Hurunui District · Web viewHDC RdAMP AMP v3 0 10D.docx Date July 2010 Prepared by George JasonSmith John Whyte Reviewed by Mark Gordon Revision History Revision Revision Date Details

Roading Activity

Management Plan

Version 3.0July 2010

Prepared for Hurunui District Council

Prepared by

AECOM (NZ) Ltd6th Floor, DTZ House, 76 Cashel Street, Christchurch 8011, New ZealandP O Box 710, Christchurch Mail Centre, Christchurch 8140, New ZealandT +64 3 363 8500 F +64 3 363 8501 www.aecom.com

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Quality Information

Document Hurunui District Council Roading Activity Management Plan

Ref document.docx

Date July 2010

Prepared by George JasonSmith John Whyte

Reviewed by Mark Gordon

Revision History

Revision Revision Date Details

Authorised

Name/Position Signature

v3.0 1 July 2010 Final Mark GordonRegional Manager

Roading Activity Management Plan

PLAN STATUS

1. Overall Responsibility for the Co-Ordination of all Matters in this AppendixDate Name DesignationFebruary 2009 John Whyte Roading Engineer Assets

2. Appendix Prepared ByVersion Date Name Designation3.0 2006-2011 George JasonSmith Maunsell AECOM, Christchurch

John Whyte Assets Engineer Roading

3. Appendix Reviewed ByVersion Date Name Designation3.0.6 January 2009 Bruce Yates

David EdgeJohn WhyteJohn KerseAlex CookeBrian McManus

Manager Engineering ServicesRoading ManagerRoading Assets EngineerRoading Engineer OperationsTownship Amenities EngineerRoading Engineer Contracts

3.0.10 January 2010 Bruce YatesDavid EdgeJohn WhyteJohn KerseBrian McManus

Manager Engineering ServicesRoading ManagerRoading Assets EngineerRoading Engineer OperationsRoading Engineer Contracts

4. AdoptedVersion Date Authentication3.0 Final 24 February 2011 Endorsed by Council at Council Meeting Item 7.1

5. Updated ByVersion Date Name Designation

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iv

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Contents

1 Introduction 11.1 Background.................................................................................................................. 1

1.1.1 Roading Assets..................................................................................................................... 11.1.2 Community outcomes to which the activity contributes..........................................................21.1.3 Public Concerns.................................................................................................................... 4

1.2 Objective of Roading Activity Management Plan.........................................................41.2.1 Plan Objectives...................................................................................................................... 5

1.3 Asset Management Level............................................................................................6

2 Levels of Service, Performance Measures, and Relationship to Community Outcomes 7

2.1 Levels of Service and Community Outcomes..............................................................72.2 Reporting..................................................................................................................... 9

2.2.1 Targets and Measures........................................................................................................... 92.2.2 Network Performance............................................................................................................ 9

3 The Existing Situation 123.1 Assets........................................................................................................................ 12

3.1.1 Assets Required.................................................................................................................. 123.1.2 Asset Register..................................................................................................................... 12

3.2 How the Roading Assets are Maintained and Operated............................................143.2.1 Maintenance and Operating Issues.....................................................................................153.2.2 Business Continuity, Emergency Management and Reinstatement....................................153.2.3 Maintenance Forecast......................................................................................................... 15

3.3 Renewals and Depreciation.......................................................................................153.3.1 Renewals funding................................................................................................................ 163.3.2 Particular Renewals Issues................................................................................................. 163.3.3 Renewals Forecast.............................................................................................................. 163.3.4 Change in Service Potential................................................................................................ 17

3.4 Future Demand and New Expenditure.......................................................................173.4.1 Future Demand.................................................................................................................... 173.4.2 New Expenditure................................................................................................................. 173.4.3 How New Works are Funded............................................................................................... 183.4.4 Other New Works issues..................................................................................................... 183.4.5 New Works Forecast........................................................................................................... 18

3.5 Asset Retirement / Disposal.......................................................................................19

4 Resource allocation and budgeting 194.1 Funding the Annual Net Cost – ‘Who Pays?’.............................................................204.2 Schedule of Fees and Charges..................................................................................20

5 Environmental Management, Regulatory Matters and Activity Management Issues 21

5.1 Environmental Management Issues...........................................................................215.2 Demand Management...............................................................................................21

6 Significant Negative Effects 226.1 Road Safety...............................................................................................................22

7 Significant Assumptions, Uncertainties, and Risk Management 237.1 Assumptions and Uncertainties..................................................................................23

7.1.1 Growth 237.1.2 Costs 23

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7.1.3 Useful Lives......................................................................................................................... 237.1.4 Legislative Environment....................................................................................................... 237.1.5 Planning Environment.......................................................................................................... 247.1.6 Risk Management................................................................................................................ 24

8 Roading Bylaws and Statutory Obligations 248.1 Bylaws....................................................................................................................... 248.2 Principal Statutes.......................................................................................................25

9 Business Improvement 259.1 Activity Management Plan Improvement and Review,...............................................259.2 Public Consultation....................................................................................................25

10 Improvement Plan 25

Annex I List of AppendicesAnnex II Financial SummaryAnnex III Change in Network Service PotentialAnnex IV Planned New WorksAnnex V Setting the Level of Roading Asset Management

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1 Introduction

1.1 Background

The Local Government Act 1974 vests ownership of roads, other than State Highways, in the Council. This makes continued Council ownership the only available option. State Highways are vested in the Crown and are maintained by Transit New Zealand. There are three State Highways in the District, State Highway 1, State Highway 7 (the Lewis Pass road) and State Highway 7A (to Hanmer Springs).

The Hurunui District Council has no direct role in the provision of public passenger transport, a function allocated under the Land Transport Management Act to regional councils, but it does have an advocacy role on behalf of its citizens.

The Council considers that the provision of the roading network is a core function of local government. Roading is largely for public benefit and promotes the economic, social, environmental and cultural wellbeing of the District’s communities, by providing for people and goods to move safely and efficiently throughout the District.

1.1.1 Roading Assets

The Hurunui District Council is responsible for the management of a roading network that comprises of approximately:

Table 1 Asset Summary

Sub Asset Category QuantityRoads

Sealed 597.5-kmUnsealed 856.1-kmUrban 75.6-kmRural 1,377.9-kmUnformed 861.0-kmNetwork Length 1,453.6-km

Kerb and channel 38.1-kmFootpaths On-road 47.1-kmBridges

Bridges other than timber

182, totalling 5,397m

Timber Bridges 35, totalling 395mCulverts greater than 3.4 sq m

50

Traffic facilities 0.0-Street lights 883-eachSigns 23,732-eachMarkings Inventory to be

verified-Cycleways 0.0-km

Link: HDC RdAMP Apx A Overview 3.0.7.xlsx]Summary > $B$17. Data: 2/04/09 to 11/11/09

Version 3.0 Section 3 The Existing Situation Page 1


In addition, there are approximately 2,768 km of unformed legal roads.

The estimated usage of these roads is 66 million vehicle-km per year (0.67 x 108 vkt/yr)1 and their depreciated replacement cost, at 30 June 2008, was $231,767,113 Goal and Principal Objectives

The vision for the land transport network of the Hurunui District is:

“To provide a transport network that is accessible for all people within the region.”

The principal objectives of the network are:

To maintain and enhance levels of service that reflect the needs of economic growth and diversity of road users

To ensure that the levels of service be delivered reliably, efficiently and economically

That maintenance and development of the land transport system has regard for environmental effects

Through inter-regional and intra-regional co-ordination, maintain a consistent and safe roading environment.

To promote education and engineering programmes that target road safety issues of specific concern to Hurunui District

To promote walking and cycling within the District

1.1.2 Community outcomes to which the activity contributes

Table 2: Community Outcomes to which the Roading Activity primarily contributes

Well-being Community Outcome Sub-Outcome How Roading Contributes Towards The

Outcome

SocialEconomicEnvironmentalCultural

A desirable place to live

Attractive, well designed villages that present a positive image encouraging people to live in and visit the area

By designing, constructing and maintaining the road network to industry standards and best practiceBy designing, constructing and maintaining bridges, culverts and stormwater structures in a manner that minimises hazards.By designing, constructing and maintaining appropriate warning, advisory and regulatory signs on the road network

A strong sense of community that gives people a sense of belonging and encourages them to take part in local activities, to support essential volunteer services, and to be involved in local consultation and decision making

Provision and maintenance of the roading network allowing people to access these activities

Opportunities in leisure, art and cultural activities

Effective planning for future development but ensuringthe preservation of local heritage and rural uniqueness

By planning, designing, constructing and maintaining the road network in a manner that considers future needs alongside those of existing users and residents.By maintaining the roading asset in a manner that is sensitive to the diverse heritage of the District

1 Source: HDC RdAMP Apx A Overview 3.0.2.xls]Hierarchy > $C$1Page-2 Section 3 The Existing Situation Version 3.0



Outcome

Social A healthy place to live

Essential infrastructure meets the needs of the District’s communities

By designing, constructing the road network to industry standards and best practice and maintaining it in a manner such that:the needs of future generations are considered alongside those of existing users and residents.

safety is improved.appropriate warning, advisory and regulatory signs are provided on the road network

dust-free surfaces are provided on roads where economically viable

By providing new and upgraded kerb and channel, footpaths and streetlightsBy designing, constructing and maintaining bridges, culverts and stormwater structures in a manner that minimises hazards.By designing, constructing and maintaining appropriate warning, advisory and regulatory signs on the road networkBy maintaining close liaison with the tangata whenua on all known and potential matters of interest to them.By maintaining and developing the roading assets in a manner that is sensitive to the diverse heritage of the District.

Economic Thriving Local Economy

A transport network which supports the safe and efficient movement of people and goods

By designing, constructing and maintaining a reliable road network.By designing, constructing and maintaining the road network in an affordable manner.By designing, constructing and maintaining the road network to industry standards and best practiceBy providing dust-free surfaces on roads where economically viableBy providing an efficient transportation system that limits exhaust emissionsAll measures listed in this Activity Management Plan

SocialEconomicCultural

Essential Infrastructure

A safe quality road infrastructure that is well maintained

By designing, constructing and maintaining the road network to industry standards and best practiceBy providing dust-free surfaces on roads where economically viableBy planning, designing, constructing and maintaining the road network in a manner that considers future needs alongside those of existing users and residents.By designing, constructing and maintaining the road network in a manner such that the full social and economic costs and benefits of projects are taken into consideration.

Environmental Environmental Responsibility

Clean, healthy air quality

By providing an efficient transportation system that limits exhaust emissionsBy providing efficient and appropriate stormwater collection, and basic treatment, systems in urban areas

Environmental safeguards and protection for natural

By providing dust-free surfaces on roads where economically viable




Outcome

assets balanced with property owner’s rights

By maintaining significant areas of native vegetation and areas of significant native vegetation in environmentally sensitive waysBy providing efficient and appropriate stormwater collection, and basic treatment, systems in urban areas

Clean and plentiful water in our rivers, lakes and streams

By installing and providing bridges and culverts in environmentally sensitive ways.Provision and maintenance of a roading network that allows people to attend schools and other places of skills education

SocialCultural

Skills and Education for Work and Life

By providing and maintaining a road network that provides for people and communities to travel to schools, community centres places of work and other locations where they can gain or enhance skills and improve their education.

1.1.3 Public Concerns

Past customer surveys have shown that roads cause a high level of dissatisfaction compared to any other Council service. Footpaths are also cause for dissatisfaction with the predominant reasons stated was rough surface, poor road maintenance and condition and a lack of footpaths.

The methods used to address these concerns include:

A programme of seal extensions, safety improvements and road reconstruction

A significant ongoing programme to upgrade existing footpaths and construct new ones

A change to use of ‘hybrid’ type maintenance contracts to provide better value for money to the District

Funding and support for road safety education programmes

1.2 Objective of Roading Activity Management Plan The objectives of this Activity Management Plan are to explain, clearly and succinctly, the Council’s strategic and management approach for roading, footpath and car parking assets and to ensure that the service the network provides and the costs of delivering these services represent value for money to the Council’s customers. This plan has been prepared in a manner that enables its programmes and forecasts to be transferred directly into the Long Term Council Community Plan.

Value for money is defined as:

Ensuring the level of service required by our customers is provided at the lowest long-term cost to the community”

This Activity Management Plan provides the support material for the Long Term Council Community Plan. It is intended to be a complete record of the asset, the methods used to manage it, and the activities associated with it. This plan will be continuously updated via the various “supporting documents”. There is a separate supporting document for every key strategic and management aspect of the activity.

Page-4 Section 3 The Existing Situation Version 3.0


Each supporting document contains a summary of the strategic approach and management approaches to that particular issue. The strategic conclusions are then taken forward to the Management Plan itself, and the management issues into an ‘implementation and management improvement programme’ (see Appendix ‘V’).

The intention is that the Council can be satisfied that this plan will form a major part of its ability to satisfy the community, and the Council’s auditors, as to:

“the quality of the information and assumptions underlying the forecast information provided [in the consultation LTP];

and

the extent to which the forecast information and performance measures provide an appropriate framework for the meaningful assessment of the actual levels of service provision.”2

The Plan will be an important and useful management tool that will be kept updated on a continuous basis.

1.2.1 Plan Objectives

This plan meets the following objectives:

Basis for Council Involvement — makes the rationale for the Council’s involvement in roading clear;

Evolutionary — builds on the existing situation and on the information that the Council already has, especially in its earlier Asset Management Plans;

Complete — All relevant information pertaining to current and future management of the asset is included in the Activity Management Plan. This ‘Activity Management Plan’ has been developed in this format to avoid the necessity for the Council to have to prepare a separate ‘Asset Management Plan’ for this activity. In this context, ‘asset management’ means:

“Systematic and co-ordinated activities and practices through which an organisation optimally manages its physical assets, and their associated performance, risks and expenditures over their life cycles for the purpose of achieving its organisational strategic plan.”

The approach taken envisages all of the physical asset management matters, which would otherwise be addressed in a separate Asset Management Plan, being addressed together with explanations of how the Council intends to manage its human assets, information assets, intangible assets (reputation etc.), and financial assets, in order to achieve the stated organisational strategy.

