Roading Activity Management Plan (July 2010) - Hurunui District ...

Roa

ading

Act

tivity

Management

Plan

Version 3.0

July

2010

Roading Activity

Management Plan

Prepared for Hurunui District Council

Prepared by

AECOM (NZ) Ltd

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Quality Information

Document

Ref

Date

Prepared by

Reviewed by

Hurunui District Council Roading Activity Management Plan

HDC RdAMP AMP v3 0 10D.docx

July 2010

George JasonSmith John Whyte

Mark Gordon

Revision History

Revision

Revision

Date

Details

Authorised

Name/Position

Signature

v3.0

1 July

2010

Final

Mark Gordon

Regional Manager

Page ii

Version 3.0

Roading Activity Managementt Plan

PLAN STATUS

1. Overall Responsibility for the Co-Ordination of all Matters in this Appendix

Date

February 2009

Name

John Whyte

Designation

Roading Engineer Assets

2. Appendix Prepared By

Version

Date

3.0 2006-2011

3. Appendix Reviewed By

Version

Date

3.0.6 January

2009

3.0.100 January

2010

Name

George JasonSmith

John Whyte

Name

Bruce Yates

David Edge

John Whyte

John Kerse

Alex Cooke

Brian McManus

Bruce Yates

David Edge

John Whyte

John Kerse

Brian McManus

Designation

Maunsell AECOM, Christchurch

Assets Engineer Roading

Designation

Manager Engineering Services

Roading Manager

Roading Assets A Engineer

Roading Engineer Operations

Townshipp Amenities Engineer

Roading Engineer Contracts

Manager Engineering Services

Roading Manager

Roading Assets A Engineer

Roading Engineer Operations

Roading Engineer Contracts

4. Adopted

Version

Date

Authentication

3.0 Final 24

February 2011 Endorsed by Council at Council Meeting Item 7.11

5. Updated By

Version

Date

Name

Designation

D

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This page is intentionally blank.

Page iv

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Contents

1

2

3

4

5

6

7

Introduction

1

1.1 Background ................................................................................................................... 1

1.1.1 Roading Assets ...................................................................................................................... 1

1.1.2 Community outcomes o to which the activity

contributes ......................................................... 2

1.1.3 Public Concerns ..................................................................................................................... 4

1.2 Objective of Roading

Activity Management Plan .......................................................... 4

1.2.1 Plan Objectives ...................................................................................................................... 5

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

Levels of Service, Performance

e Measures, and Relationship to Community

Outcomes

7

2.1 Levels of Service and Community

Outcomes...................

............................................ 7

2.2 Reporting ....................................................................................................................... 9

2.2.1 Targets and Measures ........................................................................................................... 9

2.2.2 Network Performance ............................................................................................................ 9

The Existing Situation

12

3.1 Assets ......................................................................................................................... 12

3.1.1 Assets Required. ................................................................................................................. 12

3.1.2 Asset Register ..................................................................................................................... 12

3.2 How the Roading Assets are Maintained and Operated ............................................ 14

3.2.1 Maintenancee and Operatingg Issues ..................................................................................... 15

3.2.2 Business Continuity, Emergency Management and Reinstatement .................................... 15

3.2.3 Maintenancee Forecast ......................................................................................................... 15

3.3 Renewals and Depreciation ........................................................................................ 15

3.3.1 Renewals funding ................................................................................................................ 16

3.3.2 Particular Renewals Issues........................

........................ ........................ ............................ 16

3.3.3 Renewals Forecast .............................................................................................................. 16

3.3.4 Change in Service Potential.......................

........................ ........................ ............................ 17

3.4 Future Demand and New Expenditure ....................................................................... 17

3.4.1 Future Demand .................................................................................................................... 17

3.4.2 New Expenditure ................................................................................................................. 17

3.4.3 How New Works are Funded ............................................................................................... 18

3.4.4 Other New Works issues. .................................................................................................... 18

3.4.5 New Works Forecast.......... ........................ ........................ ........................ ............................ 18

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

Resource allocation

and budgeting

19

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

.......................................... 20

4.2 Schedule of Fees and Charges .................................................................................. 20

Environmental Management, Regulatory Matters and Activity Management

Issues

21

5.1 Environmental Management Issues ........................................................................... 21

5.2 Demand

Management ................................................................................................ 21

Significant Negative Effects

22

6.1 Road Safety ................................................................................................................ 22

Significant Assumptions, Uncertainties, and Risk Management

23

7.1 Assumptions and Uncertainties .................................................................................. 23

7.1.1 Growth 23

7.1.2 Costs 23

7.1.3 Useful Lives ......................................................................................................................... 23

7.1.4 Legislative Environment ....................................................................................................... 23

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7.1.5

7.1.6

Planning Environment .......................................................................................................... 24

Risk Management. ............................................................................................................... 24

8

9

Roading

Bylaws and Statutoryy Obligations

24

8.1 Bylaws ......................................................................................................................... 24

8.2 Principal Statutes ........................................................................................................ 25

Business Improvement

25

9.1 Activity Management Plan Improvement and Review, ............................................... 25

9.2 Public Consultation ..................................................................................................... 25

10

Improvement Plan

25

Annex I

Annex II

Annex III

Annex IV

Annex V

List of Appendices

Financial Summary

Change in Network Service Potential

Planned New Works

Setting the Level of Roading Asset Management

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1

1.1

Introduction

Background

The Local Government Act 1974 vests ownership of roads, other than State Highways, in the t

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 T 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 directt role in the provision of public p 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 thee economic, social,

environmental and cultural wellbeing of the District’s communities,

by providingg for people and

goods to move safely and efficiently throughout the District.

1.1.1

Roading Assets

The Hurunui District Council is

responsiblee for the management off a roading network that

comprises of approximately:

Table 1 Asset Summary

Sub Asset

Roads

Kerb and channel

Footpaths

Bridges

Traffic facilities

Cycleways

Category

Sealed

Unsealed

Urban

Rural

Unformed

Networkk Length

On-roadd

597.5-km

856.1-km

75.6-km

1,377.9-km

861.0-km

1,453.6-km

38.1-km

47.1-km

Bridges

timber

other than 182, totalling t 5,397m

Timber Bridges

Culvertss greater than 3.4

35, totalling 395m

50

sq m

0.0-

Street lights

883-each

Signs

23,732-each

Markings

Inventory too be

verified-

0.0-km

Link: HDC RdAMP Apx A Overview 3.0.7.xlsx]Summary > $ $B$17. Data: 2/ /04/09 to 11/11/099

Quantity

In addition,

there are approximatelyy 2,768 km of unformed legal roads.

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Section 1 Introduction

Page 1



The estimated usage of thesee roads is 66 million vehicle-km per year (0.67 x 10 8 vkt/yr) 1 and

their depreciated replacementt 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 networkk that is accessible for all people within the region.”

The principal objectives of the

network are:

1.1.2

To maintainn 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 deliveredd 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

Community outcomes to which the activity

contributes

Table 2: Community

Outcomes to which the Roading Activity primarily contributes

Community

Well-being

Outcome

Social

Economic

A desirable

Environmental

place to live

Cultural

Sub-Outcome

e

Attractive, well designed

villages v that present a

positive imagee encouragingg

people to live in and visit the

area

How Roading Contributes Towards

The

Outcome

By designing, constructing and maintaining

the road network to industry standardss and

best practice


bridges, culverts and stormwater structures

in a manner that minimises hazards.


appropriatee warning, advisory and

regulatory signs on the road network

A strong sense of community

that t gives people a sense of

belonging andd encourages

them t to take part in local

activities, to support essential

Provision and a maintenance of the roading

volunteer v services, and to be

network allowing peoplee to access these

involved i in local consultation

activities

and decision making

Opportunities

in leisure, art

and cultural activities

By planning, designing, constructing and

Effective planning for future

maintainingg the road network in a manner

development but ensuring that considers future needs alongside

those

the t preservation of local of existing users and residents.

heritage and rural

By maintaining the roading asset in a

uniqueness

manner that is sensitive to the diversee

heritage off the District

1

Source: HDC

RdAMP Apxx A Overview 3.0.2.xls]Hierarchy > $C$1

Page-2


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Well-being

Social

Economic

Social

Economic

Cultural

Environmental Environmental

Responsibility

Version 3.0

Community

Outcome

Essential infrastructure

A healthy place

meets the needs of the

to live

District’s communities

Thriving Local

Economy

Essential

Infrastructure

Sub-Outcome

e

A transport network which

supports s the safe and

efficient movement of people

and goods

A safe quality road

infrastructure

i

that is well

maintained

Clean, healthyy air quality

Environmenta

al safeguards

and protectionn for natural



The

Outcome

By designing, constructing the road network

to industry standards and best practice and

maintainingg it in a manner such that:

•the needss of future generations are

considered alongside those of existing

users andd residents.

•safety is improved.

•appropriate warning, advisory and

regulatoryy signs are provided on thee road

network

•dust-free surfaces are provided on roads

where economically viable

By providing new and upgraded kerb and

channel, footpaths and streetlights


bridges, culverts and stormwater structures

in a manner that minimises hazards.


appropriatee warning, advisory and

regulatory signs on the road network

By maintaining close liaison with the

tangata whenua w on all known and

potential matters m of interest to them.

By maintaining and developing the

roading assets in a manner that is

sensitive to the diverse heritage of the

District.


a reliable road network.


the road network in an affordable manner.



best practice

By providing dust-free surfaces on roads


By providing an efficient t transportationn

system that limits exhaust emissions

All measures listed in this Activity




best practice



By planning, designing, constructing and

maintainingg the road network in a manner

that considers future needs alongside

those

of existing users and residents.


the road network in a manner such that the

full social and a economic c costs and benefits

of projects are taken intoo consideration.

By providing an efficient t transportationn

system that limits exhaust emissions

By providing efficient andd appropriate

stormwater collection, and basic treatment,

systems in urban areas



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Well-being

Social

Cultural

Community

Outcome

Skills and

Education for

Work and Life

Sub-Outcome

e

assets balanced with

property owner’s rights

Clean and plentiful water in

our rivers, lakes and streams


The

Outcome

By maintaining significant areas of native

vegetation and areas of significant native

vegetation in environmentally sensitive

ways

By providing efficient andd appropriate

stormwater collection, and basic treatment,

systems in urban areas

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 placess of skills education

By providing and maintaining a road

network that provides for people and

communities to travel to schools,

communityy 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 o dissatisfaction compared to

any other Council service. Footpaths are also cause for dissatisfaction with thee predominant

reasons stated was rough surface, poor road maintenance and condition and a lack of

footpaths.

The methods used to addresss these concerns include:

A programme of seal extensions, safety improvements and road reconstruction

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

A change to use of ‘hybrid’ type maintenance contracts to provide betterr value for money

to the District

Funding and support for road safetyy education programmes

1.2 Objective of Roading Activity Management

Plan

Page-4

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 costss of delivering these services

represent value for money to the Council’ss 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 i provided at the lowest long-

various “supporting documents”. There is a separate supporting document for every key

term cost to the community”

This Activity Management Plan provides the support material for the Long Termm 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

strategic and management aspect of the activity.

