Holistic Approach to Highway Service Delivery

Andy Stevenson

Planning – A Framework

Asset Management – The process

Asset Management – An alternative definition

An extract from Cornwall Council’s Asset Management Strategy:

• At its most basic level Asset Management can be seen as an exercise in managing risk, a key aspect of which is the grouping by type of assets into a hierarchy which reflects their importance in service delivery terms relative to one another. This then enables the quantification and allocation of risk.

Maintenance Hierarchy - Highways

Hierarchy/Class A Road B Road C Road U Roads Total

2a Strategic Routes 222.8 222.8

2b Strategic Routes 342.8 342.8

3a Main Distributor 480.9 216.8 20.8 718.5

3b Secondary Distributor 102.8 684.0 147.0 933.8

4a Local Roads 0.1 549.9 95.1 645.1

4b Local Access Roads 0.1 747.4 2606.0 3353.5

5 Other Access Roads 438.5 488.6 927.2

6a Green Lanes 1.2 25.3 26.6

6b Green Lanes 1.3 72.7 74.0

Totals 564.4 583.8 2640.3 3455.6 7244.2

Asset Management – Headline Levels of Service

• Safety

• Serviceability

• Accessibility & Availability

• Sustainability

Levels of Service for Highway Maintenance (Urban – 20% of Network)

Hierarchy/ Maintenance

Environment Activity

Carriageways Footways & Drainage Drainage Verges etc Fences & Traffic Road

Cycleways Gullies other Barriers Signs Markings

2a Urban

2b Urban Service Level 1

3a Urban Service Level 2

3b Urban

4a Urban Service Level 3

4b Urban Service Level 4

5a Urban

5b Urban

Key

Service Level 1 -includes Safety, Serviceability and Sustainability

Service Level 2 - Includes Safety and intermediate level of Serviceability ( no sustainability)

Service Level 3 - includes Safety and minimal level of Serviceability (no sustainability and a severely reduced level of serviceability)

Service Level 4 - includes Safety only (no sustainability and serviceability) - This is the minimum legal level

Levels of Service for Highway Maintenance (Rural – 80% of Network)

Hierarchy/ Maintenance

Environment Activity

Carriageways Drainage Drainage Footways & Verges etc Fences & Traffic Road

Gullies other Cycleways Barriers Signs Markings

2a Rural

2b Rural Service Level 1

3a Rural Service Level 2

3b Rural

4a Rural Service Level 3

4b Rural

5a Rural Service Level 4

5b Rural

6a

6b

Key

Service Level 1 - includes Safety, Serviceability and Sustainability

Service Level 2 - Includes Safety and intermediate level of Serviceability ( no sustainability)

Service Level 3 - includes Safety and minimal level of Serviceability (no sustainability and a severely reduced level of serviceability)

Service Level 4 - includes Safety only (no sustainability and serviceability) - This is the minimum legal level

Asset Management – The Output

Asset Management – Outcomes

• The process of appraising options which:

• Mitigates risk (as far as is possible)

• Identifies future funding need

• Prompts review of LoS when funding is constrained

Delivery – Targeting Maintenance

River Catchments

Hydrocast Catchments

Historic Rainfall

Drainage Inventory

Flood Risk Assessment & Flood Vulnerable Communities

Gully Emptying Programme

• Cornwall originally implemented a blanket annual cleansing programme for all gullies

• Over time frequencies have been amended to respond to identified areas of increased risk

• Correspondingly frequencies have been reduced in areas of lower risk

• Currently there are 4 levels:

3 monthly; 6 monthly; 12 monthly and 24 monthly

Truro

Flooding Hotspots

Surface Water Flooding

Gully Emptying Programme

Cleansing Frequency

Monthly

3 Monthly

6 Monthly

Yearly

2 Yearly

Challenges –Making the most of what you have

• Data

• Budgets – Capital v Revenue

• HMEP – Efficiency agenda

• Capital settlement

Messages from the Minister

Phil Brennan, APSE

Aim

• We all want roads that are fit for the future

• We have less money - yet our public expects better roads

• We need ever more efficient ways to maintain the network

• How do we balance more demand with less resources?

• We as a group need to: – Raise real engagement levels with HMEP

– Continue to share experiences, connect to networks and best practice

www.apse.org.uk

www.apse.org.uk

www.apse.org.uk

www.apse.org.uk

For example the temperatures

reached in 2003 are likely to be a

‘normal’ summer by 2040” -

Professor Dame Sally C Davies,

Chief Medical Officer Chief Scientific

Adviser Department of Health, May

2014.

www.apse.org.uk

Demand Management

Are we able to manage the demand for

highways and related services?

If so how effectively do we do it?

If not, is it something we should be doing?

