1. Sustainable Asset Management Planning Tony Miguel 17 June 2005

2. 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

3. 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

4. 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

5. 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

6. 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

7. Integration Roads, Parks, 3-Waters, Property, common priorities, affordability Multi-discipline approach People Systems

8. 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

9. Strategies Water Strategy Transport Strategy Development Contributions Parks Strategy Review Leisure Strategy

10. 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