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


Version 3.0


Management Plan itself, and the t 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 majorr 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 t forecast information

and performance measures provide an

appropriate framework for the meaningful assessment off 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 thee 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 r Asset Management Plans;

Complete — All relevant informationn pertaining to current and future management off 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 manages its i physical assets, and their associated performance, risks and

expenditures over their life cycles for the purpose of achieving its organisational

l

activities and practices through whichh an organisation

optimally

strategic plan.”

The approach taken envisages alll of the physical asset management matters, which

would otherwise be addressed in a separate Asset Management Plan, , being addressed

together with explanations of howw the Council intends to manage m 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 thee Optimised

Management of Physical Infrastructure

Assets’,

prepared by

the British Institute of Asset Management.

Focus — the plan is outcomes and outputs focussed;

2

Local Government Act 2002 Section 84(4)

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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 t

local strategic approach

towards thee 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 outputt 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 o the way that decisionss have

been made (and the

reason(s) for the chosen option) – a necessaryy 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’ss

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 controlss 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 a 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 inn 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 o Council activities;;

Integration —

Expresses the forecast future capital costss in terms of o ‘backlog / maintenance’ of

existing levels of service, ‘increased levels of service’, and a ‘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 thatt 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 situationn 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 iss required to be

updated, forces stronger, more co-ordinated and focussed managementm

t of the activity,

and greater accountability allowing the Council to focus lesss on the preparation of plans

to meet statutory requirements, andd more on more effective and efficient long-term

management of the activity.

1.3

Asset Management Levell

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. Thiss review recommended that the appropriate level for

Roading Asset management is i Core Plus. . The Council adopted this recommendation on 27

November 2008 at an ordinary Council meeting.

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A copy of the Waugh report is

attached ass Annex V to

this Plan.”

2

2.1

Levels

of Service, Performance

Measures, and Relationship

to Community

Outcomes

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 itss legal obligations, comments

made

to it throughh 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 inn 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 thee hierarchy the more traffic a road will carry. Hurunui

District Council roads fall into the followingg hierarchy:

Strategic Arterial Roads

District Arterial Roads

Collector Roads

Local Roads

For the purposes of establishing levels of service that are sensiblee to the road-user into the following groups,

for which current and desirable levels of service are established:

and at the

level of individual roads thesee five hierarchies have been rearranged

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 inn this list as there is onlyy a small number of them and

the Council considers that the

minimum level of service for them iss a sealed surface.

Theree are four carriageway service indicators, capacity; ride quality; safety andd appearance;

and responsiveness; that are used to define the levels

of service on o each of the roads in each of

thesee groups.

The roading asset is also made up of a number of different components, each of which naturally

delivers completely differencee “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.

Theree is only a very shall amount of publicc off-street car parking that is not directly associated

with an adjacent public building, such as the Council’s

Amberley Offices, O or with a public

reserve maintained as a Community, rather than Roading, asset. Currently C these public off-road

car parks have not been identified but thiss is programmed to occurr early in 2011/12.

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

Outcomes

Page 7



The relationship between these level of service indicators and the Council’s Community

Outcomes is illustrated below:

Table 3, Community Outcome Linkages

Service Indicator

Carriageway

Footpaths and cycleways

Kerb & channel and

drainage

Bridges and fords

Streett lighting

Road marking and delineation

Signs

Appearance

Sub-indicator

Ride quality

Width

Surface

Safety

Presence

Width

Surface

Safety

Presence

Type

Material

Width

Load capacity

Availabilityy (fords)

Cycle lanes

Pedestriann facilities

Presence

Standard

Safety

Presence / use of

marking and delineationn

Legal compliance

Presence of Name-

warning of

blades

Appropriate

hazards and sudden

changes

Appropriate information

provided

Painted surfaces

Township roadsides

Rural roadsides

“Noxious weeds”

Related Community Outcome

Economic wellbeing

Economic wellbeing

Economic wellbeing

Social wellbeing

Environmental wellbeingg

Social wellbeing

Social wellbeing

Social wellbeing

Social wellbeing

Social wellbeing

Economic wellbeing

Social wellbeing

Cultural wellbeing


Social wellbeing

Cultural wellbeing


Social wellbeing

Cultural wellbeing


Economic wellbeing


Economic wellbeing


Economic wellbeing

Social wellbeing


Social wellbeing


Social wellbeing


Social wellbeing


Social wellbeing

Social wellbeing

Economic wellbeing

Economic wellbeing

Economic wellbeing

Cultural wellbeing


Social wellbeing

Economic wellbeing

Cultural wellbeing


Social wellbeing

Social wellbeing

Social wellbeing

Social wellbeing


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Section 2 Levels of Service, Performance Measures, and Relationship to

Community Outcomes

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Service Indicator

Sub-indicator

Weeds in footpaths and

gutters

Cleanliness

Offensive matter and

crash debris

Related Community Outcome

Social wellbeing


Social wellbeing


Social wellbeing

Cultural wellbeing


NZ Transport Agency (NZTA)) has issued maintenancee guidelines for all road controlling

authorities, whichh have been incorporatedd in the various maintenance contracts as appropriate.

2.2

2.2.1

Reporting

Targets and Measures

Performance measures/indicators for the District’s roading networkk have, to date, largely been

found

within the specificationss 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 publishess an Annual Report for

Hurunui District covering reported crashess over the previous 5-year period.

Environment Canterbury’s (ECan’s) Regional Land Transport strategy sets outt 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 Workss and Services Committee.

2.2.2

Network Performance

The information reported in these ways forms the basis of the following Network Performance

Measures. Thesee measures will be reported in the Council’s Annual Reports. Progress towards

them, and the latest Achievements are detailed in Appendix B — Levels L of Service

Table 4, Network Performance Measures

Measure

Target

•LTP Measures

1. Essential Infrastructure

a.

Maintain infrastructure to a

standard appropriate to their use

and traffic volume

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

Outcomes

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Measure

•Roading Survey data compares

favourably

with other rural

councils similar to Hurunui District

• Smooth Travel exposure of the

network 3

− Overall

Target

− 95%

•NZTA audits confirm that the

roading network is in satisfactory

condition

•40-km of sealed roads have

waterproof sealing applied peryear

b. Good quality streetlights

c. Good quality kerb and channel in

urban areas

d. •Good quality footpaths in i urban

areas

• Percentage of

“rough” roads on the

Hurunui District’s sealed network

− Overall

• Pavement Integrity Index for sealed

roads

− Overall

• Surface Integrity Index for sealed

roads

− Overall

• Audits are carried out at

approximately

3- to 5-yearly intervals

as determinedd by the NZTAA

• Annual length

resealed

− District Wide

Reduce the percentage of substandard

lights by 1% annually to 4% by June

2013

• 2009/10

• 2010/11

• 2011/12

• 2012/13+

Reduce the percentage of deficiencies

inn kerb and channel by 1% annually a to

2% by June 2013

• 2009/10

• 2010/11

• 2011/12

• 2012/13+

• The percentage of defects footpath f

surfaces does

not increase

• The percentage of urban streets (by

length) without smooth footpaths

reduces to 12% by June 2013.

• 2009/10

• 2010/11

• 2011/12

• 2012/13+

− 5%

− 95%

− 95%

•2005 - Yes

− 40km

•7%

•6%

•5%

•4%

•5%

•4%

•3%

•2%

Currently 0.2%

− 15%

− 14%

− 13%

− 12%

3

Determined in accordance with NZTA definitions

and reporting criteria incorporated

in the

algorithms included in the RAMM database by the Agency..

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Section 2 Levels of Service, Performance Measures, and Relationship to

Version 3.0

Community Outcomes


Measure

2. •A healthy place to live

a. •Residents’’ satisfaction

b. •An additional 1km of unsealed

road is sealed each year

c. •Bridges have adequate strength s

and are well maintained

d. Improving road safety

Internal measuress

3 Unsealed roads

4 Urban Streets

5 Bridges

•

• The proportion of those surveyed

considering the standard off sealed

roads to be satisfactory or better

increases to 80% by June 2013

− 2009/10

− 2010/11

− 2011/12

− 2012/13+

• The proportion of those surveyed

considering the standard off unsealed

roads to be satisfactory or better

increases to 60% by June 2013

− 2009/10

− 2010/11

− 2011/12

− 2012/13+

• Length of seal extension (km)

• 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. 20010/112

• Bridges are inspected regularly,

according to need, and nott less than

once in 5-years

− Number of bridges over-due for

inspectionn

The number of

road crash fatalities on

Hurunui District’s roads reduces

− 2009/10

− 2010/11

− 2011/12

− 2012/13+

• Length of unsealed roads ( km)

• Proportion of unsealed network

carrying > 100 veh/day

• Proportion of unsealed roadd length in

the maintained network

• Proportion of travel on unsealed roads

(vkt)

• Proportion of urban streets (by

length) with substandard street

lighting by June 2013

• Proportion of load-restrictedd bridges

in the network

• Proportion of network accessed over

load-restricted bridges

Target

− 70%

− 75%

− 75%

− 80%

− 50%

− 55%

− 60%

− 60%

•

•

− 20 bridges

− Nil

− By 5%

− By 10%

− By 10%

− By 20%

•854

•0.5%

•58.9%

•



Measure

6 Road maintenance and renewal

7 Road safety

• Average remaining seal life (years) on •7-years

all roads

• Value for Money

− Maintenance Cost / vkt (Total

value of subsidised maintenance

based on final The NZ Transport T

Agency claim)

− Value of Deferred Maintenance at

end of year

− Change in

Network Service

Potential 4

• Total number of injury crashes per

100 million vehicle km travelled

(10 8 vkt) on local roads

Target

− < $0.05

•

•

−


lightly

trafficked metal roads. This information is required to allow more m 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

km

1,600

1,400

1,200

1,000

800

600

400

200

-

Arterial

Carriageway Types

Data: 11 Nov 09

Collector

Local

Grand Total

Unsealed

Sealed

Concrete

-

82.337

-

16.848

154.947

-

839.2022

360.0033

0.221

856.050

597.287

0.221

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

Figure

2 Carriageway Types

Network length

Vehicle-km travelled /year

Proportion of Network Total

80.0%

60.0%

40.0%

20.0%

0.0%

Rural

Urban

Sealed

36.5%

4.6%

Unsealed

58.3%

0.6%

Proportion of network vkt

100.0%

80.0%

60.0%

40.0%

20.0%

0.0%

Rural

Urban

Sealed

67.7%

11.7%

Unsealed

20.4%

0.2%

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

Some

66,755,5266 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 r roads. (S

Apx A Overview 3.0.2.xls]Hierarchy > $G$ $62)

Source: HDC RdAMP

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

following chart.

Version 3.0

Section 3 The Existing Situation

Page 13



Figure

3 Bridging Summary

6,000

Bridge Summary

Data: 2 Apr 09

250

Length (road centreline-m)

5,000

4,000

3,000

2,000

1,000

200

150

100

50

Number

0

Concretee Steel Timber

Other

Concrete

Steel

Timber

Other

Concrete

Steel

Timber

Other

Grand

0

Length (m) 2805

Quantity 89

Single Lane

1525 375

56 31

7 492

1 11

Ambiguous

9 16

2 3

171 347

2 20

Two Lane

41 5

1 1

Total

0 5792

0 217

3.2

How the Roading Assets

are Maintained and Operated

Maintenance and Operation are discussedd in detail in Appendix E.

