Report to ASSETS & INFRASTRUCTURE Committee for information

Transcription

1 Title: Road Asset Valuation 2016/17 Section: Prepared by: Tairāwhiti Roads Susan Rebano-Edwards (Asset Planning Manager) Meeting Date: 30 November 2017 Legal Financial Significance = Medium Report to ASSETS & INFRASTRUCTURE Committee for information SUMMARY The purpose of this report is to inform the Assets & Infrastructure Committee of the results of the Road Asset Valuation 2016/17, undertaken by Stantec (formerly MWH Consultants NZ Ltd). A copy of the report is attached as Appendix 1. The valuation report prepared by Stantec shows a comparison between the 30 June 2016 and 30 June 2017 valuations with a summary and individual comparison of each asset type as well as an explanation of the differences. It also shows valuation results summarised by rating area DRA1, DRA1a, DRA2, DRA3, DRA4 and DRA5. The final annual depreciation figure in 2015/16 was $10,332,501 and in 2016/17 it was $10,800,479. The increase in total annual depreciated replacement cost in 2016/17 was $467,978. The valuations are based on accurate and substantially complete asset registers and appropriate replacement costs and effective lives. RECOMMENDATIONS That the Assets & Infrastructure Committee: 1. Notes the contents of this report. Authorised by: Dave Hadfield General Manager - Tairāwhiti Roads David Wilson Director Lifelines Keywords: land transport, road assets, valuation Page 1 of 13

2 BACKGROUND 1. Stantec (formerly MWH Consultants NZ Ltd) was commissioned by Tairāwhiti Roads to value its roading infrastructure assets as at 30 June The valuations used data on all Council-owned road assets held in the Road Asset Management and Maintenance (RAMM) database as well as data provided by Tairāwhiti Roads. It was based on accurate and substantially complete asset registers and appropriate replacement costs and effective asset lives. The basis of the data inputs used is described in detail in the report. a) The asset lives are generally based upon New Zealand Infrastructure Asset Valuation and Depreciation Guidelines Version 2.0. In specific cases these have been modified where, in the opinion of MWH and Council, a different life is appropriate. The changes are justified in the valuation report. b) The component level of the data used for the valuation is sufficient to calculate depreciation separately for those assets that have different useful lives. REPORT HIGHLIGHTS 3. Stantec reported on the total valuation results of all road assets as well as by Differential Rating Area (DRA) broken down by asset type. The report included the asset replacement cost, total accumulated depreciation, depreciated replacement cost and annual depreciation of all road assets broken down by asset type. Road Assets that were Valued 4. The general categories under which the road components were valued are outlined below: Component RAMM Table Data Source Land Treatment Length RAMM Formation Treatment Length RAMM Pavements Sealed Pavement Structure Treatment Length RAMM Unsealed Pavement Structure Treatment Length RAMM Sealed Surfaces Treatment Length RAMM Drainage Drainage RAMM Surface Water Channels Surface Water Channel RAMM Footpaths Footpath RAMM Traffic Facilities Retaining Walls Retaining Walls RAMM Other Structures Traffic Facilities RAMM Parking Meters Traffic Facilities RAMM Traffic Signals Traffic Signals RAMM Raised Pavement Markers Markings RAMM Page 2 of 13

3 Component RAMM Table Data Source Fords Minor Structure RAMM Markings NA Council supplied data Signs Signs RAMM Railings Railings RAMM Streetlights Streetlight RAMM Bridges and Bridge Culverts Bridge RAMM Car Parks Treatment Length RAMM Valuation Comparison 30 June 2016 and 30 June Last year, the change in unit rates was due to the Transport Agency s cost adjustment factors, resulting in a drop in replacement, depreciated replacement and annual depreciated replacement costs unit rates across all assets (except land). 6. This year changes are mainly due to an increase in the Transport Agency s cost adjustment factors and to the quantity of assets. This has resulted in an increase in replacement, depreciated replacement and annual depreciated replacement costs. 7. The changes in the 2017 road valuation were due to the following: a) Increase in Unit Rates Unit replacement rates have increased, hence (RC) and (DRC) of roading assets valued have increased for: Sealed pavement layers Unsealed pavement layers Drainage Surface water channels Bridges Footpaths Traffic Facilities (but offset by decrease in quantity of retaining walls, refer to explanation of decreases below) Minor structures Signs Railings Carparks Streetlights Bridges and bridge culverts Page 3 of 13

