Plant & Equipment Asset Management Plan: (Comprehensive)

Shire of Toodyay
PLANT & EQUIPMENT
Asset Management Plan

(Comprehensive)
Shire of Toodyay Asset Management Plan
Document Control
Document ID : Plant & Equipment Asset Management Plan
Rev No Date Revision Details Author Reviewer Approver
July 2018 Manager Corporate Services & CEO

Manager Works and Services
September Manager Corporate Services & CEO

2018 Manager Works and Services
© Copyright 2017 – All rights reserved.

The Institute of Public Works Engineering Australasia.
www.ipwea.org/namsplus
SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

TABLE OF CONTENTS
1 EXECUTIVE SUMMARY...................................................................................................................... 1
1.1 The Purpose of the Plan................................................................................................................. 1
1.2 Asset Description ........................................................................................................................... 1
1.3 Levels of Service ............................................................................................................................ 1
1.4 Future Demand .............................................................................................................................. 1
1.5 Lifecycle Management Plan ........................................................................................................... 2
1.6 Financial Summary ........................................................................................................................ 2
1.7 Asset Management Practices......................................................................................................... 3
1.8 Monitoring and Improvement Program ........................................................................................... 3
2. INTRODUCTION .................................................................................................................................. 3
2.1 Background.................................................................................................................................. 3
2.2 Goals and Objectives of Asset Ownership ................................................................................... 5
2.3 Core and Advanced Asset Management ..................................................................................... 7
3. LEVELS OF SERVICE ......................................................................................................................... 7
3.1 Customer Research and Expectations ........................................................................................ 7
3.2 Strategic and Corporate Goals .................................................................................................... 8
3.3 Legislative Requirements............................................................................................................. 9
3.4 Levels of Service ......................................................................................................................... 9
3.4.2 Technical Levels of Service ....................................................................................................... 10
4. FUTURE DEMAND ............................................................................................................................ 13
4.1 Demand Drivers ......................................................................................................................... 13
4.2 Demand Forecasts..................................................................................................................... 13
4.3 Demand Impact on Assets ......................................................................................................... 13
4.4 Demand Management Plan ....................................................................................................... 13
5. LIFECYCLE MANAGEMENT PLAN................................................................................................... 14
5.1 Background Data ....................................................................................................................... 14
5.2 Operations and Maintenance Plan ............................................................................................. 16
5.3 Renewal/Replacement Plan....................................................................................................... 18
5.4 Creation/Acquisition/Upgrade Plan ............................................................................................ 20
5.5 Disposal Plan ............................................................................................................................. 20
6. RISK MANAGEMENT PLAN .............................................................................................................. 21
6.1 Critical Assets ............................................................................................................................ 21
6.2 Risk Assessment ....................................................................................................................... 22
6.4 Service and Risk Trade-Offs ...................................................................................................... 26
7. FINANCIAL SUMMARY ..................................................................................................................... 26
7.1 Financial Statements and Projections........................................................................................ 26
7.2 Funding Strategy ....................................................................................................................... 27
7.3 Key Assumptions Made in Financial Forecasts ......................................................................... 28
7.4 Forecast Reliability and Confidence .......................................................................................... 28
8. PLAN IMPROVEMENT AND MONITORING ..................................................................................... 29
8.1 Status of Asset Management Practices ..................................................................................... 29
8.2 Improvement Plan ...................................................................................................................... 30
8.3 Monitoring and Review Procedures ........................................................................................... 31
8.4 Performance Measures.............................................................................................................. 31
9. REFERENCES ................................................................................................................................... 31
10. APPENDICES .................................................................................................................................... 31
Appendix A Plant and Equipment – Fair Value ............................................................................. 32
Appendix B Projected 10-year Capital Renewal and Replacement Works Program ..................... 33
Appendix C Projected Plant Replacement Schedule..................................................................... 34
Appendix D Projected Maintenance Schedule .............................................................................. 36
Appendix E Budgeted Expenditures accommodated in LTFP ....................................................... 38
Appendix F Abbreviations ............................................................................................................. 40
Appendix G Glossary ..................................................................................................................... 41

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1. EXECUTIVE SUMMARY
initiatives which may materially impact on the Plant
1.1 The Purpose of the Plan & Equipment Asset Management Plan;
 Technology changes may also impact on the asset
Asset management planning is a comprehensive
management regime; and
process to ensure delivery of services from Plant &
Equipment is provided in a financially sustainable  There will be concerted effort to improve the
manner. energy efficiency of all Council plant & equipment.
The Plant & Equipment Asset Management Plan details 1.2 Asset Description
information about Plant & Equipment assets including
actions required to provide an agreed level of service in These assets include:
the most cost effective manner while outlining The Plant & Equipment network comprises:
associated risks. The plan defines the services to be
provided, how the services are provided and what  Bushfire Vehicles
funds are required to provide the services over a 10-  Equipment
year planning period.  Heavy Fleet
 Light Fleet
The Plant & Equipment Asset Management Plan is the
link between the Council’s corporate, strategic and  Heavy & Light Plant
operational objectives, interpreted as the provision of These assets have a replacement value of $3,706,677.
specific Plant & Equipment to the community for their
enjoyment of agreed Levels of Service for various
community and lifestyle activities.
1.3 Levels of Service
This plan combines the strategic planning, continuous Our present funding levels are sufficient to continue to
improvement and operational management factors to provide existing services at current levels in the
provide Levels of Service associated with community medium term.
needs and to a certain degree, community The main services from Plant & Equipment include:
expectations, (although it is fully acknowledged that
community expectations may never be fully realised).  Civil and earthworks
 Transportation
The plan provides the guidelines for management of
the Plant & Equipment to ensure:  Rapid services, infrastructure services, repairs and
maintenance,
 Best appropriate practice asset and services  Works associated with parks, gardens and
management for Shire of Toodyay; rangers.
 Competent decision-making based on quality
information and contemporary management 1.4 Future Demand
techniques;
 Consistent service provision according to needs The main demands for new services are created by:
based criteria.
 Strategic and Corporate Goals
The plan relates all relevant regulatory, legislative and  Demographic changes and consumer preferences
reasonable practices against the Levels of Service and  Regulations
risk management framework.  Technological changes
 Environmental awareness
 This plan also acknowledges that:
 Determining the sustainability of existing programs These will be managed through a combination of
may involve the review of all current assets against managing existing assets, upgrading of existing assets
the Levels of Service to identify and address any and providing new assets to meet demand and demand
‘gaps’; management.
 From time to time there will be external strategies,
e.g. new Government policy or climate change

1.5 Lifecycle Management Plan
What Does it Cost?
The projected outlays necessary to provide the services covered by this Plant & Equipment Asset Management Plan
includes operations, maintenance, renewal and upgrade of existing assets over the 10-year planning period is
$11,658,000 or $1,165,800 on average per year.
1.6 Financial Summary

What We Will Do
Estimated available funding for this period is $11,381,928 or $1,138,193 on average per year which is 98% of the cost to
provide the service. This is a funding shortfall of $27,607 on average per year. Projected expenditure required to provide
services in the Plant & Equipment Asset Management Plan compared with planned expenditure currently included in the
Long Term Financial Plan are shown in the figure below.
Projected Operating and Capital Expenditure
This Plan provides for operation, maintenance, renewal and upgrade expenditure for light fleet, heavy fleet, heavy plant,
minor plant and equipment to meet service levels set by in annual budgets within the 10 year planning period.
What We Cannot Do
Council do not have enough funding to provide all services at the desired service levels or provide new services.
Managing the Risks

There are risks associated with providing the service and not being able to complete all identified activities and projects.
We have identified major risks as:
 Insufficient resources including funding to replace/ renew plant & equipment in accordance with renewal forecasts,
 Insufficient funding to increasing asset stocks.
We will endeavour to manage these risks within available funding by:
 Request funding for renewals as required and monitor trends of maintenance.

1.7 Asset Management Practices
Our systems to manage assets include:
 Synergy Soft
 Microsoft Excel
1.8 Monitoring and Improvement Program

The next steps resulting from Plant & Equipment Asset Management Plan to improve asset management practices are:
 Define the delivered customer service levels and develop performance measures;
 Continue to monitor plant & equipment condition and make service level based decisions;
 Review annual budget preparation to recognise target levels of service vs condition assessments;
 Review the Shire’s current Plant & Equipment Asset Management staffing structure against work requirements;
 Monitor performance of the Plant & Equipment Asset Management Plan service levels.
2. NTRODUCTION
2.1 Background
The Plant & Equipment Asset Management Plan communicates the actions required for the management of plant and
equipment (and services provided from plant & equipment), compliance with regulatory requirements, and funding
needed to provide the required levels of service over a 10-year planning period.
The Plant & Equipment Asset Management Plan is to be read with the Shire of Toodyay planning documents. This
includes the following associated planning documents:
 Strategic Community Plan

 Corporate Business Plan
 Long Term Financial Plan
 Annual Budget
 2018 Works & Services Review
The Plant & Equipment covered by Plant & Equipment Asset Management Plan are shown in Table 2.1.
Table 2.1: Assets covered by this Plan
ASSET CATEGORY QUANTITY REPLACEMENT VALUE
Bushfire Vehicles and equipment 19 $1,495,765
Equipment 2 $112,320
Heavy Fleet 5 $407,087
Light Fleet 25 $477,800
Heavy & Light Plant 26 $1,213,705
TOTAL $3,706,677

Key stakeholders in the preparation and implementation of Plant & Equipment Asset Management Plan are shown in
Table 2.1.1.
Table 2.1.1: Key Stakeholders in the AM Plan
KEY STAKEHOLDER ROLE IN ASSET MANAGEMENT PLAN

Councillors  Represent needs of community,
 Allocate resources to meet planning objectives in providing services while managing risks,
 Ensure services are sustainable
Executive Team  To ensure that Asset Management policy and strategy is being implemented as adopted,
 To ensure that long-term financial needs to sustain the assets for the services they deliver
are advised to Council for its strategic and financial planning processes
Community User Groups  Users of services from plant & equipment assets,
 Consultation on key issues
Council Staff  As the designated strategic custodian of Plant & Equipment, responsible for the overall
management of the assets,
 To ensure provision of the required/agreed level of maintenance services for asset
components,
 To ensure design and construction of assets meets required/agreed standards,
 To ensure that risk management practices are conducted as per Council policy,
 To ensure that adequate financial information is provided to Council to the relevant asset
managers to facilitate sound management of the assets
Insurance Provider  Partner in insurance and risk management issues
State and Federal  Periodic provision of advice, instruction, grants funding to assist with the provision of
Government Departments community assets.

2.2 Goals and Objectives of Asset  Financial summary – what funds are required to
provide the defined services,
Ownership  Asset management practices – how to manage
Shire of Toodyay exists to provide services. Some of provision of the services,
these services are provided by Plant & Equipment.  Monitoring – how the plan will be monitored to
ensure objectives are met,
The framework of the Plant & Equipment Asset  Asset management improvement plan – how to
Management Plan is based on the following principles: increase asset management maturity.
 Accountability for Assets– refers to strengthening Other references to the benefits, fundamentals
of the ‘ownership’ of the assets and services to principles and objectives of asset management are:
increase performance and accountability;
 Planning and Budgeting – the current and future  International Infrastructure Management Manual
financial needs, specifically the Renewal Profile 2015
for plant & equipment and alignment with the  ISO 55000
respective depreciation calculations;
The primary issues for the Plant & Equipment assets
 Acquiring Assets – the processes of increasing
are:
asset stocks, including assets described in the
Council’s Capital Works Program;  Recording asset data – dimensional and condition
 Operating and Maintaining Assets – maintenance data stored in an Asset Inventory that can be
and operation of assets is the primary activity; uploaded to the Asset Register;
 Disposing of Assets; and  Increasing the strategic and tactical management
 Asset Recording, Valuing and Reporting – of the assets and services – understanding the
including statutory recording and valuing, and renewal and maintenance needs for the network
performance reporting. and actively managing those needs, both
operationally and financially;
Our goal in managing Plant & Equipment is to meet the
 Documentation of the Levels of Service for the
defined level of service (as amended from time to time)
Plant & Equipment, expressed as Service
in the most cost effective manner for present and future
Standards and Service Targets;
consumers. The key elements of Plant & Equipment
 An appreciation of the cost of provision of the
management are:
services;
 Providing a defined level of service and monitoring  The future demand for the assets and services,
performance, understanding the growth and change factors that
 Managing the impact of growth through demand influence the management regime;
management and investment in Plant &  Forecasting the renewal and maintenance costs
Equipment, for the next 10+ years, and understanding the
 Taking a lifecycle approach to developing cost- affordability and sustainability of the assets and
effective management strategies for the long-term services to the current levels.
that meet the defined level of service,
The purpose of this Plant & Equipment Asset
 Identifying, assessing and appropriately Management Plan is to:
controlling risks, and
 Linking to a long-term financial plan which  Improve understanding of the Plant & Equipment
identifies required, affordable expenditure and assets and associated services;
how it will be financed.  Improve budgeting and forecasting of asset
related management options and costs,
Key elements of the planning framework are
particularly in understanding the long term
 Levels of service – specifies the services and investment in capital renewal;
levels of service to be provided,  Afford a level of confidence in forward works
 Future demand – how this will impact on future programs, maintenance and provide support for
service delivery and how this is to be met, any business cases associated with securing the
 Life cycle management – how to manage existing necessary funding requirements; and
and future assets to provide defined levels of  Provide the guidance for elected members and
the organisation in taking positive steps toward
service,
advanced asset management planning.