Maintenance in this context includes mostt activities normally associated with the word but

excludes “renewals”, which are the replacement of long-life assetss or components at the end of

their useful lives. Renewals are detailed inn 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 m 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 targett 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 throughh routine proactive inspections, testingg 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 T 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 costt of many of the maintenance activities carried out on

the District’s roads. This support, commonly called “subsidy” but more m correctlyy 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 Lyfordd 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.

Page-14

Sectionn 3 The Existing Situation

Version 3.0


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 standardd sufficient too maintain safety,

keep abreast of maintenance and respondd 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 widee treatment or strengthening

overlays, and short culvert barrel-lengths creating pinch points.

The overall condition of the network has been improving over the years y but, in some instances,

user expectations

have increased faster than the improvements can be fundedd 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 off the Civil

The Council also has in effectt an Adversee 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 o major floods It allows for f the

restoration of roads and roading structuress to a standard no betterr than that which existed

before any damage occurred.

The Hurunui District Council has experienced only three adverse events e that have required

emergency expenditure since

its formationn 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 hass been made

for Emergency Reinstatement. It is

expected that should there be

a need for such work, there would be b significantt expendituree

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 Maintenancee Forecast is at Appendixx E. Maintenance forecasts by activityy area are also

outlined Annex II to this plan

3.3

Renewals and Depreciati

on

Renewals are discussed in detail in Appendix F — Renewals.

Asset

renewals are activities that t go beyond maintaining the serviceability of an asset and

extend its life significantly. For roads, the main parameter that signals the needd 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 a sealed-carriageway will

crack

and lose chip as it ages, eventually losing its waterproofing qualities. q

Version 3.0


Page 15



All renewal activities are carried out underr 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 placee 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

costss 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 w 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 hencee depreciation is not charged

on alll 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 renewingg roading assets is the difficulty in obtaining NZTA

financial assistance for renewal works, because of the

very low traffic volumess 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 too be the result of better than expectedd 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

Theree are 48 bridges, with a total replacement value of $42,297,893 that do not meet the

NZTA’s requirements for funding, becausee they are deemed to be “uneconomic”. These are

discussed in detail in Appendix F — Renewals. Source: [HDC[

RdAMP Apxx F Renewals v3.0.3.xls]Bridges >

3.3.2. 3 Roads

The current NZ Transport Agency fundingg arrangements with do not allow certainty when

programming renewals works, especially pavement renewals. Thee programmes developedd 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 f some projects.

$A$13

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

Page-16


Version 3.0


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 depreciation 6 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. servicee potential it is i discussed in Annex III below, which can

To facilitate more accurate and timely

reviews of the changes in network

be amended and updated more easily than the body of this plan.

3.4

3.4.1

Future Demand and New

Future Demand

Expenditure

The land transport network is responsible for the efficient movement of people and goods

throughout the District and to neighbouringg 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 needd 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 demandedd 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 T 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

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.

Theree 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 thee 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;

6

Calculated using the Optimised Depreciated Replacement Cost method

Version 3.0


Page 17



Appropriate

urban facilities in closely settled areas, e.g. streetlights, kerbb and channel,

footpaths

These projects are identified via monitoring, community and Council input, andd through statutory

requirements. The

condition of the network and its components aree continuallyy 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 generatedd a need for any

new roads outside

the subdivisions themselves; this is

expected too 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 thee Amenities

budget, which is allocated to and approved by Wards Committees.

The new works planned to be

provided during the next three yearss are listed inn Annex III.

3.4.3

How New Works are Funded

Financial Contributions, levied under the Resource Management Act 1991 (the RMA).

The policies to offsett adverse effects of a particular development are identified in the

Hurunui District Council’s Districtt 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 f residents, e.g. towards seal outside a residents’ property.

Councils can require contributions from developers to offset the costs or adverse effects off

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 itt 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 Loann Servicing

3.4.4

Other New Works

issues.

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’ss share of new works

expenditures lesss than $100,000 is fundedd as operational expenditure from thee District Roading

Rate.

Other

sources of funds for roading improvements are:

3.4.4. 1 Land Transport Programme

The Land Transport Management Act 2002 requires that the Regional Transport Committee, of

whichh the Hurunui District Council is a member, to prepare a Land Transport Programme three-

the public on it. The Hurunui District Council prepares a Land Transport Programme as an input

yearly, to coincide

with the Long Term Council Community Plan cycle, and to formally consult

to this

process.

3.4.5

New Works Forecast

The New Works Forecast is at Appendix F. New works

forecasts by b activity area, are also

outlined Annex II to this plan; the forward programme for the next three t years is at Annex III.

Page-18


Version 3.0


3.5

Asset Retirement / Disposal

Assets are considered for disposal when they becomee uneconomic to own andd operate, such as

when

they become an uneconomic roading facility as supported byy The NZ Transport Agency,

or through rationalisation of the asset stock.

The use of revenue arising from the sale of any assetss 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 andd 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

Resource

Allocations

Levels of

Service

Budgets

Asset

condition &

performance

measures m

Achieved

performancee

Programs

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 s 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 fundingg and budgets are adjusted ahead of changes in levels l

of service.

The continuum illustrated Figure 4 shows that the immediate effect of a changee in budget is on

resource allocation. A change

in budget influences levels of service and the expected end-of-

on resource

allocations. This change in turn affects thee Council’s programs andd ultimately its performance.

These considerations provide

the basis for the Council’s asset management process when

theree is an urgent

need or desire to reducee or increasee a budget or a budget has been

period condition and performance of the assets through their immediate effectss

unexpectedly changed. The appropriate response is to:

Version 3.0

Section 4 Resource allocation and budgeting

Page 19



Review planned resource allocations.

Determine the effects these will have on agreed

levels of service.

Assess how

these changes in levelss 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 cyclee 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 actionn later.

Assess the

effects of the revised programs of the agency’s performancep

e 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 levelss of service and going through as many iterations as

many

times as required to produce the desired result. Before any changes c to levels of service

are confirmed the

Council will consider whether the equired changes are sufficient to warrant

consultation with key stakeholders or customers.

4.1

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

Councils are required to have

a Revenue and Financing Policy to show s 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 aree gathered byy 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 f to use any public road in

the District. The recovery of subsidies fromm 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 eligiblee for subsidy. Therefore, the balance of costs must be recovered

through rates.

When

considering

the underlying roading infrastructure the Council recognisess that there are

benefits to both individuals and to properties, from of the roading activity. a The Council’s

assessment is that its share of roading costs should be gathered solely s from a rate on the

capital value of properties, with no uniformm annual charges levied as a 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 neww 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 c rallies.

Page-20

Section 4 Resource allocation

and budgeting

Version 3.0


5

5.1

Environmentall Management, Regulator

ry Matters and

Activity Management Issues

Environmental Managem

ment Issues

Some

roading activities may have potential or actual effects on thee 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 fashionn is a critical part of road

management. The

Council has three typess of resourcee consents from Environment Canterbury

to cover its roading activities, Global Consents, Period

Consents and a Project Consents.

The Council maintains an electronic database for all its consents, the t 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 $20,0000 to $30,000 to prepare and lodge.

Current consents are detailedd in Appendixx N — Resource Management` Matters:

Consents required from time to t time for specific projects are generally relinquished once the

work has been completed.

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

The Hurunui District Plan contains two roading designations for thee Hurunui District Council

under the Resource Management Act for road widening on Osborne Road andd 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 longg term is very

unclear. The Council has adopted the t

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 encouragee a reduction

in the levelss 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 too 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 f contribution;

The District promotes a choice of transport modes, includingg public transport and

provides facilities for cycling and walking particularly within urban u 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

Version 3.0

Section 5 Environmental Management, Regulatory Matters and Activity

Management Issues

Page 21



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 e network can

have some adverse effects. These includee road safety, local air pollution, road run-off (rainwater

that becomes polluted on the road surface) to adjacent land and waterways, w traffic noise and

vibration, visual impacts, loss and damagee of land and

natural environments, separation off

neighbours and emission of greenhouse gases. Thesee 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 off many and this is taken into account during design and

construction of projects and other work.

High volumes of traffic affect residential r amenity. The

most common effects are noise, lighting

and air quality. Dust from unsealed roadss causes a nuisance on neighbouring

n

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 fromm the roads.

6.1

Road Safety

On the Hurunui District’s roads there weree 2 fatal, 10 serious, 42 minor m and 700 non-injury traffic

crashes in the years 2000 - 2004. In 20044 the social cost of road crashes c 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 estimatedd by the amount of money the

New Zealand population would be willing to pay for a safety improvement that would resultt in

the expected avoidance of one prematuree death. It, and the social cost of eachh crash, is

established by the

NZ Transport Agency on behalf of the Crown.

The Hurunui District currently ranks 3 rd forr urban local roads and 4 th for rural local roads in NZ

Transport Agency’s Peer Group ‘E’.

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

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

The road safety goal is:

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

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

community.

Page-22

Section 6 Significant Negative Effects

Version 3.0


7

7.1

7.1.1

Significant Assumptions, Uncertainties,

, and Risk

Management

Assumptions and Uncertainties

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 off traffic growth is linked to:

population growth in established urban centres and the coastal margins between

Amberley and Christchurch;

an increasee 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 a

the popularity of Hurunui as a tourist destination.

Increasing traffic volumes are

expected too significantly

affect the Districts D arterial road network,

whichh is largely owned and operated by the NZTA on behalf of thee Crown.

7.1.2

Costs

Project costs are based on current practice, standardss and local knowledge of materials and

construction costs. Provision for f future inflation, required in LTPs by b 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 thee coming year are

reviewed annually

as part of the annual budget preparation process.

It is assumed thatt costs forecast in forward programmes will not vary beyond the corporate

allowance for inflation. The Council has noo contingency in its budget to allow for increases. If

costss do increasee over the budget amount, the Council may have insufficient budget, this will

affect

levels of service.

It is assumed thatt 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 maintenancee programmes.

7.1.3

Useful Lives

The useful lives of the network described in the asset valuation aree assumed too 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 off 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 noo changes to legislation that will incur r significant

increases in compliance costs. No budgett provision has been made for any increased costs in

this area.

Version 3.0

Section 7 Significant Assumptions, Uncertainties, and Risk Management

Page 23



7.1.5

Planning Environment

Although there are changes proposed to the Resourcee management Act 1991 by the

Government 7 , this

plan makes

now allowance for the affects of anyy changes that may occur,

because of the uncertainties that t surroundd tem. Further, this plan assumes a there will be not

changes to the Hurunui District Plan or thee 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. .

Riskss arise from any number of sources, but can generally be grouped into twoo main areas:

Management: those risks that are largely concerned with thee 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-

reduced

risk on the network over the years by improving high-risk sites as the t work cann be afforded. This

less the roading staff are familiar with the network and

the Council has progressively

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 i the Improvement Plan.