Can we afford not to do it?

www.apse.org.uk

www.apse.org.uk

www.apse.org.uk

www.apse.org.uk

• The local highways sector has to gear up for

transformational change from 2015

• £6bn funding for highways maintenance 2015 - 2021

• Revenue pressures remain a real concern

• Longer-term approach to funding – important to plan

ahead now to realise efficiency gains

• Taking the right steps now is vital

Future funding: Gearing

up for change now

• Highways is in the spotlight

• With longer-term funding and investment, there will be

greater expectations and demands on how money is

spent.

• The growing political and public expectation for:

– Transparency

– Accountability and

– Efficiencies

Gearing up for the changes

ahead: Greater expectations?

“We’re trying to skew the system a little bit more so that we actually reward good practice rather than giving money to the people who haven’t spent previous money effectively.”

Robert Goodwill MP Parliamentary Under-Secretary of State for Transport in an interview with Highways Magazine

Government’s proposals for

Funding 2015 to 2020

Headlines: • Efficiency counts from

16/17 onwards

• The Challenge Fund is an

opportunity but some will

view as a threat

• Things will be different

Consultation ended in

November

National Infrastructure Plan

published in December

How ready are you for the

change?

Can answer yes to all of these questions?

✓

Is your local highway authority ready for the revised method for funding allocation ahead?

Do you have a robust asset management plan and is it embedded?

Are you confident that your road network will be well-managed and maintained?

Is public and business confidence and economic growth improving in your area?

Do you have the skills and resources in place, to change?

Are you collaborating and working with others?

Do you have the long-term plans in place?

Can you clearly evidence good practice, efficient delivery and improvements in road condition?

HMEP: how it can help

HMEP supports the sector on its journey

to transform highway services by helping you to:

– Share your ideas and practices, to improve from each other

– Connect to people and networks who can help

– Access the tools, resources and training so you can understand and plan how to transform delivery of roads and services through greater efficiencies

Practical

and

adaptable

approach

Results

driven

By the

sector,

for the

sector

Collaboration and Change

Asset Management

Procurement, Contracting and Standardisation

Strategic Peer Reviews

HMEP focuses on five key areas:

Benchmarking and Performance

Efficiency Resources available (as indicated) and in development

HMEP

Collaboration

and Change

HMEP Asset

Management

HMEP

Procurement,

Contracting

and

Standardisation

HMEP

Benchmarking

and

Performance

Highways Infrastructure Asset

Management Guidance - available

Guidance on the Maintenance of

Highways Drainage Assets - available

Lifecycle Planning Toolkit &

Deterioration Models - available

E-Learning Toolkit –

coming soon

Pothole Review -

available

HMEP Strategic

Peer Review

Procurement Route

Choices Toolkit - available

The Standard Form of

Contract - available

Guidance on Standard Specification and

Standard Details - available

Supply Chain Review –

coming soon

Term Maintenance Document

Compiler – coming soon

Shared Services

Toolkit - available

Creating the Culture to Deliver -

available

Collaborative Alliances

Toolkit – available

Client / Provider Collaboration

Toolkit - available

Cost, Quality, Customer

(CQC) - in development

Good Practice Network – in

development

HMEP Strategic Peer Review – information

available

LEAN toolkit - available

Why it’s vital to continue to

connect and share

• Good, efficiency experiences can help to showcase and

boost the sector’s and industry’s credibility

• There is a growing appetite from across Government

• Important to collaborate, and change the way we work

• Many highway authorities are already well on their way

• It’s important you don’t get left behind

Gearing up for funding

changes in 2015

The importance of linking efficiencies and funding to

good practice

What’s driving the changes

• Investing in our existing assets is fundamental to

economic growth:

– Spending Round 2013: £5.8 bn capital 2015-

2021

• Budgetary pressure across the public sector

• Opportunities to transform the way the sector

undertakes highways maintenance

• Discussion document and Roadshows early 2014

Maintenance funding 2007-2021

Government’s proposals for Funding

2015 to 2020

Three Themes:

1.Funding model

2.Funding formula

3.Challenge Fund

Consultation Closes

on 21 November 5pm https://www.gov.uk/government/consultations

/local-authority-highways-maintenance-

funding-201516-to-202021

Funding Model – Government's

Objectives

To provide funding that encourages efficient

practices and value for money.

To encourage local innovation in highway

maintenance.

To ensure funding is distributed fairly.

To support local highway authorities investing

in their highway infrastructure.

To raise the importance of maintaining

highways for modes other than motor vehicles

Funding Model – Government’s

proposals

Needs element (formula) will be retained.

New Efficiency element from 16/17.