Two key reference documents in this regard are:

The International Infrastructure Management Manual (New Zealand edition), published by the Association of Local Government Engineering New Zealand (Inc.) (INGENIUM); and

The draft ‘Specification for the Optimised Management of Physical Infrastructure Assets’, prepared by the British Institute of Asset Management.

2 Local Government Act 2002 Section 84(4)Version 3.0 Section 3 The Existing Situation Page 5


Focus — the plan is outcomes and outputs focussed;

Legal Obligations — enables the Council to readily substantiate that it has met its legal obligations and enables it to satisfy all Audit and, The NZ Transport Agency requirements;

Strategic Approach — provides a clear statement for the elected representatives of the local strategic approach towards the provision of the particular service, and of the levels of that service that it is aiming to provide (i.e. a strategic plan) for the particular asset;

Transparency —

Produces an output that enables the public to easily and readily see and understand what the Council’s strategic and management approach to the activity is.

Will automatically result in there being a clear audit trail of the way that decisions have been made (and the reason(s) for the chosen option) – a necessary requirement now pursuant to Section 77 of the Local Government Act 2002.

Guidance — provides clear policy guidance of the Council’s expectations to managers and other staff;

Robust — provides clear evidence of the local authority having decided the District’s future direction, and its development programme, in a robust manner;

Continuing Improvement —

Is easily able to be kept continuously updated; Is able to be gradually enhanced and developed, in stages, until the desired level of

‘advanced activity (asset) management planning’ is reached; Produces an implementation and improvement plan for the Council’s managers, in a

form that can be easily integrated with the Council’s overall controls for management of the particular activity;

Is not only able to be used by, but the method of its compilation encourages its use by, managers as a working document and prime management tool to aid continuous improvement throughout the year;

Compatibility — Avoids the necessity for the Council to do any further work (other than minor titivating) relating to this activity for the Long Term Council Community Plan (or Annual Plan). In other words, it is prepared and formatted in a way so that the information in it can be ‘dropped directly’ into the Long-term Council Community Plan;

Consistency —

is at all times consistent with all of the Council’s higher-level strategic and other plans, especially the District Plan, Strategic Plans, and Catchment Management Plans;

Is consistent with the Activity Management Plans for all other Council activities;;

Integration —

Expresses the forecast future capital costs in terms of ‘backlog / maintenance’ of existing levels of service, ‘increased levels of service’, and ‘growth in order to support the Council’s Development Contributions / Financial Contributions policy, as a routine step in the process;

Includes the Council’s Funding Policy for the Activity; Avoids or eliminates the unnecessary duplication that would otherwise occur in a

variety of areas; When read by a newly appointed ‘Activity Manager’, will give that person a clear total

picture of the whole situation relating to the activities that he/she is to have responsibility for;



Focus — as a result of the way in which it has been ‘put together’ and is required to be updated, forces stronger, more co-ordinated and focussed management of the activity, and greater accountability allowing the Council to focus less on the preparation of plans to meet statutory requirements, and more on more effective and efficient long-term management of the activity.

1.3 Asset Management Level

In 2008/09, the Hurunui District Council commissioned Waugh Infrastructure Management to review its asset management practices with a view to determining the appropriate level of asset management for each of its activities. This review recommended that the appropriate level for Roading Asset management is Core Plus. The Council adopted this recommendation on 27 November 2008 at an ordinary Council meeting.

A copy of the Waugh report is attached as Annex V to this Plan.”

2 Levels of Service, Performance Measures, and Relationship to Community Outcomes

2.1 Levels of Service and Community Outcomes

The Levels of Service developed in this Plan are based on the District’s Community Outcomes. The Community Outcomes are the result of public consultation carried out up to and during preparation of the 2009/19 Long Term Community Council Plan (LTP).

In establishing the Levels of Service the Council has considered its legal obligations, comments made to it through formal consultation processes, the results of customer surveys, sound engineering practice, affordability and economic efficiency.

As not all roads can reasonably be expected to provide identical levels of service a road hierarchy has been established to assist in defining the expected levels of service. The road hierarchy reflects the significance and importance of each road in the District Road Network, generally, the higher a road’s status in the hierarchy the more traffic a road will carry. Hurunui District Council roads fall into the following hierarchy:

Strategic Arterial Roads

District Arterial Roads

Collector Roads

Local Roads

For the purposes of establishing levels of service that are sensible to the road-user and at the level of individual roads these five hierarchies have been rearranged into the following groups, for which current and desirable levels of service are established:

Strategic and Arterial Roads

Collector and Urban Collector Roads

Local Urban Roads

Local Rural Sealed Roads



Local Rural Unsealed Roads

Unsealed Urban Roads are not included in this list as there is only a small number of them and the Council considers that the minimum level of service for them is a sealed surface.

There are four carriageway service indicators, capacity; ride quality; safety and appearance; and responsiveness; that are used to define the levels of service on each of the roads in each of these groups.

The roading asset is also made up of a number of different components, each of which naturally delivers completely difference “service”. Apart from the carriageway, upon which motor vehicles normally run, there are also seven other associated roading sub-assets; footpaths and cycle ways, kerb & channel and drainage, bridges and fords, street lighting, road marking and delineation, signs, and appearance.

There is only a very shall amount of public off-street car parking that is not directly associated with an adjacent public building, such as the Council’s Amberley Offices, or with a public reserve maintained as a Community, rather than Roading, asset. Currently these public off-road car parks have not been identified but this is programmed to occur early in 2011/12.

The relationship between these level of service indicators and the Council’s Community Outcomes is illustrated below:

Table 3, Community Outcome Linkages

Service Indicator Sub-indicator Related Community OutcomeCarriageway Ride quality Economic wellbeing

Width Economic wellbeingSurface Economic wellbeing

Social wellbeingEnvironmental wellbeing

Safety Social wellbeingFootpaths and cycleways Presence Social wellbeing

Width Social wellbeingSurface Social wellbeingSafety Social wellbeing

Kerb & channel and drainage Presence Economic wellbeingSocial wellbeingCultural wellbeingEnvironmental wellbeing

Type Social wellbeingCultural wellbeingEnvironmental wellbeing

Material Social wellbeingCultural wellbeingEnvironmental wellbeing

Bridges and fords Width Economic wellbeingEnvironmental wellbeing

Load capacity Economic wellbeingEnvironmental wellbeing

Availability (fords) Economic wellbeingSocial wellbeingEnvironmental wellbeing

Cycle lanes Social wellbeingEnvironmental wellbeing

Pedestrian facilities Social wellbeingEnvironmental wellbeing

Street lighting Presence Social wellbeingEnvironmental wellbeing

Standard Social wellbeing



Service Indicator Sub-indicator Related Community OutcomeSafety Social wellbeing

Road marking and delineation Presence / use of marking and delineation

Economic wellbeing

Signs Legal compliance Economic wellbeingPresence of Name-blades

Economic wellbeingCultural wellbeingEnvironmental wellbeing

Appropriate warning of hazards and sudden changes

Social wellbeing

Appropriate information provided

Economic wellbeingCultural wellbeingEnvironmental wellbeing

Appearance Painted surfaces Social wellbeingTownship roadsides Social wellbeingRural roadsides Social wellbeing“Noxious weeds” Social wellbeing

Environmental wellbeingWeeds in footpaths and gutters

Social wellbeingEnvironmental wellbeing

Cleanliness Social wellbeingEnvironmental wellbeing

Offensive matter and crash debris

Social wellbeingCultural wellbeingEnvironmental wellbeing

NZ Transport Agency (NZTA) has issued maintenance guidelines for all road controlling authorities, which have been incorporated in the various maintenance contracts as appropriate.

2.2 Reporting

2.2.1 Targets and Measures

Performance measures/indicators for the District’s roading network have, to date, largely been found within the specifications for the various contracts the Council has made with contractors and consultants for the maintenance and development of the road network. The maintenance contracts set fault trigger levels and response time requirements.

The District’s safety performance indicator is to “experience a downward tracking in the annual accident rate over the next 5 years”.

The NZTA requires all road-controlling authorities to annually report on achievements and a number of performance indicators.

The NZTA also records and analyses traffic crashes and publishes an Annual Report for Hurunui District covering reported crashes over the previous 5-year period.

Environment Canterbury’s (ECan’s) Regional Land Transport strategy sets out indicators and monitoring requirements for a safe, efficient, accessible network that also has regard for the environment.

Reporting also includes regular staff reports to the Council’s Works and Services Committee.



2.2.2 Network Performance

The information reported in these ways forms the basis of the following Network Performance Measures. These measures will be reported in the Council’s Annual Reports. Progress towards them, and the latest Achievements are detailed in Appendix B — Levels of Service

Table 4, Network Performance Measures

Measure TargetLTP Measures1.

a.

Essential Infrastructure

Maintain infrastructure to a standard appropriate to their use and traffic volume

Roading Survey data compares favourably with other rural councils similar to Hurunui District

Smooth Travel exposure of the network3

Overall 95%

Percentage of “rough” roads on the Hurunui District’s sealed network Overall

5%

Pavement Integrity Index for sealed roads Overall

95%

Surface Integrity Index for sealed roads Overall

95%

NZTA audits confirm that the roading network is in satisfactory condition

Audits are carried out at approximately 3- to 5-yearly intervals as determined by the NZTA

2005 - Yes

40-km of sealed roads have waterproof sealing applied per-year

Annual length resealed 2007/08 40km

b. Good quality streetlights Reduce the percentage of substandard lights by 1% annually to 4% by June 20132009/102010/112011/122012/13+

7%6%5%4%

c. Good quality kerb and channel in urban areas

Reduce the percentage of deficiencies in kerb and channel by 1% annually to 2% by June 20132009/102010/112011/122012/13+

5%4%3%2%

d. Good quality footpaths in urban areas

The percentage of defects footpath surfaces does not increase

Currently 0.2%

3 Determined in accordance with NZTA definitions and reporting criteria incorporated in the algorithms included in the RAMM database by the Agency..



Measure TargetThe percentage of urban streets (by length) without smooth footpaths reduces to 12% by June 2013.

2009/102010/112011/122012/13+

15% 14% 13% 12%

2. A healthy place to live

a. Residents’ satisfaction The proportion of those surveyed considering the standard of sealed roads to be satisfactory or better increases to 80% by June 2013 2009/10 2010/11 2011/12 2012/13+

70% 75% 75% 80%

The proportion of those surveyed considering the standard of unsealed roads to be satisfactory or better increases to 60% by June 2013 2009/10 2010/11 2011/12 2012/13+

50% 55% 60% 60%

b. An additional 1km of unsealed road is sealed each year

Length of seal extension (km)

c. Bridges have adequate strength and are well maintained

All bridges are capable of carrying Class 1 loads Number of load restricted

bridges

Bridges and bridge components will be prioritized for renewal and a replacement programme implemented Number of renewed bridges

and major structural components

i. 20010/11

20 bridges

Bridges are inspected regularly, according to need, and not less than once in 5-years Number of bridges over-due

for inspection Nil

d. Improving road safety The number of road crash fatalities on Hurunui District’s roads reduces 2009/10 2010/11 2011/12 2012/13+

By 5% By 10% By 10% By 20%

Internal measures



Measure Target3 Unsealed roads Length of unsealed roads (km)

Proportion of unsealed network carrying > 100 veh/day

Proportion of unsealed road length in the maintained network

Proportion of travel on unsealed roads (vkt)

8540.5%

58.9%

<5%

4 Urban Streets Proportion of urban streets (by length) with substandard street lighting by June 2013

2%

5 Bridges Proportion of load-restricted bridges in the network

0%

Proportion of network accessed over load-restricted bridges

3.3%

6 Road maintenance and renewal Average remaining seal life (years) on all roads

7-years

Value for Money Maintenance Cost / vkt (Total

value of subsidised maintenance based on final The NZ Transport Agency claim)

Value of Deferred Maintenance at end of year

Change in Network Service Potential4

< $0.05 <5% of

maintenance budget

-1 % to +5%

7 Road safety Total number of injury crashes per 100 million vehicle km travelled (108vkt) on local roads

Urban 30Rural 27

3 The Existing Situation

3.1 Assets

3.1.1 Assets Required.

To fulfil the Council’s social and legal obligations and to meet the outcomes it has agreed with its community the Hurunui District Council requires a roading network that provides:

Certainty of public access, through Council ownership or formal agreements for the use of land under roads

Appropriately surfaced carriageways that provide for the safe movement of people and goods

Culverts, surface water channels and storm water drains to remove runoff from the road and thus help maintain its integrity

Road user information and enhanced safety through use of signs, barriers and pavement markings

4 Levels of Service or Service Potential are a key performance factor determined by the Local Government Act 2002 (cf. LGA s100(2) and 2002 Sched 10 s2(1)(d) )



Bridges to carry traffic over waterways

Footpaths, walkways and cycle-lanes to transport pedestrians and cyclists

Street lighting to provide for safe and comfortable movement of pedestrians and vehicular traffic at night in built-up areas

Off-road car parking where these facilities not able to be provided adjacent to traffic lanes

3.1.2 Asset Register

The Council’s asset register is maintained in its RAMM5 database. It was first compiled in the early 1990’s and has been continually updated since then. As roads and the road asset are dynamic assets they are continually changing work always needs to be done to record the current details of some of the roading assets, and to be able to accurately ascertain the condition, serviceability and remaining useful lives of some asset components, particularly on lightly trafficked metal roads. This information is required to allow more accurate prediction of future needs.

The major component of the network is the carriageway.

The following charts show the distribution of carriageway types by hierarchy and between urban and rural areas.

Figure 1 Carriageway Types

-200 400 600 800

1,000 1,200 1,400 1,600

Arterial Collector Local Grand Total

Unsealed - 16.848 839.202 856.050

Sealed 82.337 154.947 360.003 597.287

Concrete - - 0.221 0.221

km

Carriageway TypesData: 11 Nov 09

Link: HDC RdAMP Apx A Overview 3.0.6.xlsx]Hierarchy > $A$24

5 RAMM (Road Assessment and Maintenance Management), is a comprehensive road asset management software suite developed by CJN Technologies, Transit NZ and Transfund NZ, (now The NZ Transport Agency). It is used by virtually all road controlling authorities in NZ and endorsed by The NZ Transport Agency.



