Improvements are always being made towards better Asset Management and within the AcMPs. This section outlines current and future asset management practises and provides the details of future improvements to be made over the next three years. These improvements will increase the confidence level of this asset management plan.
Asset management in New Zealand has developed over the last 15 years in response to the requirement to justify and improve the level of investment in and management of community focussed infrastructure. Evolution in AcMP thinking is also occurring and has impacted on plan focus. Asset Management international standards are considered to be a key future driver for change.
This is the eighth utilities AcMP produced by Council with the first individual AcMP being produced in 1998 for water and wastewater. AcMPs built on this format and now have Volume 1 detailing generic information followed by a separate volume for each of the 5Water services (Volume 2,3,4,5, and 6).
The objectives of this improvement plan are:
- Alignment to asset management policy;
- Adherence to government legislation;
- An adequate program to match funding budgeted;
- Prioritisation of improvements; and
- Achievable program to improvement infrastructure planning overall.
The development of this Plan is based on existing levels of service, the best available most current information and the knowledge of Council Staff. This AcMP will be the subject of annual updating and incremental improvement over time.
12.1 AcMP Compliance Status
Historically, the compliance status reports were used indicate the level of asset management. In 2009 the AcMP Compliance Status Report indicated that the AcMPs were at or exceed a 'core' level. Given that Council has adopted an 'intermediate' or core plus level of asset management practice, there was scope for improvement in a majority of areas. The detailed analysis carried out on the 2009 AcMP Compliance status in 2010 is shown in Figure 12‑1 below.
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Figure 12‑1 5Waters AcMP Compliance Status
It is acknowledged that over the past few years there has been a focus for Council on managing the high levels of growth experienced.
In 2015 during the writing of the Activity Management Plans a high level review was undertaken by MWH Consultants. This was ensure that plans met statutory requirements and that contents of them were following best practice. Following the publishing of the AcMPs in 2015 MWH Consultants completed a final review of the finished documents. This review discussed a range of areas in which the AcMPs could be improved.
In 2017 a self-assessment of the AcMP using the asset management maturity assessment matrix produced by the treasury was undertaken. This matrix forms part of the Treasury Investor Confidence Rating system for asset intensive government agencies. The matrix, which is based on the International Infrastructure Management Manual (IIMM), was first produced by Treasury in 2011 and refreshed in 2016 to reflect the updated version of the IIMM which was released in 2015. AECOM was commissioned to review the self-assessment carried out by Selwyn District Council, suggest amendments to scores and targets where changes were considered appropriate and provide comments to expand the findings of the reviewer. The Treasury asset management maturity matrix was not designed as an asset management plan assessment system, but as a system to assess organisational asset management practices more broadly. As an asset management plan will generally summarise an organisation's approach to asset management, the matrix can also be used to review asset management plans. A summary of the final scoring from the assessment is provided in Table 12‑1 below.
Figure 12‑2 Scoring Summary
Table 12‑1 Scoring Summary
| IIMM 2.1 | 1 | AM Policy and Strategy | 60 | 70 |
| IIMM 2.2 | 2 | Levels of Service and Performance Management | 65 | 70 |
| IIMM 2.3 | 3 | Forecasting Demand | 65 | 70 |
| IIMM 2.4 | 4 | Asset Register Data | 65 | 75 |
| IIMM 2.5 | 5 | Asset Performance and Condition | 55 | 65 |
| IIMM 3.1 | 6 | Decision Making | 65 | 70 |
| IIMM 3.2 | 7 | Managing Risk | 65 | 70 |
| IIMM 3.3 | 8 | Operational Planning | 60 | 70 |
| IIMM 3.4 | 9 | Capital Works Planning | 65 | 70 |
| IIMM 3.5 | 10 | Financial Planning | 65 | 70 |
| IIMM 4.1 | 11 | Asset Management Leadership and Teams | 70 | 70 |
| IIMM 4.2 | 12 | Asset Management Plans | 65 | 75 |
| IIMM 4.3 | 13 | Management Systems | 60 | 65 |
| IIMM 4.4 | 14 | Asset Management Information Systems | 70 | 70 |
| IIMM 4.5 | 15 | Service Delivery Mechanisms | 65 | 70 |
| IIMM 4.6 | 16 | Audit and Improvement | 60 | 65 |
Overall AECOM suggested:
Staff of Selwyn District Council have succeeded in producing a comprehensive and well structured Activity Management Plan. It is logically structured, comprising a higher level AcMP covering all 5 Waters (Volume 1) and “sub-plans" providing additional detail for each of the waters (Volumes 2-6).
The Activity Management Plan comprises approximately 1700 pages across all 6 volumes. The reason for including a large quantity of information in the Activity Management Plan is appreciated and will support the retention of institutional knowledge about the 5 Waters and effective succession planning. Staff of Selwyn District Council are to be commended for the effort that has clearly gone into this Activity Management Plan.
