City of Stirling Transport Asset Managment Plan

6.3 Service and risk trade-offs The decisions made in adopting this asset management plan are based on the objective of achieving the optimum benefits from the available resources.

6.3.3 Risk trade-off The operations and maintenance activities and capital projects that cannot be undertaken may maintain or create risk consequences. These include: • Non-compliance with legislative requirements • Reduced level of service • The practice of deferring maintenance activities and renewal/upgrade projects, which can end up being more expensive to the City as these activities can get more costly if delayed. These actions and expenditures are considered in the projected expenditures.

6.3.1 What we cannot do There are some operations and maintenance activities and capital projects that are unable to be undertaken within the next 10 years. In this TAMP, approximately $10 million is allocated annually for road renewal and upgrades. As funding is limited, the City prioritises renewal and upgrade projects using factors such as hierarchy, risk and community cost benefit. As such, not all projects can be considered as a priority for the same given year and new capital projects cannot be funded by reducing the capital renewal and upgrade budget.

Options were considered based on the development of three scenarios. Scenario one – What we would like to do based on asset register data. Scenario two – What we should do with existing budgets and identifying level of service and risk consequences (ie, what are the operations and maintenance and capital projects we are unable to do, and what are the service and risk consequences associated with this position?). This may require several versions of the asset management plan. Scenario three – What we can do while remaining financially sustainable, with asset management plans matching long-term financial plans. The Transport Asset Management Plan provides the tools for discussion with Council and customers/ community on trade-offs between what we would like to do (scenario one) and what we should be doing with existing budgets (scenario two) by balancing changes in services and service levels with affordability and acceptance of the service and risk consequences of the trade-off position (scenario three). This version of the asset management plan is a combination of scenarios one and two, and future versions will include the third scenario.

6.3.2 Service trade-off Operations and maintenance

activities and capital projects that cannot be undertaken will maintain or create service consequences for users. These include:

• Community dissatisfaction • End-user dissatisfaction • Reduced level of service.

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