Figure 2 Carriageway Types

0.0%

20.0%

40.0%

60.0%

80.0%

Sealed Unsealed

Rural 36.5% 58.3%

Urban 4.6% 0.6%

Prop

ortio

n of

Net

wor

k To

tal

Network length

0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

Sealed Unsealed

Rural 67.7% 20.4%

Urban 11.7% 0.2%

Prop

ortio

n of

net

wor

k vk

t

Vehicle-km travelled /year

Link: HDC RdAMP Apx A Overview 3.0.6.xlsx]Hierarchy > $A$68. Data: 3/11/09

Some 66,755,526 vehicle-kilometres are travelled (vkt) on these roads annually, with 4,916,000-vkt being in covered in urban areas 58,787,839-vkt on rural roads. (Source: HDC RdAMP Apx A Overview 3.0.2.xls]Hierarchy > $G$62)

Bridges are the other significant asset element. The Bridge Inventory is summarised in the following chart.

Figure 3 Bridging Summary

0

50

100

150

200

250

0

1,000

2,000

3,000

4,000

5,000

6,000

Concrete Steel Timber Other Concrete Steel Timber Other Concrete Steel Timber Other Grand

Single Lane Ambiguous Two Lane Total

Length (m) 2805 1525 375 7 492 9 16 171 347 41 5 0 5792Quantity 89 56 31 1 11 2 3 2 20 1 1 0 217

Num

ber

Leng

th (r

oad

cent

relin

e-m

)

Bridge SummaryData: 2 Apr 09

3.2 How the Roading Assets are Maintained and Operated

Maintenance and Operation are discussed in detail in Appendix E.

Maintenance in this context includes most activities normally associated with the word but excludes “renewals”, which are the replacement of long-life assets or components at the end of their useful lives. Renewals are detailed in a separate section, below. Maintenance also excludes new works, and works whose prime purpose is to improve levels of service, e.g. seal extensions

The Council’s operational maintenance strategy is to provide the most cost effective maintenance solution in each circumstance. This is done by:

monitoring the condition and performance of assets,

investigating any system deficiencies which are outside the parameters of the target level of service,



identifying the work required to correct defects, and

engaging skilled, qualified and experienced contractors after seeking prices for work on the competitive market.

Assets are monitored through routine proactive inspections, testing and the analysis of customer complaints and condition reports. Service levels are managed by assessing the consequences of asset failure and assessing the levels of customer expectation. Asset ownership costs are minimised by identifying, evaluating and introducing new technologies and equipment that may improve operational and management efficiencies.

All physical maintenance activities are carried out under contract. The Council maintains no physical-road-works maintenance staff, either directly or through a Council Controlled Organisation, to carry out road maintenance activities.

The government supports 50% of the cost of many of the maintenance activities carried out on the District’s roads. This support, commonly called “subsidy” but more correctly termed financial assistance, is only available when the work meets particular criteria, specified in The NZ Transport Agency’s manuals, and is generally not available for amenity works or work on footpaths or off-road facilities. The Inland Road between Mt Lyford and the Conway River is an exception to the normal subsidy regime. This road (17.3km) is designated a special purpose road because of its national significance and attracts a 100% maintenance subsidy.

The Council has in place a Civil Defence plan that has been prepared in accordance with the Civil Defence Act 1983. This plan will be updated to meet the requirements of the Civil Defence Emergency Management Act 2002.

The Council also has an Adverse Events Plan to cover those events that may occur that do not activate a full civil defence emergency.

3.2.1 Maintenance and Operating Issues

Maintenance of the road network has generally been to a standard sufficient to maintain safety, keep abreast of maintenance and respond to most public complaints. However, the development of this Activity Management Plan has highlighted four principal areas where maintenance has not kept up with demand, or where it may fall behind if something is not done. These are: road widths (seal widening), seal extensions, area wide treatment or strengthening overlays, and short culvert barrel-lengths creating pinch points.

The overall condition of the network has been improving over the years but, in some instances, user expectations have increased faster than the improvements can be funded or implemented. However, the adoption of the agreed levels of service should go some way to addressing this.

3.2.2 Business Continuity, Emergency Management and Reinstatement

The Council has in place a Civil Defence plan that has been prepared in accordance with the Civil Defence Act 1983. This plan is to be updated to meet the requirements of the Civil

The Council also has in effect an Adverse Events Plan to cover those events that may occur but do not activate a full civil defence emergency.

Emergency reinstatement refers to unforeseen significant expenditure that arises from a defined, major, short duration natural event such as earthquakes or major floods It allows for the restoration of roads and roading structures to a standard no better than that which existed before any damage occurred.

The Hurunui District Council has experienced only three adverse events that have required emergency expenditure since its formation in 1989. It is understood that the previous local



authority did not experience these types of events in the 10-years preceding amalgamation either; therefore no financial provision has been made for Emergency Reinstatement. It is expected that should there be a need for such work, there would be significant expenditure required and the costs, after subsidy, would be met by loans.

Expenditure on “predictable” and minor emergencies, such as heavy, but not extreme, snow, wind or rainstorms, is funded as routine maintenance under the corridor maintenance category.

3.2.3 Maintenance Forecast

The Maintenance Forecast is at Appendix E. Maintenance forecasts by activity area are also outlined Annex II to this plan

3.3 Renewals and Depreciation

Renewals are discussed in detail in Appendix F — Renewals.

Asset renewals are activities that go beyond maintaining the serviceability of an asset and extend its life significantly. For roads, the main parameter that signals the need for renewals is the condition of asset elements. As an element deteriorates some of its characteristics change, for example, a sealed road surface will become rougher with age and a sealed-carriageway will crack and lose chip as it ages, eventually losing its waterproofing qualities.

All renewal activities are carried out under contract. The Council employs no maintenance staff, either directly or through a Council Controlled Organisation, to carry out road maintenance or renewal activities.

The renewal activities listed will take place across the District, based on the state of the assets and the relative priority of the work. In assessing the relative priority, staff will consider the requirements of the Council’s Safety Management System for Roads.

3.3.1 Renewals funding

Roading renewals are not funded from depreciation charged on roading assets; rather, the costs of renewals are met as direct costs. Nevertheless, depreciation — an amount charged over a period to reflect the cost of the portion of the life of the asset ‘consumed’ over that period — is calculated and charged annually. This amount is compared with actual and forecast expenditure on renewals as one measure of the Council’s commitment to maintain the current service capacity and integrity of the Council's assets.

Not all components of the network deteriorate over time and hence depreciation is not charged on all components. Land is one example of a non-deteriorating component. A complete discussion on depreciation is contained the Associated Documents.

3.3.2 Particular Renewals Issues

3.3.2.1 General

The most significant issue when renewing roading assets is the difficulty in obtaining NZTA financial assistance for renewal works, because of the very low traffic volumes on many of the District’s roads.

Approximately 26% of sealed surfacings have exceeded their design lives by more than 2-years. While some of these “over-runs” could be the result of missed reseal dates in the data collection process, most are considered to be the result of better than expected achievement – typical of the upper end of the “bell curve” that defines the distribution of lives around the mean. (Source: [HDC RdAMP Apx F Renewals v3.0.3.xls]Surfacings > $A$123)



3.3.2.2 Bridges

There are 48 bridges, with a total replacement value of $42,297,893 that do not meet the NZTA’s requirements for funding, because they are deemed to be “uneconomic”. These are discussed in detail in Appendix F — Renewals. Source: [HDC RdAMP Apx F Renewals v3.0.3.xls]Bridges > $A$13

3.3.2.3 Roads

The current NZ Transport Agency funding arrangements with do not allow certainty when programming renewals works, especially pavement renewals. The programmes developed in this plan are based on sound engineering practice and, where applicable, industry and NZTA accepted modelling techniques, nevertheless the NZTA’s economic based approach can sometimes preclude funding for some projects.

3.3.3 Renewals Forecast

The Renewals Forecast is at Appendix F. Renewal forecasts by activity area, are also outlined Annex II to this plan

3.3.4 Change in Service Potential

In is accepted practice that the useful capacity of an infrastructural network, such as the Council’s roading network, can be represented by its replacement cost. From an asset management perspective the most useful part of this measure is its annual change, which can provide an indication of the long-term sustainability or otherwise off the investments being made in the network.

Standard practice is that the annual change in network service potential (sometimes call decline in service potential) is measured by the difference between annual depreciation6 and the annual investment in asset renewals, at a network level.

Because the change in network service potential varies with changes in both the annual budget and the asset valuations, it changes year-on-year. To facilitate more accurate and timely reviews of the changes in network service potential it is discussed in Annex III below, which can be amended and updated more easily than the body of this plan.

3.4 Future Demand and New Expenditure

3.4.1 Future Demand

The land transport network is responsible for the efficient movement of people and goods throughout the District and to neighbouring districts. The land transport network is a core facility maintained by the Council to assist it in meeting its Community Outcomes.

The major factors that may force the need for change on the assets are a change in population, a change in the way a road is used, a change in the level of service demanded by the road users, and a change in the strategic management of the assets.

No rigorous demand predictions have been prepared for the Hurunui District.

The District population has grown slowly but steadily over the last 10 years, with the majority occurring in the built-up areas of Hanmer Springs and Amberley. There has been some recent movement towards small “lifestyle” holdings in the rural area but this is not yet having an appreciable effect on the District’s road network. As the bulk of traffic in the District is carried on

6 Calculated using the Optimised Depreciated Replacement Cost method



the State Highway network, owned and maintained by the Crown, any effects of growth on the road system are largely confined to the areas experiencing the growth.

There is one significant exception to this “minimal effect’ rule of thumb, Hanmer Springs. Growth here has been significant and is putting considerable strain on the Council to upgrade the facilities in the older parts of the town to match those being provided by developers in newer areas.

3.4.2 New Expenditure

Demand for new or upgraded facilities arises from the needs of the existing population i.e. meeting the level of service standards, changing habits, and population growth. This demand can manifest itself in the need for:

New roads;

Sealing of unsealed roads;

Widening and alignment improvements;

Upgraded intersections;

New or upgraded bridges;

Appropriate urban facilities in closely settled areas, e.g. streetlights, kerb and channel, footpaths

These projects are identified via monitoring, community and Council input, and through statutory requirements. The condition of the network and its components are continually monitored and council staff, contractors and consultants identify development opportunities. The concerns and desires of all stakeholders are also identified, considered and taken into account through feedback and consultation. To date the rate of development has not generated a need for any new roads outside the subdivisions themselves; this is expected to remain the case at the current rate of development.

Projects are funded based on need, with funding priorities determined on condition and any known safety deficiencies. Where there are competing projects preference will be given to those eligible for subsidy. New footpaths and kerbs and channel are funded from the Amenities budget, which is allocated to and approved by Wards Committees.

The new works planned to be provided during the next three years are listed in Annex III.

3.4.3 How New Works are Funded

The Council’s share of new works above $100,000 is funded from reserves or by loans over 20-years with the cost met by the District Roading Rate. The Council’s share of new works expenditures less than $100,000 is funded as operational expenditure from the District Roading Rate.

Other sources of funds for roading improvements are:

Financial Contributions, levied under the Resource Management Act 1991 (the RMA). The policies to offset adverse effects of a particular development are identified in the Hurunui District Council’s District Plan.

Development Contributions, levied under the Local Government Act 2002 (the LGA) for growth related projects that are identified in the Council’s Long Term Council Community Plan.

Existing residents, through rates and loans..



Direct contributions from residents, e.g. towards seal outside a residents’ property.

Councils can require contributions from developers to offset the costs or adverse effects of growth. However, to do so the mechanisms must be stipulated in a Development Contributions Policy and the District Plan must contain rules providing for Financial Contributions. The Council cannot take Development Contributions for the same purpose as it has also levied Financial Contributions.

Debt, loan repayment period, priorities, impact of future debt level, and similar topics are discussed in Appendix J — Debt and Loan Servicing

3.4.4 Other New Works issues.

3.4.4.1 Land Transport Programme

The Land Transport Management Act 2002 requires that the Regional Transport Committee, of which the Hurunui District Council is a member, to prepare a Land Transport Programme three-yearly, to coincide with the Long Term Council Community Plan cycle, and to formally consult the public on it. The Hurunui District Council prepares a Land Transport Programme as an input to this process.

3.4.5 New Works Forecast

The New Works Forecast is at Appendix F. New works forecasts by activity area, are also outlined Annex II to this plan; the forward programme for the next three years is at Annex III.

3.5 Asset Retirement / Disposal

Assets are considered for disposal when they become uneconomic to own and operate, such as when they become an uneconomic roading facility as supported by The NZ Transport Agency, or through rationalisation of the asset stock.

The use of revenue arising from the sale of any assets will be credited to the respective operating account at the time of the asset’s disposal.

Other than Deans Bridge on Kilmarnock Rd, which has been bypassed and is scheduled to be sold in 2008/09, no major assets are expected to be disposed of over the next 10 years.

4 Resource allocation and budgeting

Resource allocation and budgeting are components of the continuum illustrated in Figure 4 below. Changing any part of this continuum affects all the other parts. While none of these effects is unexpected, the sequence of events is often lost sight of.



Figure 4 The budgeting continuum

At the Core Plus level of asset roading management adopted by the Council budgets should be based on asset management needs developed through the asset management process. While the process is continuous the start point of each cycle at the Core Plus level is Levels of Service; thus if a particular budget outcome is required this will normally be achieved by adjusting the levels of service. However, even in organizations exhibiting the highest levels of best practice asset management there will be occasions when the immediate needs of the assets cannot be met by available funding and budgets are adjusted ahead of changes in levels of service.

The continuum illustrated Figure 4 shows that the immediate effect of a change in budget is on resource allocation. A change in budget influences levels of service and the expected end-of-period condition and performance of the assets through their immediate effects on resource allocations. This change in turn affects the Council’s programs and ultimately its performance.

These considerations provide the basis for the Council’s asset management process when there is an urgent need or desire to reduce or increase a budget or a budget has been unexpectedly changed. The appropriate response is to:

Review planned resource allocations.

Determine the effects these will have on agreed levels of service.

Assess how these changes in levels of service will be reflected in the end-of –period asset condition and performance.

