Long Term Community Plan 2012-2022 - Hurunui District Council

Hurunui Community Long Term Plan 2012 - 2022
Maintenance and Operating
The New Zealand Transport Agency (NZTA) subsidizes up to
60% (confirmed by NZTA as fixed for Hurunui from July 2012
to June 2015) of improvement projects such as seal extensions
and minor improvement works that meet its funding criteria
and requirements. A 50% financial assistance rate (FAR) is
confirmed for ongoing maintenance requirements to ensure
whole-of-life objectives of the asset are competently met.
As a national core driver from central government, all road
controlling authorities are being tasked to manage their roading
assets with less and less subsidy funding. This means every
authority must revisit the way they have done business in the
past and look hard at improving output efficiencies, productivity,
effectiveness of asset management decisions and resultant works
programmes, value-for-money and best for asset outcomes. The
reality is that councils are tasked to do “more (outputs) with
less (money)” and ensure that the assets meet their fit-forpurpose
objectives, whilst being affordable and pragmatic. This
strategic approach, across the country (applicable to both local
and national highways), has resulted in essential works (need
to have) being completed, with less latitude for lavish (nice to
have) outcomes. We are concerned about this reduced funding
approach on a continued long-term basis, given that this has the
latitude to erode the asset life of the infrastructure, resulting
in expensive renewal works that could have been mitigated
by prompt and timeously co-ordinated maintenance works,
given the right level of subsidy funding. This situation is being
meticulously monitored through asset condition ratings, visual
inspections and customer service requests to ensure that the
asset continues to meet the levels of service demanded by the
ratepayers of this district for transportation requirements.
Consideration is required on the ongoing ownership and
management of very low trafficked roads and bridges currently
justified on a community and social basis. In consultation with
the Police and NZTA, we maintain and annually review a road
safety strategy for the district, which is then implemented
through an action plan.
Assumptions and Risks
Increases in population, vehicle ownership, industrial growth and
development in both the primary and value-added sectors, as
well as the popularity of our district as a tourist destination, all
have an impact on the use of our roads and footpaths.
Increasing traffic volumes are most significantly expected
to impact on the district’s arterial road network and aging
bridge structures. Project costs are based on current best
practice, industry standards and local knowledge of materials,
construction costs and geotechnical profiling.
Strategic planning, scoping of works, initial investigations,
preliminary designs, cost estimates and forward work plans for
the roading network have been based on the assumption that
Council will qualify for subsidy funding from NZTA for certain
road-related capital, improvement and maintenance projects.
Inflation has not been allowed for in NZTA’s funding assistance
into the future and councils have been tasked to manage the
cost impact. If we maintain the current rates take for road
maintenance and not provide for the effects of escalation, then
less money will be spent on physical maintenance works thus
leaving the road asset at critical risk of failure and loss of asset
life. Compound this with the effects of Peak Oil (and the resultant
bitumen cost increases) and drainage and environmental
impacts, then the situation becomes more bleak. We either put
up our annual rates to provide more local unsubsidised funds to
keep our roads in their current condition, or we can accept that
there will be a deterioration in our road conditions (structural,
appearance and driving quality) from 2013/2014 onwards.
The level of cost that has been allowed for in the Long Term
Plan falls significantly short of what was provided for in the
Asset Management Plan (AMP) which was developed prior to
the change in NZTA funding. The difference over the next ten
years between what was scheduled in the AMP and what NZTA
have provided, less than what was requested in the Regional
Land Transport Programme (RLTP), the shortfall is now closer
to $18 million, which would need to be covered by rates.
Our asset register was been prepared based on the best available
asset management information. Some work still needs to be done
to ascertain the exact relevant details of all of the roading assets,
and to be able to accurately ascertain their current condition,
current serviceability and future useful life, and from there to
accurately predict the future needs and requirements to ensure
continued sustainability and safe condition. Valuations shown for
each network asset type are as at 2012 and are prepared using
our historical cost estimates and current contract prices. These
are approximate replacement values and may not reflect market
values.
We have a comprehensive Risk Management Strategy for the
roading assets which identifies risks such as land use change,
seasonal impacts on roading requirements, fluctuating oil prices
and quality supply and the effect to the bitumen and petroleum
industry, peak oil, climate change, demand for recreational
facilities with associated access interlinks, the demand for cycling
as alternative transportation mode and geographic issues and
inherent fault lines. The risk management strategy includes ways
to mitigate these factors.
Shared Services
We have a shared maintenance agreement with Waimakariri
District Council for Sicon (their maintenance contractor) to
undertake the maintenance of Okuku Pass Road and Balcairn/
Amberley Road, which is a shared road with both Districts.
The costs are shared between both Councils.
We also have a shared service contract with Mainpower for
street lighting for economy of scale efficiencies, and another
one for network assessments with BECA.
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