Useful Life

Building Useful Life Table

The estimated useful life of buildings depends on a number of factors including; ….

Type Useful Life
??? 150 Years
??? 85 Years
??? 80 Years
??? 75 Years
??? 60 Years

Definition Buildings owned /or managed by CoW include:
• Municipal and Community use buildings
• Sports and Leisure use buildings
• Public conveniences
• Buildings on Crown land managed by CoW through Committees of Management.
• Other Council buildings.
Quantity The Authority Asset module which identifies each building as a structure contains 182 individual buildings that are maintained by CoW. The asset module is to be further developed and maintained as the corporate register for buildings. The Building Management Planning project (see Links to Strategies & Plans below) will provide a mechanism to check and rationalise the building asset register.
Value The building replacement value for AAS27 report was $109 million as at June 2002. The replacement value determined by Building Maintenance for budget analysis (see Maintenance below) was $122.7 million. Values to be reconciled and an agreed single value maintained in the Asset register
Asset Condition The condition of buildings has been recently assessed in the Building Asset Lifecycle Review (February 2003). The condition ranged from a rating of between 1 and 10 where 1 represents a new building and 10 represents unfit for use. The average was 4.85 where 5 is rated as “Some minor evidence of degredation of the element which could potentially shorten life”
Key Assumptions
Data Protocol
Key register In accordance with the Corporate data Policy, buildings have been created in the Asset module as Asset Type 20 with each building on a site being separately identified. There is provision for the Asset record to be linked to the Property record to provide an address to the building.
Buildings must be in the Asset module so that Work Orders can be linked to them. Provision has been made for components, such as rooms and plant, to be available as sub-definition of a building for Work Order and for linking to the Xpedite Booking system.
The Authority Property module (used for rating and valuation purposes) contains 82 records of Council owned properties. In some cases, these records contain multiple buildings located on the property, hence the discrepancy when compared to the Asset Module. The value of buildings is to be defined and maintained in the Asset Module as an Improvement Plan action.
Data use for AM Buildings in the Asset Module are used to link to Work Orders to provide work history and planned activities on the assets.
Data maintenance protocol Property record defined by Valuations Unit using Property Type Code when acquired as Council ownership.
Asset record created by Financial Accountant when advised by Responsible Officer or Building Maintenance. Building Maintenance may be consulted in defining the building and component descriptions for appropriate definition with Work Orders.
When a building has change of use or is demolished, the Financial Accountant is to be advised by the building operator or Building Maintenance (currently procedure not entrenched as a practice).
Method of determining depreciation Straight line depreciation based on replacement value and expected life. Expected life is provided by the Manager Valuations based on industry knowledge. Expected life will be reviewed with data received from the Building Management Planning project.
Financial Provisions
Budget projections for new works

Budget for maintenance The New Works program makes provision for the development and enhancement of buildings over a rolling 5 year period. The 2002/2003 budget for new works contains $7.4 million for new buildings works and major maintenance projects
A maintenance program is also prepared on a rolling 5 year period with an annual assessment of which works are to be included in the forthcoming budget. The 2002/2003 budget for maintenance is $1.672 million, comprising $0.572 million reactive and $1.1 million planned. The maintenance budget is prepared in spreadsheets by Building Maintenance. What is 2003/2004 budget?
Funding Strategy Some Council services and buildings to support Council services, are provided for by way of grants, for example, Dept of Human Services for preschool and long day care and Family and Community Services for creche facilities.
Funding for future buildings and other infrastructure is sometimes obtained via developer funded contributions.
Levels of service
Disability Access

