A senior Adelaide City Council employee has warned that COVID-19 presents “major” challenges for the council's management of its assets, with a key target being missed and future goals potentially set to be tweaked.

City of Adelaide city services director Tom McCready told Adelaide city councillors this week the council was predicted to have just missed the 60 per cent asset sustainability ratio detailed in the 2021-2022 business plan and budget.

The asset sustainability ratio indicates whether the council is renewing assets – such as roads, footpaths and lighting – at the same rate as they deteriorate.

Due to the “current environment” and carry-on challenges from COVID-19, the administration also recommended members consider adjusting the next financial year’s asset sustainability target to suit the conditions, he said.

“The reality is to deliver 100 per cent of our targets in our asset management plan year-on-year presents significant challenges under the current environment,” McCready said.

“COVID has been major in regards to the availability of contractors and that’s due to the costs applied to contractors, which are elevated.

“COVID has impacted them not only providing us with the service, but if they have projects that they’re delivering, they’re having to shuffle people around because of the availability of staff and we are finding that constantly for them.”

The 2020-2024 City of Adelaide Strategic Asset Management Plan says adhering to an asset sustainability ratio of 90—110 per cent ensures the council is sustainably managing the current state of assets.

The state of an asset will deteriorate over time if the sustainability ratio falls to less than 90 per cent over the medium-long term, the report says.

McCready said the council would wait for the opportune moment to deliver the renewals.

“When the market is right, when the climate is right, and the capacity [is right] we can sort out delivering these projects,” he said.

“Naturally, we strive to maintain our assets to 100 per cent in regards to our asset sustainability ratio, but there’s a number of factors that actually determine that.

“We’re just two per cent shy of that 60 per cent, but that doesn’t give you great confidence with regards to 90 per cent or 100 per cent.

“It’s really important for us to understand that the concept of 90 per cent is a challenge.”

McCready said the City of Adelaide evaluates all assets on a regular basis, but should the council not renew that asset at that point in time, maintenance would be applied to bring it up to standard or extend its life cycle.

He said the public was not at risk under the revised quota.

“First and foremost, [the] Council set its 21/22 budget and is working to that budget. That budget reflects a $34 million renewal budget of [the] Council’s assets,” McCready said.

“Currently we are forecasting a figure of $32 million of delivery in the renewal asset space.

“However, as indicated, we are constantly reviewing our delivery and will be able to provide [the] council with more accurate and in-depth information (as highlighted in the meeting) post 31 March.”

North ward councillor – and Lord Mayoral candidate in the upcoming City of Adelaide election – Phil Martin told CityMag the possibility of a decreased asset management ratio target was “not good economic judgement”.

“If you make underperformance your maintenance goal the list of assets that aren’t working grows and the cost of fixing them just grows and grows,” he said.

“It’s a bit like maintaining your car. If you don’t do regular maintenance it will break down and it will probably cost a lot.

“We should be spending on asset management to drive economic activity.”

Veteran area councillor Anne Moran said she was “not happy” with the planned proposal for under-delivery.

“For as long as I’ve been at council it is difficult to deliver the 100 per cent, but that should always be rigorously pursued,” she said.

“I think that’s unbelievably disappointing.”