2018-04-10 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                   10 APRIL 2018


Finance
Financial forecasting is a critical objective in developing an Asset Management Plan. Having an
understanding of future expenditure improves the decision-making and planning activities. The
Plan highlights the cumulative asset renewal expenditure of $440k for the next 10 years and has
highlighted an ongoing average maintenance commitment of $24k per annum.

Operational expenditure is forecast to gradually increase with the intent that increases in revenue
will offset any significant increase in overall operational expenditure. The current forecasts
indicate operating costs of $550k p.a. over the next ten years.

The financial summary combined with the maintenance and renewal plans within the Asset
Management Plan provides the basis of the annual budget process for the SRS. 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 essential to have a good understanding of the risks associated with the operations of the
SRS.

The top four risks are:
1. Operational Performance – no asset failures when sand renourishment is required after
   significant erosion has occurred from a major weather event.
2. Contract Management
3. Continuity Planning – the current contract is a construct and operate arrangement. Future
   contracts will need to reflect an operate only contract.
4. Work, Health & Safety - Public Safety – when sand renourishment activities are in-progress.

These risks and all other current risks will be regularly reviewed and if necessary, they can be
documented in the annual Branch Plan – Infrastructure Planning, Design & Delivery. Should the
need arise for them to be further escalated, they can be considered by Council’s Audit & Risk
Committee.


Consultation
External Consultation - Community & Stakeholder
Nil.

Internal Consultation
The detailed consultation with the Project Coordinator – Flooding, Coastal and Foreshores was
fundamental in the development of the Asset Management Plan. 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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