4 The cost adjustment factors provided by the Transport Agency which have increased since the 2016 valuation are: Item 2015/ /17 % change Maintenance % Bridges % Reseals % Construction % b) Increase in land under roads In the 2016/17 period, the median property price for the Gisborne region increased by 2%. c) Increase in quantities The quantities of some assets have also increased: Sealed pavement layers Unsealed pavement layers Drainage Surface water channels Footpaths Signs Railings increase is significant due to the capture of 1,435 railings/sight rails in 2016/17 Bridges and bridge culverts increase due to data capture of 15 footbridges d) Decrease in quantities Traffic facilities Retaining walls In 2016/17, 311 retaining walls were captured and entered into RAMM. While there was an increase in numbers of retaining walls from 2015/16, there was a reduction in the lengths, hence, decrease in the quantity. Streetlights In 2016/17, the upgrade of streetlights to LED has resulted in the decrease in quantity of streetlights and their components. 8. In summary, the 2017 RAMM valuation aligns well with the 2016 RAMM valuation: Valuation Annual Depreciation 30 June 2016 $1,652,801,441 $1,417,224,892 $10,332, June 2017 $1,699,053,956 $1,450,908,338 $10,800,479 % Change 2.80% 2.38% 4.53% Page 4 of 13

5 Summary of Asset Valuation Results 9. The 2016/17 annual depreciation cost of all road assets was $10,800,479 broken down as follows: Asset Description Total Accumulated Depreciation Annual Depreciation Land $745,709,300 $0 $745,709,300 $0 Formation $400,188,338 $0 $400,188,338 $0 Sealed Pavement Surface $42,644,828 $25,009,090 $17,635,738 $2,789,836 Sealed Pavement Layers $180,507,218 $56,133,543 $124,373,675 $2,800,592 Unsealed Pavement Layers $37,591,086 $8,548,322 $29,042,764 $650,966 Drainage $50,021,554 $24,163,438 $25,858,116 $716,919 Surface Water Channels $41,163,812 $18,307,941 $22,855,871 $548,851 Footpath $43,958,809 $17,624,550 $26,334,259 $609,906 Traffic Facilities $14,158,529 $7,241,971 $6,916,558 $240,258 Minor Structures $173,258 $86,629 $86,629 $2,166 Signs $1,494,281 $1,001,934 $492,348 $122,974 Railings $6,531,039 $4,973,186 $1,557,853 $264,309 Streetlights $5,528,181 $2,481,199 $3,046,982 $300,891 Car Parks $1,774,870 $887,435 $887,435 $43,935 Bridges and Major Culverts $127,608,855 $81,686,383 $45,922,472 $1,710,040 Total $1,699,053,956 $248,145,619 $1,450,908,338 $10,800, Valuation Results by Rating Area 10. The valuations were split into rating areas (refer to maps in Appendix 2). The rating area with the highest annual depreciated replacement cost was DRA 1 at $3,466,310. Below are the valuation summary tables for all rating areas broken down by asset type: Page 5 of 13

