability/willingness to pay. The following table
            summarises what community levels of service expectation are based on available data.
            Table 2-1 Typical customer expectations for building facility management

            Community LOS                Community expectation

            Safety                       Facility providers take safety seriously with measures in place to provide safe
                                         facilities/services.

            Quality                      Appropriate comfort features for patrons are made available as appropriate to
                                         the type of building. Such as seating, landscaping, change rooms, fresh water,
                                         ventilation systems, lighting/sound/communication facilities, car parking, locality
                                         to public transport, accessibility options, etc.
                                         All building facilities have a minimum standard for cleanliness,
                                         upkeep/maintenance and are aesthetically attractive in their landscape.

            Quantity                     Facilities have sufficient capacity to serve the communities current and future
                                         needs.

            Reliability                  Facilities are able provide the service that has been advertised and/or paid for
                                         by the respective patrons at the time. That all repairs/breakdowns are dealt with
                                         in a timely manner and patrons expecting to use facilities are notified (as far as
                                         practicable) if there is impediment to their use of the facility.

            Cost Efficiency              Life cycle costs are managed effectively and efficiently to deliver services within
                                         known budget constraints and in areas that are most critical to the community.

            Legislative Compliance       Compliance with all applicable legislation.

            Sustainability and           Long term plans are prepared, maintained and implemented to makes sure

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Community LOS           Community expectation
Heritage                facilities and services are delivered for future generations.
                        Recognition of local, state and or nationally significant buildings is made and
                        appropriate plans are put in place to manage accordingly.
                        Facilities operate in a way that minimizes impact to the environment.

The Maitland City Report available on the MCC website published by Micromex Research in
September 2014 provides a range of community survey results. Results shown in the graphic
below, courtesy of this report, indicate some aspects of the community survey are related to the
building facilities owned, operated and/or maintained by MCC.

Figure 2-1 Excerpt from MCC Community Research Report, Nov 2014

It should be noted that a range of interpretive and statistical analysis was subsequently
completed and reported on in this referenced report. In general terms, the community research
implies that majority of the building facility assets (considered in the referenced report) are of
relatively lower importance to the community (compared to other factors), and they are already
relatively satisfied with the service(s) being provided.

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2.3         Key stakeholders
       Key stakeholders in defining level of service are:
              Community, Recreational Groups and Visitors
              Residents and Tenants

              Developers
              Indigenous and European Heritage Bodies
              Council Departments (Community and Recreation Services, Assets and Infrastructure,
               Planning, City Works and Services)
       For future iterations of this AM Plan, additional consultation with these stakeholders will be
       required to re-confirm and/or define levels of services expectations based on the changing
       needs of the community.

       2.1         Strategic and corporate goals
       The management of facilities is undertaken within the context of the MCC Community Strategic
       Plan (“Maitland + 10”), dated March 2013. An outline of the themes as they relate to the building
       facilities is provided in Table 2-2.
       Table 2-2 Strategic and corporate goals summary table

       Theme                 What Our Community               How we will get there
                             Would Like

       Proud People,         Our growing community            Growth and change in the city will be identified,
       Great Lifestyle       retains our sense of place       planned for and respected by the community. The
                             and pride in our city whilst     provision of community services remains effective
                             welcoming diversity and          and meets identified and anticipated needs within our
                             change.                          community
                                                              We are focussed on lifelong learning and
                                                              collaborating to deliver a range of innovative
                                                              programs and services.

       Our Built Space       Our infrastructure is well       New development and infrastructure provision is
                             planned, integrated and          aligned and meets community needs
                             timely, meeting community
                             needs now and into the
                             future

                             Our unique built heritage is     Adaptive and creative uses for heritage sites and
                             maintained and enhanced,         buildings across the city will be explored and
                             coupled with sustainable         promoted.
                             new developments to meet
                                                              Our iconic Town Hall will be revitalised to maximise
                             the needs of our growing
                                                              the potential benefits of the building to the
                             community.
                                                              community.