A road map for preparing an asset management plan is shown below.
Road Map for preparing an Asset Management Plan
Source: IPWEA, 2006, IIMM, Fig 1.5.1, p 1.11
CORPORATE PLANNING
Confirm strategic objectives and establish AM
policies, strategies & goals.
Define responsibilities & ownership.
Decide core or advanced AM Pan.
Gain organisation commitment.
REVIEW/COLLATE ASSET INFORMATION

Existing information sources
Identify & describe assets.
Data collection
Condition assessments
Performance monitoring
Valuation Data
INFORMATION MANAGEMENT, and DATA IMPROVEMENT
DEFINE SCOPE &

STRUCTURE OF PLAN
ESTABLISH LEVELS OF SERVICE

Establish strategic linkages
Define & adopt statements
AM PLAN Establish measures & targets
REVIEW AND Consultation
AUDIT
LIFECYCLE MANAGEMENT STRATEGIES

Develop lifecycle strategies
Describe service delivery strategy
Risk management strategies
Demand forecasting and management
Optimised decision making (renewals, new works,
disposals)
Optimise maintenance strategies
IMPLEMENT
IMPROVEMENT FINANCIAL FORECASTS
STRATEGY Lifecycle analysis
Financial forecast summary
Valuation Depreciation
Funding
IMPROVEMENT PLAN
Assess current/desired practices
Develop improvement plan
ITERATION
IS THE PLAN Reconsider service statements
AFFORDABLE? Options for funding
Consult
ANNUAL PLAN /
BUSINESS PLAN

2.3 Core and Advanced Asset Levels of Service: the service quality for a particular
activity against which service performance may be
Management measured - a high level statement linking strategic
This Plant & Equipment Asset Management Plan is
objectives with service delivery;
prepared as a ‘core’ asset management plan over a 10 Service Standards: the manner of provision of the
year planning period. It is prepared to meet minimum
services, (in quantitative terms, e.g. function, design
legislative and user requirements for sustainable
and amenity / presentation).
service delivery and Long Term Financial Planning and
reporting. Core asset management is a ‘top down’ Service Targets: the targets for the services required
approach where analysis is applied at the system or to achieve and maintain the Service Standards,
network level. measured as intervention criteria and response times.
Future revisions of the Plant & Equipment Asset The Service Targets are used to calculate the level of
Management Plan will move towards ‘advanced’ asset resources, costs and performance required to achieve
management using a ‘bottom up’ approach for against the needs.
gathering detailed asset information for individual
This Plant & Equipment Asset Management Plan
assets to support the provision of activities and
programs to meet agreed service levels in a financially
introduces the framework concept to account for Levels
sustainable manner.
of Service according to whole of life programs for the
assets.
3. LEVELS OF SERVICE The Levels of Service defined in this Plan will be used
to:
3.1 Customer Research and
 inform stakeholders of the proposed type and
Expectations Levels of Service to be offered;
This section of the Plant & Equipment Asset  identify the costs and benefits of the services
Management Plan describes the Levels of Service offered;
framework development process for Plant & Equipment  enable stakeholders to asses suitability,
for the Shire of Toodyay. The framework recorded is affordability and equity of the services offered;
derived from interpretation of Council’s corporate  measure the effectiveness of the Plant &
objectives and strategies, perceived customer ‘needs’ Equipment Asset Management Plan, and;
and relevant statutory requirements.  focus the asset and services management
strategies required and developed to deliver the
To both fully understand and deliver on desired Levels required Levels of Service.
of Service requires suitable asset and services
management policies, guidelines, inspection regimes, The Levels of Service framework is to be based on:
condition assessment programs, customer inquiry
systems and asset and services management practices  Research and needs: predominantly historical
and processes, plus the development and information;
implementation of various audits to validate the outputs.  Strategic and Corporate Goals: identifying the
specific objectives which the organisation wishes
Statistical indicators show that over the past four years, to achieve from the Levels of Service, together
the Shire of Toodyay has had a static population base. with guidance to define the scope of current and
There has been a significant change in age structure future services offered and the manner of the
with less young people, less mid lifers and significantly service delivery;
more aged people. This confirms the need to now  Legislative requirements: the legislation,
specify the Levels of Service for defined service regulations, environmental standards and industry
programs on behalf of the community. Likewise the and Australian Standards that impact on the way
need to understand the affordability of the programs assets are managed; and
becomes an imperative for the organisation and the  Design Standards and Codes of Practice:
community. Australian Design Standards provide a set of
design parameters for the delivery of Plant &
Levels of Service represent a balance between funding, Equipment.
physical resources and customer nee.ds. The Levels
of Service framework includes the following elements,
(defined as):

3.2 Strategic and Corporate Goals
This Plant & Equipment Asset Management Plan is prepared under the direction of the Shire of Toodyay vision, mission,
goals and objectives.
Our vision is: “We are a vibrant rural community that celebrates our past and embraces a sustainable future.”
Our mission is: “Local Government and community working together to obtain the best possible social, economic and
environmental outcomes for the Toodyay Shire.”
Relevant goals and objectives and how these are addressed in Plant & Equipment Asset Management Plan are:
Table 3.2: Goals and how these are addressed in this Plan
HOW GOAL AND OBJECTIVES ARE

GOAL OBJECTIVE
ADDRESSED IN AM PLAN
Social: Objective 2: Facilitate community safety and Provide fit-for-purpose plant & equipment
Our community wellbeing. for emergency services, and law and
wellbeing and S 2.3: Collaborate with fire and emergency services, order programs.
connection law and order programs and other volunteer services.
Built Environment: Objective 3: Improve processes to support the built Optimisation of Asset condition –
Our buildings, roads environment. maintaining the asset condition equitably
and transport S 3.2: Implement asset rationalisation and throughout the network of plant and
consolidation. equipment assets.
Governance: Objective 3: Ensure rigorous organisational systems. Review plant and equipment
The way the Shire S 3.1: Maintain long term financial and resourcing requirements for roads and other
leads and operates plans. infrastructure programs.
Provide fit-for-purpose plant & equipment
for Council municipal and regulatory
services.

3.3 Legislative Requirements
There are many legislative requirements relating to the management of Plant & Equipment. These include:
Table 3.3: Legislative Requirements
LEGISLATION REQUIREMENT
Local Government Act 1995 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. The Act also provides
guidance on the rules around local governments who derive revenue from
operations such as non-core business.
Road Traffic Act 1974 Requirement to licence vehicles to be driven on the road, and all driving
regulations.
Road Traffic Amendment Act 2000 Requirement for the owner of the vehicle to be liable for drivers’ compliance with
the regulations.
Motor Vehicle Standards Act 1989 Requirement to register and assign identification to each vehicle imported to or
manufactured in Australia.
Disability Services Act 1993 (WA) To ensure that services are provided and funded in conformity with the Act.
Emergency Management Act 2004 (WA) Requires lifeline utilities to function at the fullest possible extent during and after
an emergency and to have business continuity plans.
Work Health and Safety Act2011 Requirement for organisations and individuals to apply a duty of care to others.
Includes requirements for undertaking to ensure, so far as is reasonably
practicable the provision and maintenance of safe plant and the safe use,
handling and storage of plant.
Accounting Standards AASB 5 Non-Current Assets Held for Sale and Discontinued Operations
AASB 13 Fair Value Measurement
AASB 116 Property, Plant and Equipment
AASB 118 Revenue
AASB 119 Employee Benefits
AASB 136 Impairment of Assets
AASB 138 Intangible Assets
AASB 140 Investment Property
Other Standards and Regulations Other relevant documents include, but are not limited to: AS/NZS 4360: 1995
Risk Management, all other relevant State and Federal Acts & Regulations, all
Local Laws and relevant policies of the organisation
3.4 Levels of Service

Service levels are defined service levels in two terms, customer levels of service and technical levels of service. These
are supplemented by organisational measures.
Customer Levels of Service measure how the customer receives the service terms of safety, quality, quantity,
reliability, responsiveness, cost/efficiency and legislative compliance and whether value to the customer is provided.
Technical Levels of Service supporting the community service levels to ensure that the minimum community levels of
service are met. These technical measures relate to service criteria such as:
 Quality – plant & equipment is operational, reliable, comfortable for operators and easy to maintain,
 Quantity – number of assets is sufficient for Council operations and service delivery,
 Availability – plant & equipment is fit for purpose, efficient and adaptable for other jobs,
 Safety – plant & equipment is maintained, services and repaired to industry standards.

3.4.1 Customer Levels of Service
Customer levels of service measures used in the asset management plan are:
Quality: How good is the service …

What is the condition or quality of the service?
Function: Is it suitable for its intended purpose ….

Is it the right service?
Capacity/Use: Is the service over or under used …

Do we need more or less of these assets?
Table 3.5 shows the expected levels of service based on resource levels in the current long-term financial plan.
3.4.2 Technical Levels of Service

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,

 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 (e.g. regular inspection and repair of
components),
 Renewal – the activities that return the service capability of an asset up to that which it had originally (e.g.
replacement of plant & equipment),
 Upgrade/New – the activities to provide a higher level of service (e.g. replacing major components) or a new
service that did not exist previously (e.g. a new plant & equipment).
Service and asset managers plan, implement and control technical service levels to influence the customer service
levels.
Table 3.5 shows the customer levels of service and technical levels of service expected to be provided under the Plant &
Equipment Asset Management Plan.
Plant and equipment items meet demands for performance, reliability, affordability,
SERVICE STATEMENT
environmental outputs and safety for the operator/driver and community.
SERVICE FACTORS CUSTOMER LEVELS OF SERVICE TECHNICAL LEVELS OF SERVICE

QUALITY
Council Needs Plant and equipment item matches needs Regular liaison with Council staff to ascertain and
at an affordable cost. confirm plant and equipment needs.
Quality plant and equipment to specifications and
available funding/ agreed lease cost.
Plant and equipment items replacement/ renewal
cycle aligned with good industry standards and
affordability.
Available Resources / Only essential plant and equipment is Non capital solutions such as operating leases
Funding purchased. may be proposed for programmed plant and
equipment upgrades – decreasing capital costs.
Organisational Profile Plant and equipment are safe to use. Plant and equipment items match Council
and Policies policies for performance, safety and equipment
levels.

Commercial Realities Keep plant and equipment management Plant and equipment item maintained by
and operational costs as low as possible preventative maintenance/routine servicing and
good operational standards.
Comparison of Council ownership vs lease option
for plant and equipment items.
Hire rates and arrangements are consistent with
private market forces for equivalent plant and
equipment items.
Function
Design Standards Plant and equipment items meets the Plant and Equipment meets or exceeds Council’s
needs of council staff and have reasonable functional specification and remains within cost
operating costs. parameters for purchase and operations.
Safety Plant and equipment item provides the Plant and equipment item conforms to
required degree of safety for operator and manufacturer’s specifications – no unauthorised
public. modifications.
Plant and equipment item serviced and
maintained according to manufacturer’s
specifications.
Plant and equipment item designed and
maintained to relevant Workplace Health &
Safety provisions.
Operators maintain licences and skills through
ongoing training.
Availability / Reliability Plant and equipment item is reliable and Capacity of plant and equipment item matches or
available for use. exceeds requirement for specified operating
demands.
Plant and equipment item quality matches
capacity and operating needs and affordability.
Operator is trained and experienced to optimise
the performance and output from the plant and
equipment item.
Routine maintenance/servicing/repair programs
and times optimise availability and output.
Environmental Plant and equipment items match or Plant and equipment items design alternatives
Standards exceeds Council’s current environmental favour high environmental outcomes.
standards. Operator/driver training matches preferred
environmental outcomes.
Economy Plant and equipment item offers good Operators and drivers trained to operate/drive to
operating economy, both from an optimise fuel economy, tyre and general wear
ownership and an operational perspective. and tear on plant and equipment items.
Regular inspections of plant and equipment items
to confirm care and attention by operators/drivers
for presentation and operation.

Comfort Plant and equipment item provides good Plant and equipment items have proper air-
driver/operator comfort consistent with conditioning/ventilation systems to provide good
plant and equipment item tasks, including operator comfort in typical operational
long duration operational activities. circumstances.
Seating meets high standard/ design criteria for
operator/driver and passenger comfort and
support.
Operator cabin/driving space properly insulated
from operating/ engine noises.
Industrial plant located clear of obstacles and
near materials supply.
Maintenance and All servicing can be done on site. Majority of services able to be undertaken in
Operational Activities Council workshop.
Capacity / Use
Presentation / Amenity Plant and equipment items maintained in Plant and equipment maintenance, operation and
clean and tidy condition – presentation to presentation actions contribute to higher resale
community at appropriate standards. values and lower operating costs – responsible
manager to ensure high standards are
maintained.
Utilisation Utilisation of plant & equipment meets Utilisation is maximised, minimum idle hours
required need or demand
The current levels of service have been developed through internal consultation. 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 customer priorities will change over time. Review and establishment of an agreed position which
achieves the best balance between service, risk and cost is essential. As such, continuous monitoring and review of
levels of service will form part of the continuous improvement plan.