Riskss 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 t way eachh activity is

carried out. Thesee 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

t 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 att 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 c 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 w snow, flood, fire, and

wind

events. It has also

worked with NZTA on the development of the State S Highway Lifelines project

covering SH7, SH7A and SH1

within the District. A separate Hurunui District Lifelines Study is

being

undertaken.

8

8.1

Roading Bylaws and Statutory

Obligations

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)

7

At 1 Feb 2009

Page-24

Section 8 Roading Bylaws and Statutory Obligations

Version 3.0


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 b the Council’s Policy

Section. These processes are

carried out in accordance with the equirementss of the Local

Government Act 2002.

8.2

Principal Statutes

The principal statues affecting

this activityy 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 Managementt Act 1991

Legislative and other similar requirementsr

s are discussed in more detail d in Appendix S.

9

9.1

Business Improvementt

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 beenn 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 a reviewedd and revised

during preparation of the 2015/25 LTP to ensure that it meets the needs n determined by the

revised Community Outcomes

that will bee 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 t 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.

Version 3.0

Sectionn 9 Business Improvement

Page 25




Page-26

Section 10 Improvement Plan Version 3.0


Annex I

List of Appendices

Appendix 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

Appendix C

Appendix D

Appendix E

Appendix F

Appendix G

Appendix H

Appendix I

Appendix J

Appendix K

Appendix L

Appendix M

Appendix N

Appendix O

Appendix P

Appendix Q

Appendix R

Appendix S

Appendix T

Appendix U

Appendix V

Future Planned

Levels of Service

Asset Valuations

Risk

Maintenance and Operations

Future Renewals' Requirements

Depreciation and Decline inn Service Potential

Future Demands and Trends and New Works

Development Contributions

s and Financial Contributions

Debt and Loan Servicing

Asset Disposals

Income, Fees, Charges andd Funding Policy

Summary of Future Overall Financial Requirements

Resource Management Matters and Property

Land Transportt Management Act Matters

Demand Management

Significant Effects

Growth, Significant Forecasting Assumptions, Uncertainties

Legislative and Other Requirements

Stakeholders and Consultation

Continuous Improvement Programme

Overview of Roading Management and Standards

Appendix W Special Cultural Considerations

Appendix X

Glossary of Terms

Version 3.0

Annex I List of Appendices

Page I-1




Page I-2

Annexx I List of Appendices Version 3.0


Annex III

Financial Summary

The financial summary appears on the following pages. Because they t are prepared separately

from this document the following pages may not conform to the formatting and other

conventions of this plan.

Version 3.0

Annex II Financial Summary

Page II-1




Annex II II

Change

in Network Service

e

Potential

Review of the network shows that there iss currently no

significant visible v maintenance backlog.

The most recent asset valuation, and consequent depreciation provisions, wass 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 off renewals, the forecast changes c are illustrated by the

following chart

Figure

5 Forecast Change in Network Service Potential 2009-100

Link: [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 bee 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 p and those used for f

asset valuations; resulting in lower estimates of

annual depreciation.

The current state of the

network andd the proportion of assets that are currently due for f

renewal

The values of these predictedd changes, and their accumulated values, need too be considered in

relation to the total replacement value of the network. This comparison is madee in Figure 6

below

Figure

6 Forecast Percentage Change in Networkk Service Potential 2009-10

Link: [AMP Budgets HDC_12_13 v3_6_8.xlsm]Renew_Summary > $C$240

Theree are small increases in service potential of around 0.6% eachh 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 donee to eliminatee the potential

discrepancies outlined above before this prediction can be relied on. o

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 o 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 u and applied

throughout the asset management process, including valuations.

Page III-2

Annex III Change in Network

Service Potential

Version 3.0


Version 3.0

Annex III Change in Network Service Potential

Page III-3

Annex IV

Planned

New Works


The data on the following pages is the same as thatt included with Appendixx 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 were

prepared in a spreadsheet and do not necessarily conform to the numbering n and other

conventions of this plan. They

appear on the following

pages

Version 3.0

Annexx IV Planned New

Works

Page IV-1




Page IV-2

Annexx IV Planned New Works Version 3.0


Year 0 Description of Works

Currrent

2011/12

Seal Extension

- No

Programme

- Total seal extension

Seal Widening

- Other Costs:

- Total seal widening

Minor Works -local roads

- Other Costs:

- Total minor works -local roads

Reconstruction and Realignment

- No

Programme

- Total reconstruction and realignment

New Cycleways

- No

Programme

- Total new cycleways

Seal Widening - Special Purpose Road

- No

Programme

- Total seal widening - special purpose road

Reconstruction - Special Purpose Road

- No

Programme

- Total reconstruction - speci al purpose road

- Total Subsidised New Works

2012/13 Year 2

2013/14

-

-

$104,500

$104,500

$262,590

$262,590

-

-

-

-

-

-

-

-

-

-

$104,500

$104,500

$262,590

$262,590

-

-

-

-

-

-

-

-

$367,090 $367,090

Year 3

2014/15

-

-

$104,5000

$104,5000

$262,590

$262,590

-

-

-

-

-

-

-

-

$367,0900

Financial Forecast New Unubsidised Works

Year 0

Currrent

2011/12

Description of Works

2012/13 Year 2

2013/14

Year 3

2014/15

Minor Seal Extension

- Dust Sealing- Allows for one 200m frontage @

50:50 cost sharing ( recovery shown above )

- Total minor se al extension

$25,000

$25,000

$25,000

$25,000

$25,0000

$25,0000

Major Seal Extension

- No

Programme

- Total major se al extension

Miscellaneous New Works

- No

Programme

- Total miscellaneous new works

Loan Repayments

- No

Programme

- Total loan repayments

- Total Unubsidised New

Works

-

-

-

-

-

-

$ 25,000

-

-

-

-

-

-

$25,000

-

-

-

-

-

-

$25,0000

Version 3.0

Annexx IV Planned New

Works

Page IV-3

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.

Page V-1 Annex V Setting the Level of Roading Asset Management Version 3.0


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

January 2009

Final

Page 1

Annex V Setting the Level of Roading Asset Management

Version 3.0

This

page is intentionally blank.

Qualityy Record

Sheet

Hurunuii Districtt Councill

Selecting the

Appropriate AM Level

Issue Information

Issue Purpose

Issue Date

Version Number

Final

30 January

2009

1.0

Authorisation

Hurunui District Council

Date

Prepared By

Reviewed By

Report Number

Bruce Yates, Engineering Services Manager

4 September 2008

Grant Holland

Andrew Iremonger

64-026-1007

Page 2

Final


January 2009

Version 3.0


TABLE

OF CONTENTS

1.0

2.0

3.0

4.0

5.0

6.0

1.1

1.2

1.3

2.1

2.2

2.3

2.4

2.5

3.1

3.2

4.1

4.2

5.1

5.2

5.3

5.4

6.1

6.2

6.3

6.4

INTRODUCTION

5

Purpose of this Report ..................................................................................................

5

Assessment Methodology .............................................................................................

5

Definition of

‘Core Plus’ Asset Management Practice ..................................................

6

INITIAL RISK SCREEN

– DISTRICTT POPULATION

8

Overview of

New Zealand City and Town Populations .................................................

8

New Zealand Main and Secondary Urban Areas...................

.......................................

8

Analysis by

Community Population ...............................................................................

9

Analysis by

District Total Populationn ................... ........................................................ 10

Initial Risk Screen - Conclusion .................................................................................. 10

CONSIDERATION OF DISTRICT WIDE RISK FACTORS

11

Identification of District Wide Factorss .......................................................................... 11

Consideration of Districtt Wide Factors - Conclusion .................................................. 12

SECTION 2.2.4 DETAILED FACTOR ANALYSIS

13

Detailed Analysis Hurunui District Council Asset Groups ........................................... 13

Final Appropriate Asset Management Level Determination ....................................... 14

ASSET MANAGEMENT

POLICY STATEMENTS

17

Land Transport ............................................................................................................ 17

Utilities ......................................................................................................................... 20

Community Services (Parks & Property) .................................................................... 23

Solid Waste

................................................................................................................. 26

DETAILED ANALYSIS OF ASSET GROUPS

29

Land Transport ............................................................................................................ 31

Utilities ......................................................................................................................... 34

Community Services ................................................................................................... 39

Solid Waste

................................................................................................................. 42

January 2009

Final


Page 3

Version 3.0

Selecting the Appropriate AM Level

TABLE

OF TABLES

Table 2. 1: Extraction

of New Zealand City and Town Populations fromm WINZ Database ..................... 8

Table 2.2: 2006 Census Main and Secondary Urban Areas .................................................................. 8

Table 2.3: Hurunui District Council ......................................................................................................... 9

Table 2.4: Total District Population ...................................................................................................... 10

Table 3. 1: Identification of District Wide Riskk Factors .......................................................................... 11

Table 3.2: Examples

of District Wide Risk Factors .............................................................................. 12

Table 4. 1: Detailed Analysis Hurunui District t Council Asset Groups ................................................... 13

Table 5. 1: Land Transport Activity Factor Assessment Results ........................................................... 17

Table 5.2: Utility Factor Assessment Resultss ................... .................................................................... 21

Table 5.3: Community Services Factor Assessment Results .............................................................. 24

Table 5.4: Solid Waste Factor Assessment Results ............................................................................ 26

Table 6. 1: Land Transport Detailed Asset Management Practice Assessment ................................... 31

Table 6.2: Utilities Detailed Asset Management Practice Assessmentt ................... ............................. 34

Table 6.3: Community Services Detailed Asset Management Practicee Assessment .......................... 39

Table 6.4: Solid Waste Detailed Asset Management Practice Assessment ........................................ 42

TABLE

OF FIGURES

Figure 1.1: Methodology for Determining Appropriate Asset Management Level ................................. 6

Page 4

Final

January J 2009


Version 3.0


1.0

INTRODUCTION

Authorities that manage assets on behalf of their communities need to define ann appropriate

level of

asset management for the assett or activity being managed. For some authorities and assett / activity

groups this may not necessarily be fully comprehensive ( advanced) asset a management practices.

Section 2.2.4 of the International Infrastructure Management Manual (IIMM)) contains a section

regarding core and comprehensive (advanced) asset management practices. p 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 d on a number of factors,

including:

• The costs and

benefits to the organisation

• Legislative equirements

• The size, condition and complexity of the assets

• The risk associated with failures f

• 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 Districtt Council to select an

Appropriate AM Level for each off the District’ ’s asset groups.

This methodology is

required to

be logical and robust, and able too be used byy 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 adoptedd will be scrutinised by Council’s

Auditors and the methodology, and subsequent determination must be b robust enough to withstand this

scrutiny. Assessing

and adopting an Appropriate AM Level will allow a Council to focus resources r

accordingly and enhance prudent management of community infrastructure.