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Theme              What Our Community               How we will get there
                   Would Like

Out Natural        Local people are aware of        Sustainability and environmental education programs
Environment        their personal impacts on        will be implemented across the city, from community
                   the environment and take         groups to schools.
                   steps to prevent or              As a community, we are aware of our own
                   minimise native impacts          requirements for food, water and energy and make
                   and promote positive             environmentally friendly choices.
                   action

A Prosperous       A unique sense of identity       We will maintain and develop a network of vibrant
and Vibrant City   and place is found               mixed use centres, creating opportunities for
                                                    business growth and new services for the community

                   Maitland is seen as a            We will work in partnership to enhance and
                   desirable place to live, an      strengthen our events and tourism sector.
                   easy place to work, a            We will work to enhance accommodation offerings
                   welcoming place to visit         across the city, in particular our city centre.
                   and a wise place to invest.

                   Central Maitland is the          We will see the CBD reclaim its place as the heart of
                   vibrant heart of our city,       the city, through changes to the built form and
                   engendering a strong             streetscapes, along with active partnerships.
                   sense of pride within the
                                                    A diverse mix of residential, retail, cultural, and other
                   community.
                                                    services will be found in the City Centre – a vibrant
                                                    place to visit during the day or night.

Connected and      Maitland City Council is         Council’s planning is integrated and long term, based
Collaborative      efficient and effective in its   on community desires expressed in the ten year
Community          operations, actively             community strategic plan.
Leaders            listening to the community
                                                    Council’s decision making is transparent, accessible
                   and anticipating and
                                                    and accountable.
                   responding to community
                   needs.

                   A sustainable Council for a      A strong focus on financial, economic, social and
                   sustainable City                 environmental sustainability will flow through all of
                                                    Council’s strategies, plans and decision making
                                                    The management of Council’s assets will be long
                                                    term and focused on meeting the needs of the
                                                    community now, and into the future
                                                    Council’s workforce, systems and processes will
                                                    support high performance and optimal service
                                                    delivery for our community.

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2.2         Legislative requirements
       Council has to meet many legislative requirements including Australian and State legislation and
       State regulations. Priority regulations include:
       Table 2-3 Legislative requirements

       Legislation                            Objective/Intent
       Local Government Act 1993              Sets out role, purpose, responsibilities and powers of local
       Local Government Regulation            governments including the preparation of a long term financial plan
       2005                                   supported by asset management plans for sustainable service
                                              delivery
       Building Code of Australia (and        Uniform set of technical provisions for the design and construction of
       supporting codes)                      buildings and other structures
       Aust/NZ Standards                      General compliance to required standards
       Occupational Health and Safety         Defines responsibilities of employers and workers to ensure safety
       Act 2000                               is maintained.
       Occupational Health and Safety
       Regulation 2001
       Disability Discrimination Act          To ensure that the persons with disabilities have the same rights as
       1992                                   the rest of the community
       Heritage Act 1977                      Protection of historic buildings, structures and precincts
       Electricity Act 2004                   Electricity safety provisions in NSW
       Hunter Water Act 1991                  Provision of water, sewerage and drainage services in the Hunter
                                              region by the Hunter Water Board
       Gas Supply Act 1996                    Provisions to regulate the supply of gas in NSW
       Gas Supply Regulation 2002
       Occupational Health and Safety         Provisions to protect the health and safety of the public from
       Amendment (Dangerous Goods)            hazards arising from the storage and handling of dangerous goods
       Act 2003
       Occupational Health and Safety
       Amendment (Dangerous Goods)
       Regulation 2005
       Crowns Lands Act 1989                  Sets out requirements for work and leases on Crown Land

8 | Maitland City Council - Buildings Asset Management Plan
3.   Current levels of service
     3.1        Common levels of service
     Levels of service that are common to all facilities and subsequent performance targets are as
     follows.
     Service Criteria         Technical measures may           Typical Performance Target
                              relate to
     Safety                   Number of injuries or            Zero incidents and accidents
                              accidents
     Availability             General opening times            Opening times/availability are established
                                                               for each facility.
                                                               Information is readily available for
                                                               patrons/customers via Website and/or
                                                               Service Centre.
                              Capacity – number of people      Maximum Capacity under legislation and
                              allowed in the nominated         recommended capacity for differing uses
                              facility to safely deliver       are established for each facility.
                              services.                        Information is readily available for
                                                               patrons/customers via Website and/or
                                                               Service Centre.
                              Facility availability within     Less than 10% of booking/usage requests
                              established opening times        have to be rejected
     User Access              Public Use – Regular (Daily)            Wheelchair Accessible
                                                                      Available car parking
                                                                      Reception/ Staff on site
                              Public Use –                            Wheelchair Accessible
                              Weekly/Monthly
                                                                      Available car parking
                                                                      Staff presence/availability over
                                                                     phone during booking/usage times
     Fit For Purpose          Regulatory Compliance            No non-compliances recorded
                              Breakdowns and repairs           System in place to report and record
                              (Building)                       breakdowns and repair required.
                              Equipment included/              Notifications to be provided to
                              provided is in good working      users/bookings of known issues and
                              condition                        proposed times for repair.
                              Condition of facility            Facility Dependent and is maintained to the
                                                               appropriate standard for its intended use

