Sustainable Asset Management Planning Tony Miguel 17 June 2005.

10
Sustainable Asset Management Planning Tony Miguel 17 June 2005

Transcript of Sustainable Asset Management Planning Tony Miguel 17 June 2005.

Page 1: Sustainable Asset Management Planning Tony Miguel 17 June 2005.

Sustainable Asset Management Planning

Tony Miguel17 June 2005

Page 2: Sustainable Asset Management Planning Tony Miguel 17 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

Page 3: Sustainable Asset Management Planning Tony Miguel 17 June 2005.

• 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

Page 4: Sustainable Asset Management Planning Tony Miguel 17 June 2005.

• 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

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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

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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

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Integration

• Roads, Parks, 3-Waters, Property, common priorities, affordability

• Multi-discipline approach

• People

• Systems

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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

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Strategies

• Water Strategy

• Transport Strategy

• Development Contributions

• Parks Strategy Review

• Leisure Strategy

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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