Adjust the work plan as necessary to achieve the best possible life cycle asset condition and performance within the available budget. This may mean leaving some assets to decline in condition to the stage that they require more expensive action later.

Assess the effects of the revised programs of the agency’s performance targets.

Report the anticipated effects on the targets to senior management.

When the need for a budget change is less urgent or is anticipated, the sequence illustrated in Figure 4 will be followed, starting at levels of service and going through as many iterations as many times as required to produce the desired result. Before any changes to levels of service are confirmed the Council will consider whether the required changes are sufficient to warrant consultation with key stakeholders or customers.


Levels of Service

Asset condition & performance

measures

ProgramsAchieved performance

Budgets

Resource Allocations


4.1 Funding the Annual Net Cost – ‘Who Pays?’

Councils are required to have a Revenue and Financing Policy to show who pays for the services it delivers. There is a list of principles, relating to the funding of expenditure needs, in the Local Government Act 2002 that the Council must take into consideration when it adopts its Revenue and Financing Policy.

Many roading activities receive financial assistance from the Crown, through The NZ Transport Agency. These Crown funds are essentially a user charge and are gathered by the Crown from road user charges, petroleum taxes and similar charges and fees. Currently maintenance activities attract financial assistance at 50% of total cost and construction activities at 60%.

The benefits apply in part to the whole community, as people are free to use any public road in the District. The recovery of subsidies from The NZ Transport Agency reflects partly the private benefits that are attributed to the roading network. However, in many instances parts of the roading activity are not eligible for subsidy. Therefore, the balance of costs must be recovered through rates.

When considering the underlying roading infrastructure the Council recognises that there are benefits to both individuals and to properties, from of the roading activity. The Council’s assessment is that its share of roading costs should be gathered solely from a rate on the capital value of properties, with no uniform annual charges levied as this best reflects equity, use and access to the network.

Private developers generally meet the full cost of new roads, or contribute to the upgrade of existing roads through Development Contributions, the balance of funding requirements are met by the Council and funded as for other new works. For minimum standard, non-subsidised, rural seal extensions, direct contributions are made by benefiting landowners.

4.2 Schedule of Fees and Charges

Some important, but relatively minor aspects of the network’s operation traditionally attract charges or user-pays costs in some districts. The Council’s policies and practices on fees and charges are discussed in Appendix L — Income, Fees, Charges and Funding Policy. In summary, there are few charges or fees, the most common fees charged are for road-opening permits (not charged to utility operators) and for road closures for car rallies.

5 Environmental Management, Regulatory Matters and Activity Management Issues

5.1 Environmental Management Issues

Some roading activities may have potential or actual effects on the environment and the Council is required to monitor the environmental impacts of its activities. Ensuring that all necessary resource consents are applied for, and granted, in a timely fashion is a critical part of road management. The Council has three types of resource consents from Environment Canterbury to cover its roading activities, Global Consents, Period Consents and Project Consents.

The Council maintains an electronic database for all its consents, the majority of which are for activities related to the operation of its various utilities. This database keeps track of all consent requirements and the monitoring of them. It also generates alert notices prior to expiry of consents. Large consent applications, such as a global consent for working in waterways, can take up to a year and $20,000 to $30,000 to prepare and lodge.

Current consents are detailed in Appendix N — Resource Management` Matters:



Consents required from time to time for specific projects are generally relinquished once the work has been completed.

Future resource consents to be sought are also discussed in Appendix N.

The Hurunui District Plan contains two roading designations for the Hurunui District Council under the Resource Management Act for road widening on Osborne Road and Courage Rd.

5.2 Demand Management

The number of motor vehicles per household in the District is predicted to increase in the short term but the change is the medium to long term is very unclear. The Council has adopted the policies set out in the Regional Land Transport Strategy that will encourage and facilitate the reduction in motorised road traffic.

Policies and strategies that will encourage a reduction in the levels of motorised road traffic include:

Aiming to reduce the use of Heavy Commercial Vehicles on local roads as defined in the road hierarchy;

Promoting economic alternatives to roading where alternatives are safe and efficient;

Ensure that significant land use developments provide for a range of land transport movements (cycle ways, waterways, public transport, etc.) in their developments, either directly or as part of a financial contribution;

The District promotes a choice of transport modes, including public transport and provides facilities for cycling and walking particularly within urban centres;

Implementation, where economically acceptable, of the recommendations of the District Cycling/Walking Strategy;

Further development of policies and strategies to manage roading demand is required as part of the Activity Improvement Plan

6 Significant Negative Effects

The Hurunui’s land transport network provides people a high degree of mobility. However, the development of the roading network, despite being the foundation upon which the whole District functions, can also have some negative effects, or more accurately, use of the network can have some adverse effects. These include road safety, local air pollution, road run-off (rainwater that becomes polluted on the road surface) to adjacent land and waterways, traffic noise and vibration, visual impacts, loss and damage of land and natural environments, separation of neighbours and emission of greenhouse gases. These impacts can also have a negative effect on public health and well-being.

Some of these negative effects are beyond the control of the road owner but measures can be taken to alleviate the effect of many and this is taken into account during design and construction of projects and other work.

High volumes of traffic affect residential amenity. The most common effects are noise, lighting and air quality. Dust from unsealed roads causes a nuisance on neighbouring properties.

In addition to the effects on air quality discharges from motor vehicles has the potential to diminish the water quality of adjacent streams from the run off from the roads.



6.1 Road Safety

On the Hurunui District’s roads there were 2 fatal, 10 serious, 42 minor and 70 non-injury traffic crashes in the years 2000 - 2004. In 2004 the social cost of road crashes on local roads, according to the NZ Transport Agency Road Safety Report, was $19.91 million. This was 0.55% of the social cost of all crashes New Zealand.

The social cost of a road crash includes a number of different elements:

Loss of life and life quality;

Loss of output due to temporary incapacitation;

Medical costs;

Legal costs;

Property damage costs.

The average value of a loss of life due to a road crash is estimated by the amount of money the New Zealand population would be willing to pay for a safety improvement that would result in the expected avoidance of one premature death. It, and the social cost of each crash, is established by the NZ Transport Agency on behalf of the Crown.

The Hurunui District currently ranks 3rd for urban local roads and 4th for rural local roads in NZ Transport Agency’s Peer Group ‘E’.

The Council challenges the people of the District to meet the vision of:

“We live the lives that the rest of the world would love to live”

The road safety goal is:

To develop a responsible road safety culture by changing behaviour and attitudes.

The Council proactively encourages commitment to road safety activities at all levels of the community.

7 Significant Assumptions, Uncertainties, and Risk Management

7.1 Assumptions and Uncertainties

7.1.1 Growth

From research carried out for the Regional Land Transport Strategy by ECan future traffic growth is predicted to be at a level of 2% per annum. This level of traffic growth is linked to:

population growth in established urban centres and the coastal margins between Amberley and Christchurch;

an increase in vehicle ownership within the District;



growth in intensive agriculture and agricultural processing industries (e.g. vineyards and wineries;

development in both the primary and value-added sectors; and

the popularity of Hurunui as a tourist destination.

Increasing traffic volumes are expected to significantly affect the Districts arterial road network, which is largely owned and operated by the NZTA on behalf of the Crown.

7.1.2 Costs

Project costs are based on current practice, standards and local knowledge of materials and construction costs. Provision for future inflation, required in LTPs by the LGA 2002, has not been included in this plan. Rather, it will be estimated and applied uniformly to all aspects of the LTP at a corporate level. Costs in this plan are quoted in “Year Zero” dollars. Year Zero is the current year – that before the first year of the programme or plan. Costs for the coming year are reviewed annually as part of the annual budget preparation process.

It is assumed that costs forecast in forward programmes will not vary beyond the corporate allowance for inflation. The Council has no contingency in its budget to allow for increases. If costs do increase over the budget amount, the Council may have insufficient budget, this will affect levels of service.

It is assumed that the only increases in Operations and Maintenance costs associated with the network are related to growth of the network. Unidentified increases in costs could reduce the Council’s ability to deliver the maintenance programmes.

7.1.3 Useful Lives

The useful lives of the network described in the asset valuation are assumed to be an accurate representation. An incorrect assumption relating to useful life would affect the asset valuation and depreciation calculations, which further impact on the depreciation recovery portion of rates. The council is confident in the accuracy of the current figures; however these are continually under review to ensure on going accuracy.

7.1.4 Legislative Environment

The Council has assumed there will be no changes to legislation that will incur significant increases in compliance costs. No budget provision has been made for any increased costs in this area.

7.1.5 Planning Environment

Although there are changes proposed to the Resource management Act 1991 by the Government7, this plan makes now allowance for the affects of any changes that may occur, because of the uncertainties that surround tem. Further, this plan assumes there will be not changes to the Hurunui District Plan or the Canterbury Natural Resources Regional Plan.

7.1.6 Risk Management.

The council is exposed to a number of risks arising from the operation of the road network. Risks arise from any number of sources, but can generally be grouped into two main areas:

7 At 1 Feb 2009Page-24 Section 3 The Existing Situation Version 3.0


Management: those risks that are largely concerned with the way the roading network is managed, including funding, resourcing, programming of work and interaction with the public.

Environmental: those risks that are concerned with the impact of the environment on the physical assets, including natural and man-made disasters.

At present there is no comprehensive hazard register for the Hurunui road network. Never-the-less the roading staff are familiar with the network and the Council has progressively reduced risk on the network over the years by improving high-risk sites as the work can be afforded. This process has been assisted by crash-reduction studies, focussed on areas where there are clusters of crashes, with the assistance and support of The NZ Transport Agency. Development of a Hazard Register for the road network is included in the Improvement Plan.

Risks have been analysed by staff of the Council and they are currently only a limited view of the risks the network is exposed to. The list was developed by considering each area of the Council’s road network activities and identifying risks arising from the way each activity is carried out. These risks were then be evaluated and ranked using the criteria described in Appendix R. The result is the Roading Risk Register which identifies and evaluates risks as well as identifying mitigation and management options to reduce the level of risk.

7.1.6.1 Natural Hazards and Lifelines

In addition to the risks arising from the operation of the road network the network itself is at risk of damage from natural events such as earthquake, flood freezing and snow. Because of the importance of roads in ensuring that communities and individuals can obtain the necessities of life consideration of the risks of natural events on the network and of methods of addressing and overcoming these risks is described as Lifeline Security.

The Council has a set of well-established procedures for dealing with snow, flood, fire, and wind events. It has also worked with NZTA on the development of the State Highway Lifelines project covering SH7, SH7A and SH1 within the District. A separate Hurunui District Lifelines Study is being undertaken.

8 Roading Bylaws and Statutory Obligations

8.1 Bylaws

The following council bylaws affect roads, roading and transportation:

Hurunui District Council Public Places Bylaw 2008

Hurunui District Council Speed Limits Bylaw 2005 (as amended)

Hanmer Springs and Gore Bay Liquor ban Bylaw 2006

Hurunui District Council Dog Control Bylaw 2008

Hurunui District Council Livestock Movement Bylaw 2008

The process for, and timing of, bylaw reviews are both managed by the Council’s Policy Section. These processes are carried out in accordance with the requirements of the Local Government Act 2002.



8.2 Principal Statutes

The principal statues affecting this activity are listed below. This is not a comprehensive list. That is contained in the supporting documents to the Plan.

Local Government Act 1974

Local Government Act 2002

Land Transport Management Act 2003

Resource Management Act 1991

Legislative and other similar requirements are discussed in more detail in Appendix S.

9 Business Improvement

9.1 Activity Management Plan Improvement and Review,

During preparation of this plan, a number of opportunities to improve the management and operation of the road network were identified. Each of the supporting documents has its own Improvement Plan. These individual improvement plans have been consolidated into the Roading Activity Management Plan Improvement Plan at Annex A to this document.

This plan will be updated during preparation of the 20012/22 LTP and reviewed and revised during preparation of the 2015/25 LTP to ensure that it meets the needs determined by the revised Community Outcomes that will be adopted by the Council for that Plan.

9.2 Public Consultation

The Council intends to consult the public only on the Customer Levels of Service detailed in Appendix B. Consultation on the funding and on new works associated with this plan will occur through the Long Term Council Community Plan and Annual Plan and Budget processes.

10 Improvement Plan

The Asset management Improvement plan is at Appendix U, it is a compiled from the improvement actions listed in each appendix.



27



Annex I List of AppendicesAppendix A Overview of the Activity. — incorporates:

An Overview of every Separate Significant part of the Activity”

An outline of How the Council Develops and Delivers the Activity

Appendix B Future Planned Levels of Service

Appendix C Asset Valuations

Appendix D Risk

Appendix E Maintenance and Operations

Appendix F Future Renewals' Requirements

Appendix G Depreciation and Decline in Service Potential

Appendix H Future Demands and Trends and New Works

Appendix I Development Contributions and Financial Contributions

Appendix J Debt and Loan Servicing

Appendix K Asset Disposals

Appendix L Income, Fees, Charges and Funding Policy

Appendix M Summary of Future Overall Financial Requirements

Appendix N Resource Management Matters and Property

Appendix O Land Transport Management Act Matters

Appendix P Demand Management

Appendix Q Significant Effects

Appendix R Growth, Significant Forecasting Assumptions, Uncertainties

Appendix S Legislative and Other Requirements

Appendix T Stakeholders and Consultation

Appendix U Continuous Improvement Programme

Appendix V Overview of Roading Management and Standards

Appendix W Special Cultural Considerations

Appendix X Glossary of Terms

Version 3.0 Annex II Financial Summary Page II-1


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Annex II Financial Summary

The financial summary appears on the following pages.

Because they are prepared separately from this document the following pages may not conform to the formatting and other conventions of this plan.