     3.2        Facility specific target levels of service – condition based
     To assist in prioritising asset management activities over the spectrum of the MCC’s buildings,
     the following target level of service categories were applied. Levels of Service assessed within
     this iteration of the AM plan are focused around the ‘condition’ of the building only. These
     categories and the subsequent allocation of buildings within these categories has been agreed
     with applicable Council staff and managers.

                                                       Maitland City Council - Buildings Asset Management Plan | 9
Table 3-1 Facility specific condition levels of service

       Category             Description                        Service/Condition        Facilities
       A - Superior         High profile facility with         Building to be in the          Town Hall
                            local or regional                  best possible
                            significance and high              condition
                            public interface/services          Minimal
                            Very important to core             deterioration only
                            Council operations                 (minimum condition
                            National or State heritage         rating: 5)
                            status
                            Specialist maintenance
                            requirements
                            Generates revenue
       B – Above            Very important to core             Building to be in a            Art Gallery
       Average              Council operations                 good condition to
                                                                                              Council Administration
                            Facilities with high public        meet
                            interface/services                 functional/operation            Building
                            Require good public                al requirements                Council Visitors Centre
                            presentation                       (minimum condition             Libraries (x4)
                            State heritage status              rating: 4)
                                                                                              Council Works Depot
                            Generates revenue
                                                                                               Administration Building
                                                                                              RFS Zone Fire Control
                                                                                               Centre
                                                                                              Walka Water Works Pump
                                                                                               House
                                                                                              Walka Water Works Coal
                                                                                               Chute
                                                                                              Maitland Gaol (x16)
       C - Average          Important to core Council          Building to be in a            Morpeth Court House
                            operations/services                reasonable
                                                                                               Museum
                            Facilities with some public        condition whilst still
                            interface/services                 meeting service                Child Care Centres (x4)
                            Local heritage status              requirements                   Community Halls (x15)
                                                               (minimum condition             Amenities Buildings (x2)
                                                               rating: 3)
                                                                                              Grandstands (x3)
                                                                                              Council Works Depot (x9)
                                                                                              Town Hall Café
                                                                                              Stockade Hill Heritage
                                                                                               Park Rotunda
                                                                                              Rotunda Maitland Park
                                                                                              Residences (x5)
                                                                                              RFS Buildings (Lochinvar
                                                                                               and Thornton)
                                                                                              Maitland Gaol (x4)

10 | Maitland City Council - Buildings Asset Management Plan
Category      Description                 Service/Condition         Facilities
D - Basic     Not important to core       Building to meet                 Amenities Buildings (x33)
              Council                     minimum
                                                                           Toilet Blocks (x24)
              operations/services         operational/function
              Facilities where basic      al requirements                  Grandstands (x3)
              functional performance is   (minimum condition               Kiosks (x13)
              acceptable                  rating: 2)                       Council Works Depot (x6)
                                                                           Equipment Sheds (x23)
                                                                           Nursery
                                                                           Mt Vincent Waste Depot
                                                                           Miscellaneous buildings
                                                                            (x5)
                                                                           RFS Buildings (x6)
                                                                           Walka Water Works (x5)
E - Dispose   Building is non             Not fit for public or            Toilet Blocks-Lena O'Brien,
              operational, dormant or     operational use                   Kenneth Street
              pending                     (condition rating: 1)
              disposal/demolition                                          Grandstands-Maitland
                                                                            Sports Ground (x3)
                                                                           Kiosks-Maitland Sports
                                                                            Ground Kiosk
                                                                           Equipment Sheds-
                                                                            Tenambit Oval
                                                                           Nursery-Workshop 2
                                                                           Mt Vincent Waste Depot-
                                                                            Gate house
                                                                           Miscellaneous Buildings-
                                                                            Maitland Sports Ground
                                                                            Ticket
                                                                           Miscellaneous Buildings-
                                                                            Maitland Park Gardeners
                                                                            Residence
                                                                           Miscellaneous Buildings-
                                                                            Rangers Cottage
                                                                           Miscellaneous Buildings-
                                                                            Maitland Sports Ground
                                                                            Media
                                                                           Residence-Abbot Street 1
                                                                           Residence-Abbot Street 2
                                                                           Residence-Abbot Street 3
                                                                           Residence-Elgin Street
                                                                            Maitland Park
                                                                           Residence-High Street
                                                                            Retail Office
                                                                           RFS Buildings-Thornton
                                                                           RFS Buildings-Lochinvar

