2018-12-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                11 DECEMBER 2018


Finance
Financial forecasting is a critical objective in developing an AMP. Having an understanding of future
expenditure improves the decision-making and planning activities. The AMP highlights the
cumulative asset renewal expenditure of $54.6m for the next 10 years and has highlighted the
operational and maintenance expenses for road infrastructure makes up approximately 14% of the
$90m annual budget.

The financial summary combined with the maintenance and renewal plans within the AMP provides
the basis of the annual budget process for road infrastructure. The maintenance and renewal plans
will be reviewed annually and a more detailed analysis and review completed after the next round
of asset condition assessments.

Risks & Opportunities
It is important to have a good understanding of the risks associated with the operations of the road
assets. Council continues to develop its operational and management activities to ensure that road
infrastructure is meeting the intended design life and where necessary work on the optimised
intervention for undertaking rehabilitation and renewal activities. However, there are risks
associated with delivering the current levels of service and not being able to enact identified
activities as referenced in the Asset Management Plan; Council has identified the main risks as:
1. Unanticipated road infrastructure deterioration and structural failure possibly accelerated by
       the increasing severity in weather and climate change conditions.
2. Asset Performance – No asset failures that influence the service levels. A complete
       understanding of all road infrastructure assets and their relevant asset condition will assist in
       mitigating potential risks.
3. Asset Knowledge - The need to understand the performance of all road infrastructure assets
       at component level is essential in mitigating risks. Assets such as retaining walls, carparks,
       lighting and signage are assets that require more detailed inspections and improved
       maintenance activities to ensure assets do not become a risk to the community.
4. Funding – the ongoing operational and maintenance costs for road infrastructure will continue
       to rise and efficiencies and cost savings are reviewed regularly. Grant opportunities for
       renewals/upgrades must always be considered.

These risks and all other current risks will be regularly reviewed and if necessary, they can be
documented in the Infrastructure Services – Risk Register.

Consultation
External Consultation - Community & Stakeholder
Nil

Internal Consultation
Detailed consultation with Council staff was fundamental in the development of the AMP. The
document review, condition assessments and the development of the renewal and maintenance
plans were a significant part of the consultation undertaken. In addition, the financial data that
related to operating and maintenance expenses and budgets was reviewed by Financial Services.




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