Report to INFRASTRUCTURE SERVICES COMMITTEE for noting

Transcription

1 Title: Section: Prepared by: Road Asset Valuation Tairawhiti Roads Susan Rebano-Edwards (Asset Planning Manager) Meeting Date: 8 September 2016 Legal Financial Significance Report to INFRASTRUCTURE SERVICES COMMITTEE for noting SUMMARY The purpose of this report is to inform the Infrastructure Services Committee of the results of the Road Asset Valuation 2015/16 undertaken by MWH Consultants NZ Ltd (MWH). The valuation report prepared by MWH shows a comparison between the 30 June 2015 and 30 June 2016 valuations with a summary and an 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. Last year a full valuation was carried out where construction costs and contract rates were sourced in order to come up with the final valuation unit rates. The major causes of last year s 2.72% annual depreciated replacement cost increase were the increase in rates for surfacing (especially asphalt) and pavement layers, which combined for an annual depreciated replacement cost increase of $363k. This year the change in unit rates was due to the NZ Transport Agency cost adjustment factors (Bridge -1.50%, Construction, -0.29%, Maintenance -0.20%, Reseals %) which resulted in a drop in replacement, depreciated replacement and annual depreciated replacement costs unit rates across all assets except land. The final annual depreciation figure last year was $10,703,695 and this year it was $10,332,501. The decrease in total annual depreciated replacement cost was $371,194. However, overall valuation results have improved since the 2015 valuation, due largely to actions undertaken by Tairāwhiti Roads to improve the robustness and reliability of the data held in the RAMM database. The addition of newly discovered assets not previously held in RAMM and regular updating of maintenance activities by the Network Outcomes Contractors have positively contributed to the accuracy of the valuation results. Page 1 of 11

2 RECOMMENDATIONS That the Infrastructure Services Committee: 1. Notes the contents of this report. Authorised by: Susan Rebano-Edwards Asset Planning Manager - Tairawhiti Roads Judy Campbell Chief Executive Keywords: land transport, road assets, valuation Page 2 of 11

3 1. BACKGROUND MWH 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 NZ 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. 2. REPORT HIGHLIGHTS MWH 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, accumulated costs, depreciated replacement cost and annual depreciation of all road assets broken down by asset type. 2.1 Road Assets that were Valued The general categories under which the road components that 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 Surface Water Channels Surface Water Channel RAMM Footpaths Footpath RAMM Traffic Facilities Retaining Walls Traffic Facilities RAMM Other Structures Traffic Facilities RAMM Parking Meters Traffic Facilities RAMM Traffic Signals Traffic Facilities RAMM Raised Pavement Markers Traffic Facilities RAMM Minor Structures Fords Minor Structure RAMM Markings NA Council supplied data Signs Signs RAMM Page 3 of 11

4 Component RAMM Table Data Source Railings Railings RAMM Streetlights Street Light RAMM Bridges and Bridge Culverts Bridge RAMM Car Parks Treatment Length RAMM 2.2 Valuation Comparison 30 June 2015 and 30 June 2016 In summary, the 2016 RAMM valuation aligns well with the 2015 RAMM valuation. There are no significant differences, which cannot be explained, in values presented. Valuation Annual Depreciation 30 June 2015 $1,635,610,005 $1,399,276,060 $10,703, June 2016 $1,652,801,441 $1,417,224,892 $10,332,501 % Change 1.05% 1.28% -3.47% 2.3 Summary of Asset Valuation Results The 2015/16 annual depreciation cost of all road assets was $10,332,501 broken down as follows: Asset Description Replacement Cost Total Accumulated Depreciation Annual Depreciation Land $730,942,439 $0 $730,942,439 $0 Formation $386,207,940 $0 $386,207,940 $0 Sealed Pavement Surface $41,341,974 $24,192,164 $17,149,811 $2,676,215 Sealed Pavement Layers $175,303,125 $51,144,709 $124,158,416 $2,720,042 Unsealed Pavement Layers $36,109,771 $8,736,874 $27,372,897 $644,721 Drainage $48,328,400 $23,329,374 $24,999,027 $692,656 Surface Water Channels $39,745,413 $17,655,943 $22,089,470 $529,939 Footpath $41,562,888 $16,469,419 $25,093,470 $577,247 Traffic Facilities $19,700,447 $10,051,540 $9,648,907 $311,129 Minor Structures $167,513 $83,756 $83,756 $2,094 Signs $1,355,288 $880,404 $474,885 $112,668 Railings $4,055,454 $3,671,870 $383,585 $101,356 Street Lights $5,410,239 $2,380,064 $3,030,176 $295,016 Car Parks $1,718,888 $859,444 $859,444 $42,717 Bridges and Major Culverts $120,851,660 $76,120,990 $44,730,671 $1,626,702 Total $1,652,801,441 $235,576,549 $1,417,224,892 $10,332, Valuation Results by Rating Area The valuations were split into rating areas (refer to maps in Appendix 1). The rating area with the highest annual depreciated replacement cost was DRA 1 at $3,374, Below are the valuation summary tables for all rating areas broken down by asset type: Page 4 of 11