                                          Maitland City Council - Buildings Asset Management Plan | 11
3.3         Known service deficiencies
       Known and/or perceived service deficiencies affect the current and future performance of
       facilities. The known deficiencies have been incorporated into this iteration of the AM Plan in the
       course of the assessment through the current condition rating provided for each facility.
       Comitted expenditure for known deficiencies or works programs is not included in this
       assessment.
       The resulting work programs should be managed in accordance with asset priorities (based on
       criticality) provided within this report and as part of the wider Assets and Facilities works
       program.
       For the purpose of this assessment, a series of workshops were held with MCC staff to
       ascertain a current and relative Condition Ranking for each of the assessed buildings. These
       Condition Rankings are documented in the AM data model. MCC staff also provided
       “Judgement Residual Life” timeframes based on their knowledge of the relevant facility which
       were also key inputs into the AM data model and subsequent timing of renewal.
       Note that renewal timelines were also smoothed in this analysis to avoid a spike of renewal
       investment in any given year.

       3.4         Known operating and maintenance costs
       The known annualised Operating and Maintenance (O&M) costs for the assessed buildings is
       shown in Table 3-2. A number of the building facilities (those marked with * in the table below)
       did not have a complete data set. As such it should be considered that the overall costs to MCC
       for O&M would be marginally higher overall.
       Table 3-2 Current operating & maintenance service levels as expenditure

       Building Category                                       Annual O&M Costs (2015)
       District Buildings                                                    $415,912
       Libraries                                                              $69,637
       Child Care Centres                                                     $34,867
       Community Halls                                                       $438,859
       Amenities Buildings                                                    $70,286
       Toilet Blocks                                                         $191,474
       Grandstands                                                            $11,986
       Kiosks                                                                  $7,170
       Council Works Depots                                                   $44,800
       Equipment Sheds                                                         $8,758
       Nursery (included in Miscellaneous)*                                         $0
       Mt Vincent Waste Depot                                                  $4,670
       Miscellaneous Buildings                                                $20,054
       Residence                                                              $10,573
       RFS Buildings                                                          $12,807
                               Sub Total: O&M                              $1,341,852
       Average Annual Capital investment                                     $885,000
       Total average annual investment                                         $2,226,852
       *Not included in the financial projections

12 | Maitland City Council - Buildings Asset Management Plan
4.   Future demand
     4.1       Introduction
     Future demand is a measure of how much customers will need the future services provided by
     the assets. Understanding and predicting demands enable asset managers to plan ahead and
     identify the best way to meet future conditions. MCC expects to enter a period of growth over
     the coming years placing a demand on the capacity of services and infrastructure.

     4.2       Demand drivers
     Factors affecting demand include population change, changes in demographics, consumer
     preference regional tourism, technology changes, operational efficiency, education initiatives
     and economics. Multiple interconnected factors will continue to influence demand for assets that
     as outlined below:
     Table 4-1 Demand drivers

     Factor                       Discussion

     Development and population   Development and population growth are significant factors influencing the
     growth                       demand of recreation and sporting facilities in the City. The City has
                                  identified 5 key elements within its current 10 year strategy which includes
                                  making sure “recreation services and facilities meet the needs of our
                                  growing and active communities.”

     Consumer Preference          Consumer preference is linked to user attitudes and behaviours, which can
                                  influence demand. Understanding consumer preference is critical to
                                  understanding the potential for which demand management techniques
                                  can be used to influence consumers and subsequently control future
                                  demand.

