Professional Certificate and Diploma in Asset Management

Transcription

1 Professional Certificate and Diploma in Asset Management Module 7 Funding, Programmes & Lifecycles Additional information (if required)

2 Contents and Timings Time Topic 9:15 9:45 Highway Authority Maintenance Funding Streams 9:45 10:45 Lifecycle Planning Part 1 10:45 11:00 Refreshment Break 11:00 11:50 Lifecycle Planning Part 2 11:50 12:25 Works Programming 12:25 12:30 Module Summary 2

3 Group Discussion What funding streams are available for maintaining the Local Highway Infrastructure? 3

4 Highway Maintenance Funding Streams National Funding 4

5 Department for Transport Highways Maintenance Block funding Needs Element Incentive Fund Element Challenge Fund Pothole Action Fund National Productivity Investment Fund Safer Roads Fund Local Transport Projects 5

6 Welsh Government Highway Maintenance Fund Local Transport Projects 6

7 Highway Maintenance Funding Streams Local Funding 7

8 Local Authorities Council Tax Section 106 agreements Community Infrastructure Levy Supplementary Business Rates NRSWA/Lane Rental Invest-to-save Prudential Borrowing 8

9 Other Funding sources Combined Authorities Local Enterprise Partnerships (LEPs) Private Finance Initiative (PFI) 9

10 Lifecycle Planning Introduction 10

11 HMEP Highways Infrastructure Asset Management Guidance Recommendation 6: Lifecycle planning principles should be used to review the level of funding, support investment decisions and substantiate the need for appropriate and sustainable long term investment. (Also, Well-managed Highway Infrastructure A Code of Practice Recommendation 29) 11

12 What is Lifecycle Planning? Lifecycle planning comprises the approach to the maintenance of an asset from construction to disposal. It is the prediction of future performance of an asset, or a group of assets, based on investment scenarios and maintenance strategies. The lifecycle plan is the documented output from this process. HMEP Highways Infrastructure Asset Management Guidance document. 12

13 Levels of Service - Measures DfT Self-assessment Questionnaire

14 Lifecycle Planning Why? Levels of Service Forecasting Cross-Asset Budgeting Impact Analysis Supports Bid for additional funding 14

15 Well-managed Highway Infrastructure A Code of Practice Recommendation 30: In developing priorities and programmes, consideration should be given to prioritising across asset groups as well as within them. 15

16 Lifecycle Planning How? Toolkits HMEP Proprietary software Other 16

17 Toolkits - Overview HMEP Carriageways Ancillary Assets CIPFA Structures Proprietary Other 17

18 Group Discussion Has anyone carried out Lifecycle Planning? For what assets? What toolkit did you use? 18

19 Lifecycle Planning Data Requirements 19

20 Data requirements Asset Register/Inventory Asset Groups Componentisation Asset Condition Age Visual Assessment Machine Assessment Other Treatment Options 20

21 Data requirements Works Costs Quantity Inflation/Annual increase Treatment Impact Triggers Single Multiple 21

22 Data requirements Budgets Existing Increased Decrease Zero Targets Steady State Managed Decline Managed Improvement 22

23 Lifecycle Planning Deterioration 23

24 Deterioration Homogeneous Asset Groups Asset Type Material Supplier Contractor Environment Dimensions 24

25 Deterioration Deterioration Model Probabilistic Deterministic Linear Quadratic Sigmoid Statistically derived Machine Learning Combination 25

26 Lifecycle Planning Scenarios 26

27 Scenarios Review Impact based on one or a combination of criteria: Budgets Levels of service Events 27

28 Scenarios Steady State Steady state is a scenario utilised to determine the cost of maintaining the asset at the same level, based on a performance measure(s). Considerations: Performance Measure(s) Existing Level 28

29 Scenarios Existing Budget Steady state is a scenario utilised to determine the cost of maintaining the asset at the same level, based on a performance measure(s). Considerations: Performance Measure(s) Existing Level 29

30 Scenario Outputs Asset Performance Budgets Benefits Direct Reactive Maintenance Claims Indirect Complaints Safety Other 30

31 Group Discussion Has your organisation analysed different scenarios utilising their Lifecycle Planning model? What scenarios have they modelled? Are there any other scenarios do you think they should model in the future? 31

