Loddon Shire Council: Road Infrastructure Flood Program
Posted under: Project objectives and outcomes
Between September 2010 and January 2011 Loddon Shire experienced three separate flood events one of which was the second largest flood in recorded history (for the Shire). These events caused widespread and severe damage throughout Councils road network impacting upon gravel and sealed pavements, shoulders, footpaths, bridges and township streetscapes.
A rapid assessment of the road network following the flood identified an estimated $22 Million damage across the various infrastructure types with this figure subsequently increasing to approximately $42 Million following completion of more detailed network inspections and project cost estimates.
Under the National Disaster Relief and Recovery Arrangements (NDRRA) Loddon Shire was provided funding to implement the required asset restoration works. Under these arrangements Council was required to complete all restoration projects within a 2 year period from the end of the financial year in which the disaster occurred (30th June 2013).
Loddon Shire accomplished this seemingly impossible task through an innovative approach of work force expansion and capacity building, coupled with the engagement of numerous contractors to perform pavement rehabilitation works.
By the end of this restoration program Loddon Shire had not only met the required delivery timeframe but had delivered the required works approximately $8 Million under the original estimated budget.
What made this achievement more significant is the fact that not only did Council deliver over 7 years’ worth of capital and maintenance works, as compared to its typical infrastructure roads budget, but routine road maintenance services and capital renewal expenditure were also maintained. As such it is considered that the approach which Loddon Shire has applied in the delivery of the flood restoration program was instrumental in allowing the Shire to deliver the equivalent of 9 years’ worth of maintenance and renewal work within the space of 2.
Distinguishing and innovative features of the project
In considering the most appropriate approach to deliver the required flood restoration works Loddon Shire identified that the expansion of its own workforce and associated plant inventory offered a number of advantages over the traditional approach taken by other Councils in line with the NDRRA guidelines i.e. external contract for all works. These advantages included:
– Greater ability for quality control and flexibility in programming works
– Experience of local staff with local conditions and assets
– Local economic benefits by retaining the majority of program money within the Shire
– Less reliance on contractors (minimised impact of unavailability or competition for local resources)
- Less demand to develop and prepare comprehensive tender specifications which may be difficult to enforce without detailed design
– Faster mobilisation and delivery of works on-ground
– Improved public perception of Councils responsiveness
– Reduced cost to deliver works (limited contractor overheads or profit margins applied)
– Opportunity to modernise Councils plant and fleet inventories
In programming the flood recovery works Loddon Shire also released, as part of its quarterly bulletin to every residence within the Shire, a program of works identifying the scheduled completion timeframe for each individual flood project. This greatly assisted Council in reducing the number of enquiries from residents as to when they could expect to see works completed in the field.
This bulletin also gave local residents confidence that projects had been captured in the program and raised awareness of the magnitude of work facing Council, as the program spanned over two years.
How the project has achieved excellence.
Project excellence can be demonstrated by the following achievements in relation to Loddon Shire’s Flood Restoration Program:
– Completion of all required works approximately $8 Million (20%) below program budget
– Delivery of all required flood restoration works within available timeframe
– Creation of 26 additional employment opportunities within Loddon Shire
– Local procurement of materials and supplies supporting economic prosperity within the Shire
– Innovative management and co-ordination approach
– Strong financial monitoring and data capture of all flood related expenditure
– Transparent and regular reporting to funding and audit agencies (Department of Treasury & Finance and VicRoads)
– Restoration or maintenance activities completed on nearly 20% of the Shires local road network
In addition to the direct achievements and benefits of the flood restoration program, ancillary benefits achieved through the Shire’s approach include:
– Modernisation of Councils plant inventory
– Completion of remedial works on a former Council quarry site
– Extensive and comprehensive public awareness and information campaign including periodic media releases and publication of rolling delivery programs
How it has positively impacted on the local community.
Expansion of internal works department capacity required the creation of 26 additional staff positions within Loddon Shire (approx. 50% increase on existing works staff numbers). The majority of these
positions were filled by local residents.
In addition to creation of direct employment opportunities, delivery of the majority of works by Loddon Shire staff allowed greater control over the procurement of materials and services. Wherever possible, local suppliers were engaged to provide goods and services during the course of program.
Council also established formal contract arrangements with numerous sub-contractors within the local and surrounding areas.
Barriers that have been overcome to achieve success.
– Extensive negotiation was required with the Department of Treasury and Finance in order to gain approval for the use of Council plant on flood recovery projects. Subsequent clarification from the federal government identified that Loddon Shire’s proposal to expand and utilise its own inventory of plant to complete flood restoration works would be acceptable
– Resourcing and training for new staff
– Establishment of multiple procurement and service delivery contracts in a rapid timeframe.
Costs associated with the project.
The following table provides a summary of physical works and associated costs incurred completing the flood restoration program:
Grading 433.7 Km $1,447,879
Gravel Re-sheeting 563.4 Km $20,499,472
Shoulder Re-sheeting 93.1 Km $1,768,552
Sealed Road Repairs 22.8 Km $4,000,181
Township Streets 13 No. $206,717
Drainage Structures 2 No. $81,804
Safety Infrastructure 8 No. $13,162
Township Amenity 3 No. $60,370
Bridges & Culverts 91 No. $1,418,128
Floodway’s 110 No. $588,407
TOTAL $30,084,672
In addition to physical works approximately $1.8 Million was spent on contract and project administration, field inspections and verification audits, design, surveillance, tendering, advertising, signage and corporate services such as recruitment and HR support.
How did the project achieve its intended goals and did it achieve more goals than were intended?
The Loddon Shire flood restoration program has been delivered on time and under budget. The method by which this program was delivered, is considered to have yielded best value for expenditure of public money received in relation to the restoration of critical local road infrastructure. At the end of the program the Loddon Shire road network has been restored to pre flood condition or better.