     Legislation and Policy       Refer to section 2.4 for the legislative requirements including Australian
                                  and State legislation and State regulations applicable to MCC Building
                                  Facilities.
                                  Legislation and policy changes can have far reaching impacts to demand.
                                  However, there are no known legislative changes anticipated that will
                                  impact the demand of facilities services.

     Technology changes           Technology changes increasing efficiency and sustainability can result in
                                  the obsolescence or substitution of some assets. Future technologies
                                  should be considered for facilities such as new materials and methods to
                                  deliver cheaper, more efficient and more effective asset repair and renewal
                                  solutions

     Economics and competition    MCC Building Facilities include user pay facilities. The balance of meeting
                                  customer preferences at a sustainable cost to the City and the user must
                                  driver operational decision making.
                                  With newer more contemporary facilities being available in surrounding
                                  LGA’s, sustainable revenue streams need to be challenged/identified.

     Operational efficiency       Business improvement initiatives such as performance monitoring, risk
                                  management and process improvements can be expected to result in a
                                  reduction of asset demand.

                                                      Maitland City Council - Buildings Asset Management Plan | 13
4.3         Current capacity

       4.3.1       Capacity and usage Data

       Not all facilities that are the subject of this AM Plan have readily accessible/available booking
       and/or usage history information.
       Those facilities that do have this information are provided in the table below, along with the
       calculated percentage of available usage time utilised.
       In all cases, the ‘Target Usage’ figure was applied to each building category, per Table 5-2.
       Current data provided by MCC was compared to this target to determine the difference, and the
       resulting Level of Service with respect to Capacity.
       Note that the usage information detailed in the table below is a ‘current’ usage rating only.
       Future capacity demand data through population growth, or lifestyle changes/advancements
       within the population (e.g.: aging population and capacity demand for Senior Citizens Centre, or
       increased availability of technology to homes meaning lowered need for community supplied
       services etc.) is unavailable at this point in time.
       Also note that usage data for the libraries shows a significant capacity issue. Additional data
       and analysis of this issue is required to validate this finding. For most other facilities, the data
       indicates that there is capacity for current usage requirements.
       Table 4-2 Current available capacity and usage data

       Facilities with Usage Rates applied            Target   Usage by   Usage       ∆ from Target
                                                      Usage    hours      by m2
       Town Hall                                      100%     74%        -           -26%
       Maitland Library                               90%      -          176%        86%
       Thornton Library                               90%      -          550%        460%
       East Maitland Library                          90%      -          194%        104%
       Rutherford Library                             90%      -          274%        184%
       Metford Community Centre                       80%      71%        -           -9%
       Rutherford Community Centre                    80%      64%        -           -16%
       Thornton Community Hall                        80%      68%        -           -12%
       Morpeth School of Arts                         80%      63%        -           -17%
       Tenambit Community Hall                        80%      45%        -           -35%
       Shamrock Hill Multi Purpose Centre             80%      88%        -           8%
       Woodberry Community Hall                       80%      36%        -           -44%
       Woodberry Family Centre                        80%      56%        -           -24%

       4.3.2       Capacity methodology

       Three methods for determining the Facility Capacity have been used in this iteration of the AMP.
              Facility usage by available hours
               – Data for the facility usage by available hours was used from recorded bookings and
                 leases. The figures used are at a facility level only. Where data was available at a
                 more granular level (e.g.: a ‘usage %’ for individual rooms within a building) the
                 numbers were averaged across for entire building.

14 | Maitland City Council - Buildings Asset Management Plan
     Facility usage by floor area
      – This method of calculation was used for the Libraries with data current as at 19 Feb
        2016. The usage of the facility confirmed by MCC was determined by ‘benchmarking’
        against recommended floor area per capita of the population within the facility
        ‘catchment area’. That is, the current floor area and catchment area population was
        compared to the recommended floor area for the current population, resulting in a
        ‘current usage’ rate.
     Judgement facility usage
      – This option has been allowed for in data modelling, however, in this iteration of the
        plan it has been assumed that a building ‘Meets’ its ‘Target usage’ if no data is
        available or known.

