Don Phillips Formerly Manager Engineering & Assets, Ararat Rural City Council & Convenor WMRAMG National Local Government Asset Management and Public Works.

Don PhillipsFormerly Manager Engineering & Assets , Ararat Rural City Council & Convenor WMRAMGNational Local Government Asset Management and Public Works Conference. May 2010

BackgroundWimmera Mallee

Regional Asset Management Group

Participating councils: Ararat, Hindmarsh, Horsham, Northern Grampians, Pyrenees, West Wimmera, Yarriambiack

Small rural councils. Main towns Horsham, Ararat, Stawell

History of the GroupPreviously reported at the 2008 conferenceDeveloped from a STEP regional workshop in

June 2006Initiated as a sub-group of the Wimmera-

Mallee Local Government Engineers Interest Group (now IPWEA)

First meeting WMRAMG June 2007

Comments on WMRAMGInitial meetings as a discussion forum with

good council involvementBogged down with too many items. There is

need to focus on achievable outcomesBecame distracted with the Shared Services

project and progress slowedCurrent topics include:

Asset structuresService levelsAsset systems. 4 councils are looking at a

common system

Current AM Status Across Region

6 No. Councils

ConclusionsStill many tasks still to completeParticularly 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.

Progress on completing AMP’s

Comments on AMP completionSTEP commenced in late 2002 which

provided the knowledge to complete an AMPNot all roads, bridges and buildings

completed, our largest and key asset groupsThere is minimal progress on parks and

recreationDespite the creation of the WMRAMG we still

struggle to progressCurrent arrangements not working

What is going wrong?Still restricted by lack of time and skilled

resourcesWe continue to duplicate activities

Council comments on available resourcesResources have not matched the growth in AMTypically remained an add-on responsibility Absence of a dedicated Asset ManagerInability to attract and retain experienced AM

staffStrategic AM often accounts for only 10% EFTSuffer from economy of scale. Small councils

still have the same activities as the larger councils.

Duplication of activities

Collaborative approach opportunities

ACTIVITY BENEFIT

1 Joint discussionsIncreasingbenefit

2 Common standards and templates

3 Shared or common systems

Opportunities can fall into 3 main areas

1. Joint discussions advantagesSharing knowledgeExplore solutions to problemsWith savings on investigation time

2. Common standards advantagesAdopt common standards, frameworks and tools:

Eg. Common hierarchies, asset structuresSame models for service levels, risk, capital

evaluation (with councils to then populate)Avoids duplication of developmentOffers time savings with quicker progressKnowledge remains available within the group

Enables joint tenders to be called. Ie condition surveysWith cost savings in documentation, advertising,

attract better ratesEnables joint funding applications?

3. Shared systems advantagesSame asset system

Regional back-up knowledge is availablePurchase savings may be achievableCommon structures with single set-up

opportunitiesImproved supplier service?

Central asset systemSystem cost savingsSingle storage and processing

What can a regional service offer?Convene regional group meetings:

Set agendaFacilitate discussions and information sharingMonitor and report on progress against

objectives

What can a regional service offer?Facilitate workshops and planning meetings:

At both regional and council levelProvide access to best practice library for

templates, tools for common use. Eg Service level templates, risk assessment formats, capital works evaluations, etc

Develop Implementation PlansCollate regional needs for joint funding

applications

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

What can a regional service offer?Could assist with:

Setting up regional joint tendersConduct investigations into asset systems

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

All sounds great, but.....Threat Answer

Lack of Council support in resources, time, $

Convince of need and benefits. ie cost savings, progress, big sticks

Perceived loss of control by Councils

Ensure the separation of local and regional standards. Service levels and program delivery must remain at council level

Loss of existing investments in systems

Look back at lack of progress and forward to the long-term

The 10 CommandmentsOf making a regional service work

1. Thy will leave your bias at the door2. Thy will accept the majority decision3. Thy will be prepared to sacrifice some of your

hard earned development and start again4. Thy will commit to doing your ‘homework’5. The Council, CEO and senior management

team will support the regional group through resources and time allowances

6. Waiting for 6, 7, 8, 9 and 10

SummaryCurrent 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 resourcesRetention of knowledge locallyA vehicle for rapid AM improvementFinancial savingsSecurity in future AMCredible responses to sustainability issues

Thank-youQuestions?