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Annex II to Apx A

z

Source: [AMP Budgets HDC_12_13 v3_6_8.xlsm]Budget SuperSummary > $A$4



-$8,000

-$6,000

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22

New $209,992 $522,183 $515,258 $508,758 $510,206 $404,033 $401,333 $401,333 $401,333 $401,333 $401,333Renew $210,599 $3,151,83 $3,172,51 $3,280,89 $3,070,27 $3,308,15 $3,264,28 $3,197,41 $3,165,03 $3,190,16 $3,215,29Maint $323,451 $2,625,21 $2,376,28 $2,371,23 $2,411,08 $2,450,93 $2,490,79 $2,530,64 $2,570,49 $2,610,35 $2,650,20Income $1,537,24 ($4,373,0 ($4,243,6 ($4,433,0 ($4,136,9 ($4,497,7 ($4,474,5 ($4,391,5 ($4,340,6 ($4,389,8 ($4,462,5

Budg

et (

year

0 d

olla

rs )

Thousand

sBudget Summary (without inflation)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22Accumulated Inflation 5.3% 9.3% 13.1% 16.7% 20.5% 24.6% 28.7% 33.1% 38.0% 43.3%Annual Inflation 5.34% 3.76% 3.47% 3.20% 3.25% 3.43% 3.25% 3.41% 3.69% 3.87%

Expected Inflation

-$8,000

-$6,000

-$4,000

-$2,000

$0

$2,000

$4,000

$6,000

$8,000

$10,000

11/12 12/13 13/14 14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22

New $209,992 $550,069 $563,189 $575,365 $595,460 $486,858 $500,197 $516,444 $534,074 $553,777 $575,209Renew $210,599 $3,320,152 $3,467,627 $3,710,429 $3,583,304 $3,986,306 $4,068,400 $4,114,496 $4,211,874 $4,401,939 $4,608,319Maint $323,451 $2,765,407 $2,597,332 $2,681,677 $2,813,971 $2,953,371 $3,104,372 $3,256,490 $3,420,690 $3,601,882 $3,798,401Income $1,537,247 ($4,606,60 ($4,638,37 ($5,013,46 ($4,828,20 ($5,419,73 ($5,576,85 ($5,651,13 ($5,776,34 ($6,057,34 ($6,395,99

Budg

et (

year

0 d

olla

rs )

Thousand

s

Budget Summary (with inflation)

»4Page II-4 Annex II Financial Summary Version 3.0




Annex III Change in Network Service Potential

Review of the network shows that there is currently no significant visible maintenance backlog. The most recent asset valuation, and consequent depreciation provisions, was carried out using the same useful lives and other data that were used in the preparation of this plan.

The change in the service potential of the network is assessed by subtracting annual depreciation charges from the total cost of renewals, the forecast changes are illustrated by the following chart

Figure 5 Forecast Change in Network Service Potential 2009-10Link: [AMP Budgets HDC_12_13 v3_6_8.xlsm]Renew_Summary > $C$208

This chart shows that annual value of asset renewals over the planning period will exceed the annual value of deprecation charges in each of those years. This is likely to be the result of a number of factors including:

Discrepancies between the lives being achieved in practice and those used for asset valuations resulting in lower estimates of annual depreciation.

Discrepancies between the replacement costs obtained in practice and those used for asset valuations; resulting in lower estimates of annual depreciation.

The current state of the network and the proportion of assets that are currently due for renewal

The values of these predicted changes, and their accumulated values, need to be considered in relation to the total replacement value of the network. This comparison is made in Figure 6 below

Figure 6 Forecast Percentage Change in Network Service Potential 2009-10Link: [AMP Budgets HDC_12_13 v3_6_8.xlsm]Renew_Summary > $C$240

There are small increases in service potential of around 0.6% each year, the significant increase in 2010/11 is the result of the planned reconstruction of Amberley Beach Road. This chart suggests that at worst there will be no significant decline in the service potential of the network and that it may possibly increase. However work needs to be done to eliminate the potential discrepancies outlined above before this prediction can be relied on.

Continual review is required to ensure:

That the potential of the asset is not

Either being “mined” or “stripped” Or that renewal work is being carried out before it is necessary; and

That it is being maintained in a suitable state to the benefit of current and future users while attributing costs fairly to each group.

It will be necessary to continue ensuring that the lives and costs used in the asset valuations match those being achieved and that deterioration rates are well understood and applied throughout the asset management process, including valuations.

Version 3.0 Annex IV Planned New Works Page IV-1


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Page V-2 Annex V Setting the Level of Roading Asset Management Version 3.0


Annex IV Planned New WorksThe data on the following pages is the same as that included with Appendix H. It is repeated here to enhance understanding of the programmes and because of the significance of new works to the Council

The items financial summary appears on the following pages.

The forward programmes wee prepared in a spreadsheet and do not necessarily conform to the numbering and other conventions of this plan. They appear on the following pages



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5


Annex V Setting the Level of Roading Asset Management

The report on the following pages discusses the issues behind establishing the appropriate level of asset management for the District’s roads and recommends an appropriate level. The Council adopted this recommendation on 27 November 2008 at an ordinary Council meeting.

The report does not necessarily conform to the numbering and other conventions of this plan.


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January 2009 Final Page 1

Annex V Setting the Level of Roading Asset Management Version 3.0

2

Page 2 Final January 2009


Quality Record Sheet

Hurunui District Council

Selecting the Appropriate AM Level

Issue Information

Issue Purpose Final

Issue Date 30 January 2009

Version Number 1.0

Authorisation

Hurunui District Council Bruce Yates, Engineering Services Manager

Date 4 September 2008

Prepared By Grant Holland

Reviewed By Andrew Iremonger

Report Number 64-026-1007




TABLE OF CONTENTS

1.0 INTRODUCTION 51.1 Purpose of this Report.................................................................................................51.2 Assessment Methodology............................................................................................51.3 Definition of ‘Core Plus’ Asset Management Practice..................................................6

2.0 INITIAL RISK SCREEN – DISTRICT POPULATION 82.1 Overview of New Zealand City and Town Populations................................................82.2 New Zealand Main and Secondary Urban Areas.........................................................82.3 Analysis by Community Population..............................................................................92.4 Analysis by District Total Population..........................................................................102.5 Initial Risk Screen - Conclusion.................................................................................10

3.0 CONSIDERATION OF DISTRICT WIDE RISK FACTORS 113.1 Identification of District Wide Factors.........................................................................113.2 Consideration of District Wide Factors - Conclusion..................................................12

4.0 SECTION 2.2.4 DETAILED FACTOR ANALYSIS 134.1 Detailed Analysis Hurunui District Council Asset Groups..........................................134.2 Final Appropriate Asset Management Level Determination.......................................14

5.0 ASSET MANAGEMENT POLICY STATEMENTS 175.1 Land Transport...........................................................................................................175.2 Utilities.......................................................................................................................205.3 Community Services (Parks & Property)....................................................................235.4 Solid Waste................................................................................................................26

6.0 DETAILED ANALYSIS OF ASSET GROUPS 296.1 Land Transport...........................................................................................................316.2 Utilities.......................................................................................................................346.3 Community Services..................................................................................................396.4 Solid Waste................................................................................................................42




TABLE OF TABLESTable 2.1: Extraction of New Zealand City and Town Populations from WINZ Database......................8Table 2.2: 2006 Census Main and Secondary Urban Areas..................................................................8Table 2.3: Hurunui District Council........................................................................................................9Table 2.4: Total District Population......................................................................................................10Table 3.1: Identification of District Wide Risk Factors..........................................................................11Table 3.2: Examples of District Wide Risk Factors..............................................................................12Table 4.1: Detailed Analysis Hurunui District Council Asset Groups...................................................13Table 5.1: Land Transport Activity Factor Assessment Results...........................................................17Table 5.2: Utility Factor Assessment Results......................................................................................21Table 5.3: Community Services Factor Assessment Results..............................................................24Table 5.4: Solid Waste Factor Assessment Results............................................................................26Table 6.1: Land Transport Detailed Asset Management Practice Assessment...................................31Table 6.2: Utilities Detailed Asset Management Practice Assessment................................................34Table 6.3: Community Services Detailed Asset Management Practice Assessment...........................39Table 6.4: Solid Waste Detailed Asset Management Practice Assessment........................................42

TABLE OF FIGURESFigure 1.1: Methodology for Determining Appropriate Asset Management Level..................................6




1.0 INTRODUCTIONAuthorities that manage assets on behalf of their communities need to define an appropriate level of asset management for the asset or activity being managed. For some authorities and asset / activity groups this may not necessarily be fully comprehensive (advanced) asset management practices.

Section 2.2.4 of the International Infrastructure Management Manual (IIMM) contains a section regarding core and comprehensive (advanced) asset management practices. The part of this section that deals with selecting the Appropriate Asset Management Level is replicated below:

Selecting the Appropriate AM Level (from IIMM Section 2.2.4, page 2.9)

Selecting the appropriate asset management level for an organisation, which for activities or asset types may not need to progress beyond a core approach, will depend on a number of factors, including:

The costs and benefits to the organisation Legislative requirements The size, condition and complexity of the assets The risk associated with failures The skills and resources available to the organisation Customer expectations

1.1 Purpose of this Report

The purpose of this report is to outline the methodology used by Hurunui District Council to select an Appropriate AM Level for each of the District’s asset groups.

This methodology is required to be logical and robust, and able to be used by Council to adopt a position or policy on the appropriate level of asset management sophistication for each asset group.

The methodology and Section 2.2.4 Appropriate AM Level adopted will be scrutinised by Council’s Auditors and the methodology, and subsequent determination must be robust enough to withstand this scrutiny. Assessing and adopting an Appropriate AM Level will allow Council to focus resources accordingly and enhance prudent management of community infrastructure.

1.2 Assessment Methodology

The assessment methodology, developed by Waugh Infrastructure Management Limited, in conjunction with a number of local authority partners, is as follows:

1. Adopt a risk based approach using district population and largest town size as a proxy for risk and an initial screen

2. Determine an initial position based on the population risk screening3. Modify initial position based on the District wide risk factors4. Examine each asset group and conduct a further analysis based on the Section 2.2.4 factors:

a. Costs and Benefitsb. Legislative Requirementsc. Size, condition, complexity of assetsd. Risks associated with failurese. Organisational skills and resourcesf. Customer expectationsg. Sustainability (additional to IIMM list)

5. Adopt a Final Appropriate AM Level position for each asset group based on the detailed factor analysis

6. Use a detailed analysis table to plot the adopted position7. Use the detailed analysis of asset groups to identify gaps between adopted appropriate

practice and current practicePage 6 Final January 2009



Figure 1 . 7 : Methodology for Determining Appropriate Asset Management Level

Assess each asset group by these factors

METHODOLOGY FOR DETERMINING APPROPRIATE ASSET MANAGEMENT LEVEL

Determine District Population

Determine size of largest town

Determine Initial AM Level Position

INITIAL ASSESSMENT

Adopt Final Appropriate Asset Management Level for each

asset group

Determine District Wide Risk Factors

Modify Initial AM Level Postion

DISTRICT WIDE FACTORS

ASSET FACTORS

Costs and Benefits

Legislative Requirements

Asset size, condition, complexity

Failure Risks

Organisational Skills and Resources

Customer Expectations

Sustainability

Undertake detailed analysis of each asset group for internal management and direction

purposes

INTE

RN

AL

MA

NA

GE

ME

NT

1.3 Definition of ‘Core Plus’ Asset Management Practice

This report introduces the concept of ‘Core Plus’ asset management practice. The IIMM in Section 2.2.4 indentifies two levels of asset management practice; core and comprehensive (also referred to as Advanced). For many asset owning authorities their desired practice levels, based on their infrastructure drivers will be above core practice (as defined in the IIMM) but may well be below comprehensive asset management practice.

For this situation the concept of ‘Core Plus’ asset management practice has been introduced.

The genesis of the thinking around this level of asset management practice goes back to the New Zealand Infrastructure Asset Management Manual (June 1998), which was superseded by the IIMM. Section 2.3 of the 2006 Edition covered the topic of Basic and Advanced Asset Management. The table on page 2.22 suggested six stages of asset management improvement as follows:

Stage 1: Strategy DevelopmentStage 2: Basic Asset RegisterStage 3: Basic Technical Asset ManagementStage 4: Improved Maintenance ManagementStage 5: Introduce Advanced Asset Management TechniquesStage 6: System Optimisation (fully optimised decision making and advanced asset management practice)

This approach outlined in the 1998 Manual anticipated graduated stages of improving asset management practice. ‘Core Plus’ asset management practice covers Stage 4 and 5 using this approach.

So what is ‘Core Plus’ asset management practice? Is it: Core, plus one or two advanced categories fully compliant. Core, plus with over 50% of advanced categories fully compliant Core, plus some advanced categories substantially compliant




Core, plus most advanced categories. substantially or fully compliant

The answer is it could be any one of these and there may not be an appropriate single response due to the variations within any organisation. ‘Core Plus’ asset management practice is above core and below fully compliant with comprehensive practice.

Therefore, each asset owner needs to consider the Appropriate AM Level on an activity basis, taking into account national, regional and local drivers of asset management practice for that asset.

The recommended methodology for assessing this is to use the Detailed Asset Management Practice Assessment Tables included in Section 5.0 of this report to assess appropriate practice levels for each activity or asset group. These tables cover detailed analysis of the following asset management practice areas:

Description of assets Levels of Service Managing Growth, including sustainability strategies Risk Management Lifecycle decision making Financial forecasts Planning assumptions, linkages, and confidence levels Improvement programmes Planning qualifications Commitment by asset owner

For the asset owner where the overall practice has been set at ‘Core Plus’ there still could be variations of practice by asset or activity group.

It is possible for some organisations that their asset management practice for some activities may be required at nearly comprehensive practice (e.g. Land Transport), while their practice for others may be nearer to core practice (e.g. Parks and Reserves).




2.0 INITIAL RISK SCREEN – DISTRICT POPULATION

2.1 Overview of New Zealand City and Town Populations

In order to undertake an initial assessment on the District Population, Waugh Infrastructure Management Ltd extracted the New Zealand city and town populations from the WINZ data base. Analysis of this data shows that New Zealand is a nation of few metropolitan areas, a range of large towns and small cities and many small towns. From this analysis it is suggested an initial determination of Core and Comprehensive AM Levels can be made.

It is acknowledged that while populations provide a guide for community activities, it is less appropriate for broader activities such as Land Transport.

