Don Phillips Formerly Manager Engineering & Assets , Ararat Rural City Council & Convenor WMRAMG

1. The Case for a Regional Asset Management ServiceLessons Learnt from the Wimmera Mallee Regional Asset Management Group Don Phillips Formerly Manager Engineering & Assets , Ararat Rural City Council & Convenor WMRAMG National Local Government Asset Management and Public Works Conference. May 2010

2. Background • Wimmera Mallee Regional Asset Management Group • Participating councils: Ararat, Hindmarsh, Horsham, Northern Grampians, Pyrenees, West Wimmera, Yarriambiack • Small rural councils. Main towns Horsham, Ararat, Stawell

3. History of the Group • Previously reported at the 2008 conference • Developed from a STEP regional workshop in June 2006 • Initiated as a sub-group of the Wimmera-Mallee Local Government Engineers Interest Group (now IPWEA) • First meeting WMRAMG June 2007

4. Comments on WMRAMG • Initial meetings as a discussion forum with good council involvement • Bogged down with too many items. There is need to focus on achievable outcomes • Became distracted with the Shared Services project and progress slowed • Current topics include: • Asset structures • Service levels • Asset systems. 4 councils are looking at a common system

5. Current AM Status Across Region 6 No. Councils

6. Conclusions • Still many tasks still to complete • Particularly in the key areas of: • AMPs < 50% • Service levels 26% • LTFPs, one council • This can be further illustrated by looking at the completion of AMPs. An indicator of asset knowledge.

7. Progress on completing AMP’s

8. Comments on AMP completion • STEP commenced in late 2002 which provided the knowledge to complete an AMP • Not all roads, bridges and buildings completed, our largest and key asset groups • There is minimal progress on parks and recreation • Despite the creation of the WMRAMG we still struggle to progress • Current arrangements not working

9. What is going wrong? • Still restricted by lack of time and skilled resources • We continue to duplicate activities

10. Council comments on available resources • Resources have not matched the growth in AM • Typically remained an add-on responsibility • Absence of a dedicated Asset Manager • Inability to attract and retain experienced AM staff • Strategic AM often accounts for only 10% EFT • Suffer from economy of scale. Small councils still have the same activities as the larger councils.

11. Duplication of activities • Whilst we have always had a sound, well practiced ability to plagiarise ‘borrow’…. • In the past we have developed AM independently and duplicated effort with no consistent or collaborative approach

12. Collaborative approach opportunities • Opportunities can fall into 3 main areas

13. 1. Joint discussions advantages • Sharing knowledge • Explore solutions to problems • With savings on investigation time

14. 2. Common standards advantages • Adopt common standards, frameworks and tools: • Eg. Common hierarchies, asset structures • Same models for service levels, risk, capital evaluation (with councils to then populate) • Avoids duplication of development • Offers time savings with quicker progress • Knowledge remains available within the group • Enables joint tenders to be called. Ie condition surveys • With cost savings in documentation, advertising, attract better rates • Enables joint funding applications?

15. 3. Shared systems advantages • Same asset system • Regional back-up knowledge is available • Purchase savings may be achievable • Common structures with single set-up opportunities • Improved supplier service? • Central asset system • System cost savings • Single storage and processing

16. What can a regional service offer? • Convene regional group meetings: • Set agenda • Facilitate discussions and information sharing • Monitor and report on progress against objectives

17. What can a regional service offer? • Facilitate workshops and planning meetings: • At both regional and council level • Provide access to best practice library for templates, tools for common use. Eg Service level templates, risk assessment formats, capital works evaluations, etc • Develop Implementation Plans • Collate regional needs for joint funding applications

18. What can a regional service offer? • Regional service as a resource: • Direct assistance to Councils. Hands on. • Work with council asset teams on local priorities eg. Service standards, renewal modelling • Assist with the strategic role for Councils? Leaving operational tasks at the local level and going part of the way to solving staffing difficulties

19. What can a regional service offer? • Could assist with: • Setting up regional joint tenders • Conduct investigations into asset systems

20. What can a regional service offer? • Facilitate a centralised role at regional level: • Collect, store and process data for use by the members. Eg capital works listings for councils to then prioritise taking into account local issues • Decision making must stay at the local level

21. All sounds great, but.....

22. The 10 Commandments • Of making a regional service work • Thy will leave your bias at the door • Thy will accept the majority decision • Thy will be prepared to sacrifice some of your hard earned development and start again • Thy will commit to doing your ‘homework’ • The Council, CEO and senior management team will support the regional group through resources and time allowances • Waiting for 6, 7, 8, 9 and 10

23. Summary • Current model of Councils acting independently is not working with very slow progress and still much to do • Regional cooperation has the potential to deliver: • Efficient use of scare resources • Retention of knowledge locally • A vehicle for rapid AM improvement • Financial savings • Security in future AM • Credible responses to sustainability issues

24. Thank-you • Questions?