4.4      Demand forecast
Development and population forecasts, along with future demand projections within the
Maitland City area are currently included as part of the Maitland 2021 +10 Community Strategic
Plan 2013.
Demand factors, projected forecasts and how these impacts on the Building Facilities operation
will require analysis in future AM Plans.

4.5      Demand management
Consideration of the future growth and impact on services drives the planning and demand
management strategies. These are managed through a combination of maintaining existing
assets, upgrading existing assets and providing new assets to meet demand. Demand
management practices include non-asset solutions, insuring against risks and managing
failures.
Specific Demand Management planning will be addressed in future plans.

                                              Maitland City Council - Buildings Asset Management Plan | 15
5.          Lifecycle management plan
            5.1         Introduction
            The Lifecycle Management Plan details assets owned and broad plans required to manage and
            operate the assets at the agreed levels of service (defined in section 3) while optimising life
            cycle costs. This section includes:
                   Asset details and age profiles

                   Maintenance and renewal planning
                   Asset lifecycle activities and cost data
                   Asset failure modes and consumption estimates
                   Asset risk data and risk exposure estimates

            5.2         Asset hierarchy

            5.2.1       Asset hierarchy

            Asset information is needed to support decision making. The asset hierarchy provides the
            framework for segmenting MCC’s facility portfolio into appropriate classifications to assist with
            lifecycle management planning and management.
            Separating the hierarchy into these levels enables planning, reporting and forecasting of
            facilities at a detailed component level as well as at a high facility level. The level to which any
            one facility is disaggregated into area elements varies depending on the complexity of the
            facility and asset data available.
            The asset hierarchies applied for this AM Plan is shown in the table below. For this iteration of
            the AM Plan, the hierarchy has only been considered down to Level 2 due to the limited amount
            of quality data available. Lifecycle assessments have therefore only been completed to this
            level. As more consistent data becomes available, lifecycle assessments can be completed at a
            much lower level resulting in more targeted outputs.
            Table 5-1 Asset hierarchy – building facility services

            Level 1           Level 2                    Level 3                  Level 4

            Building
            Category
                              Building/Facility
                              Name
                                                         Substructure
                                                                                  Foundations
                                                                                  Basement Construction
                                                         Shell
                                                                                  Superstructure
                                                                                  Exterior Closure
                                                                                  Roofing
                                                         Interiors
                                                                                  Interior Construction
                                                                                  Staircases

     16 | Maitland City Council - Buildings Asset Management Plan
Level 1         Level 2              Level 3                              Level 4

                                                                          Interior Finishes
                                     Services
                                                                          Conveying Systems
                                                                          Plumbing
                                                                          HVAC
                                                                          Fire Protection
                                     Equipment and Furnishings
                                                                          Equipment
                                                                          Furnishings
                                                                          Special Systems
                                     Site Works
                                                                          Site Preparation
                                                                          Site Improvement
                                                                          Site Civil/Mech Utilities
                                                                          Site Elec Utilities
                                                                          Other

5.2.2       Building categories

MCC buildings are divided into 17 categories as follows.

Building Category (Hierarchy Level 1)
District Buildings
Libraries
Child Care Centres
Community Halls
Amenities Buildings
Toilet Blocks
Grandstands
Kiosks
Council Works Depots
Equipment Sheds
Nursery
Mt Vincent Waste Depot
Miscellaneous Buildings
Residence
RFS Buildings
Walka Water Works
Maitland Gaol

                                                Maitland City Council - Buildings Asset Management Plan | 17
5.2.3        Asset class

       Each category of building was assigned an ‘Asset Class’ (i.e.: each Level 1 Hierarchy). The
       assigned Asset Class derives the maximum potential life of the overall building which is used for
       the Estimated Effective Remaining Life.
       The Asset Class also provides a ‘Usage Target’ figure for each building.
       The ‘Maximum Potential Life’ figures and the ‘Usage Target’ figures assigned to each Asset
       Class are aligned to industry experience and are agreed/confirmed with MCC staff and
       managers. Where required, MCC staff have provided judgement figures that override these
       targets.
       Table 5-2 Maximum Potential Life and Usage Target by asset class

       Asset Class                                                  Maximum Potential Life        Usage Target
       Commercial                                                   100                           100%
       Storage                                                      100                           100%
       Public Use - Regular (daily)                                 40                            90%
       Public use - intermittent (weekly)                           60                            80%
       Public Use - Irregular (monthly)                             60                            60%
       Industrial                                                   50                            90%
       Residential                                                  50                            90%

       Both of these figures are instrumental in the determination of actual LoS for both Condition and
       Capacity. In this iteration of the AM Plan, both condition and capacity (where data was
       available) were assessed. Each of these aspects were considered equally weighted in the
       determination of a Probability of Failure.

