City of Stirling Buildings Asset Managment Plan 2018 - 2028

Buildings Asset Management Plan 2018 – 2028

Acknowledgement of Country Ngalak kaadatj Nyoongar nedingar wer birdiya, baalap barn boodja-k wer kaaratj boodja-k koora koora wer yeyi. Ngalak kaadatj baalabang malayin wer nakolak baalap yang ngalany-al City of Stirling dandjoo Nyoongar moort-al kolbang koorliny. City of Stirling kaadatj Nyoongar moort Nyoongar boodja-k Wadjak boodja-k, Mooro boodja-k. The City of Stirling acknowledges the Wadjak People of the Nyoongar Nation as the traditional custodians of Mooro Country. We pay our respects to Aboriginal and Torres Strait Islander Elders past and present for they hold the memories, the traditions, the culture and hopes for Aboriginal Australia. The City is committed to forging stronger relationships and a deeper respect for Aboriginal and Torres Strait Islander Australians. By acknowledging and respecting

the diversity and history of our Aboriginal and Torres Strait Islander community, we will continue to realise our vision for reconciliation.

Contents

1.0 Executive summary

5

2.0 Introduction

9

3.0 Levels of service

15

4.0 Future demand

27

5.0 Lifecycle management plan

33

6.0 Risk management plan

51

7.0 Financial summary

57

8.0 Plan improvement and monitoring

65

9.0 References

70

10.0 Appendices

73

Appendix A

74

Appendix B

77

Appendix C

81

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1.0 Executive summary

1.1 The purpose of the plan Asset management planning is a comprehensive process to ensure delivery of services from infrastructure is provided in a financially sustainable manner. The fundamental purpose of this Buildings Asset Management Plan (BAMP) is to improve the City of Stirling’s (the City’s) long-term strategic management of its building assets. This is to cater for the community’s desired levels of service in the future, in accordance with the City’s key strategic documents and to demonstrate reasonable management in the context of the City’s available financial and human resources. This BAMP achieves this by setting standards, service levels and programs that the City has developed and will deliver. The standards and service levels have been set in accordance with user needs, regulations, industry practice and legislative codes of practice. 1.2 Asset description The City provides buildings in partnership with the community, numerous external stakeholders and other levels of government for the delivery of services to the community. This BAMP encompasses 484 buildings, comprising 226 major buildings and 258 minor buildings. The buildings portfolio comprises: • 120 community and recreational facilities • 47 City recreational and community facilities • 14 City operational buildings • Six City commercial buildings • 39 public toilets and/or changerooms • 258 minor/other structures.

1.3 Levels of service Our present funding levels are sufficient to continue to provide existing services at current levels in the medium term. 1.4 Future demand The main demands for new services are created by: • Increased population • Changes in population demographics • Changing community preferences and expectations. These will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand, and demand management practices. Demand management practices include non-asset solutions, insuring against risks and managing failures. What does it cost? The projected outlays necessary to provide the services covered by this Asset Management Plan (AM Plan) includes operations, maintenance, renewal and upgrade of existing assets over the 10-year planning period. This totals approximately $200 million or $20 million on average per year. 1.5 Lifecycle management plan

These building assets have a replacement value of over $411 million.

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1.6 Financial summary

1.7 Asset management practices Our information systems to manage assets include: • TechnologyOne FinanceOne • TechnologyOne Works and Assets • Assetic SAM • IntraMaps GIS.

What we cannot do Works and services that cannot be provided under present funding levels are: • The creation of new building objectives and not accompanied by a business case which has a lifecycle management approach • The over servicing of existing building assets. Managing the risks There are risks associated with providing buildings. We have identified major risks as: • Insufficient funding for required operational and maintenance activities • Insufficient funding for required building renewal treatments • Building failure due to poor condition • Environmental risks. We will endeavour to manage these risks within available funding by: • Identifying critical buildings • Implementing risk treatment plans • Understanding the risk treatment costs. assets that are unplanned, not aligned with the City’s

What we will do Estimated available capital funding for this period is approximately $159 million or $15.9 million on average per year. The capital renewal/ replacement funding shortfall over the 10-year planning period is on average $275,000 per year between projected expenditure required to provide services in the AM Plan compared with planned expenditure currently included in the Long-Term Financial Plan. The City plans to provide the following building services: • Operation, maintenance, renewal and upgrade of existing buildings to meet legislative requirements • Operation, maintenance, renewal and upgrade of existing buildings to meet current service levels.