4. FUTURE DEMAND
4.1 Demand Drivers
Drivers affecting demand include Strategic and Corporate goals, population change, changes in demographics,
seasonal factors, vehicle ownership rates, consumer preferences and expectations, technological changes, economic
factors, regulatory changes, environmental awareness, etc.
4.2 Demand Forecasts

The present position and projections for demand drivers that may impact future service delivery and use of assets were
identified and are documented in Table 4.3.
4.3 Demand Impact on Assets

The impact of demand drivers that may affect future service delivery and use of assets are shown in Table 4.3.
Table 4.3: Demand Drivers, Projections and Impact on Services
DEMAND DRIVERS PRESENT POSITION PROJECTION IMPACT ON SERVICES

Economic Demand The withdrawal of fleet vehicle licence Anticipated to continue Increasingly difficult to maintain the
fee and stamp duty concessions will current level of service.
increase the cost of operating and A review of the current costs of
renewing the portfolio. individual assets compared to their
Increasing energy costs: It is likely that level of usage in order to identify
prices for basic commodities will opportunities for efficiency gains.
continue to rise above normal inflation
levels over the life of this AMP.
Social Demand Shire of Toodyay has had a static Increase in demand for all Review and document levels of
population base over the last four services demand.
years. Analysis of demographics shows Increased maintenance and Encourage sharing of existing plant
an ageing population and less young renewal costs and equipment to maximise
people in the Shire. utilisation.
Technology Condition monitoring and Asset Anticipated to continue to Change in technology may provide
Management systems – the need to change increased fuel efficiency, operator
manage data in the form of inventories, comfort and safety.
condition ratings, financial performance Review of Council’s long term ability
etc. to maintain increasingly sophisticated
assets.
Multi- function/ multi-purpose plant
and equipment improves operational
efficiency.
Environment Preference for the acquisition of Anticipated to continue A review of the asset management
environmentally friendly assets with resources required to effectively
lower whole of life costs. manage the portfolio.
4.4 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 risks and managing failures.
Non-asset solutions focus on providing the required service 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. Examples of non-asset
solutions include providing services from existing plant and equipment such as hiring of plant and equipment instead of
purchasing outright, and sharing plant and equipment with other Councils where practical. Further opportunities will be
developed in future revisions of Plant & Equipment Asset Management Plan.

5. LIFECYCLE MANAGEMENT PLAN
The lifecycle management plan details how the Shire of Toodyay plans to manage and operate the assets at the agreed
levels of service (defined in Section 3) while managing life cycle costs.
Life Cycle Management is recognised by the Shire of Toodyay as an essential component of the provision and
management of assets and services. Life Cycle Management is primarily about using the data and processes to
effectively provide, manage, maintain, renew, (and upgrade), existing plant and equipment.
Lifecycle asset management means considering all management options and strategies as part of the asset lifecycle,
from planning to disposal, (whole of life analysis). The objective of managing the assets in this manner is to look at long-
term cost impacts, (or savings), when making asset and services management decisions.
5.1 Background Data

5.1.1 Physical parameters
The assets covered by this Plant & Equipment Asset Management Plan are shown in Table 2.1.
The age profile of the assets included in the Plant & Equipment Asset Management Plan are shown in Figure 2.
Figure 2: Asset Age Profile
5.1.2 Asset capacity and performance

Assets are generally provided to meet design standards where these are available.
Locations where deficiencies in service performance are known are detailed in Table 5.1.2.
Table 5.1.2: Known Service Performance Deficiencies
LOCATION SERVICE DEFICIENCY

Fleet Maintenance Review Workshop facilities, capacity to meet current and future fleet maintenance
requirements (computer scanning machine, improved layout of workshop, upgrade of
tools)
Utilisation Underutilised plant that are a result of staffing, seasonal works and demand for use of
equipment

5.1.3 Asset condition
Current plant and equipment conditions were last assessed in 2017. With the condition rating of each of the plant and
equipment elements having been established, it is possible to attribute a whole of asset condition rating.
Following the adoption of this Plan, condition audits of plant and equipment will be undertaken over a three year cycle.
This is to help even out inspections, budgets and workloads. This has been identified as an improvement action.
Condition of assets are rated using a 1-5 rating system with 1 being new or near-new and 5 representing an asset that
has failed completely and cannot be used for the purpose it was in service for.
The condition profile of our assets is shown in Figure 3.
Fig 3: Asset Condition Profile
The majority of Council plant and equipment is in either “Very Good” or “Good” condition.
Condition is measured using a 1 – 5 grading system as detailed in Table 5.1.3.
Table 5.1.3: Simple Condition Grading Model
CONDITION GRADING DESCRIPTION OF CONDITION

1 Very Good: only planned maintenance required
2 Good: minor maintenance required plus planned maintenance
3 Fair: significant maintenance required
4 Poor: significant renewal/rehabilitation required
5 Very Poor: physically unsound and/or beyond rehabilitation
5.1.4 Asset valuations

The value of assets recorded in the asset register as at 30 June 2017 covered by the Plant & Equipment Asset
Management Plan is shown below. Assets were last revalued at 30 June 2016. Assets are valued at Fair Value.
Gross
Gross Replacement Cost $4,179,242 Replacement
Cost
Accumulated
Depreciable Amount $4,179,242 Depreciation
Depreciated Annual Depreciable
Depreciated Replacement Cost $3,706,677 Replacement Depreciation Amount
Cost Expense
Annual Average Asset Consumption $459,837
End of End of Residual
reporting reporting Value
period 1 period 2
Useful Life
5.2 Operations and Maintenance Plan 5.2.2 Operations and Maintenance Strategies
Operations include regular activities to provide services The Shire of Toodyay will operate and maintain assets
such as road grading and tree pruning. to provide the defined level of service to approved
budgets in the most cost-efficient manner. The
Routine maintenance is the regular on-going work that operation and maintenance activities include:
is necessary to keep assets operating, including
instances where portions of the asset fail and need  Scheduling operations activities to deliver the
immediate repair to make the asset operational again, defined level of service in the most efficient
for example, servicing of plant and equipment. manner,
5.2.1 Operations and Maintenance Plan  Undertaking maintenance activities through a

planned maintenance system to reduce
Operations activities affect service levels including maintenance costs and improve maintenance
quality and function through the types and timing of outcomes. Undertake cost-benefit analysis to
activities, and the design of the plant and equipment. determine the most cost-effective split between
planned and unplanned maintenance activities (50
Maintenance includes all actions necessary for – 70% planned desirable as measured by cost),
retaining an asset as near as practicable to an
appropriate service condition including regular ongoing  Maintain a current risk register for assets and
day-to-day work necessary to keep assets operating. present service risks associated with providing
For example, servicing but excluding rehabilitation or services from Plant & Equipment assets and
renewal. Maintenance may be classified into reactive, reporting Very High and High risks and residual
planned and specific maintenance work activities. risks after treatment to management and Council,
Reactive maintenance is unplanned repair work carried  Review current and required skills base and
out in response to service requests and implement workforce training and development to
management/supervisory directions. meet required operations and maintenance needs,
Planned maintenance is repair work that is identified  Review asset use to identify under used assets
and managed through a servicing schedule. Servicing and appropriate remedies, and over used assets
activities include inspection, assessing the condition and customer demand management options,
against failure/breakdown experience, priority of works,
scheduling, actioning the work and reporting what was  Maintain a current hierarchy of critical assets and
done to develop a maintenance history and improve required operations and maintenance activities,
maintenance and service delivery performance.
 Develop and regularly review appropriate
Specific maintenance is replacement of higher value emergency response capability,
components/sub-components of assets that is
undertaken on a regular cycle including repainting,  Review management of operations and
replacing air conditioning units, etc. This work falls maintenance activities to ensure best value for the
below the capital/maintenance threshold but may resources used.
require a specific budget allocation.
5.2.3 Asset Hierarchy
Maintenance expenditure levels are considered to be
adequate to meet projected service levels, which may An asset hierarchy provides a framework for structuring
be less than or equal to current service levels. Where data in an information system to assist in collection of
maintenance expenditure levels are such that will result data, reporting information and making decisions. The
in a lesser level of service, the service consequences hierarchy includes the asset class and component used
and service risks have been identified and service for asset planning and financial reporting and service
consequences highlighted in the Plant & Equipment level hierarchy used for service planning and delivery.
Asset Management Plan and service risks considered
Council has not yet developed an asset service
in the Risk Management Plan.
hierarchy, this will be developed for future plans.
Assessment and priority of reactive maintenance is
undertaken by staff using experience and judgement.

5.2.4 Critical Assets
Critical assets are those assets which have a high consequence of failure but not necessarily a high likelihood of failure.
By identifying critical assets and critical failure modes, investigative activities, maintenance plans and capital expenditure
plans can be targeted at the appropriate time.
Operations and maintenances activities may be targeted to mitigate critical assets failure and maintain service levels.
These activities may include increased inspection frequency, higher maintenance intervention levels, etc.
Council has not yet developed a list of the critical assets, this will be developed for future plans.
5.2.5 Standards and Specifications

Maintenance work is carried out in accordance with the following Standards and Specifications.
 Australian Standards relevant to the works being undertaken

 Occupational Health and Safety Standards
 Motor Vehicle Standards
 Manuals provided by manufacturer
5.2.6 Summary of Future Operations and Maintenance Expenditures

Future operations and maintenance expenditure is forecast to trend in line with the value of the asset stock as shown in
Figure 4. Note that all costs are shown in current 2017/18 dollar values (i.e. real values).
Figure 4: Projected Operations and Maintenance Expenditure
Maintenance is funded from the operating budget where available.

5.3 Renewal/Replacement Plan  Using ‘low cost’ renewal methods (cost of renewal
is less than replacement) wherever possible,
Renewal and replacement expenditure is major work  Maintain a current risk register for assets and
which does not increase the asset’s design capacity but service risks associated with providing services
restores, rehabilitates, replaces or renews an existing from Plant & Equipment assets and reporting
asset to its original service potential. Work over and Very High and High risks and residual risks after
above restoring an asset to original service potential is treatment to management and Council,
upgrade/expansion or new works expenditure resulting  Review current and required skills base and
in additional future operations and maintenance costs. implement workforce training and development to
meet required needs,
Replacement and rehabilitation of existing plant and  Maintain a current hierarchy of critical assets and
equipment is based on the following considerations: capital renewal treatments and timings required ,
 Review management of capital renewal and
 a condition rating applied to each asset; replacement activities to ensure the best value for
 an assumed economic life applied to each asset resources used is obtained.
group;
 a replacement date for each asset; 5.3.3 Renewal ranking criteria
 asset replacement cost.
Asset renewal and replacement is typically undertaken
5.3.1 Renewal plan to either:
There are a number of methods to identify the renewal/  Ensure the reliability of the existing assets to
replacement requirements for plant and equipment. deliver the service it was constructed to facilitate,
This plan uses a combination of the following methods: or
 To ensure the assets are of sufficient quality to
 Asset Register data to project the renewal costs meet the service requirements.
using acquisition year and useful life to determine
the renewal year, and It is possible to get some indication of capital renewal
 Capital renewal expenditure projections from and replacement priorities by identifying assets or asset
external condition modelling systems. groups that:
5.3.2 Renewal and Replacement Strategies  Have a high consequence of failure,

 Have high use and subsequent impact on users
Council will plan capital renewal and replacement would be greatest,
projects to meet level of service objectives and  Have a total value represents the greatest net
minimize plant and equipment service risks by: value,
 Have the highest average age relative to their
 Planning and scheduling renewal projects to
expected lives,
deliver the defined level of service in the most
 Have high operational or maintenance costs, and
efficient manner,
 Have replacement with a modern equivalent asset
 Undertaking project scoping for all capital renewal
that would provide the equivalent service at a
and replacement projects to identify:
savings.
o the service delivery ‘deficiency’, present
The ranking criteria used to determine priority of
risk and optimum time for
identified renewal and replacement proposals will be
renewal/replacement,
incorporated into future plans.
o the project objectives to rectify the
deficiency, 5.3.4 Renewal and replacement standards
o the range of options, estimated capital and
life cycle costs for each options that could Renewal work is carried out in accordance with the
address the service deficiency, following standards and specifications.
o and evaluate the options against adopted
evaluation criteria, and  Council Policies
o select the best option to be included in  Compliance with current regulations, laws and
capital renewal programs, statutes
 Industry best practice

5.3.5 Summary of future renewal and replacement expenditure
Projected future renewal and replacement expenditures are forecast to increase over time when the asset stock
increases. The expenditure is required is shown in Fig 5. Note that all amounts are shown in real values.
The projected capital renewal and replacement program is shown in Appendix B.
Renewals and replacement expenditure in the capital works program will be accommodated in the Long Term Financial
Plan. This is further discussed in Section 7.

5.4 Creation/Acquisition/Upgrade 5.5 Disposal Plan
Plan Disposal includes any activity associated with disposal
of a decommissioned asset including sale, demolition
New works are those works that create a new asset
that did not previously exist, or works which upgrade or or relocation. Assets identified for possible
improve an existing asset beyond its existing capacity. decommissioning and disposal are shown in Appendix
They may result from growth, social or environmental C, together with estimated annual savings from not
needs. Assets may also be acquired at no cost. having to fund operations and maintenance of the
assets. These assets will be further reinvestigated to
5.4.1 Selection criteria determine the required levels of service and see what
options are available for alternate service delivery, if
New assets and upgrade/expansion of existing assets any. Any costs or revenue gained from asset disposals
are identified from various sources such as community is accommodated in the Long Term Financial Plan.
requests, proposals identified by strategic plans or
partnerships with others. Candidate proposals are Where cash flow projections from asset disposals are
inspected to verify need and to develop a preliminary not available, these will be developed in future revisions
renewal estimate. Verified proposals are ranked by of the Plant & Equipment Asset Management Plan.
priority and available funds and scheduled in future
works programmes.
5.4.2 Capital Investment Strategies

Capital upgrade and new projects will be planned to
meet level of service objectives by:
 Planning and scheduling capital upgrade and new

projects to deliver the defined level of service in
the most efficient manner,
 Undertake project scoping for all capital
upgrade/new projects to identify:
o the service delivery ‘deficiency’, present
risk and required timeline for delivery of the
upgrade/new asset,
o the project objectives to rectify the
deficiency including value management for
major projects,
o the range of options, estimated capital and
life cycle costs for each options that could
address the service deficiency,
o management of risks associated with
alternative options,
o and evaluate the options against
evaluation criteria adopted by Council, and
o select the best option to be included in
capital upgrade/new programs,
 Review current and required skills base and
implement training and development to meet
required construction and project management
needs,
 Review management of capital project
management activities to ensure Council is
obtaining best value for resources used.
Standards and specifications for new assets and for

upgrade/expansion of existing assets are the same as
those for renewal shown in Section 5.3.2.