1.2

Assessment Methodology

The assessment methodology, developedd 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 onn the population risk screening

3. Modify initial

position based on the District wide risk factors

4. Examine each asset group and conduct a furtherr analysis based on the Section 2.2.4 factors:

a. Costs and Benefits

b. Legislative Requirements

c. Size, condition, complexity of assets

d. Risks associated

with failuress

e. Organisational skills and resources

f. Customer expectations

g. Sustainability (additional to IIMM list)

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

analysis

6. Use a detailed analysis table t to plot the adopted position

7. Use the detailed analysis of assett groups to identify gaps between adopted appropriate

practice and current practice

January 2009

Final


Page 5

Version 3.0


Figure 1.1:

Methodology for Determining Appropriate Asset Management Level

METHODOLOGY FOR DETERMINING

APPROPRIATE ASSET MANAGEMENT LEVEL

ASSET FACTORS

INITIAL

ASSESSMENT

DISTRICT WIDE FACTORS

Costs and

Benefits

Adopt Final Appropriate Asset

Management Level for each

asset group

Determine District

Population

Determine size of

largest town

Determine Initial

AM Level Position

Determine District

Wide Risk Factors

Modify Initial AM

Level Postion

Legislative

Requirements

Asset size,

condition,

complexity

Failure Risks

Organisational

Skills and

Resources

Customer

Expectations

Sustainability

INTERNAL

MANAGEMENT

Undertake detailedd analysis of

each asset group for internal

management and

direction

purposes

Assess each asset group by

these factors

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) butt may well be below

comprehensive asset management practice.

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

The genesis of the thinking around this level of asset managemen

t practice goes back to the New

Zealand Infrastructure Asset Management Manual (June

1998), which was superseded by the t IIMM.

Section 2.3 of the 2006 Edition covered thee 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 Development

Stage 2: Basic Asset Register

Stage 3: Basic Technical Assett Management

Stage 4: Improved Maintenance Management

Stage 5: Introduce Advanced Asset Management Techniques

Stage 6: System Optimisation (fully optimised decision

making and advancedd asset management

practice)

This approach outlined in the

1998 Manual anticipated graduated stages of improving asset

management practice. ‘Core Plus’ asset management practice covers Stagee 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.

Page 6

Final

January J 2009


Version 3.0


• Core, plus with over 50% of advancedd categories fully compliant

• Core, plus some advanced categoriess substantially compliant

• Core, plus most advancedd categories. substantially or fully compliant

The answer is it could be any one of these and there may not be an appropriatee 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 ann activity basis, taking

into account national, regional and local drivers of asset management

t practice forr that asset.

The recommended methodology

for assessing this is to use the Detailed Asset Managementt 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 t followingg 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

variations of practice

by asset or activity group.

‘Core Plus’ ’ there still

could be

It is possible for some organisations that their asset management practice for some activities

may be

required at nearly comprehensivee practice (e.g. Land Transport), while their practice for others may be

nearer to

core practice (e.g. Parks and Reserves).

January 2009

Final


Page 7

Version 3.0


2.0

2.1

INITIAL RISK

SCREEN – DISTRIC

CT POPULATION

Overview

of New Zealand City and Town Populations

In orderr 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.

Analysiss of this dataa 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 populationss provide a

appropriate for broader activities such as Land Transport.

guide for

community

activities, it is less

Table 2.1: Extraction of New Zealand Cityy and Town Populations from WINZ Database

Number Towns

10

34

31

559

Population

90,000 and above

10,000 – 90,000 5,000 – 10,000 Less than 5,000 WIML Suggested Initial AM A Level

Comprehensive

(Advanced)

Core Plus

Core

Core

Notes

Auckland split by

Councils

Compiled

from: http://www.drinkingwater.org.nz/supplies/Suppliescompliance.asp 16 July 2008

2.2

New Zealand Main

and Secondary Urban Areass

The Table below contains an analysis of Neww Zealand’s main and secondary urban areas, as defined

by Statistics NZ. It can be seen that there are no communities withinn 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 2.2: 2006 Census Main and Secondary Urban Areas

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

Main/Secondary Urban

Main Urban Areas

Areas

Populations

Total New Zealand

4,027,947

Total Main Urban Areas

2,892,831

Total Secondary Urban Areas

243,081

Other

892,029

UA 004 Central Auckland Zone

Main Urban Areas

395,982 Comprehensive

UA 005 Southern Auckland Zone

Main Urban Areas


UA 022 Christchurch

Main Urban Areas


UA 002 Northern Auckland Zone

Main Urban Areas


UA 003 Western Auckland Zone

Main Urban Areas


UA 020 Wellington Zone

Main Urban Areas


UA 006 Hamilton Zone

Main Urban Areas


UA 023 Dunedin

Main Urban Areas


UA 009 Tauranga

Main Urban Areas


Page 8

Final

January J 2009


Version 3.0


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

Main/Secondary Urban

Main Urban Areas

Areas

Populations

UA 018 Lower Hutt Zone

Main Urban Areas

UA 016 Palmerston North

Main Urban Areas

UA 013 Hastings Zone

Main Urban Areas

UA 021 Nelson

Main Urban Areas

UA 012 Napier Zone

Main Urban Areas

UA 010 Rotorua

Main Urban Areas

UA 014 New Plymouth

Main Urban Areas

UA 001 Whangarei

Main Urban Areas

UA 019 Porirua Zone

Main Urban Areas

UA 024 Invercargill

Main Urban Areas

UA 015 Wanganui

Main Urban Areas

UA 025 Kapiti

Main Urban Areas

UA 017 Upper Hutt Zone

Main Urban Areas

UA 011 Gisborne

Main Urban Areas

UA 110 Blenheim

Secondary Urban

Areas

UA 113 Timaru

Secondary Urban

Areas

UA 101 Pukekohe

Secondary Urban

Areas

UA 103 Taupo

Secondary Urban

Areas

UA 109 Masterton

Secondary Urban

Areas

UA 107 Levin

Secondary Urban

Areas

UA 104 Whakatane

Secondary Urban

Areas

UA 112 Ashburton

Secondary Urban

Areas

UA 007 Cambridge Zone

Main Urban Areas

UA 008 Te Awamutu Zone

Main Urban Areas

UA 106 Feilding

Secondary Urban

Areas

UA 102 Tokoroa

Secondary Urban

Areas

UA 114 Oamaru

Secondary Urban

Areas

UA 105 Hawera

Secondary Urban

Areas

UA 111 Greymouth

Secondary Urban

Areas

UA 115 Gore

Secondary Urban

Areas

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


76,032

62,118

56,364

56,286

53,766

49,281

49,080

48,396

46,773

38,988

37,347

36,402

32,529

28,527

26,886

22,515

21,291

19,494

19,134

18,204

16,836

15,192

14,454

13,890

13,530

12,681

10,776 Core

9,672 Core

9,648 Core

2.3

Analysiss 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’ss 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 2.3: Hurunui District Council

Town Rank

(All NZ Towns

Town Name

150 Cheviot

160 Hanmer

171 Amberley

231 Amberley Beach

WINZ

Population

1,640

1,500

1,300

630

HDC

Population

Data

540

WIML Assessed Initial

AM Practice Level

Core

Core

Core

Core

January 2009

Final

Page 9


Version 3.0


HDC

Town Rank

(All NZ Towns

239 Town Name

Motunau, Greta, Scargill

WINZ

Population

600

Population

Data

WIML Assessed Initial

AM Practice Level

Core

258 Leithfield

500

Core

289 Culverden

420

Core

290 Waiau Township

420

Core

439 Leithfield Beach

150

Core

Source: http:// /www.drinkingwater.org.nz/supplies/Suppliescompliance.asp 188 August 2008

As some

water supplies include rural and urban areas the community populations may be overstated

in the WINZ database.

2.4

Analysiss by District Total Population

Analysiss 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 2.4: Total District Population

Council

Rodney

Timaru

Gore District

Hurunui

District

2006

Population

85,845

42,000

11,763

10,083

Council Size

Rank (72

Authorities)

Waimate

7,041

68 Core

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

AM Practice Level Indicated by Size

(WIML Estimated Assessment)

11 Cor re Plus, effectively comprehensive

areas/activities

25 Cor re Plus, withh near comprehensive

areas/activities

58 Core

59 Cor re

19 August 2008

in some

in some

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’.

Page 10

Final

January J 2009


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3.0

CONSIDERATION

FACTORS

OF

DISTRI

CT

WIDE

RISK

3.1

Identification of District Wide Factors

Following the initial population screen basedd on appropriate practicee 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.

2.

Large geographic area with small rating base

Funding – ncluding financial assistance from NZ Transport Agency A

3.

4.

5.

High Level of Service expectations -

Influence of tourists

Land use change

sometimes unrealistic

6. Seasonal impacts on roading

7.

Resourcing and the labour market

8. Oil prices

9. Climate Change

10.

11.

Demand for Recreation Facilities

Proportion of unsealed roads

12. Geographic issues and fault lines

13. Overweight vehicles and potential forr fifty tonne trucks

14. Changes in legislation and regulations

The relative importance of thesee factors wass considered as high or, medium in terms of each

activity,

the results are shown

below.

Table 3.1:

Identification of District Wide Risk Factors

Utilities

Land

Transport

Reserves &

Property

Solid Waste

Large Geographic Area and Small Rating Base

Funding

– including

NZTA financial assistance

H

M

H

H

H

H

H

M-H

January 2009

Final

Page 11


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Utilities

Land

Transport

Reserves &

Property

Solid Waste

High Level of Service expectations

M-H

M-H

M-H

M

Changes in Legislation and Regulation

Demand for Recreation Facilities

M-H

L

M

M

M

H

M

L

Oil Prices

Influence of Touristss

L

L

H

L

L

M-H

M

M-H

Seasonal Impacts on Roading

Proportion of Unsealed Roads

L

L

L

M

M-H

L

L

L

Land Use Change

Resourcing and the

Labour Market/

L

L

M

L

L

L

L

L

Climate

Change

Geographic issues and fault lines

L

L

L

L

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 3.2: Examples of District Wide Riskk Factors

Council Population

Other Factors

Appropriate AM

Determination

(WIML Estimated

Assessment)

Rodney

Core

Plus,

effectively

comprehensive

Rapid growth, heavily

influencedd by

Auckland dynamics

Dispersed urban areas

Tourism/holiday destination

Comprehensive

Timaru

Core Plus

Geraldine – International Visitors;

Major industriess

(Fonterra

Clandeboye);

freight hub;

Regionally

significant

Primary industry growth and

subsequent

impacts

transportation

network

Core Plus

Gore

Core

None

Core

Hurunui

Core

Large geographic areaa with few small s

communities, growth of non-resident

populationn in Hanmer Springs

Waimate

Core

None

Core

3.2 Consideration of District Wide Factors - Conclusion

Based on the identified district wide risk factors, the suggested level of o appropriate asset management

practice for Hurunui District Council is ‘Core’.