Table 2 . 5 : Extraction of New Zealand City and Town Populations from WINZ Database Number Towns Population WIML Suggested Initial AM Level Notes

10 90,000 and above Comprehensive (Advanced) Auckland split by Councils

34 10,000 – 90,000 Core Plus

31 5,000 – 10,000 Core

559 Less than 5,000 CoreCompiled from: http://www.drinkingwater.org.nz/supplies/Suppliescompliance.asp 16 July 2008

2.2 New Zealand Main and Secondary Urban Areas

The Table below contains an analysis of New Zealand’s main and secondary urban areas, as defined by Statistics NZ. It can be seen that there are no communities within Hurunui District, listed within the main and secondary urban areas identified by Statistics NZ. This suggests that based on a population risk screen Hurunui’s urban areas should be aiming for Core as an appropriate level of asset management practice.

Table 2 . 6 : 2006 Census Main and Secondary Urban Areas Main and Secondary Urban Areas for the Census Usually Resident Population Count

Main Urban AreasMain/Secondary Urban Areas Populations

Total New Zealand 4,027,947Total Main Urban Areas 2,892,831Total Secondary Urban Areas 243,081Other 892,029UA 004 Central Auckland Zone Main Urban Areas 395,982 ComprehensiveUA 005 Southern Auckland Zone Main Urban Areas 371,658 ComprehensiveUA 022 Christchurch Main Urban Areas 360,768 ComprehensiveUA 002 Northern Auckland Zone Main Urban Areas 248,112 ComprehensiveUA 003 Western Auckland Zone Main Urban Areas 192,339 ComprehensiveUA 020 Wellington Zone Main Urban Areas 178,680 ComprehensiveUA 006 Hamilton Zone Main Urban Areas 155,262 ComprehensiveUA 023 Dunedin Main Urban Areas 110,997 ComprehensiveUA 009 Tauranga Main Urban Areas 108,882 ComprehensiveUA 018 Lower Hutt Zone Main Urban Areas 97,149 ComprehensiveUA 016 Palmerston North Main Urban Areas 76,032UA 013 Hastings Zone Main Urban Areas 62,118



http://www.drinkingwater.org.nz/supplies/Suppliescompliance.asp


Main and Secondary Urban Areas for the Census Usually Resident Population Count

Main Urban AreasMain/Secondary Urban Areas Populations

UA 021 Nelson Main Urban Areas 56,364UA 012 Napier Zone Main Urban Areas 56,286UA 010 Rotorua Main Urban Areas 53,766UA 014 New Plymouth Main Urban Areas 49,281UA 001 Whangarei Main Urban Areas 49,080UA 019 Porirua Zone Main Urban Areas 48,396UA 024 Invercargill Main Urban Areas 46,773UA 015 Wanganui Main Urban Areas 38,988UA 025 Kapiti Main Urban Areas 37,347UA 017 Upper Hutt Zone Main Urban Areas 36,402UA 011 Gisborne Main Urban Areas 32,529UA 110 Blenheim Secondary Urban Areas 28,527UA 113 Timaru Secondary Urban Areas 26,886UA 101 Pukekohe Secondary Urban Areas 22,515UA 103 Taupo Secondary Urban Areas 21,291UA 109 Masterton Secondary Urban Areas 19,494UA 107 Levin Secondary Urban Areas 19,134UA 104 Whakatane Secondary Urban Areas 18,204UA 112 Ashburton Secondary Urban Areas 16,836UA 007 Cambridge Zone Main Urban Areas 15,192UA 008 Te Awamutu Zone Main Urban Areas 14,454UA 106 Feilding Secondary Urban Areas 13,890UA 102 Tokoroa Secondary Urban Areas 13,530UA 114 Oamaru Secondary Urban Areas 12,681UA 105 Hawera Secondary Urban Areas 10,776 CoreUA 111 Greymouth Secondary Urban Areas 9,672 CoreUA 115 Gore Secondary Urban Areas 9,648 Core

Source: http://www.stats.govt.nz/census/census-outputs/default.htm 19 August 2008

2.3 Analysis by Community Population

The reality of New Zealand local authority asset management practice is that it is conducted at a Council level in a similar manner. The requirements of the largest population centre in the Council tends to set the appropriate practice level. Hurunui District Council’s town population is shown in the table below. Cheviot is the largest town, and based on the initial determination in 2.1 suggests a ‘Core’ asset management practice level is appropriate.

Table 2 . 7 : Hurunui District Council

Town Rank(All NZ Towns Town Name

WINZ Population

HDC Population

DataWIML Assessed Initial

AM Practice Level150 Cheviot 1,640 540 Core160 Hanmer 1,500 Core171 Amberley 1,300 Core231 Amberley Beach 630 Core239 Motunau, Greta, Scargill 600 Core258 Leithfield 500 Core289 Culverden 420 Core290 Waiau Township 420 Core439 Leithfield Beach 150 Core



http://www.stats.govt.nz/census/census-outputs/default.htm


Source: http://www.drinkingwater.org.nz/supplies/Suppliescompliance.asp 18 August 2008

As some water supplies include rural and urban areas the community populations may be overstated in the WINZ database.

2.4 Analysis by District Total Population

Analysis of the 2006 Census results of Council total population gives the following results for the following sample Councils. The sample set has been selected to illustrate a range of different sized Councils.

Table 2 . 8 : Total District Population

Council 2006 Population

Council Size Rank (72

Authorities)AM Practice Level Indicated by Size(WIML Estimated Assessment)

Rodney 85,845 11 Core Plus, effectively comprehensive in some areas/activities

Timaru 42,000 25 Core Plus, with near comprehensive in some areas/activities

Gore District 11,763 58 Core

Hurunui District 10,083 59 Core

Waimate 7,041 68 CoreSource: http://www.stats.govt.nz/census/census-outputs/default.htm 19 August 2008

The mix of total District population and the size of the largest population centre provides a good initial screen for the risks associated with asset service delivery. It is acknowledged that Land Transport is managed on a network and regional basis and the relevance of population is lower than for other activities. This initial screen will be modified by consideration of the other factors as detailed in Section 3.

2.5 Initial Risk Screen - Conclusion

Based on this initial screen of urban areas, all council population centres and total district population the suggested level of appropriate asset management practice for Hurunui District Council is ‘Core’.



http://www.stats.govt.nz/census/census-outputs/default.htm


3.0 CONSIDERATION OF DISTRICT WIDE RISK FACTORS

3.1 Identification of District Wide Factors

Following the initial population screen based on appropriate practice for the largest population centre in Hurunui District, further consideration needs to be given to other District Wide Risk Factors that may affect the initial assessment of Core.

The District Wide Risk factors identified in a workshop of Hurunui District Council’s Asset Managers on 17 September 2008 include:

1. Large geographic area with small rating base

2. Funding – including financial assistance from NZ Transport Agency

3. High Level of Service expectations - sometimes unrealistic

4. Influence of tourists

5. Land use change

6. Seasonal impacts on roading

7. Resourcing and the labour market

8. Oil prices

9. Climate Change

10. Demand for Recreation Facilities

11. Proportion of unsealed roads

12. Geographic issues and fault lines

13. Overweight vehicles and potential for fifty tonne trucks

14. Changes in legislation and regulations

The relative importance of these factors was considered as high or, medium in terms of each activity, the results are shown below.

Table 3 . 9 : Identification of District Wide Risk Factors

Util

ities

Land

Tr

ansp

ort

Res

erve

s &

Pr

oper

ty

Solid

Was

te

Large Geographic Area and Small Rating Base H H H H

Funding – including NZTA financial assistance M H H M-H




Util

ities

Land

Tr

ansp

ort

Res

erve

s &

Pr

oper

ty

Solid

Was

te

High Level of Service expectations M-H M-H M-H M

Changes in Legislation and Regulation M-H M M M

Demand for Recreation Facilities L M H L

Oil Prices L H L M

Influence of Tourists L L M-H M-H

Seasonal Impacts on Roading L L M-H L

Proportion of Unsealed Roads L M L L

Land Use Change L M L L

Resourcing and the Labour Market/ L L L L

Climate Change L L L L

Geographic issues and fault lines L L L L

Overweight vehicles and potential for 50 tonne trucks L L L L

By way of comparison, the Table below outlines the assessed District wide risk factors for the sample Council’s listed in Table 2.4.

Table 3 . 10 : Examples of District Wide Risk Factors

Council Population Other FactorsAppropriate AM Determination(WIML Estimated Assessment)

RodneyCore Plus, effectively comprehensive

Rapid growth, heavily influenced by Auckland dynamicsDispersed urban areasTourism/holiday destination

Comprehensive

Timaru Core Plus

Geraldine – International Visitors;Major industries (Fonterra Clandeboye); Regionally significant freight hub;Primary industry growth and subsequent transportation network impacts

Core Plus

Gore Core None Core

Hurunui CoreLarge geographic area with few small communities, growth of non-resident population in Hanmer Springs

Waimate Core None Core

3.2 Consideration of District Wide Factors - ConclusionBased on the identified district wide risk factors, the suggested level of appropriate asset management practice for Hurunui District Council is ‘Core’.




4.0 SECTION 2.2.4 DETAILED FACTOR ANALYSIS Following the initial population screen and assessment of District wide risks, a more detailed screening was developed for each individual asset group for the District.

4.1 Detailed Analysis Hurunui District Council Asset Groups

A more detailed analysis of where the sophistication of Hurunui District Council asset management should be, uses the criteria outlined in Section 2.2.4 of the IIMM as a basis.

Table 4 . 11 : Detailed Analysis Hurunui District Council Asset Groups Criteria Land Transport Utilities Community

Services(Parks & Property)

Solid Waste

Population CoreDistrict Wide Risks

Core

Costs and Benefits(Source: Operating Costs HDC Annual Plan 2008-09)

$7.0 M*(29% of total HDC operating costs)*includes half of local facilities and maintenance costs

$5.1M(21% of total HDC operating costs)


$0.8M**(3% of total HDC operating costs)** excludes household collection costs


Compliance approach including high level of regional involvement

Changing regime under new legislation

Compliance approach – increasing water quality requirements (NZDWS)

Water quantity issues increasing, along with increasing demands from pNRRP

Compliance approach Specific LOS requirements for some groups

Compliance and level of service approach followed which is generally ahead of legislation

Size, Condition, Complexity of Assets

Large rural network with distributed small communities

Wide range of small urban and large rural schemes

Simple approach to range of assets

Few assets – five transfer stations, closed landfills




Criteria Land Transport Utilities Community Services(Parks & Property)

Solid Waste

Risks Associated with Failures

Moderate level of risk

Some critical routes, bridges and demand issues

High risks identified with water supplies , average level of risk for wastewater

The supply of stock water essential for stock welfare and fire fighting

Management issues arise through subdivision and changes in ownership

Drainage assets affect some communities flood risk

Generally lower and isolated level of risk

Low level of risk


Hurunui District Council comprises a small organisation serving a large area of small communitiesThe organisation is comfortably resourced with a range of experienced staff, staff are stable and there are very few vacancies. Services are delivered through a combination of in-house teams and Contractors


Levels of service are well understood and an increase in expectations has been observed over timeThis increase is particularly evident in Hanmer Springs and rural-residential areas where ‘City values’ reflected in expectations of those who shift into the district from Christchurch

Sustainability No Corporate Policy at this stage, part of AMP and planning process at activity levelInfluenced by LTMA, NZTS and RLTS

Targets set in 2005 and being reviewed in 2008

Recycling underway and ahead of expectations of Waste Minimisation Bill

Appropriate AM Level

Core Plus Core Core Core

4.2 Final Appropriate Asset Management Level Determination

The initial population screen for Hurunui District Council, using urban area, all township populations, and total district population showed that asset management practice should be Core.




The examination of individual factors is summarised in Table 4.11: Detailed Analysis Hurunui DistrictCouncil Asset Groups above and commentary on these factors is as follows:

Costs and Benefits

The Land Transport and Water & Wastewater budgets are the largest in Council and represent higher risks if AM practice is not at an appropriate level. These budgets also allow more scope to develop asset management practice as appropriate. The value of the Roading assets at $167M (DRV) is considerably higher the value of water and wastewater assets ($39M DRV). Solid Waste and Parks & Property represent significantly smaller areas of expenditure, and are associated with less risk exposure.


Hurunui District Council policy is to meet minimum legislative requirements, or exceed requirements where deemed appropriate and cost effective through Levels of Service Consultation.

Size, Condition and Complexity of Assets

There are a range of assets spread across the large district. In particular the roading network and rural water supplies are extensive with only a small rating base. While the assets are not highly complex the isolated nature of the communities requires a specific approach.


Overall risks associated with asset failure have been assessed to be average apart from water and wastewater and drainage. Failure of water systems would lead to a range of issues, wastewater system failure has public health and environmental consequences. This suggests a higher level of risk management practice for water and wastewater, while drainage is integral to manage flood risk. Public Health risk management is already legislatively mandated. The risk of flooding is high and the district’s drainage systems are essential to the well-being of the community.


Hurunui District Council comprises a small organisation serving a large area of small communities. The organisation is comfortably resourced with a range of experienced staff, staff numbers are stable and there are few vacancies. Services are delivered through a combination of in-house teams and Contractors. This approach would be consistent with a ‘Core’ approach.


The District has a range of community assets that are of a high standard and the community is justifiably proud of them, and has high expectations of the development and maintenance.

Levels of service are well understood and an increase in expectations has been observed over time.This increase is particularly evident in Hanmer Springs and rural-residential areas where ‘City values’ are reflected in expectations of those who shift into the district from Christchurch.

Overall customer expectations are judged to be medium to high and the trend of increasing customer expectation is likely. This suggests a requirement for well developed asset management practice to consistently meet community expectations in the long term.

Sustainability

Hurunui District Council is following the sustainability regimes of the Land Transport Management Act 2003, NZTS and RLTS requirements (including subsequent amendments and revisions) for Land Transport; otherwise Council is still in the process of developing its sustainability policies. This will include incorporating legislative changes and the any national or regional policies or plans.Page 16 Final January 2009



Any impact of these on asset management practice will be incorporated into the next review of Asset Management Policies.