6. RISK MANAGEMENT PLAN
The purpose of risk management is to document the Through risk management, the Shire of Toodyay aims
results and recommendations resulting from the to:
periodic identification, assessment and treatment of
risks associated with providing services from plant and  Protect the quality of the property portfolio,
equipment, using the fundamentals of International  Protect users of property assets,
Standard ISO 31000:2009 Risk management –  Reduce the Shire’s exposure to risk,
Principles and guidelines.  Promote effective financial and asset
management practices.
Risk Management is defined in ISO 31000:2009 as:
“coordinated activities to direct and control with regard This will be achieved through:
to risk”.
 Identifying, decreasing the likelihood, and
An assessment of risks associated with service delivery mitigating the consequences of, risk within the
from plant and equipment has identified critical risks constraints of sensible commercial objectives and
that will result in loss or reduction in service from Plant practices,
& Equipment or a ‘financial shock’. The risk  Applying risk based practices to the management
assessment process identifies credible risks, the of property assets and associated decision
likelihood of the risk event occurring, the consequences making,
should the event occur, develops a risk rating,
 Maintaining safe and reliable plant and equipment,
evaluates the risk and develops a risk treatment plan
 Preparing appropriate contingencies,
for non-acceptable risks.
 Reviewing the risk profile of the property portfolio
Risk management is one of the fundamentals of asset at appropriate intervals and when circumstances
and services management, and is observed to the dictate,
highest possible level using industry standard practices.  Maintaining an up to date Plant & Equipment
It is appropriate that formal risk management processes Asset Management Plan.
be applied to support decision making in all areas and
at all levels of the organisation. The processes need to 6.1 Critical Assets
be ingrained in the daily activities for the organisation.
Critical assets are defined as those which have a high
Risks can typically be categorised as: consequence of failure causing significant loss or
reduction of service. Similarly, critical failure modes are
Natural Events: Council has virtually no control over those which have the highest consequences. By
the timing or extent of the event, however, the identifying critical assets and failure modes
probabilities may be understood; investigative activities, condition inspection programs,
maintenance and capital expenditure plans can be
External Impacts: Council has some control over
targeted at the critical areas.
these risks, associated with other organisations
providing goods and services to Council; Research on critical assets has not yet been
undertaken. This will be investigated in future updates
Physical Failure Risk: Where conditions or
of the asset management plan.
performance of an asset could lead to failure. Council
can control these risks through maintenance and
renewal funding levels;
Operational Risk: Where management of the asset or

asset management activities might impact on an asset.
Council can control these risks through maintenance
and renewal funding levels.

6.2 Risk Assessment
The risk management process used in this project is shown in Figure 6.2 below.
It is an analysis and problem solving technique designed to provide a logical process for the selection of treatment plans
and management actions to protect the community against unacceptable risks.
The process is based on the fundamentals of ISO risk assessment standard ISO 31000:2009.
Fig 6.2 Risk Management Process – Abridged
ANALYSE &
EVALUATE RISKS
IDENTIFY RISKS TREAT RISKS
- Consequences
- What can happen ? - Identify options
- Likelihood
- When and why ? - Assess options
- Level of Risk
- How and why ? - Treatment plans
- Evaluate
The risk assessment process identifies credible risks, the likelihood of the risk event occurring, the consequences should
the event occur, develops a risk rating, evaluates the risk and develops a risk treatment plan for non-acceptable risks.
An assessment of risks associated with service delivery from Plant & Equipment identifies the critical risks that can result
in significant loss, ‘financial shock’ or a reduction in service.
Critical risks will be identified and Treatment Plans formulated and documented as part of future AMPs.
The resilience of our critical plant and equipment is vital to our customers and the services we provide. To adapt to
changing conditions and grow over time we need to understand our capacity to respond to possible disruptions and be
positioned to absorb disturbance and act effectively in a crisis to ensure continuity of service.
To enhance our capacity to manage unforeseen or unexpected risk to the continuity of operations we plan to take a plant
and equipment resilience approach using an ‘all hazards’ methodology.
The ‘all-hazards’ approach will involve:
 An initial assessment of critical assets;

 A resilience assessment for these assets; and
 Identification of related improvements or interventions
Resilience will be built on aspects such as response and recovery planning, financial capacity and crisis leadership.

The risk assessment process compares the likelihood of a risk event occurring against the consequences of the event
occurring. In the risk rating table below, a risk event with a likelihood of ‘Possible’ and a consequence of ‘Major’ has a
risk rating of ‘High’ as shown in Table 6.3.
Table 6.3: Risk Rating Matrix
Risk Rating
Likelihood Consequences
Insignificant - 1 Minor - 2 Moderate - 3 Major - 4 Catastrophic - 5
Rare - 1 L L M M H
Unlikely - 2 L L M M H
Possible - 3 L M H H H
Likely - 4 M M H H VH
Almost Certain - 5 M H H VH VH
Ref: HB 436:2004, Risk Management Guidelines, Table 6.6, p 55.

CONSEQUENCES
RESPONSIBLE
RISK RATING
LIKELIHOOD
TREATMENT
RISK AFTER
WHAT WOULD
WHAT IS THE POSSIBLE WHAT IS THE
ASSET AT RISK HAPPEN AS A RISK TREATMENT PLAN BY WHEN
PROBLEM? CAUSE?
RESULT
All Plant & Premature Failure Lack of Maintenance Equipment failure and 4 4 H Ensure that maintenance schedules and M Manager Works Ongoing
Equipment and upgrades possible safety activities are followed in accordance with & Services
concerns to staff and manufacturer’s recommendations.
the community Renewals Programs
All Plant & Breakdowns due to Inappropriate repairs Equipment failure and 3 4 H Ensure only qualified staff or authorised M Manager Works Ongoing
Equipment unreliable equipment or maintenance possible safety contractors repair or maintain equipment. & Services
Inappropriate concerns to staff and Purchase only suitable equipment in good
equipment the community condition.
All Plant & Use of faulty plant & Operator does not Equipment failure. 2 4 M Ensure all staff carry out pre-start check of L Manager Works Ongoing
Equipment equipment check before use Police infringement heavy vehicles and plant. & Services
and fine.
Injury or death to staff
or bystanders.
All Plant & PPE not worn Lack of education Injury to operator/driver 2 4 M Provide Safe Work Instructions to all L Manager Works Ongoing
Equipment and/or training operators of heavy plant. & Services
Ensure all operators of heavy plant are
properly trained and certified where
required.
All Operators will be competent and
licensed in safe operations of all plant and
equipment.
Trucks Loss of load Load not adequately Loss of load. 2 5 H Ensure all operators are properly trained. M Manager Works Ongoing
secured. Injury or death to staff Ensure load restraints are in good & Services
Overloading of bulk or bystander. condition.
materials. All Operators will be competent and
licensed in safe operations of all plant and
equipment.

CONSEQUENCES
RESPONSIBLE
RISK RATING
LIKELIHOOD
TREATMENT
RISK AFTER
WHAT WOULD
WHAT IS THE POSSIBLE WHAT IS THE
ASSET AT RISK HAPPEN AS A RISK TREATMENT PLAN BY WHEN
PROBLEM? CAUSE?
RESULT
Equipment Guards or safety devices Poor staff training or Death or injury to staff 2 5 H Ensure all operators are properly trained. M Manager Works Ongoing
removed attitudes or bystanders. Conduct regular checks of equipment. & Services
Vehicles Accident Animal strike Death or injury to driver 2 5 H Ensure drivers are trained for anticipated M Manager Works Ongoing
Over speeding and passengers. conditions. & Services
Fatigue Implement fatigue management policies.
Implement check-out/check-in procedures.
Vehicles Vehicle unregistered Poor administration Costs awarded against 2 2 L Ensure administration procedures are L Manager Works Ongoing
and/or uninsured procedures and Council rather than efficient and effective. & Services
practice insurer. Asset Register kept up to date.
All Plant & Damaged or stolen whilst Vandalism The vehicle is not 2 3 M Ensure vehicles are locked when parked. L Manager Works Ongoing
Equipment parked Theft available for use Ensure vehicles are parked in secure & Services
Vehicle is damaged or locations.
written-off.
All Plant & Inappropriate plant & Lack of adequate Equipment is 2 3 M Review past purchases. L Manager Works Ongoing
Equipment equipment purchased specifications expensive to operate. Seek external/independent assistance & Services
Equipment is not able where appropriate.
to perform specified Seek feedback from operators.
tasks.
All Plant & Major plant & equipment Manufacturer’s fault Crew downtime and 3 4 H Consider short term lease or hire of major M Manager Works Ongoing
Equipment failure or defect delayed works, plant and equipment to align with warranty & Services
increased costs periods.
Identifying back up sources for major plant
and equipment.
All Plant & Fuel shortage Market conditions Increased costs 3 3 H Identifying back up suppliers for fuel M Manager Works Ongoing
Equipment Crew downtime and Consider other fuel efficiency options for & Services
delayed works, light fleet.

6.4 Service and Risk Trade-Offs
The decisions made in adopting this Plant & Equipment Asset Management Plan are based on the objective to achieve
the optimum benefits from the available resources.
This Plant & Equipment Asset Management Plan has been developed by taking into consideration:
 What we would like to do based on asset register data;

 What we should do with existing budgets and identifying level of service and risk consequences (i.e. what are the
operations and maintenance and capital projects we are unable to do, what is the service and risk consequences
associated with this position). This may require several versions of the AM Plan; and
 What we can do and be financially sustainable with AM Plans matching long-term financial plans.
The Plant & Equipment Asset Management Plan provides the tools for discussion with the Council and
customers/community on trade-offs between what we would like to do and what we should be doing with existing
budgets by balancing changes in services and service levels with affordability and acceptance of the service and risk
consequences of the trade-off position.
7. FINANCIAL SUMMARY
This section contains the financial requirements resulting from all the information presented in the previous sections of
this Plant & Equipment Asset Management Plan. The financial projections will be improved as further information
becomes available on desired levels of service and current and projected future asset performance.
7.1 Financial Statements and Projections

The financial projections are shown in Fig 7 for projected operating (operations and maintenance) and capital
expenditure (renewal and upgrade/expansion/new assets). Note that all costs are shown in real values.
Fig 7: Projected Operating and Capital Expenditure

7.1.1 Sustainability of Service Delivery The projected operations, maintenance and capital
renewal expenditure required over the 10 year planning
There are four key indicators for service delivery period is $1,165,800 on average per year.
sustainability that have been considered in the analysis
of the services provided by this asset category, these Estimated (budget) operations, maintenance and
being the asset renewal funding ratio, long term life capital renewal funding is $1,138,192 on average per
cycle costs/expenditures covering 10 years of the year giving a 10 year funding shortfall of $27,607 per
planning period. year. This indicates 98% of the projected expenditures
needed to provide the services documented in the
4.1.2 Long term - Life Cycle Cost asset management plan.
Life cycle costs (or whole of life costs) are the average Providing services in a sustainable manner will require
costs that are required to sustain the service levels over matching of projected asset renewal and replacement
the asset life cycle. Life cycle costs include operations expenditure to meet agreed service levels with the
and maintenance expenditure and asset consumption corresponding capital works program accommodated in
(depreciation expense). the Long Term Financial Plan.
Life cycle costs can be compared to life cycle 7.2 Funding Strategy
expenditure to give an initial indicator of affordability of
projected service levels when considered with age After reviewing service levels, as appropriate to ensure
profiles. Life cycle expenditure includes operations, ongoing financial sustainability projected expenditures
maintenance and capital renewal expenditure. Life identified in Section 7.1 will be accommodated in the 10
cycle expenditure will vary depending on the timing of year Long Term Financial Plan.
asset renewals.
The life cycle costs and life cycle expenditure

comparison highlights any difference between present
outlays and the average cost of providing the service
over the long term. If the life cycle expenditure is less
than that life cycle cost, it is most likely that outlays will
need to be increased or cuts in services made in the
future.
Knowing the extent and timing of any required increase

in outlays and the service consequences if funding is
not available will assist in providing services to their
communities in a financially sustainable manner. This
is the purpose of the asset management plans and
Long Term Financial Plan.
4.1.3 Medium term – 10 Year Financial Planning

Period
The Plant & Equipment Asset Management Plan
identifies the projected operations, maintenance and
capital renewal expenditures required to provide an
agreed level of service to the community over a 10 year
period. This provides input into 10 year financial and
funding plans aimed at providing the required services
in a sustainable manner.
These projected expenditures may be compared to

budgeted expenditures in the 10 year period to identify
any funding shortfall. In a core asset management
plan, a gap is generally due to increasing asset
renewals for ageing assets.