1.8 Monitoring and improvement program The next steps resulting from

this buildings asset management plan to improve asset management practices are: • Collect functionality and capacity data • Present scenario models for the provision of building services at different levels of service • Review and update the Buildings Business Process Manual • Review current customer

and works management information systems for better performance reporting and planning.

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2.0 Introduction

2.1 Background The City of Stirling (the City) covers an area of approximately 104.7 square kilometres, eight kilometres north of Perth’s CBD. A population of 219,918 (2016 Census) makes it the largest local government area by population in Western Australia. In addition, the City of Stirling is built on a coastal plain and assets are exposed to environmental conditions from coastal to wetland. Due to some of the assets’ coastal location, coastal building assets will deteriorate at a quicker rate than those further inland. This is largely owed to salt deterioration affecting bricks and mortar, timber, awnings and balconies. Building assets are provided and maintained to enable the delivery of services. The City aims to provide the community with well-maintained and clean facilities to meet the needs of current and future trends.

The fundamental purpose of this Buildings Asset Management Plan (BAMP) is to improve the City’s long-term strategic management of its building assets in order to cater for the community’s desired levels of service in the future. This should be done in accordance with the City’s key strategic documents and demonstrate reasonable management in the context of the City’s available human and financial resources. This asset management plan communicates the actions required for the responsive management of assets (and services provided from assets), compliance with regulatory requirements, and funding needed to provide the required levels of service over a 20-year planning period. The asset management plan follows the format for asset management plans recommended in Section 4 of the International Infrastructure Management Manual 1 .

The AMP is to be read in conjunction with the City’s Asset Management Policy, Asset Management Strategy and the following associated planning documents: • City of Stirling Strategic Community Plan 2018 – 2028 • City of Stirling Corporate Business Plan 2017/18 – 2020/21 • City of Stirling Yearly Capital Delivery Program • City of Stirling Access and Inclusion Plan 2015 – 2020. This Asset Management Plan covers buildings that are owned or managed by the City. The City has six buildings categories which are described in Table 2.1 below. A summary of the City’s buildings replacement value as at 30 June 2018, and their quantity by building category is also detailed in Table 2.1 below.

Building category

Description

Number Replacement value

Community and recreational facilities City recreational and community facilities

Community-leased/licensed buildings – includes 75 clubrooms

120

$134,463,300

City-managed buildings – includes three aquatic centres, four leisure centres, six libraries City-staffed operational buildings – includes the Administration Centre and building and operations centre

47

$167,257,555

City operational buildings

14

$70,066,500

City commercial buildings Leased buildings for commercial gain

6

$11,741,500 $11,832,300

Public toilets and/or changerooms Minor/other structures

Buildings with public toilet or changeroom facilities

39

Minor buildings including sheds, stores, shade sails

258 484

$16,168,296 $411,529,451

TOTAL

Table 2.1 Buildings covered by this Plan

1 IPWEA, 2015, Sec 4.2, Example of an Asset Management Plan Structure, pp 4 | 37 – 39.

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Stakeholders As the recognised owner of the buildings assets under the City’s

The City recognises the varying needs of external and internal stakeholders. Key stakeholders in the preparation and implementation of this asset management plan are detailed in the following Table 2.2 and Figure 2.1.

control, the elected members of the City accept a stewardship responsibility for the care and control of these assets. Accordingly, as asset custodian, the accountability for the management of these assets rests with the Director Infrastructure.

Key stakeholders

Responsibilities

Adjoining local authorities

Work jointly and constructively with the City to ensure that building services will function effectively from city to city and that potential ‘economies of scale’ in procurement and service provision are maximised wherever possible Have a key role in communicating expectations on standards of service to the City Obligated to provide timely and accurate information on future works and constructed assets Provide the City with useful and constructive information on building requirements and other related economic issues Endorse the development of asset management plans and provide the resources required to complete this task. Set high level priorities for asset management development in the City. Support the implementation of actions resulting from this plan Provide support for the development and implementation of effective asset management principles within the City Undertake a ‘stewardship’ role of the assets and related services

Community and residents

Developers

Elected members

Local businesses

Management

Service providers

Tourists and visitors

Use facilities responsibly when in the City

Table 2.2 Key stakeholders

10

Responsibilities across the asset lifecycle

Asset stage

Directorate

Responsibilities

Infrastructure

Ensure asset is the most effective solution to meet customer needs

Asset planning

Planning and Development

Supervises the construction of donated assets

Community Development

Asset planning, construct and update asset registers, operation and maintenance cost provision in budgets

Corporate Services

Infrastructure

Design assets to design standards

Create and update GIS layers

Asset creation/ acquisition

Update asset in financial register

Corporate Services

Manage and upload assets in GIS

Project creation and capitilisation, valuation, preparations of financial reports

Infrastructure

Financial management

Consolidates fixed asset register, develops supporting policies (eg, capitilisation and depreciation)

Corporate Services

Day-to-day running and upkeep of assets, implement and update maintenance management system

Asset operation and maintenance

Infrastructure

Iterative

Collect, access and monitor asset inventory and condition, set target levels of service, monitor performance throughout the asset lifecycle.