6 DRA 1 (Inner Zone) Gisborne City Asset Type Annual Bridge Culvert $180,651 $90,325 $3,613 Bridges $10,552,452 $2,488,389 $141,628 Drainage $150,444 $101,097 $2,149 First Coat Seals $8,073,964 $4,466,336 $201,849 Footpath $38,923,448 $23,108,919 $537,276 Formation $21,114,189 $21,114,189 $0 Land $491,861,245 $491,861,245 $0 Railings $443,430 $113,420 $20,961 Retaining Walls $230,126 $166,408 $2,877 Sealed Pavement Basecourse $16,408,037 $9,133,099 $410,201 Sealed Pavement Subbase $21,889,343 $17,500,442 $119,380 Signs $762,829 $157,075 $63,122 Streetlights - brackets $1,036,941 $561,095 $69,130 Streetlights - lights $1,410,216 $793,703 $94,005 Streetlights - poles $2,305,160 $1,179,600 $92,882 Surface Water Channels $33,383,256 $17,528,081 $445,110 Surfacing $20,998,456 $10,525,890 $1,231,139 Traffic Facilities $650,639 $64,407 $30,989 Grand Total $670,374,827 $600,953,720 $3,466,310 Page 6 of 13

7 DRA 1A (Inner Zone) - The semi urban/buffer zone around Gisborne City including Wainui and Makaraka. Asset Type Annual Bridge Culvert $168,996 $34,188 $4,273 Bridges $422,525 $191,274 $7,333 Drainage $826,741 $417,708 $11,811 First Coat Seals $1,108,607 $620,473 $27,715 Footpath $1,409,078 $1,049,601 $18,848 Formation $6,290,715 $6,290,715 $0 Land $124,190,350 $124,190,350 $0 Railings $37,840 $10,576 $2,276 Retaining Walls $107,770 $55,010 $1,347 Sealed Pavement Basecourse $2,291,241 $1,280,324 $57,281 Sealed Pavement Subbase $3,275,151 $2,716,818 $17,380 Signs $47,905 $11,346 $3,964 Streetlights - brackets $67,891 $37,076 $4,526 Streetlights - lights $141,537 $93,450 $9,436 Streetlights - poles $149,087 $75,824 $5,999 Surface Water Channels $1,926,872 $1,272,295 $25,692 Surfacing $1,568,697 $629,118 $104,019 Unsealed Pavement Subbase $106,112 $79,582 $531 Unsealed Pavement Wearing Course $9,867 $5,921 $1,974 Grand Total $144,146,984 $139,061,651 $304,404 Page 7 of 13

8 DRA 2 (Inner Zone) - Poverty Bay Flats including immediate fringe hill properties, Muriwai, Manutuke, Patutahi, Makauri, Ormond, part of Waimata, Makorori and Tatapouri. Asset Type Annual Bridge Culvert $703,956 $317,119 $18,118 Bridges $6,118,122 $2,534,620 $77,263 Drainage $4,954,617 $2,484,464 $70,780 First Coat Seals $4,968,089 $2,863,684 $124,202 Footpath $728,658 $411,315 $9,770 Formation $35,430,025 $35,430,025 $0 Land $91,831,446 $91,831,446 $0 Railings $374,802 $82,739 $17,521 Retaining Walls $100,478 $70,586 $1,256 Sealed Pavement Basecourse $10,471,686 $6,053,991 $261,792 Sealed Pavement Subbase $14,982,124 $12,364,349 $80,440 Signs $180,055 $61,158 $14,763 Streetlights - brackets $12,810 $7,094 $830 Streetlights lights $55,135 $46,253 $3,668 Streetlights - poles $27,770 $14,577 $1,144 Surface Water Channels $3,682,808 $2,856,071 $49,104 Surfacing $5,091,705 $1,922,261 $396,354 Traffic Facilities $909,692 $468,514 $20,904 Unsealed Pavement Subbase $760,979 $612,010 $3,805 Unsealed Pavement Wearing Course $70,760 $29,355 $10,185 Grand Total $181,455,719 $160,461,629 $1,161,901 Page 8 of 13