In addition, AECOM carried out an assessment of compliance of the 5 Waters Activity Management Plan with applicable requirements of Schedule 10 of the Local Government Act 2002. AcMPs are the accepted means through which compliance with Schedule 10 can be demonstrated. AECOM considered that the plans are compliant with the relevant provisions of the Local Government Act 2002 Schedule 10 “Long-term plans, annual plans, and annual reports" and that it provides an appropriate basis for input to the Council LTP.
In 2014 the International Organisation for Standardisation (ISO) published the ISO 55000 series of asset management standards. The ISO 55001:2014 Standard sets out the requirements for an integrated, effective management system for asset management. With the ISO 55001 Standard now emerging as the international benchmark against which asset management maturity is measured, organisations are increasingly assessing the adequacy of their asset management practices relative to the requirements of that Standard. Therefore, AECOM was commissioned by Council to carry out assessments of the SDC 5 Waters Activity Management Plan relative to the ISO 55001 Standard. Scoring an average of 1.62 across all ISO 55001 requirements. This places Council approximately midway between “aware" and “developing" in terms of their asset management practices.
The reviews completed by AECOM have helped form part of the improvement plan within this AcMP. The 5Waters asset management team will continue to aim to achieve an 'intermediate' level of asset management maturity during this LTP.
12.2 Key Improvements since 2015
The 2015 AcMP had a comprehensive improvement plan. Table 12‑2 outlines key improvement items that have been completed.
Table 12‑2 Improvement Changes
| Strategies, Objectives and Legislation | 2.4.5
| Review ISO 55000 Asset Management 2014 Standards |
Growth and Demand
| 6.5.2 | Develop a demand management plan for Water services |
| 6.6 | Undertake a Water and Sanitary Services Assessment |
Lifecycle Management
| 7.2 | Develop wastewater models for the major townships. |
| 7.4 | Improve the asset criticality model
|
| 7.4 | Improve Valuation Model |
| Infrastructure Sustainability | 8.3.3 | Undertake a climate change analysis for wastewater, stormwater, land drainage and water races. Also update the analysis for water supply. |
| Risk Management | 9.3.2 | Update the “Utilities Lifelines Response Plan" with a particular focus on the resilience of critical assets and systems. |
Financial Summary
| 11.2.1 | Consolidate rates to ensure financial sustainability |
| 11.2.1 | Integrate schemes where economically viable
|
12.3 Improvement Program
This activity management plan has been prepared using information contained in the 2015 Asset Management Plan, the 2017 asset valuation, and knowledge of current asset management practice. Levels of service and performance measures have been redefined to reflect the scope of the 5Waters activity as well as recent legislative requirements.
As an input to this plan, much work has been undertaken in looking at the future development of the District, although this has tended to focus more on population and settlement rather than economic activity. A review of risks has been carried out, and this will need to be considered in more detail and a full risk register developed with risks prioritised and mitigation actions planned. Using asset data, such as age, condition and performance, and with an understanding of significant risks, financial programmes have been updated from those prepared for the 2018-2028 LTP. Improvement items that have not been completed from the 2015 improvement plan, where deemed still relevant have been included in the 2018 improvement plan.
Throughout this AcMP a number of specific actions to improve the way in which the Council identifies and manages assets were identified for the 5Waters activity. These actions are summarised below in Table 12‑3.