Infrastructure

Asset condition/ performance

Community Development

Collect and monitor service requests

Asset rehabilitation and performance

Identify optimum long-term solution through a formal decision-making process

Infrastructure

Asset disposal/ rationalisation

Dispose related assets

Infrastructure

Asset audit/ review

Carry out regular audits to ensure a continuous asset management improvement cycle

Infrastructure

Figure 2.1 Directorate responsibility for lifecycle of assets

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2.2 Goals and objectives of asset ownership The City of Stirling exists to provide services to its community and some of these services are provided by building assets. The City has acquired its portfolio of building assets over many years by the following methods:

• Managing the impact of growth through demand management and infrastructure investment • Taking a lifecycle approach to developing cost-effective management strategies for the long-term that meet the defined level of service • Identifying, assessing and appropriately controlling risks • Linking to a long-term financial plan which identifies required, affordable expenditure and how it will be financed. 2 Key elements of the planning framework are: • Levels of service – how the services and levels of service are to be provided • Future demand – how this will impact on future service delivery and how this is to be met

• Lifecycle management – how to manage its existing and future assets to provide defined levels of service • Financial plan – what funds are required to provide the defined services • Asset management practices – how we manage provision of the services • Monitoring – how the plan will be monitored to ensure objectives are met • Asset management improvement plan – how we increase asset management maturity. Other references to the benefits, fundamentals principles and objectives of asset management are:

• Construction undertaken either directly by City field staff or by contractors on behalf of the City • Donation of assets constructed by developers and others to meet increased levels of service, which after a defect liability period, have been handed over to the City for maintenance for their entire lifecycle. Our goal in managing infrastructure assets is to meet the defined level of service (as amended from time to time) in the most cost-effective manner for present and future consumers. The key elements of infrastructure asset management are: • Providing a defined level of service and monitoring performance

• International Infrastructure Management Manual 2015 3 • ISO 55000 4

2.3 Core and advanced asset management This asset management plan is

Future revisions of this asset management plan will move towards advanced asset management using a ‘bottom up’ approach. This new approach will be used for gathering asset functionality and capacity information for individual assets to support the optimisation of activities and programs to meet agreed service levels.

Core asset management is a ‘top down’ approach where

prepared, as a minimum, as a ‘core’ asset management plan over a 20- year planning period in accordance with the International Infrastructure Management Manual 5 . It is prepared to meet minimum legislative and user requirements for sustainable service delivery and long-term financial planning and reporting.

analysis is applied at the system or portfolio level. However, this Asset Management Plan has reached an intermediate level of maturity as it has been prepared using advanced condition data collected at the individual asset and component level and integrates with the City’s long- term financial and strategic plans.

2 Based on IPWEA 2015 IIMM, Sec 1.3, p 1 | 8 3 Based on IPWEA 2015 IIMM, Sec 2.1.3, p 2 | 13 4 ISO 55000 Overview, principles and terminology 5 IPWEA, 2015, IIMM.

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A road map for preparing an asset management plan is shown below.

Corporate planning • Confirm strategic objectives and establish AM policies, strategies and goals

• Define responsibilities and ownership • Decide core or advanced AM Plan • Gain organisation commitment

Review/collate asset information • Existing information sources • Identify and describe assets • Data collection

• Condition assessments • Performance monitoring • Valuation data

Define scope and structure of plan

Establish levels of service • Establish strategic linkages • Define and adopt statements • Establish measures and targets • Consultation

AM Plan review and audit

Lifecycle management strategies • Develop lifecycle strategies • Describe service delivery strategy • Risk management strategy • Demand forecasting and management • Optimised decision making (renewals, new works, disposals) • Optimise maintenance strategies

Information management and data improvement

Financial forecasts • Lifecycle analysis • Financial forecast summary • Valuation depreciation • Funding

Implement improvement strategy

Improvement plan • Assess current/desired practices • Develop improvement plan

Iteration • Reconsider service statement

Annual Plan/ Business Plan

Is the plan affordable?