7.3 Key Assumptions Made in Financial Forecasts
This section details the key assumptions made in presenting the information contained in Plant & Equipment Asset
Management Plan and in preparing forecasts of required operating and capital expenditure and asset values,
depreciation expense and carrying amount estimates. It is presented to enable readers to gain an understanding of the
levels of confidence in the data behind the financial forecasts.
Key assumptions made in Plant & Equipment Asset Management Plan and risks that these may change are shown in
Table 7.3.
Table 7.3: Key Assumptions made in Plant & Equipment Asset Management Plan and Risks of Change
RISKS OF CHANGE
KEY ASSUMPTIONS
TO ASSUMPTIONS
That all component types have the same useful life. minimal
All plant and equipment assets deteriorate uniformly. minimal
Standards, Acts and Regulations associated with plant and equipment assets will remain essentially the minimal
same over the AMP life.
Renewal programs are based on intervening at Condition 4. significant
All predicted financial figures are based on 2017/18 rates and are not adjusted by inflation for the particular significant
year.
Current levels of service remain unchanged. significant
7.4 Forecast Reliability and Confidence

The expenditure and valuations projections in this Plant & Equipment Asset Management Plan are based on best
available data. Currency and accuracy of data is critical to effective asset and financial management. Data confidence
is classified on a 5 level scale in accordance with Table 7.4.
Table 7.4: Data Confidence Grading System
CONFIDENCE
DESCRIPTION
GRADE
A Highly reliable Data based on sound records, procedures, investigations and analysis, documented properly and agreed as
the best method of assessment. Dataset is complete and estimated to be accurate ± 2%
B Reliable Data based on sound records, procedures, investigations and analysis, documented properly but has minor
shortcomings, for example some of the data is old, some documentation is missing and/or reliance is placed
on unconfirmed reports or some extrapolation. Dataset is complete and estimated to be accurate ± 10%
C Uncertain Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or
extrapolated from a limited sample for which grade A or B data are available. Dataset is substantially
complete but up to 50% is extrapolated data and accuracy estimated ± 25%
D Very Uncertain Data is based on unconfirmed verbal reports and/or cursory inspections and analysis. Dataset may not be
fully complete and most data is estimated or extrapolated. Accuracy ± 40%
E Unknown None or very little data held.

The estimated confidence level for and reliability of data used in this Plant & Equipment Asset Management Plan is
shown in Table 7.4.1.
Table 7.4.1: Data Confidence Assessment for Data used in the Plant & Equipment Asset Management Plan
CONFIDENCE
DATA COMMENT
ASSESSMENT
Demand drivers B Reliable Population change is measured and updated, changes in numbers are
monitored, consumer preferences and demands are discussed with
relevant Managers
Growth projections B Reliable Based on historical records of growth
Operations expenditures B Reliable Based on historical records however not always separated from
maintenance expenditure
Maintenance expenditures B Reliable Based on historical records however not always separated from
operational expenditure
Projected Renewal expenditures.
- Asset values B Reliable Renewal expenditure is based on inspection of plant and equipment
- Asset useful lives B Reliable Matches generally accepted industry standards.
- Condition modelling B Reliable Carried out using condition assessments.
- Network renewals B Reliable Carried out using condition assessments and age profile of assets.
- Defect repairs B Reliable Defects identified during condition assessments. Repairs are
programmed.
Upgrade/New expenditures B Reliable Council has identified these in its Long Term Financial Plan.
Disposal expenditures B Reliable Based on condition assessments and age profile of assets.
Over all data sources the data confidence is assessed as High confidence level for data used in the preparation of this
Plant & Equipment Asset Management Plan.
8. PLAN IMPROVEMENT AND MONITORING

8.1 Status of Asset Management Practices
8.1.1 Accounting and Financial Data Sources
The Council’s Plant & Equipment assets database utilises Microsoft Excel and the Council’s financial system is Synergy.
Council’s Corporate Services Department is responsible for the valuation of all plant and equipment and ensuring that
depreciation is updated on an annual basis.
The Council must comply with AAS 116 Property, Plant and Equipment.
That all items, purchased or constructed by Council, with a value greater than $5,000.00 (five thousand dollars) be
capitalised and placed on Council’s asset register. Such assets are to be depreciated at a rate determined with regard to
the remaining useful life of the asset and its residual value. Any items with a value of less than $5,000.00 (five thousand
dollars) are to be expensed in the year of purchase.

8.1.2 Asset Management Data Sources
Combination of Synergy Soft and Microsoft Excel spreadsheets.
Asset Registers: All plant & Equipment asset register data is held in Synergy Soft and Microsoft Excel Spreadsheets.
Linkage from Asset Management to Financial System: Currently all asset management data is held in Synergy Soft.
Accountabilities for Asset Management System and Data Maintenance: All Council Staff.
Required Changes to Asset Management System Arising from this AM Plan: To be considered in future revisions of
this plan.
8.2 Improvement Plan

The asset management improvement plan generated from the Plant & Equipment Asset Management Plan is shown in
Table 8.2.
Table 8.2: Improvement Plan
TASK
TASK RESPONSIBILITY TIMELINE
NO
1 Ensure that where relevant, that all plant and equipment assets are Manager Works and Services Ongoing
valued.
2 Align the Plant & Equipment Asset Management Plan with the Manager Works and Services
Workforce Management Plan once it has been completed
3 Review the sustainably ratios to identify appropriate target bands/the Manager Works and Services
reason for above target performance.
4 Define and Monitor the Plant & Equipment Asset Management Plan’s Manager Works and Services Ongoing
levels of service
5 Identify critical assets to mitigate the risk of critical assets failure; Manager Works and Services
develop risk treatment plan
6 Monitor and record plant and equipment condition assessments as part Manager Works and Services
of scheduled maintenance program
7 Specify and define target levels of service for plant and equipment to Manager Works and Services
be determined through user consultation (to inform Renewals
Program)
8 Look into installing GPS to flag plant and equipment usage and inform Manager Works and Services
maintenance program (assist with scheduled maintenance)
9 Develop plant and equipment Renewal and Replacement Priority Manager Works and Services
Evaluation Criteria that will take into consideration Council Strategic
Plan objectives, Risk Management and estimated whole of life costs.
10 Develop New Assets Priority Criteria: defining, documenting and Manager Works and Services
recording plant and equipment specifications that are matched to work
requirements (fit for purpose with adequate accessories such as
ramps, storage for tools, etc.); defining New Assets Priority Evaluation
Criteria to guide budget priorities.

8.3 Monitoring and Review Procedures
This Plant & Equipment Asset Management Plan will be reviewed during annual budget planning processes and
amended to show any material changes in service levels and/or resources available to provide those services as a result
of budget decisions.
The Plant & Equipment Asset Management Plan will be updated annually to ensure it represents the current service
level, asset values, projected operations, maintenance, capital renewal and replacement, capital upgrade/new and asset
disposal expenditures and projected expenditure values incorporated into the Long Term Financial Plan.
The Plant & Equipment Asset Management Plan has a life of 4 years and is due for complete revision and will be
updated at that time.
8.4 Performance Measures

The effectiveness of the Plant & Equipment Asset Management Plan can be measured in the following ways:
 The degree to which the required projected expenditures identified in Plant & Equipment Asset Management Plan
are incorporated into the Long Term Financial Plan,
 The degree to which the existing and projected service levels and service consequences (what we cannot do), risks
and residual risks are incorporated into the Strategic Plan and associated plans, and
 The Asset Renewal Funding Ratio achieving the target of 1.0.
9. REFERENCES
 IPWEA, 2006, ‘International Plant & Equipment Management Manual’, Institute of Public Works Engineering
Australasia, Sydney, www.ipwea.org/IIMM
 IPWEA, 2008, ‘NAMS.PLUS Asset Management’, Institute of Public Works Engineering Australasia, Sydney,
www.ipwea.org/namsplus.
 IPWEA, 2015, 2nd edn., ‘Australian Plant & Equipment Financial Management Manual’, Institute of Public Works
Engineering Australasia, Sydney, www.ipwea.org/AIFMM.
 IPWEA, 2015, 3rd edn., ‘International Plant & Equipment Management Manual’, Institute of Public Works
Engineering Australasia, Sydney, www.ipwea.org/IIMM
10. APPENDICES
Appendix A Plant and Equipment – Fair Value
Appendix B Projected 10-year Capital Renewal and Replacement Works Program
Appendix C Projected Plant Replacement Schedule
Appendix D Projected Maintenance Schedule
Appendix E Budgeted Expenditures accommodated in LTFP
Appendix F Abbreviations
Appendix G Glossary

Appendix A: Plant and Equipment – Fair Value
Shire of Toodyay
Fair Value - Plant & Equipment
As At 30 June 2016
Date of
Plant # Asset # Rego # Description Purchase Cost WDV FVA
Purchase
P278 278 T4087 Custom Pig Trailer 30.11.97 12,750.00 8,981.25 55,000.00
P422 693 1TPH749 8 x 5 Trailer with water tank and blaster - Graffiti Removal 11.06.14 15,750.00 9,708.99 6,000.00
831 Perkins Diesel Generator 30KVA 02.07.12 16,564.00 13,771.00 13,000.00
P251 BF018 T5491 Isuzu FSS550 Fire Tender 18.02.02 35,000.00 30,623.49 120,000.00
P263 BF020 T0021 Mitsubishi Canter 12.03.04 85,000.00 68,698.73 44,000.00
P270 BF022 T4533 Custom Flat Top Trailer 0.00 0.00 1,000.00
P214 BF026 T5779 Toyota Landcruiser 90 Series 29.05.05 20,000.00 12,770.76 34,545.00
P302 BF028 T7124 Isuzu F3 FSS550 Crew Cab Tender 27.01.06 200,000.00 140,558.79 155,700.00
P375 BF034 T7093 Isuzu FSS550 Crew Cab Fire 19.10.09 260,000.00 183,637.28 170,000.00
P376 BF035 1DBE116 Mitsubishi Canter 600 Fire Tender 19.10.09 100,000.00 69,687.19 81,000.00
P397 BF037 1DTG102 Isuzu Custom Water Tank 02.11.11 390,000.00 276,733.73 304,000.00
P412 BF038 1DZD973 Isuzu Fire Tender 28.11.12 234,571.04 167,262.15 115,000.00
P511 BF039 T7168 Toyota Hilux Ute 01.01.11 30,000.00 12,493.34 18,000.00
P424 BF040 1EGD070 ISUZU NPS300 SES TRUCK - MORANGUP 18.12.14 175,578.22 149,265.60 110,000.00
P513 BF041 1EQJ494 Isuzu Fire Truck 4.4 - Toodyay Central Fire Brigade 23.04.15 352,863.84 305,529.94 200,000.00
FWT01 Fire Water Tanks 30.06.11 52,500.00 52,500.00 40,000.00
P266 MV053 1BGI1519 Toyota Coaster Bus 1993 27,290.00 15,837.83 20,500.00
P391 MV124 T7168 Toyota Hilux 4x4 T/D - July 2010 16.09.10 44,318.10 34,497.46 30,000.00
P398 MV128 T7030 Toyota Hilux 4 x 2 Single Cab Workmate Utility 31.03.12 20,000.00 8,991.80 18,000.00
P417 MV138 T0026 Mitsubishi Triton Ute Dual Cab 11.02.14 30,765.36 16,436.47 27,545.00
P418 MV139 T1184 Mitsubishi MN Triton 4x4 GLX D 2.5 Ltr 4 Cylinder 19.02.14 28,264.45 21,697.89 27,545.00
Manual
P420 MV140 T0014 Mitusbishi Triton Tray Top GL 02.04.14 24,782.02 14,041.01 27,545.00
P419 MV141 T0016 Mitusbishi Triton Tray Top 02.04.14 24,782.02 14,041.01 27,545.00
P423 MV142 T0000 Nissan Pathfinder Wagon 10.10.14 30,490.15 23,784.86 41,318.00
P425 MV143 1EPF060 Ford PX Ranger Double Cab 29.10.14 39,642.27 27,108.84 37,645.00
P427 MV144 T000 MY14 Suburu Forester 19.11.14 30,211.14 18,656.49 34,891.00
P428 MV145 T020 Holden Colorado Ute 09.01.15 36,359.09 26,079.00 29,382.00
P429 MV146 T000 Holden Commodore Sedan 09.01.15 32,342.73 23,198.20 27,545.00
P430 MV147 T0003 Mitsubishi Triton Ute 09.01.15 31,165.46 22,353.83 26,627.00
P434 MV151 T6177 Holden Commodore Evoke Sedan 30.03.15 28,991.82 21,732.02 27,545.00
P438 MV152 T0002 Mitusbishi Triton Super Cab 10.08.15 34,703.64 31,813.28 35,000.00
P515 MV156 1EWM806 Mitsubishi Triton Ute Tray Top 13.01.16 35,408.83 32,479.14 21,118.00
P446 MV158 T0 Ford Ranger WildTrak 08.01.16 46,466.79 42,622.18 58,359.00
PE1 Waste Press 31.12.11 15,000.00 10,539.79 10,000.00
P510 PL0050 T4623 Karcher Road Broom - Model TB2000E Sewell - 2013 18.10.13 47,750.00 35,426.78 31,000.00
P290 PL020 T4573 Custom Traffic Signals 08.07.05 15,000.00 1,275.32 12,900.00
P311 PL024 T6098 Dynapaci CA302D Vibe Roller 17.08.06 86,000.00 67,201.77 45,000.00
P340 PL033 1TIL296 Roadwest Tri Axel Side Tipper Trailer 12.11.07 53,680.00 40,000.00 43,000.00
P349 PL036 1CSR493 Bomag MW24R Multi Tyred Roller 24.01.08 80,000.00 74,133.69 63,000.00
P351 PL037 1TIU352 Bobcat Tri Axle Trailer 11.02.08 5,000.00 3,355.96 5,000.00
P358 PL038 T0017 John Deere 670D Grader 01.10.10 264,000.00 185,677.46 120,000.00
P369 PL042 1TJR284 Roadwest Tri Axel Side Tipper Trailer 08.12.08 68,180.00 44,987.03 43,000.00
P386 PL044 T0005 John Deere 315SJ Backhoe 29.01.10 73,000.00 62,398.29 61,000.00
P400 PL046 T0006 JCB 436 ZX Front End Loader 30.03.12 195,000.00 156,603.53 145,000.00
P401 PL047 1TMX602 Bandit 990XP Mulcher/Chipper 03.04.12 35,000.00 25,248.30 52,000.00
PL048 Generator - Administration Office 30.06.12 14,000.00 9,245.77 13,000.00
P409 PL049 T0007 John Deere 670GP Grader 24.01.13 339,931.51 286,464.45 250,000.00
P407 PL050 167217 - Auto Lift Hydraulic Hoists 10.05.11 50,000.00 35,411.19 50,000.00
PL054 1EQC583 Mustang 1900R Skid Steere Loader 05.11.14 65,500.00 59,097.73 53,000.00
PL055 1EUI568 2015 Kubota Ride on Mower 26.06.15 20,000.00 18,000.04 22,300.00
PL056 T6475 2015 Kubota Tractor 17.07.15 39,500.00 35,874.70 30,000.00
PL059 T6435 Kubota Front Deck Mower 24.09.15 27,700.00 26,091.13 27,700.00
PL060 1TQV289 Coastmac Car Trailer 04.11.15 6,472.73 6,096.80 6,000.00
PL061 1TRA386 Xplorer Oxley Float 25.11.15 9,092.00 8,638.70 10,500.00
PL062 1EXQ260 Green Machine 636 Street Sweeper 18.12.15 127,452.01 121,096.89 122,000.00
P387 TR008 T6782 2009 Fuso Canter Tipper 10.02.10 65,000.00 36,360.69 32,000.00
P396 TR009 T0012 Nissan UD GW470 Prime Mover 24.06.11 126,900.00 107,465.31 117,000.00
P405 TR010 T0009 Mitsubishi Dual Cab Canter 15.08.12 70,000.00 40,862.96 36,000.00
TR011 T0011 Mitsubishi Canter 30.06.13 169,600.00 129,336.04 112,000.00
TR012 T0010 Hino 700 Series 30.06.14 207,840.00 172,384.94 135,000.00
4,983,255.00 3,848,587.38 3,783,440.00

