Dean, Mathew and others,
I will restrict my answer here to Dean's 2 questions;
1. The estimated cost to bring all assets up to a 'Satisfactory' condition
The IPR legislation in NSW (in its working document) says we should rate our assets 1 - 5, for reporting to DLG, where;
1 = Excellent, 2 = Good, 3 = Fair, 4 = Poor, 5 = Very Poor
so the term "satisfactory" is not used in the specific part of the documentation related to asset condition.
This is the first problem. The second problem is what cost are we talking about here? The cost across an asset class
listed in the SS7 is (most likely) the capital renew cost
that needs to be spent (over the longer term) to keep this asset class at an acceptable level (and continue to provide the levels of service that are required by the community?). This level can (and is often) be related to the condition of the asset class.
e.g. deteriorating condition often means a reduction in the LoS that the community ses (wants)
This should (eventually) come out of your Asset Management Plans (advanced) which will include your capital workd proram and in particular the capital renewal forecasts (over 10 years).
When the DLG was approached about how they defined "satisfactory", the initial repsonse was (arhhh!) C = 2, i.e. "good" from their IPR documentation.
A number of progressive councils worked with this number and could predict what this would cost every year over a 10 years forecast period. The BIG numbers scared the hell out of everyone (council and DLG alike).
There have been further conversations between councils on how to handle this but these options are extensive and need to be documented elsewhere (or at least by others).
2. The required annual maintenance to maintain assets at a 'Satisfactory' standard.
This is another key number that comes out of your (advanced) asset management plans.
The maintenance moneys
that should be expended to keep assets at an acceptable (condition) level
can be worked out (if you have an accurately populated and worthwhile asset management system). But to get this answer you do need good practitioner input to the solution and the data in your system. But you can work this number out based on science and practical experience (rather than a "lick of the finger" technique).
These answers (above) in SS7 are then used by DLG (I assume)
1 to assess are you spending the appropriate amounts on capital renewal to be sustainable (as a services delivery council) over the longer term, and
2 to assess are you maintaining your assets well enough (so you can continue to deliver acceptable LoS) in the shorter term - the maintenance cost numbers
Hope this helps and perhaps further clarification could come from IPWEA talking to NSW State gov reps
MONA VALE NSW
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