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 at least.
Regards
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Darron Passlow
Asset Management
Pittwater Council
MONA VALE NSW
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Show Original Message
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Original Message:
Sent: 17-07-2012 00:18
From: Darron Passlow
Subject: Special Schedule 7 reporting - Stormwater
Dean,
This has been a (good) question that has basically gone unanswered for all asset classes, not just Stormwater.
These questions are certainly hard to answer for any asset but particularly hard for buried assets like drainage and water and sewer pipes. The terms in the questions need much better definition and clarification.
I am also keen to get this issue resolved because it is now on my plate to determine this for all assets (including drainage) at Pittwater. I intend to do this out of our asset management system.
I will provide a more detailed answer separately to this response but I am interested to know whether the Special Schedule 7 (which forms part of end of year account reporting required by Councils in NSW) is applicable and is called for across other states (or all states in Australia).
I have some specific information to share for NSW following previous discussions with the Department (Division) of Local Government in NSW. This may not be of interest to other states (unless SS7 is an accounting reporting requirement).
Contact me directly (phone below) if I can help you in the mean time.
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Darron Passlow
Asset Management
Pittwater Council
MONA VALE NSW
02-9970 1352
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Original Message:
Sent: 15-07-2012 19:41
From: Dean McNatty
Subject: Special Schedule 7 reporting - Stormwater
Hi all,
Would be really interested to find out how people are calculating the following reporting requirements for NSW Special Schedule 7 reports as there seems to be a few different interpretations out there:
1. The estimated cost to bring all assets up to a 'Satisfactory' condition
2. The required annual maintenance to maintain assets at a 'Satisfactory' standard.
Look forward to hearing from you!
Regards
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Dean McNatty
Asset Officer - Drainage
Warringah Council
DEE WHY NSW
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