Banana Shire Council (BSC) engaged Shepherd in the 2018/19 financial year to undertake a Comprehensive Revaluation for Roads, Airports and Drainage assets. This being the second engagement from BSC to complete the comprehensive valuation.
Our project objectives were to:
The verification stage got underway early, with recent aerial imagery we were able to verify kerb and footpath dimensions. With the use of our RACAS system, we drove the entire road network and ensured all surface types were accurately represented in Council’s data. This data was condition modelled and included in the valuation.
As the construction knowledge retained by Council is high, we were able to utilise recent construction costs for unit rates and verify these based on first principles.
One exciting aspect of the project was the involvement from whole of Council. Our Asset Management and GIS Specialist Patrick McGuire went to site to discuss unit rates and useful lives. We had a full cast of staff from finance, engineering and assets to comprehensively review calculations. Patrick was able to complete onsite inspections of the oldest assets to assist in verification of useful lives of kerb, footpaths, and drainage assets.
Shepherd Partner Darren Shepherd travelled to site for the Renewal Modelling project to discuss service levels and interventions, this discussion with Council staff enabled service levels to be included for Roads into the valuation to ensure what is occurring in the field is represented correctly in the office and financials.
Feeding all the asset data and revised rates into the valuation model enabled Council and Shepherd to have in-depth discussions regarding the impacts that occurred. This also gave Council time to review all valuations and complete verification processes.
Delivery occurred with Darren being onsite with the internal auditors (Patrick by conference call) to answer all questions regarding the processes undertaken, and the in depth methodology documentation. Delivery included a comprehensive workbook that utilises pivot tables for interrogation and also producing basic renewal graphs and also a comprehensive valuation methodology document.
Moving Forward: With an accurate representation of BSC’s asset stock through this comprehensive valuation, and applying suitable service levels, Council will be able to complete in-depth financial reporting that directly feeds into Strategic Asset Documentation. This documentation will assist in funding future renewal works to ensure the region’s communities are well maintained.