Conclusion

Having considered all these factors, for each asset / activity group it is apparent that Hurunui District Council should be managing it’s assets at the following levels:

Activity Land Transport Utilities Community Services(Parks & Property)

Solid Waste

Final Appropriate AM Level

Core Plus Core Core Core

Comment A more sophisticated approach than core with an emphasis on managing the lifecycle costs of assets and the communities ability to fund long term costs




5.0 ASSET MANAGEMENT POLICY STATEMENTSThe Asset Management Policy Statements for the Activities assessed follows.

5.1 Land Transport

The Hurunui District Council Asset Management Policy Statement for the Land Transport Activity is outlined below. It is intended that this Policy Statement be added to the introduction of the Activity Management Plan, to set the direction of the Land Transport Asset Management process.

5.1.1 Objective of the Land Transport Asset Management Policy

The objective of the Hurunui District Council’s Asset Management Policy for the Land Transport Activity is to ensure that Council’s service delivery is optimised to deliver agreed community outcomes and levels of service, manage related risks, and optimise expenditure over the entire life cycle of the service delivery, using appropriate assets as required.

The Asset Management Policy requires that the management of assets be in a systematic process to guide planning, acquisition, operation and maintenance, renewal and disposal of the required assets.

Delivery of service is required to be sustainable in the long term and deliver on Council’s economic, environmental, social, and cultural objectives.

This Asset Management Policy sets the appropriate level of asset management practice for Council’s Land Transport Activity.

5.1.2 Asset Management Policy Principles

The following principles will be used by Council to guide asset management planning and decision making:

Effective consultation to determine appropriate Levels of Service Ensuring service delivery needs form the basis of asset management Integration of asset management with corporate, financial, business and budgetary planning

using activity management plans and Council’s LTCCP to demonstrate this Integration with neighbouring authorities and other agencies including NZ Transport Strategy,

National Land Transport Programme, and the Regional Land Transport Strategy Integration of asset management within Council’s strategic, tactical and operational planning

frameworks Informed decision making taking a lifecycle management and inter-generational approach to

asset planning Transparent and accountable asset management decision making Sustainable management providing for present needs whilst sustaining resources for future

generations

5.1.3 Policy Linkages to Other Plans

This Asset Management Policy links to Council’s LTCCP, the Canterbury Regional Land Transport Strategy, and Land Transport Activity Plan.




5.1.4 Structured Assessment of Asset Management Practice

Table 5 . 12 : Land Transport Activity Factor Assessment Results Criteria Assessment CommentaryPopulation Core The initial population risk screen for urban areas, all township

populations, and total district population showed that asset management practice should be ‘Core’

District Wide Risks

Core Based on the identified district wide risk factors, the suggested level of appropriate asset management practice should be ‘Core’

Costs and Benefits

$7.0 M*(29% of total HDC operating costs)

The Land Transport budget is the largest in Council and represent higher risks if AM practice is not at an appropriate level. These budgets also allow more scope to develop asset management practice as appropriate. The value of the Roading assets at $167M (DRV) is considerably higher the value of water and wastewater assets ($39M DRV)*includes half of local facilities and maintenance costs


Compliance approach

Hurunui District Council policy is to meet minimum legislative requirements, or exceed requirements where deemed appropriate and cost effective through Levels of Service Consultation. There are considerable changes under new legislation which requires a high level of regional involvement


Large network, otherwise typical

Large rural network with distributed small communitiesSeasonal variations and changes in land use impact on levels of service and maintenance requirements


Moderate level of risk

Overall risks associated with asset failure have been assessed to be moderate. There are some critical routes, bridges and demand issuesIncreasing heavy vehicles and the potential for fifty tonne truck are a real risk to the network


Average Hurunui District Council comprises a small organisation serving a large area of small communities. is a relatively small local authorityThe organisation is comfortably resourced with a range of experienced staff, staff are stable and there are very few vacancies. Services are delivered through a combination of in-house teams and ContractorsThis approach would be consistent with a ‘Core’ approach


Average + The District has a range of community assets that are of a high standard and the community is justifiably proud of them, and has high expectations of the development and maintenance


Overall customer expectations are judged to be medium to high and the trend of increasing customer expectation is likely. This suggests a requirement for well-developed asset management practice to consistently meet community expectations in the long term




Criteria Assessment CommentarySustainability No

Corporate Policy at this stage, part of AMP and planning process at activity level

Hurunui District Council is following the sustainability regimes of the Land Transport Management Act 2003, NZTS and RLTS requirements (including subsequent amendments and revisions) for Land Transport; otherwise Council is still in the process of developing its sustainability policies. This will include incorporating legislative changes and the any national or regional policies or plansAny impact of these on asset management practice will be incorporated into the next review of Asset Management Policies

Final AM Level Core Plus Analysis of factors suggests that asset management practice requires a more sophisticated approach than core with an emphasis on managing the lifecycle costs of assets and the communities’ ability to fund long term costs

5.1.5 Implementation and Review of Policy

This Asset Management Policy will be implemented in conjunction with the 2008 Asset Management Plans and 2009 LTCCP. This Asset Management Policy may require review once Council has completed the development of its Sustainability Policies.

This next full review of this Asset Management Policy shall be completed in June 2011 (3 years) prior to completing asset plan updates to support the 2012 LTCCP.

5.1.6 Asset Management Implementation Strategy

Council staff have completed a detailed analysis of appropriate asset management practice within the guidance offered by this Policy. This analysis has examined asset description, levels of service, managing growth, risk management, asset lifecycle decision making, financial forecasts, planning assumptions and confidence levels, improvement programmes, use of qualified persons and Council commitment to asset management planning.

From this detailed analysis Council’s level of achievement and any gaps in appropriate asset management practice were identified.

Asset management practice gaps that were noted have been transferred to the Asset Management Improvement Programme for action.




5.2 UtilitiesThe Hurunui District Council Asset Management Policy Statement for the Utilities Activity is outlined below. The Utilities comprise Community Water Supplies, Wastewater, Stormwater and Land Drainage. It is intended that this Policy Statement be added to the introduction of the Activity Management Plan, to set the direction of the Utilities Asset Management process.

5.2.1 Objective of the Utilities Asset Management Policy

The objective of the Hurunui District Council’s Asset Management Policy for the Utilities Activity is to ensure that Council’s service delivery is optimised to deliver agreed community outcomes and levels of service, manage related risks, and optimise expenditure over the entire life cycle of the service delivery, using appropriate assets as required.



This Asset Management Policy sets the appropriate level of asset management practice for Council’s Utilities Activity.



Effective consultation to determine appropriate Levels of Service Ensuring service delivery needs form the basis of asset management Integration of asset management within the Utilities communities of interest and across Council

utilising corporate, financial, business and budgetary planning using activity management plans and Council’s LTCCP to demonstrate this

Integration of asset management within Council’s strategic, tactical and operational planning frameworks

Informed decision making taking a lifecycle management and inter-generational approach to asset planning

Transparent and accountable asset management decision making Sustainable management providing for present needs whilst sustaining resources for future

generations


This Asset Management Policy links to, Council’s LTCCP, Utilities Asset Management Plans and the Water and Sanitary Services Assessment. An approach where planning is based around communities of interest is favoured, as this aims to promote an integrated management regime and encourage efficiencies across the district’s water schemes.


Council has undertaken a structured assessment of the appropriate level of asset management practice for the Utilities assets. This structured assessment follows the guidance provided in Section 2.2.4 of the International Infrastructure Management Manual. The results of this assessment are shown in Table 5.13: Utility Factor Assessment Results below:




Table 5 . 13 : Utility Factor Assessment Results Criteria Assessment CommentaryPopulation Core The initial population risk screen for urban areas, all township


District Wide Risks


Costs and Benefits


The combined Utilities budgets comprise the second largest in Council and represent higher risks if AM practice is not at an appropriate level. These budgets also allow more scope to develop asset management practice as appropriate


Compliance approach –

Hurunui District Council policy is to meet minimum legislative requirements, or exceed requirements where deemed appropriate and cost effective through Levels of Service ConsultationThere are increasing water quality requirements (NZDWS) and water quantity issues arising, along with increasing demands from pNRRP


Large network, otherwise typical

There is a wide range of small urban and large rural schemesThe water supplies include extensive pumping and reticulation assetsDrainage assets are minor but of high importance


Moderate to High

Overall risks associated with asset failure have been assessed to be average apart from water and wastewater and drainage. Failure of water systems would lead to a range of issues, wastewater system failure has public health and environmental consequences. This suggests a higher level of risk management practice for water and wastewater, while drainage is integral to manage flood risk. Public Health risk management is already legislatively mandated. The risk of flooding is high and the district’s drainage systems are essential to the well-being of the community


Average Hurunui District Council comprises a small organisation serving a large area of small communitiesThe organisation is comfortably resourced with a range of experienced staff, staff are stable and there are very few vacancies. Services are delivered through a combination of in-house teams and ContractorsThis approach would be consistent with a ‘Core’ approach


Average + The District has a range of community assets that are of a high standard and the community is justifiably proud of them, and has high expectations of the development and maintenance.


Overall customer expectations are judged to be medium to high and the trend of increasing customer expectation is likely. This suggests a requirement for well developed asset management practice to consistently meet community expectations in the long term




Criteria Assessment CommentarySustainability No

Corporate Policy at this stage, part of AMP and planning process at activity level

Council is still in the process of developing its sustainability policies. This will include incorporating legislative changes and the any national or regional policies or plans

Any impact of these on asset management practice will be incorporated into the next review of Asset Management Policies

Final AM Level Core Analysis of factors suggests that asset management practice should be Core


This Asset Management Policy will be implemented in conjunction with the 2008 Asset Management Plans and 2009 LTCCP. This Asset Management Policy may require review once Council has completed the development of its Corporate Sustainability Policies.









5.3 Community Services (Parks & Property)

The Hurunui District Council Asset Management Policy Statement for the Community Services Activity is outlined below. Community Services (Parks and Property) comprise Recreation Reserves, Sportsfields, Playgrounds, Halls and other Community Buildings, Public Toilets, Cemeteries and Pensioner Flats. It is intended that this Policy Statement be added to the introduction of the Activity Management Plan, to set the direction of the Community Services Asset Management process.

5.3.1 Objective of the Community Services Asset Management Policy

The objective of the Hurunui District Council’s Asset Management Policy for the Community Services Activity is to ensure that Council’s service delivery is optimised to deliver agreed community outcomes and levels of service, manage related risks, and optimise expenditure over the entire life cycle of the service delivery, using appropriate assets as required.



This Asset Management Policy sets the appropriate level of asset management practice for Council’s Community Services Activity.




using activity management plans and Council’s LTCCP to demonstrate this Integration of asset management within Council’s strategic, tactical and operational planning



generations


This Asset Management Policy links to Council’s LTCCP, Walkway Policy, Community Facilities Strategic Plans and Reserve Management Plans.


Council has undertaken a structured assessment of the appropriate level of asset management practice for the Community Services assets. This structured assessment follows the guidance provided in Section 2.2.4 of the International Infrastructure Management Manual. The results of this assessment are shown in Table 5.14: Community Services Factor Assessment Results below.




Table 5 . 14 : Community Services Factor Assessment Results Criteria Assessment CommentaryPopulation Core The initial population risk screen for urban areas, all township


District Wide Risks


Costs and Benefits


The Parks and Property operations budgets are relatively small in terms of Council expenditure and represents minor risks if AM practice is not at an appropriate level


Compliance approach

Hurunui District Council policy is to meet minimum legislative requirements, or exceed requirements where deemed appropriate and cost effective through Levels of Service Consultation


Average A simple but varied approach is required given the range of assets involvedGood data now held on assets and condition


Generally lower and isolated level of risk

Overall risks associated with asset failure are well understood and have been assessed to be low with the exception of playgrounds, which have higher associated risks


Average Hurunui District Council comprises a small organisation serving a large area of small communitiesThe organisation is comfortably resourced with a range of experienced staff, staff are stable and there are very few vacancies. Services are delivered through a combination of in-house teams and ContractorsThis approach would be consistent with a ‘Core’ approach





Sustainability No Corporate Policy at this stage, part of AMP and planning process at activity level

















5.4 Solid Waste

The Hurunui District Council Asset Management Policy Statement for the Solid Waste Activity is outlined below. It is intended that this Policy Statement be added to the introduction of the Activity Management Plan, to set the direction of the Solid Waste Asset Management process.

5.4.1 Objective of the Solid Waste Asset Management Policy

The objective of the Hurunui District Council’s Asset Management Policy for the Solid Waste Activity is to ensure that Council’s service delivery is optimised to deliver agreed community outcomes and levels of service, manage related risks, and optimise expenditure over the entire life cycle of the service delivery, using appropriate assets as required.


Delivery of service is required to be sustainable in the long term and deliver on Councils economic, environmental, social, and cultural objectives.

This Asset Management Policy sets the appropriate level of asset management practice for Council’s Solid Waste Activity.




using activity management plans and Council’s LTCCP to demonstrate this Integration of asset management within Council’s strategic, tactical and operational planning



generations


This Asset Management Policy links to Council’s LTCCP and Waste Management Plan 2005.


Council has undertaken a structured assessment of the appropriate level of asset management practice for the Solid Waste assets. This structured assessment follows the guidance provided in Section 2.2.4 of the International Infrastructure Management Manual. The results of this assessment are shown in Table 5.15: Solid Waste Factor Assessment Results below.

Table 5 . 15 : Solid Waste Factor Assessment Results Criteria Assessment CommentaryPopulation Core The initial population risk screen for urban areas, all township


District Wide Risks





Criteria Assessment CommentaryCosts and Benefits

$0.8M**(3% of total HDC operating costs)

The Parks and Property operations budgets are relatively small in terms of Council expenditure and represents minor risks if AM practice is not at an appropriate level** excludes household collection costs


Compliance approach

Hurunui District Council policy is to meet minimum legislative requirements, or exceed requirements where deemed appropriate and cost effective through Levels of Service ConsultationFor Solid Waste services a level of service approach is being followed which is generally ahead of legislation


Low Few assets – five transfer stations, closed landfillsCommunity facilitated recycling activities


Low level of risk

Given the limited assets involved, overall risks associated with asset failure have been assessed to be low


Average Hurunui District Council comprises a small organisation serving a large area of small communitiesThe organisation is comfortably resourced with a range of experienced staff, staff are stable and there are very few vacancies Services are delivered through a combination of in-house teams and ContractorsThis approach would be consistent with a ‘Core’ approach





Sustainability No Corporate Policy at this stage, part of AMP and planning process at activity level

















6.0 DETAILED ANALYSIS OF ASSET GROUPSThe following tables are provided for internal Council use to set in detail appropriate practice levels, and assess compliance to that practice and any AM practice gaps.