• Options for funding • Consult with Council • Consult with Community

Figure 2.2 Road Map for preparing an asset management plan Source: IPWEA, 2006, IIMM, Fig 1.5.1, p 1.11

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3.0 Levels of service

Levels of service relate to outcomes the community receives in terms of quality, quantity, responsiveness and performance as provided by the assets.

renewals result in increased and escalating reactive maintenance costs as aged assets deteriorate at higher rates. In developing the levels of service documented in the BAMP, the City has given due regard to the strategic goals and objectives in the Corporate Business Plan. The City has also given due regard to legislative requirements, relevant Australian Standards and stakeholder expectations in the form of community satisfaction surveys. The levels of service documented in the BAMP therefore aim to reflect the current levels of service provided.

To achieve and sustain acceptable levels of service, the City’s buildings require an annual commitment of funds. These funds provide for regular and responsive maintenance and for timely renewal or replacement of assets. The provision of adequate financial resources ensures that building assets are appropriately managed and preserved. Financial provisions below the required amounts impact directly on the condition and performance of an asset, and if prolonged, result in the need for ‘catch-up’ expenditure, ultimately at an increased cost to the community. Additionally, deferred

3.1 Customer research and expectations The City of Stirling has, since 1999, undertaken customer satisfaction surveys canvassing a sample of

The City’s annual customer satisfaction surveys cover two areas related to the provision of buildings: • The provision of sports and recreation facilities • The provision of community buildings, halls and toilets.

residents on their level of satisfaction with the City’s services. To understand customers’ expectations and perceptions of levels of service and to ensure asset management plans reflect the changing needs of the customer, the customer satisfaction survey is undertaken yearly. The community is asked to rate (out of 10) the importance of the facilities and services the City provides and also to score (out of 10) the City’s performance in providing these facilities and services.

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performance in the provision of sports and recreation facilities has been steady throughout the six-year period, ranging from 7.6 to 7.9, while the importance varies from 8.1 in 2013, 9 in 2014 and 8.7 in 2016/17. For all the survey years, the City has achieved the minimum performance target of 7.

Figure 3.1 below represents the results of the annual customer satisfaction surveys from the last six years for the provision of sports and recreation facilities. The black arrow represents the minimum performance score the City aims to achieve, being a performance score of 7. The results from the surveys show the City’s

10 9 8 7 6 5 4 3 2 1 0

7.8 8.5 7.8 8.7 7.6 8.1 7.8 9.0 7.9 8.4 7.8 8.7

Score

2011

2012

2013

2014

2015/16

2016/17

Year

Performance

Importance

Min Performance Target

Figure 3.1 Annual customer satisfaction survey – provision of sports and recreation facilities

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its minimum acceptable performance target of 7, the importance of the provision of community buildings, halls and toilets was rated an 8.5, which is 1.3 points higher than the performance score of 7.2.

Figure 3.2 below represents the results of the annual customer satisfaction survey for the provision of community buildings, halls and toilets. This new survey question was introduced to the annual customer satisfaction survey in 2016/2017. Although the City reached

10 9 8 7 6 5 4 3 2 1 0

7.2

8.5

Score

Performance

Importance

Min Performance Target

2016/17

Year

Figure 3.2 Annual customer satisfaction survey – provision of community buildings, halls and toilets

basis), customer requests and reactive asset complaints to ensure that the service is still being managed to deliver to customers’ expectations. Future revisions of the Building Asset Management Plan will incorporate community consultation on service levels and costs of providing the service. This will assist the City and stakeholders in matching the level of service required, service risks and consequences with the community’s ability and willingness to pay for the service. • Improved decision making based on better understanding of the benefits and costs of alternative asset provision • Enhanced customer satisfaction • Improved long-term financial forecasting and management • Optimisation of costs • Innovative application of sustainable best practices to the City’s assets.

The City uses this information in developing the Corporate Business Plan and in allocation of resources in the budget to solve many of the issues, and close the gap between importance and performance rating by the customers. Customer expectation and perceptions change over time, particularly when major events occur which affect service delivery. The City therefore also receives feedback from community consultations (on an ‘as required’ benefits that are realised in the areas of improved accountability, sustainable service delivery, risk reduction, financial management and forecasting. Specific benefits can include: • Better alignment of community needs with services provided • Improved analysis and understanding of service level options, costs and risks 3.2 Strategic and corporate goals Asset management delivers

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The City’s Corporate Business Plan demonstrates the City’s commitment to asset management through its vision and mission statements. Our vision

Our mission To serve the City’s diverse community through delivering efficient, responsive and sustainable services.