       The assigned Asset Class to each building category is shown in Table 5-3.
       Table 5-3 Asset class assignment to building hierarchy
       Building Category (Hierarchy Level 1)                   Asset Class
       District Buildings                                      Commercial
       Libraries                                               Public Use - Regular (daily)
       Child Care Centres                                      Public Use - Regular (daily)
       Community Halls                                         Public use - intermittent (weekly)
       Amenities Buildings                                     Public use - intermittent (weekly)
       Toilet Blocks                                           Public Use - Regular (daily)
       Grandstands                                             Public use - intermittent (weekly)
       Kiosks                                                  Public Use - Irregular (monthly)
       Council Works Depots                                    Industrial
       Equipment Sheds                                         Storage
       Nursery                                                 Commercial
       Mt Vincent Waste Depot                                  Commercial
       Miscellaneous Buildings                                 Storage
       Residence                                               Residential
       RFS Buildings                                           Commercial
       Walka Water Works                                       Public Use - Irregular (monthly)
       Maitland Gaol                                           Public Use - Irregular (monthly)

18 | Maitland City Council - Buildings Asset Management Plan
5.3      Asset profiles

5.3.1    Replacement costs

To focus and understand the need for investment, it is helpful to understand the number of
assets and replacement value of assets against the hierarchy. MCC currently manage 214
building facilities with a total 2016 replacement value of $184,2m.

The detail of these replacement costs against each Building Category is illustrated in Figure 5-1
and also in Table 5-4.

Figure 5-1 Replacement cost profile

The below table also provides a summary of the quantity of buildings that fall within each
category, as well as the percentage of the total replacement cost represented by each category.
Table 5-4 Replacement costs by asset category

Building Asset Category          Quantity     $ Cost Breakdown              % of Total
District Buildings               5            $52,614,000                   29%
Libraries                        4            $12,008,000                   7%
Child Care Centres               4            $5,824,000                    3%
Community Halls                  15           $18,709,000                   10%
Amenities Buildings              35           $19,895,000                   11%
Toilet Blocks                    25           $2,040,000                    1%
Grandstands                      9            $3,755,000                    2%
Kiosks                           14           $947,000
Building Asset Category                 Quantity        $ Cost Breakdown    % of Total
       Residence                               10              $3,199,000          2%
       RFS Buildings                           11              $7,671,000          4%
       Walka Water Works                       7               $5,602,000          3%
       Maitland Gaol                           20              $42,041,000         23%
       TOTAL                                   214             $184,238,000        100.00%

       5.3.2       Installation profile of assets

       To assist MCC with asset management decision making including future funding needs
       analysis, it is helpful to understand the installation profile of the asset portfolio. The following
       graphs show the replacement value of the assets by year of installation, in 2015$. Note that the
       Maitland Gaol and Walka Water Works buildings are included in this Asset Installation Profile.

       Figure 5-2 Asset installation profile

       5.3.3       Maitland Gaol and Walka Water Works

       Together, the Maitland Gaol and Walk Water Works make up almost quarter of MCC’s
       replacement costs at ~$47m. As these facilities are funded separately from other council
       buildings, they are not included in the following lifecycle analyses.

       5.4         Asset lifecycle activities and cost data
       Lifecycle activities are categorized into the following main areas:
              Create or Acquire: Activities that provide new or donated/gifted assets that increase
               service potential, performance capability or capacity.
              Operate: The active process of using an asset which may consume resources such as
               manpower, energy, chemicals, and materials.
              Maintain: Activities necessary to retain an asset as near as practicable in its original
               condition, but excluding refurbishment/rehabilitation or replacement.
              Refurbish or Rehabilitate: Activities to sustain the original service potential or
               substantially extend the life of existing assets by replacing component systems or
               assemblies without increasing service potential, performance capability or capacity.

20 | Maitland City Council - Buildings Asset Management Plan
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