Sustainable Asset Management Planning Tony Miguel 17 June 2005.
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Transcript of Sustainable Asset Management Planning Tony Miguel 17 June 2005.
Sustainable Asset Management Planning
Tony Miguel17 June 2005
A plan developed for the management of one or more infrastructure assets that combines multi-disciplinary management techniques (including technical and financial) over the lifecycle of the asset in the most cost-effective manner to provide a specified level of service. A significant component of the plan is a long-term cashflow projection for the activities.
Asset Management Plan
• 90% of costs of infrastructure service delivery are due to the physical assets
• 10% administration & overheads
• 50% of assets created by development and subdivisions
• The challenge for asset managers is achieving sustainable asset management and addressing the life cycle costs and consequences
Lifecycle Costs
• Build a pipeline/footpath/road/park worth $2million
• Useful life, say 50 years
• Life cycle cost
• - Depreciation $2,000,000 ÷ 50 = $ 40,000pa
• - Loan repayment = 100,000pa
• - Maintenance @ 0.5% = 10,000pa
• - Management = 1,000pa
• Annual cost $151,000pa
• Total lifecycle cost $151,000 x 50 years = $7.55 million
• Little opportunity for change once the decision has been made
• Key questions: Do we need the asset, what is the level of service?
Lifecycle Costs
Drivers• Legal
-LGA 2002 (Social, economic, cultural and environmental)
- RMA 1991(Sustainable management)
- LTMA 2003 (Sustainable transportation)
• Strategic Platforms
• Community/customer expectations
• Standards
- Auckland Regional Council: Air, Land and Water Plan
-Transit NZ
• Growth
- Population
- Economic
• Asset Condition
Asset Management Planning Process
Cost / Benefit / Risk /
Affordability
Asset Management
Plan
LTCCP
Community Outcomes
Strategic Objectives
Levels of Service
Asset capacity and condition
Options including non-
asset
Integration
• Roads, Parks, 3-Waters, Property, common priorities, affordability
• Multi-discipline approach
• People
• Systems
Process
• Consultation on Levels of Service
• Consultation on Assessment of water, wastewater and
sanitary services
• Develop sustainable, robust, affordable Asset Management Plans for 2006 LTCCP
• Consultation on assessment of water, wastewater and
sanitary services
Strategies
• Water Strategy
• Transport Strategy
• Development Contributions
• Parks Strategy Review
• Leisure Strategy
Conclusion
• In Auckland estimated Capex $15 to $20 over next 10 years
• Sustainable management required to minimise costs and adverse effects on communities and environment