32 Lifecycle Planning Reporting 32

33 Reporting Purpose Inform Decisions Business Case Report Considerations Audience Net Present Value (NPV) Inflation Indirect Costs Benefits Efficiencies 33

34 Lifecycle Planning Review 34

35 Review Works Programming Assumptions Materials Deterioration Benefits 35

36 Lifecycle Planning Whole of Government Accounts 36

37 Whole of Government Accounts Annual publication by the UK Government of the consolidated financial statements of over 5,500 organisations across the public sector, produced in accordance with the International Financial Reporting Standards (IFRS). 37

38 Financial Reporting IFRS Gross Replacement Cost (GRC) Annual Depreciation (AD) = GRC / Useful Life Depreciation = AD x Useful Life Impairment Depreciated Replacement Cost (DRC) = GRC - Depreciation Existing Information 38

39 Advantages Performance Assessment & Benchmarking Asset Monetisation Accountability 39

40 Highway Network Assets Street Lighting Traffic Management Equipment Street Furniture Carriageways Footways/Cycleways Structures Verges Land 40

41 Works Programming Development 41

42 Works Programming - Development DfT Self-assessment Questionnaire 42

43 Developing Works Programmes Data Condition Inspectors/Area Office Schemes Other data Customer Complaints RTC s Crime Street Works Regulations Weighting Treatments Triggers 43

44 Well-managed Highway Infrastructure A Code of Practice Recommendation 13: Authorities should take whole life costs into consideration when assessing options for maintenance, new and improved highway schemes. The future maintenance costs of such new infrastructure are therefore a prime consideration. 44

45 Prioritisation Worst-first Value Management Scoring Condition Environmental Impact Safety Public Opinion Cost Benefit Analysis Whole Life Costing Deterioration Net Present Value Cross-Asset scheme 45

46 Additional Considerations Scheme Specific Surveys Visual Condition Survey Structural Survey 46

47 Review Completion of programme Feed into LCP Completion of works As-builts Re-survey Real-life vs theory Update 47

48 Module Summary 48

49 Learning Points Different funding channels available to Local Authorities How Lifecycle Planning and Scenario Analysis can: Defend existing budgets Assist in building a business case for additional funding Efficiencies gained from developing budgets based on need, rather than historical spends How the Whole Government Accounts are calculated and how it can be utilised to an Asset Managers advantage. Efficiencies that can be unlocked in the supply chain by having a 5-year works programme Efficiencies gained from prioritising works based on Benefit Cost Ratio and Whole-Life Costings Importance of reviewing the Lifecycle Planning and Works Programming processes to ensure they deliver the efficiencies expected and to improve the processes based on data. 49

50 Post-Course Assignment Utilising the one of the options below, develop a Lifecycle Plan and produce a brief business case for additional funding. Business case must contain assumptions (such as treatments utilised and costs [ /sq m]) and toolkit utilised (including deterioration model and rates). Option 1 - Carriageway Option 2 -Footways Asset Gree Lower Upper Length Ave Width Asset Length Width Group n Amber Amber Red (km) (m) Group Green Yellow Amber Red (km) (m) Urban A 59% 35% 2% 4% a 88% 10% 2% 0% Rural A 38% 48% 8% 6% % 21% 8% 2% Urban B 35% 51% 9% 5% % 35% 26% 8% Rural B 47% 36% 7% 10% % 18% 20% 7% Urban C 61% 25% 11% 3% % 14% 32% 11% Rural C 17% 57% 15% 11% Urban U 27% 50% 15% 8% Existing Carriageway Budget = 1.2 million Rural U 14% 50% 20% 16% Existing Footway Budget = 0.6 million 50

51 Further Reading Lifecycle Planning - Whole Life Costing - E A65E97F7E5E1FE92/version/7CC53D C-9EE07F4B0344A657 Using SCANNER data for maintenance management on Local Roads - Final report - 9BE99D42A7FDE5DA Example: Surrey Council Prioritisation Methodology - data/assets/pdf_file/0016/45052/prioritisation-policy-and- Critieria-v3.pdf

52 Thank you for listening 52