The City of Stirling will be a place where people choose to live, work, visit and invest. We will have safe and thriving neighbourhoods with a range of housing, employment and recreational opportunities. We will engage with our diverse community to help shape our future into the City of Stirling – City of Choice.

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The City’s Strategic Community Plan describes five key result areas that the City aims to achieve. The provision of buildings falls under the liveable neighbourhoods key result area. Asset management is under both the liveable neighbourhoods and governance and leadership key result areas. A summary of the liveable neighbourhoods and governance and leadership key result area relevant to this BAMP is summarised in the following Table 3.2.

Objective What the City aims to achieve B3.1 Ensure our assets meet future community needs

Strategy How will we get there?

Measures How will you know our progress? City performance against statutory asset management related measures Satisfaction with the City’s community buildings, halls and toilets

Key result area Liveable neighbourhoods Outcome B3: Built infrastructure that meets community needs Governance and leadership Outcome G4: Capable and efficient organisation

G3.1.1 Provide quality, well- maintained facilities, roads and open spaces for the benefit of the community

G4.1.1 Plan for the future, manage resources and measure progress based on the community’s vision (IPR Framework) G4.1.2 Provide responsible financial and asset management to ensure the City’s long-term sustainability

G4.1 Optimise use of the City’s resources and build organisational capability

Associated informing strategies are implemented and progress is monitored

Table 3.2 The City’s key strategic asset management goals for buildings

The City will exercise its duty of care to ensure public safety in accordance with the infrastructure risk management plan prepared in conjunction with this asset management plan. Management of infrastructure risks is covered in Section 6.

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3.3 Legislative requirements In addition to using asset management as a tool to manage the community’s assets and provide better services to the community, there are also legislative requirements that the City must comply with in relation to the management of its building assets. This BAMP is governed by legislative and statutory requirements, many of which are documented in Table 3.3 below.

Legislation/standard

Requirement

Western Australia Local Government Act 1995

The Act sets out role, purpose, responsibilities and powers of local governments including the preparation of a long-term financial plan supported by asset management plans for sustainable service delivery Section 5.56(1) and (2) of the Act requires that each local government is ‘to plan for the future of the district’, by developing and adopting a strategic community plan and a corporate business plan

Local Government (Administration) Regulations 1996

Building Code of Australia, Building Act 2011

This Act provides prescriptive requirements across the built environment

Disability Services Act 1993

This Act sets the standards for access

Occupational Safety and Health Act 1984 and Occupational Safety and Health Regulations 1996

This Act provides for the safety and health of employees, contractors and the public utilising the City’s facilities

Heritage of Western Australia Act 1990

Provides for and encourages the conservation of places which have significance to the cultural heritage in the State, to establish the Heritage Council of WA, and for related purposes These set out the financial reporting standards relating to infrastructure assets. Standards of particular relevance to infrastructure assets include: • AASB 116 Property, Plant and Equipment – prescribes requirements for recognition and depreciation of property, plant and equipment assets • AASB 136 Impairment of Assets – aims to ensure that assets are carried at amounts that are not in excess of their recoverable amounts • AASB 13 – Fair Value Measurement – defines a market based measurement system for ‘Fair Value’ measurement of assets Asset management plans should be developed as informing strategies to allow a local government to set its priorities within its resourcing capacity and deliver short, medium and long-term community priorities and aspirations in their Corporate Business Plan This framework was developed to assist local governments plan and manage assets so that the long-term aspirations of their communities can be reached

Australian Accounting Standards

Integrated Planning and Reporting Framework and Guidelines

Asset Management Framework and guidelines for Western Australian Local Governments

Table 3.3 Legislative requirements

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3.4 Customer levels of service At the City of Stirling, there are three defined tiers of levels of service, as shown in Figure 3.4 below:

Functional and safe buildings network that meets the needs of our community Measure: Community survey/customer request

Corporate levels of service

Strategic levels of service (renewals)

Defining buildings network’s service levels Measure: Condition, utilisation, functionality and risk

Service targets against individual activities Measure: Performance against set service targets

Strategic levels of service (operations and maintenance)

Figure 3.4 Levels of service

The City has also defined levels of service in two terms: • Community levels of service relate to how the community receives the service in terms of safety, quality, quantity, reliability, responsiveness, cost/efficiency and legislative compliance • Supporting the community levels of service are operational or technical measures of performance

The second level, ‘strategic levels of service’, encompasses what the City measures in terms of the quality, functionality, affordability and reliability of the services provided. The third level, ‘operations and maintenance levels of service’, represents what the City will do in real terms, ie, at what point will the City repair, renew or upgrade to meet the customer outcomes listed in the corporate and strategic levels. Typically, this has been documented in a Business Process Manual.

