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Sustainable Asset Management Planning

Sustainable Asset Management Planning. Tony Miguel 17 June 2005. Asset Management Plan.

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Sustainable Asset Management Planning

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  1. Sustainable Asset Management Planning Tony Miguel 17 June 2005

  2. Asset Management Plan 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.

  3. Lifecycle Costs • 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

  4. 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?

  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. Community Outcomes Strategic Objectives Levels of Service Asset capacity and condition LTCCP Asset Management Plan Cost / Benefit / Risk / Affordability Options including non-asset Asset Management Planning Process

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

  8. Process

  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

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