Asset Management LTCCP - LAPA

ASSET MANAGEMENT PLANSAMP’s IN THELTCCP PROCESS

ASSET MANAGEMENT PLANS & LTCCPAMP’s in the LTCCP Process• AMP’s provide key information for theLTCCP- try complying with schedule 10without them!• Opportunity to review levels of servicein light of Community Outcomeconsultation

ASSET MANAGEMENT PLANS & LTCCPLinks Between LTCCP and AM PlansAM IMPROVEMENTPROGRAMMEASSETMANAGEMENT PLANSET KPISAligned to LTCCP outcomesMONITOR PERFORMANCEAcheivement against KPIsASSET KNOWLEDGEPhysical, risk profile,condition,capacity, utilisation,performanceDEMANDDemand & capacity forecastingRisk analysisOpitimal strategies/ programmesto close the gapsCommunity Outcomes/ MeasuresSocial, Environmental, Economic, Cultural- Identification of Activites- Intended service level & measures (KPIs)- Actual performance against KPIs- Identification of Assets- Asset demand, consumption, capacity- Works required to meet demand- Costs of meeting additional capacityLONG-TERMCOUNCILCOMMUNITYPLANLIFE CYCLEPLANNINGRisk analysisOptimal strategies & O&M / Renewal/ Development Programmes- Risks- Works and activities required to meet KPIs- Costs of meeting KPIsCONSOLIDATEDFINANCIAL FORECASTAssumptionms / Confidence/ RisksFinancial Policies- Long term financial forecast- Assumptions / uncertainties- How funded - development contribution policy

ASSET MANAGEMENT PLANS & LTCCPFull LTCCP - June 2006Community OutcomeConsultationLevels ofServiceReview2005Sept2005June2006

ASSET MANAGEMENT PLANS - OVERVIEWConsider this: Every $ spent onnew capital will add on average10-25 cents every year forongoing maintenance, renewals,operations, interest.Important to get itright!!!

ASSET MANAGEMENT PLANS - OVERVIEWWhat do they do?• Identify how assets contribute to outcomesof Council• Provide the big picture of resource use• Identify future demands on resources• Identify optimal expenditure for maintaininglevel of service both now & in future• Identify funding requirements - short &long term• Help to integrate resource planning anddecision making

ASSET MANAGEMENT PLANS - OVERVIEWWhat’s in an Asset ManagementPlan?

ASSET MANAGEMENT PLANS - OVERVIEWLevels of Service⇒ Core driver of expenditure programmes⇒ Set by Council⇒ Plans are:• Based on agreed levels• Community surveys, legislativerequirements, Council decisions

ASSET MANAGEMENT PLANS - OVERVIEWLevels of ServiceProperty assets do not produceCommunity OutcomesProperty assets CONTRIBUTE toCommunity Outcomes e.g. Library servicesFor each outcome of Council, there will beagreed levels of service (LOS)- agreed toby the community through a specialconsultative processWithin the AMP there will be LOSindicators- i.e. measures of how the assetcontributes to the LOS

ASSET MANAGEMENT PLANS - OVERVIEWDemand ForecastsPopulation Growth95,00090,00085,000Population80,00075,00070,00065,00060,00055,00050,0001991 1996 2001 2006 2011 2016 2021YearHigh Medium Low Census Low

ASSET MANAGEMENT PLANS - OVERVIEWAsset ManagementStrategy• Maintain the overall service potential of theassets – assets must be fit for purpose• Manage assets in a manner that minimiseslong term overall cost of the service (life cyclecost)• Provide sufficient capacity in time for growthSupporting Council’sStrategic Goals

ASSET MANAGEMENT PLANS - OVERVIEWLife Cycle Management PlanO&MPlanRenewalPlanDevelopmentPlanMaintainConditionBased on:MaintainCondition• Known Condition & Performance Data• Economic Life of Asset• Agreed Level of Service (LOS)Increasecapacity forGrowth

ASSET MANAGEMENT PLANS - OVERVIEWRisk ManagementAssessment to:-• Identify-Critical assets-Management issues•Analyse• Risk Reduction Strategies

ASSET MANAGEMENT PLANS - OVERVIEWAMP Financials20 year financial programme1 yr - Defined scope & estimated cost,first year LTCCP2-3 yr - Planning in hand, scope & costreasonably well defined4-20 yr - Less precise, scope less welldefined - Rough Order Costs to IndicativeEstimatesFinancials revised annuallyFull AMP review every 3 years- LTCCP

ASSET MANAGEMENT PLANS - OVERVIEWContinuous Improvement

ASSET MANAGEMENT PLANS - OVERVIEWSummary• Snapshot at this point in time• Dynamic plans - changes documented• Provide a framework for long termplanning• A tool for many users• Revised formally every 3 years -Financials adjusted annually

ASSET MANAGEMENT PLANS - PROPERTY

ASSET MANAGEMENT PLANS - PROPERTYWhat are thedifferencesbetweenProperty assetsand otherinfrastructuralassets?

ASSET MANAGEMENT PLANS - PROPERTYDiverse Portfolioe.g.PalmerstonNorth City CouncilReserve Leasehold2%Investment PropertyStrategic 7%7%Forestry1%Operational17%Community Housing13%Cultural49%Public Rental Housing4%

ASSET MANAGEMENT PLANS - PROPERTY•Day to Day activities occurring in theproperty may not be managed by Propertydivision e.g. Information centres•Some properties may be held to purelyreturn money to Council e.g. shops•Some properties may be held for legalreasons only e.g. dog pound•Some properties may be under utilised e.g.Community halls

ASSET MANAGEMENT PLANS - CONCLUSIONFocus Over the 6 months• The LGA has raised the bar for AMplanning.• AM Plans are the major ‘feeder’plans to the LTCCP

ASSET MANAGEMENT PLANS - OVERALL ASSESSMENTChallenges for the Property infuture years• Increased LOS desired• Constraints of new Act- e.g. Strategicassets• Long term planning v flexibility torespond to changed circumstances• Willingness of Council to say no orreduce levels of service

ASSET MANAGEMENT PLANS - CONCLUSIONWay Forward• Strengthen linkages between LTCCPoutcomes and service levels / targets• Improve understanding of Communityexpectations.• Demonstrate performance in meetingcommunity expectations• Improve reliabilty of asset information