The first level, ‘corporate levels of service’, represents what the City expects to provide in terms of key customer outcomes, including: • Appropriateness of service • Accessibility to users 24 hours a day, seven days a week • Relevance of the service being provided – in terms of demand characteristics, future demographics and where the pressure points are.

developed to ensure that the minimum community levels of service are met.

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The City’s community levels of service are detailed in Table 3.4. Its objective is to provide safe, quality, reliable, cost effective, efficient and compliant buildings.

Expected position in 10 years based on the current budget

Performance measure used

Expectation

Current performance

Community levels of service

Quality

>90% of major buildings have a condition rating between 1 and 3

Well-maintained building services

Building condition rating

>90% of major buildings have a condition rating between 1 and 3

Confidence level

High

High

<5 injuries per annum Nil deaths or permanent disablement

Safe building

Number of injuries attributable to building condition

<5 injuries per annum Nil deaths or permanent disablement

Confidence level

High

High

Function

Building assets meet community needs

The City’s annual customer satisfaction survey

A minimum performance score of 7

A minimum performance score of 7

Confidence level

High

High

80% of major buildings have a functionality condition rating between 1 and 3

Functionality condition rating

80% of major buildings have a functionality

The building’s ability to deliver the outcomes intended for the service operating from it

condition rating between 1 and 3

Confidence level

Medium

High

Capacity and use

80% of major buildings have a capacity rating between 1 and 3

Buildings are well utilised

Capacity condition rating

80% of major buildings have a capacity rating between 1 and 3

Confidence level

Medium

High

Table 3.4 Community level of service

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3.5 Technical levels of service Supporting the customer service levels are operational or technical measures of performance. These technical measures relate to the allocation of resources to service activities to best achieve the desired customer outcomes and demonstrate effective performance. Technical service measures are linked to the activities and annual budgets covering: • Operations – the regular activities to provide services (eg, opening hours, cleansing, mowing grass, energy, inspections, etc)

• Upgrade/new – the activities to provide a higher level of service (eg, widening a road, sealing an unsealed road, replacing a pipeline with a larger size) or a new service that did not exist previously (eg, a new library). Service and asset managers plan, implement and control technical service levels to influence the customer service levels. 6 Table 3.5 shows the technical levels of service expected to be provided under this asset management plan. The ‘desired’ position in the table documents the position being recommended in this asset management plan.

• Maintenance – the activities necessary to retain an asset as near as practicable to an appropriate service condition. Maintenance activities enable an asset to provide service for its planned life (eg, road patching, unsealed road grading, building and structure repairs) • Renewal – the activities that return the service capability of an asset up to that which it had originally (eg, road resurfacing and pavement reconstruction, pipeline replacement and building component replacement)

Service attribute

Service activity objective

Activity measure process

Current performance*

Desired for optimum lifecycle cost**

Technical levels of service

Operations

>90% Operations activities achieved on schedule

Required operations activities are funded

User-friendly building Cleanliness, aesthetics,

building availability, inspections Number of customer requests relating to building maintenance, response times

Maintenance

Required maintenance activities are funded

>95% Reactive maintenance response times achieved

Well-maintained and safe building services

Renewal

Building quality is maintained

Condition assessment

Overall building condition is at a minimum of 3

Develop service levels between building categories Projects are planned, prioritised and funded

Upgrade/New

Building facilities meet user requirements

Functionality and capacity condition, strategic planning

Projects are subject to a business case and most are planned

Table 3.5 Technical levels of service

Note: *Current activities (currently funded) **Desired activities to sustain current service levels and achieve minimum lifecycle costs (not currently funded) It is important to monitor the service levels provided regularly as these will change. The current performance is influenced by work efficiencies and technology, and by changing customer priorities over time. Review and establishment of the agreed position which achieves the best balance between service, risk and cost is essential.