Appendix B: Projected 10-year Capital Renewal and Replacement Works Program
P&E Forecast Renewal Plan
Network Renewal Projects Estimate

year ($000)
2019 Boya Finishing Mower $11
2019 Light vehicle replacement (T0024, T0022, T0026, T1184, T0023, T020, T000, $387
2019 PL054 2014 MUSTANG 1900R SKID STEER LOADER $120
2019 Pig Trailer (Low Loader) $50
2019 Aerator (tow behind) $10
2019 PL055 2015 KUBOTA RIDE ON MOWER (TRACTOR) $25
2019 HINO 300 SERIES 717 XLONG CREW TRAY TOP (T6782) $80
$683

2020 PL059 KUBOTA FRONT DECK MOWER $35
2020 Light fleet replacement (T0015, T0013, T6480, T0, 1EWM806, T0002) $264
2020 GREEN MACHINE 636 AIR SWEEPER $140
$439

2021 Light fleet replacement (T7030, T6177,T7168) $119
$119

2022 Karcher Road Broom - Model TB2000E Sewell - 2013 $50
2022 2015 L4240HDA KUBOTA TRACTOR MOWER $43
2022 Light fleet replacement (T0014, T0016, T0003, T00, T6177, T0000, T000) $184
$277

2023 TRI AXLE SIDE TIPPING TRAILER $100
2023 Light vehicle replacement (T0024, T0022, T0026, T1184, T0023, T020, CESM, $362
$462

2024 2008 TRI AXLE SIDE TIPPING TRAILER $100
2024 Light fleet replacement (T0015, T0013, T6480, T0, 1EWM806, T0002, T6177) $249
2024 New P&G Truck (Tipper) - Mechanics Truck $70
2024 PL055 2015 KUBOTA RIDE ON MOWER (TRACTOR) $25
2024 PL054 2014 MUSTANG 1900R SKID STEER LOADER $80
$524

2025 PL059 KUBOTA FRONT DECK MOWER $37
2025 Light fleet replacement (T7030, T000, T0000, T00) $79
$116

2026 2HSL Xplorer Oxley Float (Basic) - Stock Control $10
2026 Light fleet replacement (T0014, T0016, T0003) $218
2026 T0009 Maintenance truck $90
$318

2027 Light vehicle replacement (T0024, T0022, T0026, T1184, T0023, T020, CESM, $329
2027 T6782 2009 Fuso Canter (Gardeners) $90
$419

Light fleet replacement (T0015, T0013, T6480, T0, 1EWM806, T0002, T000,
2028 T0000, T00) $249
2028 T6818 Ride on Vacuum Sweeper $140
$389
TOTAL $3,746

Appendix C: Projected Plant Replacement Schedule
SHIRE OF TOODYAY - PLANT REPLACEMENT SCHEDULE

Purchase IPWEA Recommended Current
Reg ITEM 2018/19 2018/19 2019/20 2019/20 2020/21 2020/21 2021/22 2021/22 2022/23 2022/23 2023/24 2023/24 2024/25 2024/25 2025/26 2025/26 2026/27 2026/27 2027/28 2027/28
Date Terms Kms / Hrs
No. Yrs Kms / Hrs Trade Trade Trade Trade Trade Trade Trade Trade Trade Trade
Backhoes / Loaders / Tractors
T0005 JCB 3CX Backhoe 2016/17 7 5,000 hr 106 0 50,000
T0006 JCB 436ZX FE Loader 2011/12 8 8,000 hr 3,582 0 70,000
T6344 Mustang Skid Steer Loader 2014/15 5 5,000 hr 1,182 120,000 25,000 80,000 25,000
Graders
T0007 John Deere 670GP 2012/13 10 8,000 hr 4,767 0 125,000
T0017 John Deere 670D 2008/09 10 8,000 hr 9,740
Trucks
T0009 2011 Mitsubishi Canter Dual Cab 2012/13 8 200,000 km 93,829 0 0 90,000 20,000
T0010 2014 Hino FS2844 Tipper 2013/14 8 500,000 km 37,517 0 85,000
T0011 2012 Hino FS2844 Diesel Truck 2012/13 8 500,000 km 89,837 0 85,000
T0012 2010 UD Nissan GW470 Truck 2010/11 8 500,000 km 155,310 0 0
T6782 2009 Fuso Canter (Gardeners) 2015/16 6 150,000 km 10,521 80,000 30,000 0 0 90,000 40,000
Mechanics Truck 6 150,000 km 70,000 20,000
Trailers & Dollys
1TIL296 Side Tip Trailer - 1 2007/08 15 100,000 40,000
1TJR183 Side Tip Trailer - 2 2008/09 15 100,000 40,000
T4133 Stock Float 2015/16 10 10,000 3,000
Rollers & Brooms

1GEE285 Ammann Multi Tyred Roller 2016/17 10 5,000 hr 189
T6098 Dynapac Vibrating Roller 2006/07 8 5,000 hr 3,532 0 30,000 0 0
T4623 Tow Behind Sweeper 2013/14 8 8,000 hr 811 50,000 10,000
T6818 Ride on Vacuum Sweeper 2015/16 8 5,000 hr 502 0 0 140,000 30,000 0 0 140,000 30,000
Ride On Mowers/Mulchers
T6435 Kubota F2890 Front Deck Mower 2014/15 5 2,000 hr 493 35,000 8,000 37,000 8,000
T6361 Kubota BX2370 Tractor Mower 2014/15 5 2,000 hr 566 25,000 4,000 0 0 25,000 6,000
1TMX602 Bandit 990XP Chipper 2011/12 8 5,000 hr 403 10,000
T6475 Kubota Tractor 2014/15 7 5,000 hr 332 43,000 11,500
N/A Boya Finishing Mower 2008/09 10 11,000 2,000
Skid Steer Slasher attachment
Skid Steer Profiler attachment
Skid Steer Rake bucket
Aerator (tow behind) 10,000 1,000
Auto Traffic Signals
T4573 One Set Solar Powered. 2005/06
Trailers
T-4087 Pig Trailer (Low Loader) 1996/97 50,000 5,000
1TIU352 Bobcat Tri Axle Trailer 2007/08
Mower trailer 2015/16
Compressors
T-1851 Large Trailer Compressor 1989/90 20 738
GROSS PURCHASE / TRADE 296,000 107,000 175,000 108,000 0 85,000 93,000 106,500 100,000 165,000 275,000 141,000 37,000 8,000 100,000 23,000 90,000 40,000 140,000 30,000
Nett Plant Replacement Program 189,000 67,000 (85,000) (13,500) (65,000) 134,000 29,000 77,000

SHIRE OF TOODYAY - LIGHT VEHICLE REPLACEMENT SCHEDULE
Purchase IPWEA Recommended Current

Reg ITEM 2018/19 2018/19 2019/20 2019/20 2020/21 2020/21 2021/22 2021/22 2022/23 2022/23 2023/24 2023/24 2024/25 2024/25 2025/26 2025/26 2026/27 2026/27 2027/28 2027/28
Date Terms Kms / Hrs
No. Yrs Kms / Hrs Trade Trade Trade Trade Trade Trade Trade Trade Trade Trade
T0 Ford Ranger Wildtrak (CEO) Jan-16 4 120,000 km 46,240 60,000 30,000 60,000 30,000 60,000 30,000
T00 Subaru Forester (MCD) Oct-17 4 120,000 km 17,055 42,000 20,000 42,000 20,000
T000 Holden Commodore SV6 (MFA) Jan-15 4 120,000 km 97,334 42,000 18,000 42,000 20,000 42,000 20,000
T0000 Mitsubishi Pajero (MPD) Dec-16 4 120,000 km 75,788 42,000 17,000 42,000 17,000
T0001 Mitsubishi Triton Cab Chassis (R2) Aug-15 4 120,000 km 115,352 50,000 10,000 35,000 12,000 35,000 12,000
T0002 Mitsubishi Triton Dual Cab (R1) Jan-16 4 120,000 km 52,865 50,000 12,000 35,000 12,000 35,000 12,000
T0003 Mitsubishi Triton 4x4 Dual Cab (WS) Jan-18 4 120,000 km 2,795 36,000 17,000 36,000 17,000
T0013 Mitsubishi Triton GL Utility (P&G) Oct-15 4 120,000 km 61,949 40,000 12,000 40,000 12,000 40,000 12,000
T0014 Mitsubishi Triton GL Utility Mar-18 4 120,000 km 0 35,000 10,000 35,000 10,000
T0015 Mitsubishi Triton Utility Oct-15 4 120,000 km 23,218 37,000 8,000 37,000 12,000 37,000 12,000
T0016 Mitsubishi Triton GL Utility (P&G) Feb-18 4 120,000 km 2,889 41,000 15,000 41,000 15,000
T0022 Mitsubishi Triton GL Utility (Grader) Jan-15 4 120,000 km 70,190 37,000 7,000 37,000 10,000 37,000 10,000
T0023 Mitsubishi Triton 4x4 D/Cab (Constr) Jan-15 4 120,000 km 58,028 35,000 12,000 35,000 15,000 35,000 15,000
T0024 Mitsubishi Triton GL Utility (Grader) Jan-15 4 120,000 km 47,541 37,000 8,000 37,000 12,000 37,000 12,000
T0026 Mitsubishi Triton 4x4 Dual Cab (WC) Feb-14 4 120,000 km 82,821 36,000 17,000 36,000 17,000 36,000 17,000
T020 Holden Colorado Dual Cab (MWS) Jan-15 4 120,000 km 114,292 42,000 20,000 42,000 20,000 42,000 20,000
T1184 Mitsubishi Triton 4x4 Dual Cab (BS) Mar-14 4 120,000 km 66,365 33,000 16,000 33,000 16,000 34,000 18,000
T6177 Toyota Camry (PO) Apr-18 4 120,000 km 72 30,000 15,000 30,000 15,000
T6480 Mitsubishi Triton GL Utility Oct-15 4 120,000 km 18,448 37,000 8,000 37,000 18,000 37,000 18,000
1EPF060 Ford Ranger Utility (CESM) Oct-14 4 120,000 km 90,237 75,000 20,000 65,000 18,000 65,000 20,000
1EWM806 Mitsubishi Triton Utility (RMO) Jan-16 4 120,000 km 41,299 40,000 18,000 40,000 16,000 40,000 16,000
T7168 * Toyota Hilux Utility (Fire Support) Sep-10 4 120,000 km 40,000 18,000
T7030 Toyota Hilux 4x2 Cab Chassis (BMO) Dec-16 4 120,000 km 27,088 37,000 15,000 37,000 15,000
GROSS PURCHASE / TRADE 387,000 128,000 264,000 88,000 119,000 50,000 184,000 77,000 362,000 140,000 249,000 100,000 79,000 32,000 218,000 95,000 329,000 126,000 249,000 100,000
Nett Vehicle Replace. Program 259,000 176,000 69,000 107,000 222,000 149,000 47,000 123,000

Appendix D: Projected Maintenance Schedule

Forecast Maintenance Plan
Year Item No. Projects Budget $'000
2019 1 Fuel $190
2019 2 Parts/repairs $220
2019 3 Insurance & licensing $80
2019 4 other leases plant & equipment $86
2019 Total $576