Lease agreements

Hours of operation

Building standards

Maintenance For Disability Access, the basic Australian Standard that buildings must meet is AS 1428 part 1 (Mandatory). The requirements of AS1428 will grow with the introduction of Parts 2-4 as they evolve.
Council is currently developing a Disability Action Plan in line with the requirements of the Commonwealth Disability Discrimination Act (1992). The plan will be registered with the Human Rights and Equal Opportunity Commission when complete. This will mean that existing and future buildings need modification or improvements to conform to the program of improvements contained in the Plan
Lease agreements define building operating rules and standards for use and maintenance. Leases exist for Community Activity Centres and a number of other buildings and facilities. It is the intent that groups that have on-going use (and a degree of control) of Council facilities should have some form of written agreement about their rights and responsibilities
Hours of operation are by agreement with the user of the building. General public facilities such as leisure Centres have advertised hours of operation. Halls are available for times booked by clients
Buildings are to be fit for purpose, functional and well presented. These standards will be defined in a Functional Brief, facilitated by Buildings Maintenance when defining building enhancements or new works. Facilities Standard Practices will be developed that define building functional requirements for each of the Council services that use buildings.
Services/buildings are to be inspected and scheduled for maintenance before breakdowns occur.
The Building Maintenance response time for reactive maintenance is nominally 3-7 days or ASAP if urgent. This response time is to be more definitive and communicated to users.
Links to Strategies & Plans Predictions for buildings infrastructure are defined via the 2016 study process. This includes strategies for establishing, closing, and reallocating use of buildings. Most of the new infrastructure predictions are obtained from Strategic/Local Structure Plans which are prepared for the City's future growth areas (see next item).
A recent (completed February 2003) Building Asset Lifecycle Review project assessed the estimated life cycle, age, residual life based on condition, value of replacement/refurbishment and forecast expenditure for Council owned buildings. Data from this project will be fed into the Asset register and New Works budget process.
A process to ensure buildings comply with essential services and Buildings Regulations has been approved by CMT for implementation during 2003.
Future Demand Demand for community services/buildings in both existing and future areas is modelled using the electronic Social Planning Package. This package is a tool for facilities and service planning.
Maintenance Standards

Who maintains

Levels of expenditure
Buildings are maintained by Building Maintenance and the works are planned to minimise disruption to users.
There are a number of statutory requirements that determine routine maintenance standards, for example, fire equipment and lifts. Investment properties without public use are maintained to normal private property standards
Maintenance work is managed by using some depot staff but principally contracted trades people.
The industry benchmark for Building maintenance expenditure is 2% of asset value for buildings that have a spread of age. An expenditure of 1.75% of asset value is considered to be the baseline where there are a reasonable number of new buildings. The actual for CoW is 1.5%, which includes maintenance and Building Maintenance management expenses.
Practices, Policies & Standards

Maintenance Facility use
• City of Whittlesea Sports Ground Policy, adopted by Council 16 July 2002
• Sports Ground User Guide Sept 2002
• Halls Policy
• CoW Building Maintenance and Construction policy and procedures
• Buildings Code of Australia which enforces various building standards and performance criteria
Risk Management As owners of buildings, the City of Whittlesea has a category of asset that provides a potentially high degree of risk due to public health and safety. To address this risk an inspection process is being developed, commencing with essential services defined on an occupancy permit for each building.
An Action Plan has been approved by CMT and reviewed by Council solicitors which defines a program to provide for an effective inspection program while compliance with Essential Services is being obtained for all buildings (over a period of 1-2 years).
A component of the Action Plan is to rank buildings on potential risk for the purpose of prioritising achieving Essential Services compliance and inspections.
Suggested Plan improvements
Asset register

Cost of service

1. Reconcile Authority Property and Asset Module records, refine and use the Asset module as the single record of values.
2. Establish a process to advise the Financial Accountant when buildings are to be added, deleted amended or have a change of use.
3. Develop facilities standard practice documents. These will define the requirements of buildings relevant to the various services supplied by Council and will define the relationship between service delivery, facilities standards and cost of delivery. Responsibility
Financial Accountant

Asset Co-ordinator

Building Maint & Const Executive
Compl Date
June 2004

Dec 2003

Dec 2004

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