6 IPWEA, 2015, IIMM, p 2 | 28.

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4.0 Future demand

Building Asset Management Plans are critically driven by the needs of the services to be delivered and therefore meaningful asset strategies cannot be developed in isolation or in absence of comprehensive service strategies. Maintaining the City’s building assets without adequate regard for service needs may result in a well-maintained portfolio of assets; however, it may also result in an asset portfolio which does not meet

The City’s fundamental role is to provide services to the community and its building assets are a means to support this. Consequently, future demand for building assets is tied to the demand for the City’s services. This is a more complex consideration than simply its relationship to population growth. Issues such as changing demands for particular services, changing mixes in the balance between public and private service provisions, and changing community expectations of service levels all affect the need for building assets.

the needs of staff or the service requirements of the community.

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4.1 Demand drivers Factors affecting demand on the building portfolio include population change, changes in demographics, seasonal factors, vehicle ownership, consumer preferences and expectations, economic factors,

agricultural practices, and environmental awareness.

Demand factor trends and impacts on service delivery are summarised in Table 4.1.

Demand factor Present position Projection

Impact on services

Population

219,918 (2016 Census)

An average increase of 1.72% per annum, with an estimated population of 287,162 in 2028

Increased population could result in an increased number of dwellings and customers expecting

appropriate building portfolio performance and provision

Stirling City Centre proposal

Proposed

Additional 25,000 residents by 2031 Major construction projects of new assets and upgrade to existing portfolio will be required during the implementation of this proposal

Climate change

Increasing sea level has the potential to reduce the service standard of the existing building portfolio in coastal areas. Upgrades could be required to maintain existing service standards Changes in extreme rainfall (flood causing rainfall) could require alterations to existing structures. Changes in average rainfall (yearly rainfall) could result in a similar impact An increase in the aged population has the potential to increase demand on services specific to that demographic

---

Predicted decrease in total annual rainfall volumes, with severity (intensity) of rain storms likely to increase. The series of severe storm events that occurred in March 2010 (1:80 year ARI), June 2011 (1:50 year ARI) and December 2012 (1:90 year ARI) may be an example of such climate change

Demographics

0-15

39,145 As the population continues to age, the percentage of residents over 65 years is forecast to increase

15-64 146,686 65+ 34,087

Table 4.1 Demand drivers, projections and impact on services

PESTEL (political, economic, social, technological, environmental and legal) is a known strategic business methodology that can be equally applied to asset management to reflect on the political, economic, social, technological, environmental and legislative changes that may impact on building facilities in the future.

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Political change Changes to higher spheres of

Carbon emissions or rising fuel costs may result in a demand for alternative modes of transport. New and existing facilities should be located near public transport routes and be provided with bicycle storage and showers. Solar protection requirements may also be demanded for community and recreation facilities. Many of the City’s capital works programs now contain provision for environmentally sustainable development. These initiatives are increasingly being incorporated into the design, construction and operational aspects of the City’s assets. financial impacts are: • Asbestos removal or encapsulation • Workplace health and safety requirements • Terrorism security protection systems • Climate change – green building requirements • CPTED (crime prevention through environmental design) • Disability Access and Inclusion Plans (Disability Services Act 2006). Legislative change Legislative changes that may impact and have significant

The City is aware that the significance of new technology will also potentially become a driver for change within the building asset portfolio, it is anticipated that in time this could also have a major effect on how buildings are used and what services may be required from them. Environmental change While the climate of the City has changed over the last 10 years with rainfall patterns and the greenhouse effect, these changes are not affecting the buildings asset portfolio at present. There are, however, potential risks to infrastructure and facilities due to climate change. An increased frequency and intensity of extreme rainfall, wind and lightning events is likely to cause significant damage to buildings assets. Buildings close to the coast are particularly at risk when storm surges are combined with tidal events and sea level rise. Accelerated degradation of materials, structures and foundations of buildings may occur through increased ground movement and changes in groundwater. Increased temperature and solar radiation could reduce the life of building elements due to temperature expansion and breakdown of concrete joints, steel, protective cladding, coatings, sealants, timber and masonry materials. This accelerated degradation of materials may reduce the life expectancy of buildings and structures, increase maintenance costs and lead to potential structural failure during extreme events. Increasing concern about global warming and increased energy costs may result in the development of ‘green’ buildings. Demand through community expectations or legislative requirements may also extend to existing buildings. Economic benefits may also be realised for key buildings adopting green technology.

government can reduce levels of capital funding, including renewals. This could significantly impact upon local government priorities in relation to the service levels and standards that it provides. Other influences on local government, including community expectations, could result in reprioritisation of services including the maintenance, renewal, acquisition and disposal of building assets. Economic change Economic change can greatly influence the City’s ability to raise revenue from rates and other sources. This can alter the City’s priorities and how financial resources are allocated to building asset maintenance, renewal and acquisition. The City is experiencing moderate economic growth. New and renewal capital for other asset categories may receive priority to meet increased demand for those services. In such an environment, building-related assets may not receive sufficient funding to maintain minimum service levels and standards. Technological change Technology continues to develop at an accelerating pace. Technological change has two significant impacts upon building asset acquisition and renewal strategies: • New property acquisitions must be located close to existing or planned telecommunications infrastructure to satisfy the design function of the proposed facility • Renewal programs for building assets must protect existing technology infrastructure while facilitating technological upgrades or changes with minimal time and cost.