2020 1 Fuel $194
2020 Total $656

2021 1 Fuel $198
2021 Total $700

2022 1 Fuel $202
2022 Total $746

2023 1 Fuel $206
2023 Total $820

2024 1 Fuel $210
2024 Total $855

2025 1 Fuel $214
2025 Total $871

2026 1 Fuel $218
2026 Total $884

2027 1 Fuel $223
2027 Total $896

2028 1 Fuel $227
2028 Total $907
Total $7,912

Appendix E: Budgeted Expenditures accommodated in LTFP
Reg ITEM 2019/20 2019/20 2020/21 2020/21 2021/22 2021/22 2022/23 2022/23 2023/24 2023/24 2024/25 2024/25 2025/26 2025/26 2026/27 2026/27 2027/28 2027/28
No. Trade Trade Trade Trade Trade Trade Trade Trade Trade
Backhoes / Loaders / Tractors
T0005 JCB 3CX Backhoe 33,000 50,000 33,000 33,000 33,000 33,000
T0006 JCB 436ZX FE Loader 45,800 70,000 45,800 45,800 45,800 45,800 50,400 50,400 50,400 50,400
T6344 Mustang Skid Steer Loader 80,000 25,000
Graders
T0007 John Deere 670GP 59,000 125,000 59,000 59,000 59,000 59,000 65,000
T0017 Komatsu GD655-5 53,500 53,500 53,500 59,000 59,000 59,000 59,000 59,000 65,000
Trucks
T0009 2017 Isuzu NQR 87/190 Crew Cab 90,000 20,000
T0010 2014 Hino FS2844 Tipper 43,000 85,000 43,000 43,000 43,000 43,000 47,300 47,300
T0011 2012 Hino FS2844 Diesel Truck 35,700 85,000 35,700 35,700 35,700 35,700 39,300 39,300 39,300
T0012 2010 UD Nissan GW470 Truck 35,000 35,000 35,000 38,500 38,500 38,500 38,500 38,500 42,500
T6782 2016 Hino 90,000 40,000
Mechanics Truck 70,000 20,000
Trailers & Dollys
1TIL296 Side Tip Trailer - 1 100,000 40,000
1TJR183 Side Tip Trailer - 2 100,000 40,000
T4133 Stock Float 10,000 3,000
Rollers & Brooms

1GEE285 Ammann Multi Tyred Roller 27,400 30,000 27,400
T6098 Dynapac Vibrating Roller 29,000 30,000 29,000 29,000 29,000 29,000 31,900 31,900 31,900 31,900
T4623 Tow Behind Sweeper 50,000 10,000
T6818 Ride on Vacuum Sweeper 140,000 30,000 140,000 30,000
Grader Compaction Roller
Ride On Mowers/Mulchers
T6435 Kubota F2890 Front Deck Mower 35,000 8,000 37,000 8,000
T6361 Kubota BX2370 Tractor Mower 23,000 6,000
1TMX602 Bandit 990XP Chipper
T6475 Kubota Tractor 43,000 11,500
N/A Boya Finishing Mower
Skid Steer Slasher attachment
Skid Steer Profiler attachment
Skid Steer Rake bucket
Aerator
Auto Traffic Signals
T4573 One Set Solar Powered.
Trailers
T-4087 Pig Trailer (Low Loader)
Skid Steer Trailer
Mower trailer
Compressors
T-1851 Large Trailer Compressor
GROSS PURCHASE / TRADE 35,000 108,000 140,000 115,000 93,000 106,500 100,000 165,000 273,000 141,000 37,000 8,000 100,000 23,000 90,000 70,000 140,000 30,000
Nett Plant Replacement Program (73,000) 25,000 (13,500) (65,000) 132,000 29,000 77,000 20,000 110,000
Operational Costs / Leasing 163,300 199,000 242,000 310,000 343,000 350,500 354,100 385,800 401,800

SHIRE OF TOODYAY - LIGHT VEHICLE REPLACEMENT SCHEDULE
Reg ITEM 2019/20 2019/20 2020/21 2020/21 2021/22 2021/22 2022/23 2022/23 2023/24 2023/24 2024/25 2024/25 2025/26 2025/26 2026/27 2026/27 2027/28 2027/28
No. Trade Trade Trade Trade Trade Trade Trade Trade Trade
T0 Ford Ranger Wildtrak (CEO) 60,000 30,000 60,000 30,000 60,000 30,000
T00 Subaru Forester (MCD) 42,000 20,000 42,000 20,000
T000 Holden Commodore SV6 (MFA) 42,000 20,000 42,000 20,000
T0000 Mitsubishi Pajero (MPD) 42,000 17,000 42,000 17,000
T0001 Mitsubishi Triton Cab Chassis (R2) 35,000 12,000 35,000 12,000
T0002 Mitsubishi Triton Dual Cab (R1) 50,000 12,000 35,000 12,000 35,000 12,000
T0003 Mitsubishi Triton 4x4 Dual Cab (WS) 36,000 17,000 36,000 17,000
T0013 Mitsubishi Triton GL Utility (P&G) 37,000 10,000 37,000 12,000 37,000 12,000
T0014 Mitsubishi Triton GL Utility 35,000 10,000 35,000 10,000
T0015 Mitsubishi Triton Utility 37,000 8,000 37,000 12,000 37,000 12,000
T0016 Mitsubishi Triton GL Utility (P&G) 41,000 15,000 41,000 15,000
T0022 Mitsubishi Triton GL Utility (Grader)
T0023 Mitsubishi Triton 4x4 D/Cab (Constr) 35,000 15,000 35,000 15,000
T0024 Mitsubishi Triton GL Utility (Grader) 37,000 8,000 37,000 12,000 37,000 12,000
T0026 Mitsubishi Triton 4x4 Dual Cab (WC) 36,000 17,000 36,000 17,000
T020 Holden Colorado Dual Cab (MWS) 42,000 20,000 42,000 20,000
T1184 Mitsubishi Triton 4x4 Dual Cab (BS) 33,000 16,000 34,000 18,000
T6177 Toyota Camry (PO) 30,000 15,000 30,000 15,000
T6480 Mitsubishi Triton GL Utility 37,000 8,000 37,000 18,000 37,000 18,000
1EPF060 Ford Ranger Utility (CESM) 65,000 18,000 65,000 20,000
1EWM806 Mitsubishi Triton Utility (RMO) 40,000 18,000 40,000 16,000 40,000 16,000
T7168 Toyota Hilux Utility (Fire Support) 40,000 18,000
T7030 Toyota Hilux 4x2 Cab Chassis (BMO) 37,000 15,000 37,000 15,000
GROSS PURCHASE / TRADE 298,000 94,000 119,000 50,000 184,000 77,000 288,000 118,000 283,000 112,000 79,000 32,000 218,000 95,000 255,000 104,000 283,000 112,000
Nett Vehicle Replace. Program 204,000 69,000 107,000 170,000 171,000 47,000 123,000 151,000 171,000
TOTAL GROSS PURCHASE 333,000 259,000 277,000 388,000 556,000 116,000 318,000 345,000 423,000
TOTAL GROSS PROCEEDS 202,000 165,000 183,500 283,000 253,000 40,000 118,000 174,000 142,000

Appendix F: Abbreviations
AAAC Average annual asset consumption
AM Asset management
AM Plan Asset management plan
GRC Gross replacement cost
DA Depreciable amount
DRC Depreciated replacement cost
IRMP Infrastructure risk management plan
LCC Life Cycle cost
LTFP Long Term Financial Plan
RV Residual value

Appendix G: Glossary
Annual Service Cost (ASC) Asset Renewal Funding Ratio (ARFR)
1. Reporting Actual Cost The ratio of the net present value of asset renewal
The annual (accrual) cost of providing a service funding accommodated over a 10-year period in a Long
including operations, maintenance, depreciation, Term Financial Plan relative to the net present value of
finance/opportunity and disposal costs less revenue. projected capital renewal expenditures identified in an
asset management plan for the same period [AIFMM,
2. For Investment Analysis and Budgeting 2015, Version 1.0, Financial Sustainability Indicator 3,
An estimate of the cost that would be tendered, per Sec 2.6, p 9].
annum, if tenders were called for the supply of a service
to a performance specification for a fixed term. The Average Annual Asset Consumption (AAAC)*
Annual Service Cost includes operations, maintenance, The amount of the asset base consumed during a
depreciation, and finance / opportunity and disposal reporting period (generally a year). This may be
costs, less revenue. calculated by dividing the depreciable amount by the
useful life (or total future economic benefits/service
Asset potential) and totalled for each and every asset OR by
A resource controlled by an entity as a result of past dividing the carrying amount (depreciated replacement
events and from which future economic benefits are cost) by the remaining useful life (or remaining future
expected to flow to the entity. Plant & Equipment assets economic benefits/service potential) and totalled for
are a sub-class of property, plant and equipment which each and every asset in an asset category or class.
are non-current assets with a life greater than 12
months and enable services to be provided. Borrowings
A borrowing or loan is a contractual obligation of the
Asset Category borrowing entity to deliver cash or another financial
Sub-group of assets within a class hierarchy for asset to the lending entity over a specified period of
financial reporting and management purposes. time or at a specified point in time, to cover both the
initial capital provided and the cost of the interest
Asset Class incurred for providing this capital. A borrowing or loan
A group of assets having a similar nature or function in provides the means for the borrowing entity to finance
the operations of an entity, and which, for purposes of outlays (typically physical assets) when it has
disclosure, is shown as a single item without insufficient funds of its own to do so, and for the lending
supplementary disclosure. entity to make a financial return, normally in the form of
Asset Condition Assessment interest revenue, on the funding provided.
The process of continuous or periodic inspection, Capital Expenditure
assessment, measurement and interpretation of the Relatively large (material) expenditure, which has
resultant data to indicate the condition of a specific benefits, expected to last for more than 12 months.
asset so as to determine the need for some Capital expenditure includes renewal, expansion and
preventative or remedial action. upgrade. Where capital projects involve a combination
Asset Hierarchy of renewal, expansion and/or upgrade expenditures, the
A framework for segmenting an asset base into total project cost needs to be allocated accordingly.
appropriate classifications. The asset hierarchy can be *Capital Expenditure - Expansion
based on asset function or asset type or a combination Expenditure that extends the capacity of an existing
of the two. asset to provide benefits, at the same standard as is
Asset Management (AM) currently enjoyed by existing beneficiaries, to a new
The combination of management, financial, economic, group of users. It is discretionary expenditure, which
engineering and other practices applied to physical increases future operations and maintenance costs,
assets with the objective of providing the required level because it increases the asset base, but may be
of service in the most cost effective manner. associated with additional revenue from the new user
group, e.g. extending a drainage or road network, the
provision of an oval or park in a new suburb for new
residents.

Capital Expenditure - New Carrying Amount
Expenditure which creates a new asset providing a new The amount at which an asset is recognised in the
service/output that did not exist beforehand. As it balance sheet after deducting any accumulated
increases service potential it may impact revenue and depreciation / amortisation and accumulated
will increase future operations and maintenance impairment losses.
expenditure.
Component
Capital Expenditure - Renewal Specific parts of an asset having independent physical
Expenditure on an existing asset or on replacing an or functional identity and having specific attributes such
existing asset, which returns the service capability of as different life expectancy, maintenance regimes, risk
the asset up to that which it had originally. It is or criticality.
periodically required expenditure, relatively large
(material) in value compared with the value of the Core Asset Management
components or sub-components of the asset being Asset management which relies primarily on the use of
renewed. As it reinstates existing service potential, it an asset register, maintenance management systems,
generally has no impact on revenue, but may reduce top-down condition assessment, simple risk
future operations and maintenance expenditure if assessment and defined levels of service, in order to
completed at the optimum time, e.g. resurfacing or establish alternative treatment options and a long-term
resheeting a material part of a road network, replacing cash flow projection.
a material section of a drainage network with pipes of
the same capacity, resurfacing an oval. Cost of an Asset
The amount of cash or cash equivalents paid or the fair
Capital Expenditure - Upgrade value of the consideration given to acquire an asset at
Expenditure, which enhances an existing asset to the time of its acquisition or construction, including any
provide a higher level of service or expenditure that will costs necessary to place the asset into service. This
increase the life of the asset beyond that which it had includes one-off design and project management costs.
originally. Upgrade expenditure is discretionary and
often does not result in additional revenue unless direct Critical Assets
user charges apply. It will increase operations and Those assets that are likely to result in a more
maintenance expenditure in the future because of the significant financial, environment and social cost in
increase in the asset base, e.g. widening the sealed terms of impact on organisational objectives.
area of an existing road, replacing drainage pipes with Deferred Maintenance
pipes of a greater capacity, enlarging a grandstand at a The shortfall in rehabilitation work undertaken relative
sporting facility. to that required to maintain the service potential of an
Capital Funding asset.
Funding to pay for capital expenditure. Depreciable Amount
Capital Grants The cost of an asset, or other amount substituted for its
Revenue received generally tied to the specific projects cost, less its residual value.
or purposes, which are often for upgrade and/or Depreciated Replacement Cost (DRC)
expansion or new investment proposals. The gross replacement cost (GRC) of an asset less,
Capital Investment Expenditure where applicable, accumulated depreciation calculated
Relatively large (material) expenditure, which has on the basis of such cost to reflect the already
benefits, expected to last for more than 12 months (See consumed or expired future economic benefits of the
capital expenditure definition) asset.
Capitalisation Threshold Depreciation / Amortisation

The value of expenditure on non-current assets above The systematic allocation of the depreciable amount
which the expenditure is recorded as capital (service potential) of an asset over its useful life.
expenditure and below which the expenditure is Economic Life
charged as an expense in the year of acquisition. See useful life definition.