Table 12‑3 AM Improvement Items
Strategies, Objectives and Legislation
| 2.4
| Review legislation changes before next AcMP | Low | 2020/21 |
| 2.4.16 | Implement aspects identified to work towards compliance of ISO 55001 Asset Management Standards
| Low
| 2018/19
|
| 2.5.1 | Continue to monitor Environment Canterbury's plans and policies and make submissions where appropriate | Medium
| Ongoing
|
| 2.6.2 | Review and Update 5Waters Strategy | High
| 2020/21 |
| 2.6.13 | Update Policy Manual if required | Medium | Every 3-5 Years |
| 2.6.5 | Review and Update of the Asset Management Policy | Medium | 2020/21 |
| 2.6.10 | Review the Engineering Code of Practice and other Standards | High
| 2018/19 |
| 2.7 | Monitor Government Legislation | Medium | Ongoing |
| 2.7 | Monitor the outcomes of Three Water Review | High | 2018/19 |
Management and Organisational Structure
| 4.1 | Continue to define the boundary between Asset Management and Service Delivery | High | Ongoing |
| 4.4 | Continue to involve Stakeholders in decisions where necessary | Medium | Ongoing |
Levels of Service
| 5.3.4 | Continue to refine key performance measure targets | Medium | Every 3 years |
| 5.3.4.3 | Continue to improve capture of key performance indicator information within our AMS system | Medium | Ongoing |
Growth and Demand
| 6.1 | Monitor and revise growth predictions for the district as growth continues | Medium | Every 3 years |
| 6.9.2 | Develop a demand management plan for all 5Water Services | Medium | 2019/20 |
| 6.9.2 | Review the demand management plan for Water | Medium | 2018/19 |
| 6.9.2 | Develop a water loss strategy | Medium | 2019/20 |
| 6.9.2 | Develop a water supply strategy | Medium | 2020/21 |
Lifecycle Management
| 7.2
| Use Water and Wastewater model outputs to create a spatial view of asset performance | High | 2018/19 |
| 7.2 | Improve the asset condition model by implementing a process to include new CCTV information | High | 2019/20
|
| 7.3 | Extend the asset condition model to incorporate all asset types | Medium
| 2020/21
|
| 7.4 | Improve the asset criticality model by refining the criticality bands and making it automatically update within the AMS system. | High | 2020/21
|
| 7.4 | Further refine and improve the Asset Valuation module by making some of processes more automated | High
| 2020/21
|
| 7.8 | Improve the renewal model to include criticality and condition modelling of assets, and address the legacy of renewals. | High
| 2018/19 |
Infrastructure Sustainability
| 8.2.1 | Reasonable Use Model | Medium | 2018/19 |
| 8.2.3 | Monitor developers/developments to ensure sustainable infrastructure is provided in the district | Medium
| Ongoing
|
| 8.3.3 | Extend the Climate Change study to 120 years to be in line with the lives of infrastructure assets | Low
| 2019/20
|
| 8.4 | Monitor electrical energy usage within AMS | Medium | 2021/22 |
Risk Management
| 9.2.6 | Integrate risk assessments within the asset management system | Medium | 2021/22 |
| 9.3.2 | Carry out an interdependencies assessment between Council utilities and other lifeline utilities, such as power, telecommunications and fuel. | Medium
| 2021/22
|
Asset Management Processes and Practices
| 10.1.1 | AMS improvements and extensions to functionality *
| High | Ongoing |
| 10.1.2 | A long term strategy for the on-going use of SCADA will be developed over the next three years | Medium
| 2019/20
|
| 10.1.6 | Further develop resource consents database in AMS | Medium | 2019/20 |
| 10.2 | Develop and maintain an improvement program to update asset data information. | High | 2018/19 |
| 10.4 | Improve the AcMP preparation process by preparing a plan in January 2020 | Low | 2020/21 |
Financial Summary
| 11.2.1 | Consolidate rates to ensure financial sustainability | High | Ongoing |
| 11.2.1 | Integrate schemes where economically viable | Medium | Ongoing |
| 11.5 | Implement a form of budget editing software | Medium | 2020/21 |
| 11.5 | Use the budget editing module for 2021-31 LTP | Medium
| 2020/21 |
* AMS improvements have not been listed separately, please refer to Table 10‑1.
12.4 Funding Asset Management Improvements
The improvements identified relate to practises and processes used within Council. While some improvements will occur through improvements to the delivery of services, for example improved data collection within the maintenance contract, others are specific to asset management.
The 5Waters AcMP is often implemented through projects. These projects have been gathered during the Plans development, and are approved from 1 July 2018. Projects are identified as strategic and operational – driven by the objective of achieving a satisfactory level of service.
12.5 AcMP Review and Monitoring
This AcMP will continue to be developed over time to incorporate further advanced asset management techniques, make use of improved data collection and management systems, respond to legislative and policy changes, and address evolving issues.
This Plan will be reviewed periodically as circumstances change, and will be comprehensively reviewed at intervals of three years via the Special Consultative Procedure. Each review will be completed in line with whole of Council LTP delivery plans.
A brief program for the 3 yearly review of the plan for 2021 is shown below in Table 12‑4.
Table 12‑4 Key Timeframes to Achieve
| Generate AcMP Document Template | December 2019 |
Start 2017 Asset Valuation
| January 2020 |
| Final valuation report | September 2020 |
| Complete LTP Final Budget | October 2020 |
| Renewal Profile generated | September 2020 |
| Review Asset Capacity and Performance, Criticality and Condition Assessment Models | January 2021 |
| Complete AcMP word documents | February 2021 |
| AcMPs approved by Council and published on website | June 2021 |
A brief program for external review and audit for 2021 is shown below in Table 12‑5.
Table 12‑5 Key Timeframes for Audit
| Completeness audit by external consultant | January 2021 |
| Detailed review by external consultant | February 2021 |
| AcMPs submitted to Audit | February 2021 |
| AcMPs Submitted to Council and Published to the Public | April 2021 |
As this section relates to the improvement plan itself, no improvement items arise. The improvement plan for this AcMP will be reviewed 3 monthly to measure progress towards the items.
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