5 DRA 1 (Inner Zone) Gisborne City. Annual Bridge Culvert $33, $16, $ Bridges $8,986, $2,403, $127, Drainage $128, $81, $1, First Coat Seals $7,802, $4,412, $195, Footpath $36,843, $22,118, $509, Formation $20,398, $20,398, $0.00 Land $482,167, $482,167, $0.00 Minor Structures $0.00 $0.00 $0.00 Other Structures $2, $1, $34.40 Parking Meters $656, $69, $31, Railings $330, $86, $13, Retaining Walls $77, $38, $ Sealed Pavement Basecourse $15,856, $9,017, $396, Sealed Pavement Subbase $21,153, $16,979, $115, Signs $717, $187, $59, Streetlights - brackets $1,010, $553, $67, Streetlights - lights $1,437, $787, $95, Streetlights - poles $2,241, $1,234, $90, Surface Water Channels $21,057, $10,845, $1,224, Surfacing $32,277, $16,968, $430, Traffic Signals $247, $20, $10, Total $653,567, $588,460, $3,374, DRA 1A (Inner Zone) - The semi urban/buffer zone around Gisborne City including Wainui and Makaraka. Annual Bridge Culvert $161, $32, $4, Bridges $395, $182, $6, Drainage $796, $401, $11, First Coat Seals $1,071, $611, $26, Footpath $1,307, $971, $17, Formation $6,076, $6,076, $0.00 Land $121,745, $121,745, $0.00 Railings $26, $8, $1, Sealed Pavement Basecourse $2,213, $1,261, $55, Sealed Pavement Subbase $3,164, $2,626, $16, Signs $43, $10, $3, Streetlights - brackets $65, $35, $4, Page 5 of 11

6 Annual Streetlights lights $131, $71, $8, Streetlights - poles $144, $77, $5, Surface Water Channels $1,538, $650, $103, Surfacing $1,863, $1,240, $24, Unsealed Subbase $102, $74, $ Unsealed Wearing Course $9, $5, $1, Total $140,857, $136,083, $293, DRA 2 (Inner Zone) - Poverty Bay Flats including immediate fringe hill properties, Muriwai, Manutuke, Patutahi, Makauri, Ormond, part of Waimata, Makorori and Tatapouri. Annual Bridge Culvert $672, $304, $17, Bridges $5,783, $2,492, $73, Drainage $4,790, $2,402, $68, First Coat Seals $4,802, $2,856, $120, Footpath $682, $387, $9, Formation $34,226, $34,226, $0.00 Land $90,028, $90,028, $0.00 Minor Structures $0.00 $0.00 $0.00 Other Structures $843, $421, $19, Railings $172, $39, $6, Retaining Walls $2,406, $1,203, $30, Sealed Pavement Basecourse $10,119, $6,046, $252, Sealed Pavement Subbase $14,477, $12,030, $77, Signs $169, $64, $14, Streetlights - brackets $11, $6, $ Streetlights - lights $47, $38, $3, Streetlights - poles $25, $13, $1, Surface Water Channels $4,625, $1,732, $361, Surfacing $3,560, $2,795, $47, Unsealed Subbase $735, $579, $4, Unsealed Wearing Course $68, $28, $9, Total $178,250, $157,698, $1,116, Page 6 of 11