In addition to the obvious benefits associated with such a broad repair program across the local road network, other goals which the Shire’s approach achieved include:
- High level of community satisfaction with communication and progress in relation to flood restoration works
– Extensive local benefit through economic stimulus in the form of local employment, procurement and sub-contracting
– Re-establishment of critical local road infrastructure supporting agriculture within the Shire
– Degree of modernisation within Councils plant inventory with the purchase of additional units (e.g. cartage trucks, graders) to support flood program activities.
– Council staff provided the opportunity to up-skill or advance by taking on fixed term flood related positions.
– Opportunity to develop internal succession planning.
– Establishment of successful and enduring relationships with Department of Treasury and Finance and VicRoads.
What made this initiative unique and what were its defining factors?
Defining aspects of this project are as follows:
– Loddon Shire showed initiative and lateral thinking in obtaining approval from the federal and state governments in relation to its proposal to deliver flood works utilising internal staff, plant and resources (required approval outside of the then NDRRA guidelines).
– This approval subsequently allowed the creation of 26 direct local employment opportunities with Council.
– Further administration, project management and HR resources were also engaged with Council.
– Execution of a complimentary campaign of community education and awareness inclusive of quarterly program updates and notifications of individual project progress and scheduling
– Council has been able to partially modernise its plant inventory through the procurement of additional graders, trucks and equipment to aid in the delivery of the flood program.
How was the project effective?
The project delivered all of the required flood restoration works within a fixed timeframe. During the course of the program the local community were kept regularly informed as to the progress in delivering the program as well as provided regular opportunities to report any additional flood related damage which was not reflected within Councils register of projects.
Flood works were delivered below budget, demonstrating efficiencies to be gained in the methodology of Council being able to perform the majority of flood restoration works utilising its own resources as opposed to being forced to use external contractors as per the NDRRA guidelines.
The creation of local employment and reliance on local suppliers provided significant economic stimulus into the municipality and surrounding region.
Explain how leadership was demonstrated in this initiative?
The Loddon Shire Works, Infrastructure and Finance departments all played key roles in the planning, co-ordination, delivery and auditing of flood works undertaken across the Shire. Senior executives and the CEO continually reviewed progress of the flood program, ensuring that performance targets and accurate financial records and reporting were being maintained.
In order to deliver the flood program a new management and reporting structure was created within the Loddon Shire works department including the creating of two works co-ordinator positions, which were responsible for the day to day programming and surveillance of flood works undertaken by Loddon Shire Staff.
Complementing Loddon Shire works department activities on flood projects, Councils Infrastructure Department also developed and administered multiple pavement and bridge re-construction contracts. These contracts were required where Council lacked the relevant expertise, equipment or resources to undertake specialised flood restoration projects.
How did you evaluate the effectiveness of the initiative?
The effectiveness of Loddon Shire’s approach to delivery of the flood recovery program is evident through the financial and timeframe efficiencies which have been observed.
The success of the program has also been demonstrated through the internal staff skills which have been retained through opportunities for up skilling and temporary re-deployment to higher duty positions. A number of flood staff have also been successful in obtaining full time employment post flood program, following the retirement of some existing permanent staff.
How could the initiative be transferred to another Council/organisation?
The same approach could be undertaken by all municipal councils dependant on their capacity to modify operational structures at short notice, financial stability and skills and experience of senior management staff in co-ordinating and administering such programs.
Individual/Team Contribution
Information on specific contributions made by the individual/team members behind this initiative.
Given the scale of Councils flood program numerous staff made contributions to the success of the initiative to deliver the majority of works in-house. Of significant mention are the following employees:
Director Operations, Mr Ian McLauchlan provided executive oversight of the entire flood restoration program. Mr McLauchlan’s role included regular monitoring of financial and operational performance,
assessment of operational capacity and resourcing, review and control of contractual arrangements and guidance and leadership to frontline management staff.
Mr Steven Phillips, Council’s Works Manager co-ordinated and managed the bulk of Councils flood staff with the assistance of the two appointed works co-ordinators and the Assistant Works Manager,
Mr Daniel Lloyd. Without the commitment and expertise held by Mr Phillips, it is unlikely that delivery of the flood program would have been as successful as it has been.
Mr David Fry, Council Manager Infrastructure maintained responsibility for the co-ordination of all engineering design work as well as control of external construction and maintenance contracts for works not being performed by the Loddon Works Department.
General Comments
The approach taken by Loddon Shire to deliver its flood restoration program has resulted in numerous benefits to the Shire both from an economic perspective but also through organisational capacity building. The skills and experience obtained by internal staff in planning and implementing this program will endure for years to come.
The ability of Council to deliver the majority of flood restoration works in-house has made a significant contribution towards rapid recovery of the Loddon community following one of the worst natural disasters ever experienced.
The success of the program is evidenced by the numerous public submissions received commending Council on its responsiveness, communication and effectiveness in completing the required flood works.
Given that nearly 20% of the local road network within Loddon Shire has effectively been renewed, it is envisaged that Council will be well placed over the next decade to meet community expectations in relation to road service and condition standards.
Summary
Between September 2010 and January 2011 Loddon Shire experienced three separate flood events. These events caused unprecedented damage throughout Council’s road network, impacting upon gravel and sealed pavements, shoulders, footpaths, bridges and township streetscapes. Since that time Loddon Shire has embarked on a campaign to renew its impacted infrastructure and as of 30 June 2013, has completed all required flood restoration works at a total cost of $32 Million. This represents a saving of nearly $8 Million against original budget estimates. Loddon Shire accomplished this seemingly impossible task through an innovative approach of work force expansion and capacity building, coupled with the engagement of numerous contractors to perform pavement rehabilitation works.