9 DRA 3 (Outer Zone) Whangara, part of Waerenga-o-Kuri, Ngatapa, Whatatutu and Te Karaka. Asset Type Annual Bridge Culvert $676,567 $288,286 $13,795 Bridges $25,573,720 $9,565,698 $319,647 Drainage $8,366,528 $4,273,195 $119,704 First Coat Seals $5,149,478 $2,952,978 $128,737 Footpath $675,902 $407,959 $12,156 Formation $67,084,358 $67,084,358 $0 Land $16,892,020 $16,892,020 $0 Railings $1,430,250 $396,502 $57,091 Retaining Walls $721,981 $394,236 $9,025 Sealed Pavement Basecourse $11,246,868 $6,468,155 $281,172 Sealed Pavement Subbase $15,456,547 $12,923,598 $86,378 Signs $154,947 $79,345 $12,682 Streetlights - brackets $7,686 $3,977 $512 Streetlights - lights $40,125 $33,421 $2,675 Streetlights - poles $16,636 $8,224 $691 Surface Water Channels $963,355 $541,407 $12,845 Surfacing $4,547,273 $1,543,162 $334,352 Traffic Facilities $240,237 $123,728 $9,374 Unsealed Pavement Subbase $5,004,352 $3,924,922 $25,022 Unsealed Pavement Wearing Course $465,333 $235,220 $80,332 Grand Total $164,714,161 $128,140,390 $1,506,190 Page 9 of 13

10 DRA 4 (Outer Zone) Rural hinterland including Tiniroto, Otoko, Matawai, Motu and Tolaga Bay. Asset Type Annual Bridge Culvert $2,220,258 $1,132,390 $65,267 Bridges $45,349,330 $18,419,252 $578,024 Drainage $23,155,259 $12,052,647 $332,160 First Coat Seals $7,058,303 $3,829,559 $176,458 Footpath $156,535 $71,750 $2,334 Formation $169,210,537 $169,210,537 $0 Land $16,621,386 $16,621,386 $0 Minor Structures $127,056 $63,528 $1,588 Railings $2,550,116 $683,510 $105,695 Retaining Walls $1,294,865 $744,905 $16,186 Sealed Pavement Basecourse $15,628,426 $8,485,464 $390,711 Sealed Pavement Subbase $21,246,703 $17,506,591 $120,356 Signs $242,150 $124,963 $19,615 Streetlights - brackets $5,764 $3,122 $384 Streetlights - lights $43,897 $39,907 $2,926 Streetlights - poles $13,821 $7,778 $604 Surface Water Channels $347,945 $200,592 $4,639 Surfacing $6,698,855 $2,070,361 $476,007 Traffic Facilities $1,881,726 $969,136 $40,094 Unsealed Pavement Subbase $17,773,212 $14,520,752 $88,866 Unsealed Pavement Wearing Course $1,652,654 $644,604 $227,300 Grand Total $333,278,798 $267,402,732 $2,649,216 Page 10 of 13

11 DRA 5 (Outer Zone) The East Cape north of Mangatuna (Hicks Bay, Te Araroa, Tikitiki Ruatoria, Waipiro Bay, Te Puia Springs, Tokomaru Bay). Asset Type Annual Bridge Culvert $705,121 $358,621 $20,163 Bridges $34,937,155 $10,502,309 $459,752 Drainage $12,567,964 $6,529,005 $180,317 First Coat Seals $3,530,727 $1,996,076 $88,268 Footpath $2,065,188 $1,284,715 $29,521 Formation $101,058,514 $101,058,514 $0 Land $4,312,852 $4,312,852 $0 Minor Structures $46,202 $23,101 $578 Railings $1,694,602 $271,107 $60,765 Retaining Walls $1,029,896 $370,210 $12,871 Sealed Pavement Basecourse $6,983,584 $3,950,269 $174,590 Sealed Pavement Subbase $10,738,340 $9,261,470 $53,682 Signs $106,396 $58,462 $8,828 Streetlights - brackets $29,462 $17,405 $1,964 Streetlights - lights $100,129 $86,463 $6,675 Streetlights - poles $64,114 $38,015 $2,838 Surface Water Channels $859,575 $457,425 $11,461 Surfacing $3,739,841 $944,946 $247,965 Traffic Facilities $6,735,577 $3,468,991 $85,121 Unsealed Pavement Subbase $10,748,372 $8,527,429 $53,742 Unsealed Pavement Wearing Course $999,444 $462,969 $159,210 Grand Total $203,053,057 $153,980,353 $1,658,310 Page 11 of 13