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4.2 Demand management plan Demand for new services will be managed through a combination of managing existing assets, upgrading of existing assets and providing new assets to meet demand, and demand management. Demand management practices include non-asset solutions, insuring against without the need for asset ownership and management actions, including reducing demand for the service, reducing the level of service (allowing some assets to deteriorate beyond current service levels) or educating customers to accept appropriate asset failures. 7 Examples of non-asset risks and managing failures. Non-asset solutions focus on providing the required service

solutions include providing services from existing infrastructure such as aquatic facilities and libraries that may be in another community area or public toilets provided in commercial premises. Opportunities identified to date for demand management are shown in Table 4.2. Further opportunities will be developed in future revisions of this asset management plan.

Demand driver

Impact on services

Demand management plan

DDA compliance

Improved access to services required

Upgrade existing building access over time and ensure new or upgraded buildings are compliant with the Disability Discrimination Act 1992 Encourage sharing existing buildings to maximise the utilisation allows planning for optimum use of all buildings. Improve the prioritisation of building projects Ensure that the design of new buildings enables multipurpose use. Audit existing facilities to ascertain which are being used and which are being underutilised

Population growth

Increase in usage from existing services and demand for new services. Increase operational, maintenance and renewal costs

Ageing population

Provide facilities to meet changes in demand

Review strategic plans to guide future planning

Technology advancement

Changes to service delivery

Ensure best practice and new technologies are anticipated and accommodated Ensure from planning stages that design encompasses environmentally sustainable development

Sustainable buildings

Sustainable improvements to buildings

Table 4.2 Demand management plan summary

7 IPWEA, 2015, IIMM, Table 3.4.1, p 3 | 89.

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4.3 Asset programs to meet demand As the City grows, new building assets are likely to be required to meet community demands. Building portfolio growth will result from land developments and assets which may be constructed by developers and handed over to the City to manage, or they may be constructed by the City. Acquiring and developing new assets will commit the City to ongoing operational and maintenance costs for the period that the services provided from the assets are required.

These costs need to be identified and considered in developing forecasts of future operating and maintenance costs. An increasing population would typically imply greater demand from the existing property and facilities portfolio. There may however be different conclusions for the buildings described in Table 4.3.

Building category

New assets from growth

Community and recreational facilities

It is anticipated that this portfolio will remain steady, with the advancement of several developments to consolidate existing buildings at multiple locations This portfolio is income-generating and is expected to grow as per the City’s Property Strategy An increase in population in the City may see the need for additional staff and facilities to maintain services The increase in population may require reviews of existing facilities to optimise their use

City commercial

City operational

City recreational and community facilities

Public toilets and/or changerooms

This portfolio may increase due to increased demand for public amenities

Minor structures

Increased demand for shade may lead this portfolio to grow slightly

Table 4.3 New assets from growth

The new assets required to meet growth will be acquired free-of- cost from land developments and constructed/acquired. New assets constructed/acquired are discussed in Section 5.5. Acquiring new assets will commit ongoing operations, maintenance and renewal costs for the period that the service provided from the assets is required. These future costs are identified and considered in developing forecasts of future

operations, maintenance and renewal costs in Section 5.

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5.0 Lifecycle

management plan

The lifecycle management plan details how the City will manage and operate its building assets at the agreed levels of service while optimising lifecycle costs. Lifecycle management is recognised by the City as an essential component of this BAMP. This section of the BAMP provides details of the City’s data and processes required to effectively manage, maintain, renew and upgrade the City’s building assets. Figure 5.1 (right) provides a graphical representation of the asset lifecycle including each of the stages an asset passes through during its life. To undertake lifecycle asset management means considering all management options and strategies as part of the asset lifecycle, from planning to disposal. The objective of managing the assets in this manner is to look at long-term cost impacts (or savings) when making asset management decisions.

Figure 5.1 Asset lifecycle diagram

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