The tables are based on IIMM figure 2.2.4 “Criteria for Assessing Conformity to “Core” and “Advanced” Levels of Asset Management in New Zealand.”

The recommended process is identified below.

Step One

Identify the Appropriate Level of AM, as outlined in Sections 1-4 For ‘Core’ AM - all Core assessment criteria are relevant (indicated Bright Green) For ‘Core Plus’ - all Core assessment criteria are relevant (indicated Bright Green) and

additional criteria will be relevant. The additional criteria have been identified during the workshop to determine the Appropriate Level of AM (the additional criteria are indicated Light Green)

For ‘’Comprehensive’ or ‘Advanced‘ AM all assessment criteria are relevant (indicated Bright Green)

Step Two

Undertake a compliance status analysis.This involves the Asset or Activity Manager assessing current performance in terms of each of the assessment criteria. This may be done with the assistance of the asset or Activity Plan Writer if this appropriate.

Once the current performance is assessed the compliance gaps can be identified.

Step Three

Following the assessment of practice gaps this information can be transferred to the Asset or Activity Management Plan improvement programme. It is expected that this assessment would be undertaken by the individual Activity Plan Writers and Activity Managers.

Example

A worked example follows to illustrate the process (data is for illustrative purposes only).




Relevant Assessment CriteriaCore criteriaAdditional relevant criteria

Compliance Key Fully compliantS Substantially compliantP Partially compliant Does not comply

Assessment Criteria (as outlined in IIMM) Compliance Status AnalysisRelevance Current

PerformanceCompliance

GapsNotes

Description of Assets Process of Development

Adequate Description of Asset RAMM & dTIMS

fully operational

Core

Financial Description of Asset

Remaining useful life RAMM & dTIMS

fully operationalAggregate & Disaggregate Information

Advanced

Reliable Physical inventory

- Physical attributes (location, material, age etc) P Footpath data incomplete

Footpath survey underway (2008)

- Systematic monitoring of condition RAMM Rating &

FWD - Systematic measurement performance

- Utilisation/capacityS Traffic counts

for some roads only

Traffic Counts 3yr cycle, counts for all

roads will be completed in 2010



SAMPLE DATA ONLY


6.1 Land Transport



Table 6 . 16 : Land Transport Detailed Asset Management Practice Assessment Assessment Criteria (as outlined in IIMM) Compliance Status Analysis

Relevance CurrentPerformance

Compliance Gaps Notes

Description of Assets Process of Development S

Adequate Description of Asset S Data needed on ‘other structures’

RAMM and Opus Database for Bridges

Core

Financial Description of Asset S Data needed on ‘other structures’

Annual Valuation/Review

Remaining useful life S Data needed on ‘other structures’

Annual Valuation/Review

Aggregate & Disaggregate Information

Advanced

Reliable Physical inventory S Data needed on ‘other structures’

RAMM managed by Maunsell

- Physical attributes (location, material, age etc) S Data needed on ‘other structures’

Sealed roads only

- Systematic monitoring of conditionS Data needed on

‘other structures’Sealed roads only, some FWD survey and model in place

- Systematic measurement performance S Data needed on ‘other structures’

Sealed roads only

- Utilisation/capacity Programme in place (all roads >40vpd every 5 years, major rotes annually)

Levels of Service Define LOS or performance P

Core

Linkage to strategic/community outcomes P Show linkages in AMP

Shown in LTCCP

Links to other planning documents P Regional linkages to be shown

Levels of consultation identified and agreement

P Outline consultation undertaken (LTCCP Ward Meetings and AP)

Service life of network stated Annual Valuation/Review

Advanced

For Significant Services

- Evaluating LOS OptionsP Outline options

and consultation in AMP

- Consult LOS options with communityP Outline options

and consultation in AMP

- Adoption LOS & Standards after consultationP Outline option and

consultation in AMP

- Public communication of service level Demonstrate

through 2009-19 LTCCP

- Monitoring & public reporting Demonstrate





PerformanceCompliance Gaps Notes

through 2009-19 LTCCP

AMP's reflect agreed LOS & how service is deliveredP Update approach

following consultation

Managing Growth Demand Forecasts (10 year)

Specific data in AMP section R4

CoreDemand Management drivers

Demand Management strategies

Sustainability Strategies ?

Advanced

Forecasts include factors that comprise demandSensitivity of asset development (Capital Works) to demand changesAsset Utilisation/ Demand Modelling

Risk Management Identify critical assets

P Document in AMP Strategic routes have been identified (integrated with NZTA)

Identify significant negative effects P Document in AMP

Core Identify associated risks and RM strategies P Document in AMP

Advanced

Recognition & application of principles of integrated risk management to assetsApply standards & industry good practiceRM integrated with Lifelines, disasters recovery, Continuity plans,.Strategies for critical assets to include mitigation – CORE

P Document in AMP Lifelines undertaken

Integrate with maintenance and replacement strategies

Lifecycle Decision Making Lifecycle and Asset Management Practices

Service capacity gap analysis

Core

Evaluation and ranking based on criteria of options for significant capital invest decisions for

Maintenance Outcomes, Strategies, Standards and Plan

Advanced

Identify options for asset maintenance to achieve optimal costs over life of asset

P Continue development and outline in AMP

- Apply agreed evaluation tools to prioritise work programmes

P Continue development and outline in AMP

RAMM TSA, Initial dTIMS analysis

- Predictive modelling to support long-term financial forecasts for maintenance, renewals & new capitalSignificant negative effects

Financial Forecasts

10 year Financial plan – Maintenance, Renewals, New Capital (LOS and demand).

Core Validate the Depreciation/Decline in Service Potential

Advanced

Translate operational, planned maint, renewal & new work into financial terms over period of strategic planProvide consistent financial forecasts & SubstantiateSensitivity of forecasts

Planning Assumptions and Confidence Levels

List all assumptions and possible effects

Core

Confidence level on asset condition, performance

Accuracy of asset inventory

Confidence level demand/growth forecasts

Confidence level on financial forecasts

Advanced List all assumptions including organisations strategic






plan that support AM – linkages with other planning docConfidence levels (IIMM 4.3.7) - Inventory DataCritical Assets (Grade 1)Non Critical Assets (Grade 2) - Condition DataCritical Assets (Grades 1 or 2)Non Critical Assets (Grades 1, 2 or 3)- Performance DataCritical Assets (Grades 1 or 2)Non Critical Assets (Grades 1, 2 or 3)

Outline Improvement Programmes

Identify improvements to AM processes & techniques

?

CoreIdentify weak areas & how they will be addressed ?Timeframes for improvements ?

Identify resources required (human & financial) ?

Advanced

Improvement programmes are monitored against KPI’sPrevious improvements identified and formally reported against KPI’s

Planning by qualified persons

AM Planning should be undertaken by a suitably qualified person

Core & Advanced Process should be Peer reviewed

Internal review process by plan writers regarded as adequate

Commitment Plan adopted by Council including improvement programme

P Completed AMP to Council for adoption

CorePlan key tool to support LTCCP

AM Plan regularly updated and should reflect progress on improvement plan

Advanced

AM Plan requirements are being implemented and discrepancies formally reportedAM Plans evolving as AM systems provide better information

AM Plans updated every 3 years along with organisations strategic planning cycles

Aim to do this – may be compromised by resourcing

Council has defined the Appropriate AM Practice it is adopting




6.2 Utilities



Table 6 . 17 : Utilities Detailed Asset Management Practice Assessment Assessment Criteria (as outlined in IIMM) Compliance Status Analysis

Relevance Current Performance

Compliance Gaps Notes

Description of Assets Process of Development S

Adequate Description of AssetS Held in BizeAsset

some minor updating required

Core

Financial Description of AssetS Held in BizeAsset


Remaining useful lifeS Held in BizeAsset


Aggregate & Disaggregate Information

Advanced

Reliable Physical inventory - Physical attributes (location, material, age etc) - Systematic monitoring of condition - Systematic measurement performance - Utilisation/capacity

Levels of Service Define LOS or performance

Core

Linkage to strategic/community outcomes Links to other planning documents Levels of consultation identified and agreement Service life of network stated

Advanced

For Significant Services - Evaluating LOS Options - Consult LOS options with community - Adoption LOS & Standards after consultation - Public communication of service level - Monitoring & public reportingAMP's reflect agreed LOS & how service is delivered


Core

Demand Management drivers Demand Management strategies

Sustainability Strategies

P Ongoing development of sustainability practice in accordance with changing national legislative requirements:- Climate change





- Emissions Trading

Advanced


Risk Management Identify critical assetsP Need to enter

against assets in BizeAsset.

Identify significant negative effects

Core Identify associated risks and RM strategies

S Further risk management integration with corporate strategies

Advanced

Recognition & application of principles of integrated risk management to assetsApply standards & industry good practiceRM integrated with Lifelines, disasters recovery, Continuity plans,.Strategies for critical assets to include mitigation – COREIntegrate with maintenance and replacement strategies



Core


New capital identified for Amberley following District Plan changes


Advanced

Identify options for asset maintenance to achieve optimal costs over life of asset - Apply agreed evaluation tools to prioritise work programmes - Predictive modelling to support long-term financial forecasts for maintenance, renewals & new capitalSignificant negative effects

Financial Forecasts 10 year Financial plan – Maintenance, Renewals, New Capital (LOS and demand).


Advanced


Planning Assumptions and Confidence Levels

List all assumptions and possible effects

Core

Confidence level on asset condition, performance S

Accuracy of asset inventory

S Based on desktop & field operator experience. Some testing of AC pipes required in next 10 years to confirm.

Confidence level demand/growth forecasts Confidence level on financial forecasts

Advanced List all assumptions including organisations strategic plan that support AM – linkages with other planning docConfidence levels (IIMM 4.3.7) - Inventory DataCritical Assets (Grade 1)





Non Critical Assets (Grade 2) - Condition DataCritical Assets (Grades 1 or 2)Non Critical Assets (Grades 1, 2 or 3)- Performance DataCritical Assets (Grades 1 or 2)Non Critical Assets (Grades 1, 2 or 3)

Outline Improvement Programmes Identify improvements to AM processes & techniques

CoreIdentify weak areas & how they will be addressed

AM Improvement

PlanTimeframes for improvements Identify resources required (human & financial)

AdvancedImprovement programmes are monitored against KPI’sPrevious improvements identified and formally reported against KPI’s

Planning by Qualified Persons




P Completed AMP to Council for adoption

CorePlan key tool to support LTCCP AM Plan regularly updated and should reflect progress on improvement plan

Advanced

AM Plan requirements are being implemented and discrepancies formally reportedAM Plans evolving as AM systems provide better informationAM Plans updated every 3 years along with organisations strategic planning cyclesCouncil has defined the Appropriate AM Practice it is adopting



6.3 Community Services



Table 6 . 18 : Community Services Detailed Asset Management Practice Assessment Assessment Criteria (as outlined in IIMM) Compliance Status Analysis


Compliance Gaps

Notes

Description of Assets Process of DevelopmentAdequate Description of Asset

CoreFinancial Description of AssetRemaining useful lifeAggregate & Disaggregate Information

Advanced



Core

Linkage to strategic/community outcomesLinks to other planning documentsLevels of consultation identified and agreementService life of network stated

Advanced



CoreDemand Management driversDemand Management strategiesSustainability Strategies

Advanced


Risk Management Identify critical assetsIdentify significant negative effects


Advanced







GapsNotes


Core



Advanced




Advanced


Planning Assumptions and Confidence Levels List all assumptions and possible effects

Core

Confidence level on asset condition, performanceAccuracy of asset inventoryConfidence level demand/growth forecastsConfidence level on financial forecasts

Advanced

List all assumptions including organisations strategic plan that support AM – linkages with other planning docConfidence levels (IIMM 4.3.7) - Inventory DataCritical Assets (Grade 1)Non Critical Assets (Grade 2) - Condition DataCritical Assets (Grades 1 or 2)Non Critical Assets (Grades 1, 2 or 3)- Performance DataCritical Assets (Grades 1 or 2)Non Critical Assets (Grades 1, 2 or 3)


CoreIdentify weak areas & how they will be addressedTimeframes for improvementsIdentify resources required (human & financial)






CorePlan key tool to support LTCCPAM Plan regularly updated and should reflect progress on improvement plan

Advanced




6.4 Solid Waste



Table 6 . 19 : Solid Waste Detailed Asset Management Practice Assessment Assessment Criteria (as outlined in IIMM) Compliance Status Analysis


Compliance Gaps

Notes

Description of Assets Process of DevelopmentAdequate Description of Asset

CoreFinancial Description of AssetRemaining useful lifeAggregate & Disaggregate Information

Advanced



Core

Linkage to strategic/community outcomesLinks to other planning documentsLevels of consultation identified and agreementService life of network stated

Advanced



CoreDemand Management driversDemand Management strategiesSustainability Strategies

Advanced


Risk Management Identify critical assetsIdentify significant negative effects


Advanced






GapsNotes



Core



Advanced




Advanced


Planning Assumptions and Confidence Levels List all assumptions and possible effects

Core

Confidence level on asset condition, performanceAccuracy of asset inventoryConfidence level demand/growth forecastsConfidence level on financial forecasts

Advanced

List all assumptions including organisations strategic plan that support AM – linkages with other planning docConfidence levels (IIMM 4.3.7) - Inventory DataCritical Assets (Grade 1)Non Critical Assets (Grade 2) - Condition DataCritical Assets (Grades 1 or 2)Non Critical Assets (Grades 1, 2 or 3)- Performance DataCritical Assets (Grades 1 or 2)Non Critical Assets (Grades 1, 2 or 3)


CoreIdentify weak areas & how they will be addressedTimeframes for improvementsIdentify resources required (human & financial)






CorePlan key tool to support LTCCPAM Plan regularly updated and should reflect progress on improvement plan

Advanced






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