12 IMPROVEMENTS TO VALUATION RESULTS 11. Tairāwhiti Roads has undertaken a major data collection and validation exercise on the retaining walls assets, which are now stored and valued in the Retaining Walls table. Previously these assets were stored in the Traffic Facilities table with limited information attached. This investment helps to better manage the network, through a stronger understanding of the assets Council is responsible for. It is important in accurately monitoring changes, as they have a significant impact on the value of assets. 12. Additionally, Traffic Signal assets have been moved from the Traffic Facilities table into the Traffic Signal table prior to this valuation and are now valued correctly. 13. The report provided the following recommendations to improve the accuracy of future valuations by reducing the number of assumptions required, and by ensuring those assumptions that are used best represent the conditions in the District. Item Sealed Surfacing Methodology Unsealed Pavement Layer Methodology Retaining Walls Car Park Assets Railings Recommended Actions for Tairāwhiti Roads from 2017 valuation results Research is required to find the appropriate total useful life breakdown for these assets to be used in the next valuation. Incorporate the results of dtims 2, TSA 3, condition assessments, and other decision-making tools into the calculation of total useful lives. Research is required to find the appropriate total useful life breakdown for these assets to be used in the next valuation. Incorporate the results of dtims, TSA, condition assessments, and other decision-making tools into the calculation of total useful lives. Now that there is more complete construction, dimension and material type data attached to these assets, it is recommended that the way these assets are valued should be reviewed and that the new dataset is cross-compared with the old dataset in order to ensure that all retaining walls data is complete and accurate. Currently only surface and pavement data exists for Council car parks. Further auditing needs to be undertaken to capture such assets as, lighting, parking meters, kerb and channel, that may exist. Investigate total useful life for bridge railings. These assets are usually designed to last the life of the bridge they are attached to. Currently assigned a total useful life of 15 years. Priority Links to OAG 1 Assessment Criteria for Asset Management 1 Life cycle optimised decision making 1 Life cycle optimised decision making 1 Description of assets 2 Description of assets 1 Description of assets 1 Office of the Auditor General 2 Deighton Total Infrastructure Management System 3 Treatment Selection Algorithm Page 12 of 13

13 Item Fords Recommended Actions for Tairāwhiti Roads from 2017 valuation results Gather further information to value more accurately and determine whether they require inspection with the current bridge stock. Priority Links to OAG 1 Assessment Criteria for Asset Management 1 Description of assets 14. The following recommendations have been undertaken by Tairāwhiti Roads during the year to improve the RAMM 4 database. These were recommendations made in the 2016 valuation. Item Construction Dates Missing Data Recommended Actions for Tairāwhiti Roads from 2016 valuation results Drainage, streetlights and surface water channels are missing almost all of their construction dates. Bridges and signs have large percentage of assets missing construction dates. Investigate other sources of construction date data. Ensure construction date data is recorded for all assets in the future. Collect and record in RAMM all missing asset data including, but not exclusive to, railings, footbridges, large cantilever signs, retaining walls and stock underpasses. Actions completed to date Ongoing updating is occurring through inspections as part of maintenance contracts. Ongoing data collection is taking place with new assets being added to RAMM when identified through field visits APPENDICES Appendix Road Asset Valuation Appendix 2 - Maps of Differential Rating Zones 4 Road Asset Maintenance Management Page 13 of 13