Page 12

Final

January J 2009


Version 3.0


4.0

SECTION 2.2.4 DETAILED

FACTOR ANALYSIS

Following the initial

population screen and assessment of District wide risks, a more

screening was developed for each individual asset group for the District.

detailed

4.1

Detailed Analysis Hurunui District Council Asset Groupss

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 4.1:

Criteria

Population

District Wide

Risks

Costs and

Benefits

(Source:

Operating Costs

HDC Annual

Plan 2008-09)

Legislative

Requirements

Size, Condition,

Complexity of

Assets

Detailed Analysis Hurunui District Council Asset Groups

Land Transport

Utilities

Core

Core

$7.0 M*

(29% of total HDC

operating costs)

*includes half of local

facilities and

maintenance costs

Compliance

approach

ncluding highh

level of regional

involvement

Changing regime

under new

legislation

Large rural

network with

distributed small

communities

$5.1M

(21%

of total HDC

operating costs)

Compliance

approach –

increasing water

quality

requirements

(NZDWS)

Water quantity

issues increasing,

along with

increasing

demands from

pNRRP

Widee range of

small urban and

largee rural

schemes

Community

Services

(Parks & Property)

$1.5M

(6% of total t HDC

operating costs)

Compliance

approach Specific

LOS requirements

for some groups

Simple approach

to rangee of assets

Solid Waste

$0.8M**

(3% of total HDC

operating costs)

** excludes household h

collection costs

Compliance and

level of service

approach followed f

which is generally

ahead of

legislation

Few assets – five

transfer stations,

closed landfills

January 2009

Final


Page 13

Version 3.0


Criteria

Risks

Associated with

Failures

Land Transport

Moderate level of

risk

Some critical

routes, bridges

and demand

issues

Utilities

Highh risks

identified with

water supplies ,

average level of

risk for

wastewater

The supply of

stock water

essential for stock

welfare and fire

fighting

Community

Services

(Parks & Property)

Generally lower

and isolated level

of risk

Solid Waste

Low level of risk

Management

issues arise

through

subdivision and

changes in

ownership

Organisational

Skills and

Resources

Customer

Expectations

Sustainability

Drainage assets

affect some

communities flood

risk

Hurunui District Council comprises a small organisation serving a large area of

small communities

The organisation is comfortably resourced with a range r 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 time

This increasee is particularly evident in Hanmer Springs and rural-residentia

areas

where ‘City values’ reflected in expectations of those who shiftt into the district from

Christchurch

No Corporate

Policy at this stage, part of AMP andd planning process at activity

level

Influenced by

Targets set in

LTMA, NZTS and

2005 and being

RLTS

reviewed in 2008

Appropriate

AM Level

Core Plus

Coree

Core

Recycling

underway and

ahead of

expectations of

Waste

Minimisation Bill

Core

4.2

Final Appropriate

Asset Management

Level Determination

Page 14

Final

January J 2009


Version 3.0


The initial population

screen for Hurunui District Council, using urban area, all township populations,

and total district population showed that asset management practice should s be Core.

The examination of individual factors is summarised in Table 4.1: Detailed D Analysis Hurunui District

Council Asset Groups above and

commentary on these factors is as follows: f

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 a allow more scope to

develop

asset management

practice as appropriate. . The value

of the Roading assetss at $167M (DRV) is

considerably higher the value of water and wastewater assets ($39MM DRV). Solidd Waste and

Parks &

Property

represent significantly smaller areas of expenditure, and are associated with less risk

exposure.

Legislative Requirements

Hurunui District Council policy is

to meet minimum legislative requirements, or exceed requirements

where deemed appropriate and cost effectivee 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 onlyy a small rating base. While the assets are not highly

complex

the isolated

nature of the communities requires a specific approach.

Risks Associated with Failures

Overall risks associated with asset failure have been assessed to be b average apart from water and

wastewater and drainage. Failure of waterr systems would lead too 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 drainagee is integral to manage flood f risk.

Public Health risk management is i already legislatively mandated. The risk of flooding is highh and the

district’s drainage systems are essential to the well-being

of the community.

Organisational Skills and Resources

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 f in-house teams and

Contractors. This approach would be consistent with a ‘Core’ approach.

Customer Expectations

The District has a range of community assetss 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 expectationss 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 too be medium to high and the trend off 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 andd revisions) for Land

January 2009

Final


Page 15

Version 3.0


Transport; otherwisee Council is still in the process of developing itss sustainability policies.

include incorporating

legislative changes andd the any national or regional policies or plans.

This will

Any impact of these on asset management practice will be incorporated into the

Management Policies.

next review

of Asset

Conclusion

Having considered all these factors, for eachh asset / activity group itt is apparentt that Hurunui District

Council should be managing it’s assets at thee following levels:

Activity

Final

Appropriate

AM Level

Comment

Land Transportt

Core

Plus

A more

sophisticated

approach than core

with an emphasis

on managing the

lifecycle costs off

assets and the

communities ability

to fund long term

costs

Utilities

Core

Community

Services

(Parks & Property)

Core

Solid Waste

Core

Page 16

Final

January J 2009


Version 3.0


5.0

ASSET

MANAGEMENT POLICY

STATEMENTS

The Asset Management Policy Statements for the Activities assessedd follows.

5.1

Land Transport

The Hurunui Districtt Council Asset Management Policy Statement for f the Landd 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 r 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 equires 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 onn Council’s economic,

environmental, social, and cultural objectives.

This Asset Management Policy sets the appropriate level of asset management

Land Transport Activity.

practice for Council’s

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 b andd budgetary planning

using activity management plans and Council’s LTCCP to demonstrate thiss

• Integration with neighbouring authorities and other agencies including NZZ Transport Strategy,

National Land

Transport Programme,

and the Regional Land Transport T 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 f 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 5.1:

Criteria

Land Transport

Activity Factorr Assessment Results

Assessment Commentary

January 2009

Final

Page 17


Version 3.0


Criteria

Assessment

Population

Core

District Wide

Core

Risks

Costs and $7.0 M*

Benefits (29% of total

HDC

operating

costs)

Legislative

Requirements

Size, Condition,

Complexity of

Assets

Risks

Associated with

Failures

Organisational

Skills and

Resources

Customer

Expectations

Compliance

approach

Large

network,

otherwise

typical

Moderate

level of risk

Average

Average +

Commentary

The initiall population risk screen for urban areas, all township

populations, and total district population showed that assett

management practice

should be ‘Core’

Based on the identified district wide risk factors, the suggested

level of appropriate asset management practice should be ‘Core’

The Land Transport budget is the largest in Council and

representt higher riskss 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 r the value off water

and wastewater assets ($39M DRV)

*includes half of local facilities and maintenance costs

Hurunui District Council policy is too meet minimum legislative

requirements, or exceed requirements where deemed appropriate

and cost effective through Levels of Service Consultation.

There

are considerable changes under new n legislation which requires a

high level of regional involvementi

Large rural network with distributed small communities

Seasonal variations and changes in land use impact on levels of

service and maintenance requirements

Overall risks associated with asset failure havee been assessed to

be moderate. There are some critical routes, bridges and

demand issues

Increasingg heavy vehicles and thee potential forr fifty tonne truck t

are a real risk to the network

Hurunui District Council comprisess a small organisation serving a

large areaa of small communities. iss a relativelyy small local

authority

The organisation is comfortably resourced withh a range of

experienced staff, staff are stable and there are very few

vacancies. Services are deliveredd through a combination of inhigh

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

standard and the community is justifiably proudd 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 o time

This increase is particularly evident in Hanmerr Springs and

rural-

of

residential areas where ‘City values’ reflected in expectations

those whoo shift into the district fromm Christchurch

Overall customer expectations aree 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 too consistently meet community expectations in the long

term

Page 18

Final

January J 2009


Version 3.0


Criteria

Sustainability

Final AM

Level

Assessment

No

Corporate

Policy at this

stage, part of

AMP and

planning

process at

activity level

Core Plus

Commentary

Hurunui District Council is following the sustainability regimes of

the Land Transport Management Act A 2003, NZTS and RLTS

requirements (including subsequent amendments and revisions)

for Land Transport; otherwise Council is still inn the processs of

developing its sustainability policies. This will include

incorporating legislative changes and a the any national or regional

policies or plans

Any impact of these on asset management practice will be

incorporated into the next review of o Asset Management Policies

Analysis of factors suggests that asset management practice

requires a more sophisticated approach a than core with

an

emphasiss 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 w the 20088 Asset Management

Plans and 2009 LTCCP. This

Asset Management Policy may equire revieww once Council has

completed the development of its

Sustainability Policies.

This next full review of this Asset Management Policy shall be completed in Junee 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 off service,

managing growth, risk management, asset t 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

management practice were identified.

any gaps

in appropriate asset

Asset management practice gaps that weree noted have

been transferred to thee Asset Management

Improvement Programme for action.

January 2009

Final


Page 19

Version 3.0


5.2 Utilities

The Hurunui Districtt Council Asset Management Policy Statement for the Utilities Activity is

outlined

below. The Utilities comprise Communityy Water Supplies, Wastewater, Stormwater and Land

Drainage. It is intended that this Policy Statement be added too the introduction of the

Activity


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 P for thee 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.




required to




Utilities Activity.


5.2.2



making:



• Integration of

asset management within the Utilities communities of interest and across Council

utilising corporate, financial, businesss and budgetary planning using activity management plans

and Council’s

LTCCP to demonstrate

this

• Integration of


frameworks



asset planning


decision making


generations

5.2.3


This Asset Management Policy links l to, Council’s LTCCP, Utilities Asset A Management Plans

and the

Water and Sanitary Services Assessment. An approach where planning is basedd around communities

of interest is favoured, as this aims to promote an integrated management regime and encourage

efficiencies across the district’s water schemes.

5.2.4

Structured


Page 20

Final

January J 2009


Version 3.0


Council has

undertaken a structured assessment of the appropriate level of asset management practice for thee Utilities assets. This

structured assessment follows the guidance provided in Section 2.2.4 of the International Infrastructure Management Manual. The T results

of this assessment are shown in Table 5.2: Utility Factor Assessment Resultss below:

Table 5.2: Utility Factor Assessment Results

Criteria

Population

Assessment

Core

Commentary



management practice


District Wide

Risks

Costs and Benefits

Core

$5.1M

(21% of total

HDC



The combined Utilities

budgets comprise the second largest in

Council and represent

higher riskss if AM practice is not at an

appropriate level. These budgets also allow more scope to

operating develop asset management practice as appropriate

costs)

Legislative

Requirements

Compliance

approach –



and cost effective through Levels of Service Consultation

There aree increasing water qualityy requirements (NZDWS)) and

water quantity issues arising, along with increasing demands from

pNRRP

Size, Condition,

Large There is a wide range

of small urban and largee rural schemes

Complexity of

Assets

Risks

Associated with

Failures

Organisational

Skills and

Resources

network,

otherwise

typical

Moderate to

High

Average

The waterr supplies include extensive pumpingg and reticulation

assets

Drainage assets are minor but of high h importance

Overall risks associated with asset failure havee been assessed to

be average apart from

water and wastewater w and drainage.