Expenditure services, e.g. roads, drainage, footpaths and cycle
The spending of money on goods and services. ways. These are typically large, interconnected
Expenditure includes recurrent and capital outlays. networks or portfolios of composite assets. The
components of these assets may be separately
Expenses maintained, renewed or replaced individually so that the
Decreases in economic benefits during the accounting required level and standard of service from the network
period in the form of outflows or depletions of assets or of assets is continuously sustained. Generally, the
increases in liabilities that result in decreases in equity, components and hence the assets have long lives.
other than those relating to distributions to equity They are fixed in place and are often have no separate
participants. market value.
Fair Value Key Performance Indicator
The amount for which an asset could be exchanged, or A qualitative or quantitative measure of a service or
a liability settled, between knowledgeable, willing activity used to compare actual performance against a
parties, in an arm’s length transaction. standard or other target. Performance indicators
commonly relate to statutory limits, safety,
Financing Gap responsiveness, cost, comfort, asset performance,
A financing gap exists whenever an entity has reliability, efficiency, environmental protection and
insufficient capacity to finance asset renewal and other customer satisfaction.
expenditure necessary to be able to appropriately
maintain the range and level of services its existing Level of Service
asset stock was originally designed and intended to The parameters or combination of parameters that
deliver. The service capability of the existing asset reflect social, political, economic and environmental
stock should be determined assuming no additional outcomes that the organisation delivers.
operating revenue, productivity improvements, or net
financial liabilities above levels currently planned or Levels of service statements describe the outputs or
projected. A current financing gap means service levels objectives an organisation or activity intends to deliver
have already or are currently falling. A projected to customers.
financing gap if not addressed will result in a future
diminution of existing service levels. Life Cycle
The cycle of activities that an asset (or facility) goes
Gross Replacement Cost (GRC) through while it remains an identity as a particular asset
The cost the entity would incur to acquire the asset on i.e. from planning and design to decommissioning or
the reporting date. The cost is measured by reference disposal.
to the lowest cost at which the gross future economic
benefits could be obtained in the normal course of Life Cycle Cost (LCC)
business or the minimum it would cost, to replace the Total LCC The total cost of an asset throughout its life
existing asset with a technologically modern equivalent including planning, design, construction, acquisition,
new asset (not a second hand one) with the same operation, maintenance, rehabilitation and disposal
economic benefits (gross service potential) allowing for costs.
any differences in the quantity and quality of output and
in operating costs. Average LCC The life cycle cost is average cost to
provide the service over the longest asset life cycle. It
Heritage Asset comprises average operations, maintenance
An asset with historic, artistic, scientific, technological, expenditure plus asset consumption expense,
geographical or environmental qualities that is held and represented by depreciation expense projected over 10
maintained principally for its contribution to knowledge years. The Life Cycle Cost does not indicate the funds
and culture and this purpose is central to the objectives required to provide the service in a particular year.
of the entity holding it.
Life Cycle Expenditure (LCE)
Impairment Loss The Life Cycle Expenditure (LCE) is the average
The amount by which the carrying amount of an asset operations, maintenance and capital renewal
exceeds its recoverable amount. expenditure accommodated in the Long Term Financial
Plan over 10 years. Life Cycle Expenditure may be
Plant & Equipment assets compared to average Life Cycle Cost to give an initial
Physical assets that contribute to meeting the needs for indicator of affordability of projected service levels when
access to major economic and social facilities and considered with asset age profiles.

Maintenance Modern Equivalent Asset
All actions necessary for retaining an asset as near as Assets that replicate what is in existence with the most
practicable to an appropriate service condition, cost-effective asset performing the same level of
including regular ongoing day-to-day work necessary to service. It is the most cost efficient, currently available
keep assets operating, e.g. road patching but excluding asset which will provide the same stream of services as
rehabilitation or renewal. It is operating expenditure the existing asset is capable of producing. It allows for
required to ensure that the asset reaches its expected technology changes and, improvements and
useful life. efficiencies in production and installation techniques.
The modern equivalent asset is evidenced by renewal
Maintenance may be classified as: strategies in asset management plans and financing in
a long-term financial plan covering at least 10 years.
 Planned Maintenance
Falls into three categories: *Net Present Value (NPV)
a) Periodic – necessary to ensure the reliability or to The value of the cash flows associated with an asset,
sustain the design life of an asset. liability, activity or event calculated using a discount
b) Predictive – condition monitoring activities used to rate to reflect the time value of money. It is the net
predict failure. amount of discounted total cash inflows after deducting
c) Preventive – maintenance that can be initiated the value of the discounted total cash outflows arising
without routine or continuous checking and is not from e.g. the continued use and subsequent disposal of
condition based. the asset after deducting the value of the discounted
 Reactive Maintenance total cash outflows.
Unplanned repair work that is carried out in response to
service requests and management/ supervisory Non-Revenue Generating Investments
directions. Investments for the provision of goods and services to
 Specific Maintenance sustain or improve services to the community that are
Maintenance work to repair components or replace sub- not expected to generate any savings or revenue, e.g.
components that needs to be identified as a specific parks and playgrounds, footpaths, roads and bridges,
maintenance item in the maintenance budget. libraries, etc.
 Unplanned Maintenance Operations
Corrective work required in the short-term to restore an Regular activities to provide services such as public
asset to working condition so it can continue to deliver health, safety and amenity, e.g. street sweeping, grass
the required service or to maintain its level of security mowing and street lighting.
and integrity.
Operating Expenditure
Maintenance Expenditure * Recurrent expenditure, which is continuously required
Recurrent expenditure, which is periodically or regularly to provide a service. In common use the term typically
required as part of the anticipated schedule of works includes, e.g. power, fuel, staff, plant equipment, on-
required to ensure that the asset achieves its useful life costs and overheads but excludes maintenance and
and provides the required level of service. It is depreciation. Maintenance and depreciation is on the
expenditure, which was anticipated in determining the other hand included in operating expenses.
asset’s useful life.
Operating Expense
Materiality The gross outflow of economic benefits, being cash and
The notion of materiality guides the margin of error non-cash items, during the period arising in the course
acceptable, the degree of precision required and the of ordinary activities of an entity when those outflows
extent of the disclosure required when preparing result in decreases in equity, other than decreases
general purpose financial reports. Information is relating to distributions to equity participants.
material if its omission, misstatement or non-disclosure
has the potential, individually or collectively, to influence Operating Expenses
the economic decisions of users taken on the basis of Recurrent expenses continuously required to provide a
the financial report or affect the discharge of service, including power, fuel, staff, plant equipment,
accountability by the management or governing body of maintenance, depreciation, on-costs and overheads.
the entity.

Operations, Maintenance and Renewal Financing Rehabilitation
Ratio See capital expenditure - renewal.
Ratio of estimated budget to projected expenditure for
operations, maintenance and renewal of assets over a Remaining Useful Life
defined time (e.g. 5, 10 and 15 years). The time remaining until an asset ceases to provide the
required service level or economic usefulness. Age
Operations, Maintenance and Renewal Gap plus remaining useful life provides an estimate of useful
Difference between budgeted expenditures in a Long life.
Term Financial Plan (or estimated future budgets in
absence of a Long Term Financial Plan) and projected Renewal
expenditures for operations, maintenance and renewal See capital expenditure - renewal.
of assets to achieve/maintain specified service levels,
totalled over a defined time (e.g. 5, 10 and 15 years). Residual Value
The estimated amount that an entity would currently
Pavement Management System (PMS) obtain from disposal of the asset, after deducting the
A systematic process for measuring and predicting the estimated costs of disposal, if the asset were already of
condition of road pavements and wearing surfaces over the age and in the condition expected at the end of its
time and recommending corrective actions. useful life. Residual value reflects consideration
receivable from an asset at the end of its useful life to
PMS Score the entity and accordingly would not include cost
A measure of condition of a road segment determined savings from the re-use of in-situ materials.
from a Pavement Management System.
Revenue Generating Investments
Rate of Annual Asset Consumption * Investments for the provision of goods and services to
The ratio of annual asset consumption relative to the sustain or improve services to the community that are
depreciable amount of the assets. It measures the expected to generate some savings or revenue to offset
amount of the consumable parts of assets that are operating costs, e.g. public halls and theatres, childcare
consumed in a period (depreciation) expressed as a facilities, sporting and recreation facilities, tourist
percentage of the depreciable amount. information facilities, etc.
Rate of Annual Asset Renewal * Risk Management

The ratio of asset renewal and replacement expenditure The application of a formal process to the range of
relative to depreciable amount for a period. It measures possible values relating to key factors associated with a
whether assets are being replaced at the rate they are risk in order to determine the resultant ranges of
wearing out with capital renewal expenditure expressed outcomes and their probability of occurrence.
as a percentage of depreciable amount (capital renewal
expenditure/DA). Section or Segment
A self-contained part or piece of a Plant & Equipment
Rate of Annual Asset Upgrade/New * asset.
A measure of the rate at which assets are being
upgraded and expanded per annum with capital Service Potential
upgrade/new expenditure expressed as a percentage of The total future service capacity of an asset. It is
depreciable amount (capital upgrade/expansion normally determined by reference to the operating
expenditure/DA). capacity and economic life of an asset. A measure of
service potential is used in the not-for-profit
Recoverable Amount sector/public sector to value assets, particularly those
The higher of an asset's fair value, less costs to sell not producing a cash flow.
and its value in use.
Service Potential Remaining
Recurrent Expenditure A measure of the future economic benefits remaining in
Relatively small (immaterial) expenditure or that which assets. It may be expressed in dollar values (Fair
has benefits expected to last less than 12 months. Value) or as a percentage of total anticipated future
Recurrent expenditure includes operations and economic benefits. It is also a measure of the
maintenance expenditure. percentage of the asset’s potential to provide services
that are still available for use in providing services
Recurrent Funding (Depreciated Replacement Cost/Depreciable Amount).
Funding to pay for recurrent expenditure.

Strategic Asset Management Plan
A plan that documents and specifies how the
organizational objectives are to be converted into AM
objectives, the approach for developing AM Plans and
the role of the AM system in supporting the
achievement of AM objectives.
Strategic Plan
A plan containing the long-term goals and strategies of
an organisation. Strategic plans have a strong external
focus, cover major portions of the organisation and
identify major targets, actions and resource allocations
relating to the long-term survival, value and growth of
the organisation.
Sub-Component
Smaller individual parts that make up a component part.
Useful Life
Either:
(a) the period over which an asset is expected to be

available for use by an entity, or
(b) the number of production or similar units expected
to be obtained from the asset by the entity.
It is estimated or expected time between placing the

asset into service and removing it from service, or the
estimated period of time over which the future
economic benefits embodied in a depreciable asset, are
expected to be consumed by the entity.
Valuation
The process of determining the worth of an asset or
liability. Assessed asset value which may depend on
the purpose for which the valuation is required, i.e.
replacement value for determining maintenance levels,
market value for lifecycle costing and optimised deprival
value for tariff setting.
Value in Use
The present value of future cash flows expected to be
derived from an asset or cash generating unit. It is
deemed to be depreciated replacement cost (DRC) for
those assets whose future economic benefits are not
primarily dependent on the asset's ability to generate
net cash inflows, where the entity would, if deprived of
the asset, replace its remaining future economic
benefits.
Source: IPWEA, IIMM & AIFMM 2015, Glossary
Additional and modified glossary items shown *

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Shire of Toodyay

PLANT & EQUIPMENT

Asset Management Plan

Document ID : Plant & Equipment Asset Management Plan

Rev No Date Revision Details Author Reviewer Approver

July 2018 Manager Corporate Services & CEO

September Manager Corporate Services & CEO

© Copyright 2017 – All rights reserved.

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

1.6 Financial Summary

Managing the Risks

We will endeavour to manage these risks within available funding by:

 Request funding for renewals as required and monitor trends of maintenance.

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

1.8 Monitoring and Improvement Program

 Strategic Community Plan

ASSET CATEGORY QUANTITY REPLACEMENT VALUE

Bushfire Vehicles and equipment 19 $1,495,765

Heavy Fleet 5 $407,087

Light Fleet 25 $477,800

Heavy & Light Plant 26 $1,213,705

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

KEY STAKEHOLDER ROLE IN ASSET MANAGEMENT PLAN

Insurance Provider  Partner in insurance and risk management issues

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

REVIEW/COLLATE ASSET INFORMATION

DEFINE SCOPE &

ESTABLISH LEVELS OF SERVICE

LIFECYCLE MANAGEMENT STRATEGIES

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

HOW GOAL AND OBJECTIVES ARE

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

3.4 Levels of Service

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

Quality: How good is the service …

Function: Is it suitable for its intended purpose ….

Capacity/Use: Is the service over or under used …

3.4.2 Technical Levels of Service

 Operations – the regular activities to provide services,

SERVICE FACTORS CUSTOMER LEVELS OF SERVICE TECHNICAL LEVELS OF SERVICE

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

4.2 Demand Forecasts

4.3 Demand Impact on Assets

DEMAND DRIVERS PRESENT POSITION PROJECTION IMPACT ON SERVICES

4.4 Demand Management Plan

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

5.1 Background Data

5.1.2 Asset capacity and performance

LOCATION SERVICE DEFICIENCY

SHIRE OF TOODYAY- PLANT & EQUIPMENT ASSET MANAGEMENT PLAN

CONDITION GRADING DESCRIPTION OF CONDITION

5.1.4 Asset valuations