Council Minutes - Town of Cambridge

COUNCIL MINUTESTUESDAY 26 JUNE 2012CR12.90ASSET MANAGEMENT POLICYPURPOSE OF REPORT:To seek Council endorsement to Principles embodied in a new Asset Management Policy forthe Town.BACKGROUND:The Town is required to implement Integrated Planning and Reporting as set out by the State inthe Local Government Reform Program and as mandated in Sections 5.56(1) and (2) of theLocal Government Act and described by Regulations 19C, 19DA and 19DB of the LocalGovernment (Administration) Regulations.Part of this Integrated Planning and Reporting encompasses the need for a Strategic AssetManagement Plan (SAMP). This SAMP is described in supporting guidelines and informationprovided by the Department of Local Government.The Town has been addressing this aspect of the requirements for a SAMP generally inaccordance with these guidelines.The development of an overarching Asset Management Policy endorsed by Council is one ofthe key foundations for a good Asset Management Plan. This policy would also support thedevelopment of the Strategic Community Plan during the coming financial year.DETAILS:PrinciplesIt is proposed that the Asset Management Policy contains the following five core principles,along with descriptive support for each principle.Principle 1: Understand the Community's Needs• Define Levels of Service for assets in line with community expectations as well asregulatory requirements• Describe asset serviceability and standards in words that are understood by thecommunity• Provide Elected Members who set policy and direction with proper advice regardingcosts vs service level standards for assets• Better understand and plan for changing population numbers and demographics toforecast long term needs for assetsPrinciple 2: Be Financially Sustainable• Elected Members to be provided with advice regarding life cycle costs for allrelevant decisions regarding renewal, upgrading or creating significant assets• Adopt annual programs generated from rolling 10/20 year plans aligned toCorporate Plans, Asset Management Strategies, Long Term Financial Plan andWorkforce Plan, updating each plan as necessary based on relevant decisionsmade.• Adopt programs that fund asset maintenance programs primarily from ratesH:\CEO\GOV\COUNCIL MINUTES\12 MINUTES\JUNE 2012\C CR.DOCX 148