Failure of f water systems would lead to a rangee of issues,

wastewater system failure has public health and environmental

consequences. This suggests a higher h 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 o flooding is high and the

district’s drainage systems are essential to the well-being of the community c


large areaa of small communities



vacancies. Services are deliveredd through a combination of in-



January 2009

Final


Page 21

Version 3.0


Criteria

Customer

Expectations

Sustainability

Final AM

Level

Assessment

Average +

No

Corporate

Policy at this

stage, part of

AMP and

planning

process at

activity level

Core

Commentary

The District has a range of community assets that are of a high


high expectations of the development and maintenance.





rural-

of




high


suggests a requirement for well developed asset management


term

Council iss still in the process of developing its sustainability

policies. This will include incorporating legislative changes

and

the any national or regional policies or plans




should bee Core

5.2.5






Corporate Sustainability

Policies.




5.2.6



guidance

offered by




Council

commitment to asset




any gaps





Page 22

Final

January J 2009


Version 3.0


5.3

Community Services (Parkss & Property)

The Hurunui District Council Asset Management Policy Statement forr the Community Services Activity

is outlined below. Community

Services (Parks and Property) comprise Recreation Reserves,

Sportsfields, Playgrounds, Halls

and otherr Community

Buildings, Public Toilets, Cemeteries and

Pensioner Flats. It is intended that t this Policy Statement be added to the introduction of the Activity


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





required to




Community Services

Activity.


5.3.2



making:



• Integration of



• Integration of


frameworks



asset planning


decision making


generations

5.3.3


This Asset Management Policy

links to Council’s LTCCP, Walkway Policy, Community

Strategic

Plans and Reserve Management Plans.

Facilities

5.3.4

Structured


Council has undertaken a structured assessment of the appropriate level off asset management

practice for the Community Services assets. This structured assessment follows the guidance

providedd in Section 2.2.4 of the International Infrastructure Management Manual. The results of this

assessment are shown in Table 5.3: Community Services Factor Assessment Results below.

January 2009

Final


Page 23

Version 3.0


Table 5.3: Community Services Factor Assessment Results

Criteria

Population

Assessment

Core

Commentary



management practice


District Wide

Risks

Costs and Benefits

Core

$0.7M

(3% of total

HDC



The Parkss and Property operations budgets are relatively small in

terms of Council expenditure and represents minor risks if AM

practice iss not at an appropriate level

operating

costs)

Legislative

Requirements

Compliance

approach




Size, Condition,

Complexity of

Assets

Risks

Associated with

Failures

Average

Generally

lower and

isolated level

of risk

A simple but varied approach is equired givenn the range of

assets involved

Good dataa now held on assets and condition

Overall risks associated with asset failure are well understood

and have been assessed to be loww with the exceptiion of playgrounds,

which have higher associated risks

Organisational

Skills and

Resources

Average Hurunui District Council comprisess a small organisation serving a




vacancies. Services are deliveredd through a combination of inhigh



Customer

Expectations

Average + The District has a range of community assets that are of a







rural-

of



Sustainability

Final AM

Level

No

Corporate

Policy at this

stage, part of

AMP and

planning

process at

activity level

Core


high




term



and





should bee Core

Page 24

Final

January J 2009


Version 3.0


5.3.5










5.3.6



guidance

offered by




Council

commitment to asset




any gaps





January 2009

Final


Page 25

Version 3.0


5.4 Solid Waste

The Hurunui District Council Asset Management Policy Statementt for the Solid Waste Activity is

outlined below. It is

intended that this Policy Statement be added to the introduction of the Activity


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’ss Asset Management Policy for the Solid Waste Activity is

to ensure that Council’s servicee delivery iss optimised to deliver agreed community outcomes and

levels of

service, manage related risks, and optimise expenditure over the entire life cycle of the





required to

be sustainable in the long l term and deliver onn Councils economic,



Solid Waste Activity.


5.4.2



making:



• Integration of



• Integration of


frameworks



asset planning


decision making


generations

5.4.3


This Asset Management Policy links to Council’s LTCCP and Waste ManagementM

t Plan 2005.

5.4.4

Structured


Council has undertaken a structured assessment of the appropriate level off asset management

practice for the Solid Waste assets. This structured assessment follows f the guidance provided in

Section 2.2.4 of the International Infrastructure Management Manual. The results of this assessment

are shown in Table 5.4: Solid Waste Factor Assessment

Results below.

Table 5.4: Solid Waste Factor Assessment Results

Criteria

Population

Assessment

Core

Commentary



management practice


Page 26

Final

January J 2009


Version 3.0


Criteria

Assessment

District Wide

Core

Risks

Costs and $0.8M**

Benefits (3% of total

HDC

operating

costs)

Commentary



The Parkss and Property operations budgets are relatively small in

terms of Council expenditure and represents minor risks if AM

practice iss not at an appropriate level

** excludes household collection costs

Legislative

Requirements

Size, Condition,

Complexity of

Assets

Risks

Associated with

Failures

Organisational

Skills and

Resources

Customer

Expectations

Sustainability

Final AM

Level

Compliance

approach

Low

Low level of

risk

Average

Average +

No

Corporate

Policy at this

stage, part of

AMP and

planning

process at

activity level

Core




For Solid Waste services a level of o service approach is being

followed which is generally ahead of legislationn

Few assets – five transfer stations, closed landfills

Community facilitated recycling activities

Given thee limited assets involved, overall riskss associated with

asset failure have been assessed to be low





vacanciess Services are delivered through t a combination off inhigh



The District has a range of community assets that are of a







rural-

of




high




term



and





should bee Core

January 2009

Final


Page 27

Version 3.0


5.4.5 Implementation and Review of Policy









5.4.6



guidance

offered by




Council

commitment to asset




any gaps





Page 28

Final

January J 2009


Version 3.0


6.0

DETAILED ANALY

YSIS OF

ASSET

GROUPS

The following tables are provided for internal Council use to set in detail d 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 (indicatedd 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 Managerr assessing current performance in terms of each of the

assessment criteria. This may be done withh the assistance of the asset a or Activity Plan Writer if this

appropriate.

Once the

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

Step Three

Following the assessment of practice gaps this information can be transferred too the Asset or Activity

Management Plan improvement

programme. . It is expected that this assessment

a

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 purposess only).

January 2009

Final


Page 29

Version 3.0


Relevant

Assessment Criteria

Core criteria

Additional relevant criteria

Compliance Key

Fully compliant

S Substantially compliant

P Partially compliant

Does not comply

SAMPLE DATA ONLY

Description of Assets

Core

Advanced

Assessment Criteria (as outlinedd in IIMM)

Process of Development

Adequate Description of Asset

Financial Description of Assett

Remaining useful life

Aggregate & Disaggregate Information

Reliable Physical inventory

- Physical attributes (location,, material, age etc)

- Systematic monitoring of condition

- Systematic measurement performance

- Utilisation/capacity

Relevance

Compliancee Status Analysis

Current Compliance

Performance

Gaps

P

S

Footpath data

incomplete

Traffic counts

for some roads

only

Notes

RAMM & dTIMS

fully operational

RAMM & dTIMS

fully operational

Footpath survey

underway (2008)

RAMM Rating &

FWD

Traffic Counts 3yr

cycle, counts

for all

roads will be

completed in

2010

Page 30

Final

January J 2009


Version 3.0


6.1

Land Transport

Relevant

Assessment

Criteria

Core criteria


Compliance Key

Fully compliant

S Substantially compliant


Does not comply

Description of

Assets

Core

Advanced

Levels of Service

Core

Table 6.1: Land Transport

Detailed Assett Management Practice Assessment

Assessment Criteria (as outlined in IIMM)



Financial Description of Asset




- Physical attributes (location, material, age etc)

- Systematic monitoring of condition



Define LOS or performance

Linkage to strategic/community outcomes

Links to other planning documentss

Levels of consultation identified and agreement

Service life of network stated

Relevancee

Compliance C Status Analysis

Current Compliance Gaps

Performance

S

S

S

S

S

S

S

S

P

P

P

P

Data needed on

‘other structures’

Data needed on


Data needed on


Data needed on


Data needed on


Data needed on


Data needed on


Show linkages in

AMP

Regional linkages

to be shown

Outline

consultation

undertakenn

(LTCCP Ward

Meetings and AP)

Notes

RAMMM and Opus

Database for Bridges

Annual Valuation/Review


RAMMM managed by

Maunsell

Sealed roads only

Sealed roads only, some

FWD survey and model in

place

Sealed roads only

Programme in place (all

roadss >40vpd every 5

years, major rotes

annually)

Shown in LTCCP


January 2009

Final


Page 31

Version 3.0



For Significant Services

- Evaluating LOS

Options

- Consult LOS options with community

Advanced

Managing

Growth

Core

Advanced

Risk

Management

Core

Advanced

Lifecycle

Decision Making

Core

Advanced

Page 32

- Adoption LOS & Standards afterr consultation

- Public communication of servicee level

- Monitoring & public reporting

AMP's reflect agreed LOS & how service s is delivered

Demand Forecasts (10 year)

Demand Management drivers

Demand Management strategies

Sustainability Strategies

Forecasts include

factors that comprise demand

Sensitivity of asset development (Capital Works) to

demand changes

Asset Utilisation/ Demand Modelling

Identify critical assets

Identify significant negative effectss

Identify associated risks and RM strategies s

Recognition & application of principles of integrated

risk management to assets

Apply standards & industry good practice p

RM integrated with Lifelines, disasters d recovery,

Continuity plans,.

Strategies for critical assets to include mitigationn –

CORE

Integrate

with maintenance and replacement

strategies

Lifecycle and Asset Management Practices

Service capacity gap analysis

Evaluation and ranking based onn criteria of options

for significant capital invest decisions for

Maintenance Outcomes, Strategies, Standards and

Plan

Identify options for asset maintenance to achieve

optimal costs over life of asset

- Apply agreed evaluation toolss to prioritise work

programmes

- Predictive modelling to support long-term l financial

forecasts for maintenance, renewals & new capitall

Significant negative effects

Relevancee

Final



Notes

Performance

P Outline options

and consulltation

in AMP

P Outline options

and consulltation

in AMP

P Outline option and

consultation in

AMP

Demonstrate

through 2009-19

LTCCP

Demonstrate

through 2009-19

LTCCP

P Update approach

following

consultation

?

P Document in AMP

P Document in AMP

P Document in AMP

P Document in AMP

P Continue

development and

outline in AMP

P Continue

development and

outline in AMP

Specific data in AMP

section R4

Strategic routes have been

identified (integrated with

NZTA)

Lifelines undertaken

RAMMM TSA, Initial dTIMS

analysis

January J 2009


Version 3.0



Financial

10 year Financial plan – Maintenance, Renewals,

Forecasts

New Capital (LOS

and demand).