New Challenge Element from 15/16

‘In response to representations we are also

consulting on whether a sum should be set aside

as a contingency to fund repairs for severe

weather events’

Funding Model - Objectives

A dynamic balance between ‘Needs’,

‘Efficiency’ and ‘Challenge’ elements

Self-assessment for banding local authorities

under the ‘Efficiency’ incentive element

Tweaks to the ‘Needs’ element formula

‘Challenge’ fund element of £600m in total

The Big Picture

Needs Element (Formula) - Detail

How the ‘needs’ element will be distributed

Details of proposals in Consultation Document

Updating and tidying

De-trunked road element removed

Number of bridges only

Number of street lighting columns only

Cycling and walking in Needs or Challenge?

Don’t include traffic volumes

Weighting between elements (75/14/2/9)

Efficiency Incentive - Detail

Self assessment by authority by questionnaire

Three potential bands:

• Band 1: Early stage authority

• Band 2: Mid stage authority

• Band 3: Final stage authority

Continual improvement in efficiency necessary

Self-assessment questions require sector input

Based on ‘record in pursuing efficiencies and asset

management or its public commitment to adopt these

practices within an agreed period of time’

Challenge Fund - Detail

Types of project eligible include major

maintenance or renewal of:

• Bridges, tunnels, retaining walls or other structures

• Carriageways

• Footways or cycleways

• Drainage assets

• Upgrade of Street Lighting

£600m total, starting 15/16, peaking 16/17 &

17/18, continues through to 20/21

Maximum £10 million per project, but up to

£20m by exception

Government’s proposals for Funding

2015 to 2020

It will mean for you: 1. Efficiency Counts from

16/17 onwards

2. The Challenge Fund is

an opportunity

3. Things will be different

LocalHighways Maintenance

Funding 2015/16 to 2020/21

Consultation Survey

Consultation closes on 21

November 5pm

Why Connect & Share? • Many existing networks (44 groups)

– identify good practice & innovation

– lots of activity

– meeting, talking, learning, sharing – but is it optimal working?

• Not shared across sector -relatively little documented

• The involved and the not so involved

• HMEP Board is keen to promote existing good practice

How might it help? • Information about the experience and practice of

others may give authorities confidence to change

• Focusing on evidence will help authorities to quantify potential for savings and improvement as well as prioritising their actions

• Service changes are made without full awareness of alternate options - access to information about the potential for savings of alternate options would help

Benefits • Pulls existing Regional Groups together

• Encourages the sharing and exchange of ideas and knowledge across the sector

• Reduced duplication and adds value to existing services

• Provides ready access to validated good practice (and the people who delivered it)

What is Good Practice?

• Many examples of good practice are based on opinion rather than demonstrable improvements in performance

• Many examples of alternate practice or innovation are presented as good practice even though the benefits are yet to be quantified against existing or previous practice.

Connect & Share

What is Good Practice?

• Finding examples of good practice is not as easy as one might expect.

• It seems that very often organisations don’t know whether what they doing is good practice or not, they just getting on and doing it.

• Needs to be based on more than the opinion of an individual authority

What is Good Practice?

• Should be focused on the best performers/biggest improvers in any service area (based upon measurement and comparison)

• Full background required to put performance into context

• Based on quantifiable benefits

• Should be transferable to other authorities

What is Good Practice?

• Are we interested in examples of Transformational Change and in ‘Marginal Gains’?

• Are we interested in Snapshots of good performance and examples of sustained improved performance?

• Are we interested in things that work and things that don’t work?

• Are we interested in practice – what others are doing?

What is proposed

Connect - to encourage engagement between all those involved in providing highway services

&

Share – to create a resource of existing good practice material drawn from across the sector and from all regions of England

Connect & Share

What is proposed

• Relies on existing regional networks/groups

We are not creating new networks

• Collect & disseminate good practice

– locally (within the regions)

– nationally (from national networks and HMEP )

– across the sector

• Encourage exchange between networks & regions

What is proposed

Connect & Share Panel – Members from each region

– Defines priorities for Connect & Share

– Validates/verifies prospective good practice

– Highlights regional good practice

– Contributes website & newsletter content

– Helps to sustain the approach

What is proposed

Website Content

– Details of national & regional groups (who they are & what they do)

– Directory of good practice material (searchable by location and type)

– Promoting authorities improvements

– Events Calendar (national & regional)

– A sector resource for innovation

What is proposed

Aims for the future

• Add value to the whole sector

• Build capacity within groups and individuals

• Develop a culture of networking, sharing & improving

• Support authorities to meet funding criteria

• By the sector for the sector in the long term

• Make the approach sustainable

Key Questions

• Should we be collecting and sharing practice or are we just interested in good practice?

• If we are interested in good practice, how should we decide what is good?

• What information should we collect about the things we are sharing?

• How should we categorise the things we are sharing so they can be readily accessed?

Messages

• Funding is changing – what are you doing about it? Will you get all you can?

• Long term planning and demand management

• Engage with the sector