Validate the Depreciation/Decline in Service

Core

Potential

Translate operational, planned maint, renewal & new

work into financial terms over period of strategic plan

Advanced

Provide consistent financial forecasts & Substantiate

Sensitivity of forecasts

Planning

Assumptions

List all assumptions and possible effects e

and Confidence

Levels

Confidence level on asset condition, performance

Accuracy of asset

inventory

Core

Confidence level demand/growth forecasts f

Confidence level on financial forecasts

List all assumptions including organisations strategic

plan that support AM – linkages with other planning

doc

Confidence levels

(IIMM 4.3.7)

- Inventory Data

Critical Assets (Grade 1)

Advanced

Non Critical Assets (Grade 2)

- Condition Data

Critical Assets (Grades 1 or 2)

Non Critical Assets (Grades 1, 2 or o 3)

- Performance Data


Non Critical Assets (Grades 1, 2 or o 3)

Outline

Identify

improvements to AM

processes &

Improvement

Programmes

techniques

Identify weak areas & how they will be addressed

Core

Timeframes for improvements

Identify resourcess required (human & financial)

Improvement programmes are monitored against

KPI’s

Advanced

Previous improvements identified and formally

reported against KPI’s

Planning by

AM Planning should be undertaken by a suitably

qualified persons

qualified person

Core &

Process should be Peer reviewed

Advanced

Plan adopted by Council including improvement

Commitment

programme

Plan key tool to support LTCCP

Core

AM Plan regularly updated and should reflect

progress on improvement plan

AM Plan requirements are beingg implemented and

discrepancies formally reported

AM Plans evolving as AM systems provide better

Advanced

information

AM Plans updated every 3 years along with

organisations strategic planning cycles

Council has defined the Appropriate AM Practice itt is

adopting

Relevancee



Performance

?

?

?

?

P

Completedd AMP

to Council for

adoption

Notes

Internal review process by

plan writers regarded as

adequate

Aim too do this – may be

compromised by

resourcing

January 2009

Final

Page 33


Version 3.0


6.2 Utilities

Relevant Assessment Criteria

Core criteria


Compliance Key

Fully compliant

S Substantially

compliant


Does not comply

Description of

Assets

Core

Advanced

Levels of Service

Core

Advanced

Managing Growth

Core

Table 6.2: Utilities Detailed Asset Management Practice Assessment



Adequatee Description of Asset



Aggregate & Disaggregatee Information



- Systematic monitoring of o condition



Define LOS or performance

Linkage to strategic/community outcomes

Links to other planning documents

Levels of

consultation identified and agreement



- Evaluating LOS Optionss

- Consult

LOS options with community

- Adoption LOS & Standards after consultation

- Public communication of o service level


AMP's reflect agreed LOS

& how service iss delivered

Demand Forecasts (10 year)

Demand Management drivers

Demand Management strategies


Relevance

Compliance Status Analysis


Performance

S

S

S

S

P

Held in BizeAsset

some minor

updating required

Held in BizeAsset

some minor

updating required

Held in BizeAsset

some minor

updating required

Notes

Ongoingg

development of

sustainability

practice

in

accordance with

changing

national

legislative

Annex V Settingg the Level of Roading Asset Management

Version 3.0

Roading Activity Management Plan

Advanced


Forecastss include factors that comprise demand

Sensitivity

of asset development (Capital Works) to

demand changes

Asset Utilisation/ Demandd Modelling

Relevance



Performance

Notes

requirements:

- Climate

change

- Emissions

Trading


Version 3.0



Risk Managementt

Core

Advanced

Lifecycle Decision

Making

Core


Identify significant negative effects

Identify associated risks and a RM strategiess

Recognition & applicationn of principles of f integrated risk

management to assets

Apply standards & industry good practice

RM integrated

with Lifelines, L disasters recovery,

Continuity

plans,.

Strategies for critical assets to include mitigation – CORE

Integrate with maintenance and replacement strategies

Lifecycle and Asset Management Practices


Evaluation and ranking based b on criteriaa of options for

significant capital invest decisions for

Maintenance Outcomes, Strategies, Standards and Plan

Relevance



Performance

P Need to enter

against assets in

BizeAsset.

S Further risk

management

integration withh

corporate

strategies

Notes

New capital

identified for

Amberley

following

District

Plan changes

Advanced

Financial Forecasts

Core

Advanced

Planning

Assumptions and

Confidence Levels

Core

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 s long-termm financial

forecasts for maintenance, renewals & neww capital


10 year Financial plan – Maintenance, Renewals, New

Capital (LOS and demand).

Validate the Depreciation/ /Decline in Service Potential

Translate

operational, planned maint, renewal & new

work into financial terms over o period of strategic plan


Sensitivity

of forecasts

List all assumptions and possible p effects

Confidence level on assett condition, performance

Accuracy

of asset inventory

Confidence level demand/ /growth forecastss


List all assumptions including organisations strategic

plan that support AM – linkages with otherr planning doc

Confidence levels (IIMM 4.3.7) 4

- Inventory Data

Critical Assets (Grade 1)


- Condition Data



S

S

Based on desktop

& field operatorr

experience. Some

testing of AC pipes

required in next 10

years to confirm.

Version 3.0



Non Critical Assets (Grades 1, 2 or 3)

- Performance Data



Relevance



Performance

Notes


Version 3.0



Outline Improvement

Programmes

Core

Advanced

Planning by Qualified

Persons

Core & Advanced

Commitment

Core

Advanced

Identify improvements to AM processes & techniques

Identify weak areas & how

they will be addressed


Identify resources required (human & financial)

Improvement programmess are monitored against KPI’s

Previous improvements identified and formally reported

against KPI’s

AM Planning should be b undertaken by a suitably

qualified person

Process should be Peer reviewed

Plan adopted by Council

including improvement

programme

Plan key tool to support LTCCP

AM Plan regularly updated and should reflect progress

on improvement plan

AM Plan

requirements are being implemented and


AM Plans evolving as AM systems provide better

information

AM Plans updated every e 3 yearss along with

organisations strategic planning cycles

Council has defined the Appropriate AMM Practice it is

adopting

Relevance



Performance

P

Completed AMP to

Council for

adoption

Notes

AM

Improvement

Plan


Version 3.0


6.3

Community Services


Core criteria


Compliance Key

Fully compliant

S Substantially

compliant


Does not comply

Table 6.3: Community

Services Detailed Asset Management Practice Assessment


Relevance


Processs of Developmentt



Core Remaining useful life


Reliablee Physical inventory


Advanced - Systematic monitoring of condition

- Systematic measurement performancee


Levels of Service Define LOS or performance

Linkage

to strategic/community outcomess

Links to other planning documents d

Core




- Evaluating LOS Options


Advanced - Adoption LOS & Standards after consultation

- Public

communication of service level


AMP's reflect agreed LOS & how servicee is delivered

Managing Growth

Demand

Forecasts (10 year) y

Demand

Management drivers

Core Demand

Management strategies


Compli

Current

Performance

ance Status Analysis

Compliancee

Gaps

Notes


Version 3.0



Forecasts include factorss that comprise demand

Advanced


demandd changes





Core Identify associated risks and RM strategies

Recognition & application of principles of integrated risk


Apply standards & industry good practicee

Advanced RM integrated

Continuity plans,.

with Lifelines, disasters recovery, ,



Lifecycle Decision

Making

Lifecyclee and Asset Management Practices


Evaluation and ranking based on criteria of options for

Core


Maintenance Outcomes, , Strategies, Standards and Plan

Relevance

Compli

Current

Performance


Compliancee

Gaps

Notes

Advanced

Financial Forecasts

Core

Advanced

Identify options for assett maintenance too achieve optimall



programmes

- Predictive modelling too support long-term financial

forecasts for maintenance, renewals & new capital


10 year

Financial plan – Maintenance, Renewals, New


Validate

the Depreciation/Decline in Service Potential

Translate operational, planned p maint, renewal & new





Version 3.0



Relevance

Compli

Current

Performance


Compliancee

Gaps

Notes

Planning Assumptions

and Confidence Levels

Core

Advanced

Outline Improvement

Programmes

Core

Advanced


Persons

Core & Advanced

Commitment

Core

Advanced

List all assumptions and possible effects


Accuracy of asset inventory

Confidence level demand/growth forecasts


List all assumptions ncluding organisations strategic

plan that support AM – linkages with other planning doc

Confidence levels (IIMM 4.3.7)

- Inventory Data

Critical Assets (Grade 1) )


- Condition Data



- Performance Data



Identify improvements too AM processes & techniques




Improvement programmes are monitoredd against KPI’s


against KPI’s


qualified

person

Processs should be Peer reviewed

Plan

adopted by Council

includingg

improvementt

programme

Plan key

tool to support LTCCP

AM Plan regularly updated and should reflect progresss

on improvement plan

AM Plan requirementss are being implemented and


AM Plans evolving ass AM systems provide better

information

AM Plans

updated every 3 years along with

organisations strategic planning p cycles

Council has defined thee Appropriate AM Practice it is

adopting


Version 3.0


6.4 Solid Waste


Core criteria


Compliance Key

Fully compliant

S Substantially

compliant


Does not comply

Table 6.4: Solid Waste

Detailed Asset Management Practice Assessment


Relevance


Processs of Developmentt



Core Remaining useful life


Reliablee Physical inventory


Advanced - Systematic monitoring of condition

- Systematic measurement performancee


Levels of Service Define LOS or performance

Linkage

to strategic/community outcomess

Links to other planning documents d

Core




- Evaluating LOS Options


Advanced - Adoption LOS & Standards after consultation

- Public

communication of service level


AMP's reflect agreed LOS & how servicee is delivered

Compli

Current

Performance


Compliancee

Gaps

Notes


Version 3.0


Managing Growth

Core

Advanced


Core

Advanced

Lifecycle Decision

Making

Core


Demand

Forecasts (10 year) y

Demand

Management drivers

Demand

Management strategies


Forecasts include factorss that comprise demand


demandd changes




Identify associated risks and RM strategies

Recognition & application of principles of integrated risk


Apply standards & industry good practicee

RM integrated

with Lifelines, disasters recovery, ,

Continuity plans,.



Lifecyclee and Asset Management Practices


Evaluation and ranking based on criteria of options for


Maintenance Outcomes, , Strategies, Standards and Plan

Relevance

Compli

Current

Performance


Compliancee

Gaps

Notes

Advanced

Financial Forecasts

Core

Advanced

Identify options for assett maintenance too achieve optimall



programmes

- Predictive modelling too support long-term financial

forecasts for maintenance, renewals & new capital


10 year

Financial plan – Maintenance, Renewals, New


Validate

the Depreciation/Decline in Service Potential

Translate operational, planned p maint, renewal & new





Version 3.0



Planning Assumptions

List all assumptions and possible effects

and Confidence Levels

Relevance

Compli

Current

Performance


Compliancee

Gaps

Notes

Core

Advanced

Outline Improvement

Programmes

Core

Advanced


Persons

Core & Advanced

Commitment

Core

Advanced


Accuracy of asset inventory

Confidence level demand/growth forecasts


List all assumptions ncluding organisations strategic

plan that support AM – linkages with other planning doc

Confidence levels (IIMM 4.3.7)

- Inventory Data

Critical Assets (Grade 1) )


- Condition Data



- Performance Data



Identify improvements too AM processes & techniques




Improvement programmes are monitoredd against KPI’s


against KPI’s


qualified

person

Processs should be Peer reviewed

Plan

adopted by Council

includingg

improvementt

programme

Plan key

tool to support LTCCP

AM Plan regularly updated and should reflect progresss

on improvement plan

AM Plan requirementss are being implemented and


AM Plans evolving ass AM systems provide better

information

AM Plans

updated every 3 years along with

organisations strategic planning p cycles

Council has defined thee Appropriate AM Practice it is

adopting

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