7 DRA 3 (Outer Zone) Whangara, part of Waerenga-o-Kuri, Ngatapa, Whatatutu and Te Karaka. Annual Bridge Culvert $646, $275, $13, Bridges $24,383, $9,349, $302, Drainage $8,086, $4,132, $115, First Coat Seals $4,986, $3,015, $124, Footpath $649, $342, $10, Formation $64,856, $64,856, $0.00 Land $16,546, $16,546, $0.00 Minor Structures $0.00 $0.00 $0.00 Other Structures $222, $111, $8, Railings $798, $35, $16, Retaining Walls $1,439, $719, $17, Sealed Pavement Basecourse $10,892, $6,594, $272, Sealed Pavement Subbase $14,965, $12,804, $83, Signs $127, $60, $10, Streetlights - brackets $7, $3, $ Streetlights - lights $38, $34, $2, Streetlights - poles $16, $8, $ Surface Water Channels $4,254, $1,329, $306, Surfacing $876, $447, $11, Unsealed Subbase $4,836, $3,703, $26, Unsealed Wearing Course $449, $228, $78, Grand Total $159,079, $124,597, $1,402, DRA 4 (Outer Zone) Rural hinterland including Tiniroto, Otoko, Matawai, Motu and Tolaga Bay. Annual Bridge Culvert $2,121, $1,084, $62, Bridges $43,410, $17,999, $553, Drainage $22,375, $11,658, $320, First Coat Seals $6,868, $4,030, $171, Footpath $146, $67, $2, Formation $163,317, $163,317, $0.00 Land $16,257, $16,257, $0.00 Minor Structures $122, $61, $1, Other Structures $1,744, $872, $36, Railings $1,523, $98, $35, Page 7 of 11

8 Annual Retaining Walls $4,669, $2,334, $58, Sealed Pavement Basecourse $15,226, $8,979, $380, Sealed Pavement Subbase $20,674, $17,641, $117, Signs $207, $106, $17, Streetlights - brackets $4, $2, $ Streetlights - lights $33, $20, $2, Streetlights - poles $10, $5, $ Surface Water Channels $6,103, $1,623, $426, Surfacing $336, $194, $4, Unsealed Subbase $17,111, $13,740, $93, Unsealed Wearing Course $1,591, $623, $220, Total $323,859, $260,722, $2,506, DRA 5 (Outer Zone) The East Cape north of Mangatuna (Hicks Bay, Te Araroa, Tikitiki Ruatoria, Waipiro Bay, Te Puia Springs, Tokomaru Bay). Annual Bridge Culvert $673, $342, $19, Bridges $33,442, $10,178, $443, Drainage $12,151, $6,323, $174, First Coat Seals $3,493, $2,031, $87, Footpath $1,933, $1,206, $27, Formation $97,333, $97,333, $0.00 Land $4,196, $4,196, $0.00 Minor Structures $44, $22, $ Other Structures $6,245, $3,122, $78, Railings $1,204, $113, $27, Retaining Walls $785, $392, $9, Sealed Pavement Basecourse $6,908, $4,019, $172, Sealed Pavement Subbase $10,624, $9,197, $53, Signs $90, $44, $7, Streetlights - brackets $28, $17, $1, Streetlights - lights $92, $82, $6, Streetlights - poles $60, $36, $2, Surface Water Channels $3,762, $968, $253, Surfacing $831, $443, $11, Unsealed Subbase $10,252, $7,941, $55, Unsealed Wearing Course $953, $447, $153, Total $195,109, $148,462, $1,586, Page 8 of 11

9 3. IMPROVEMENTS TO VALUATION RESULTS In financial year 2015/16, a number of actions to improve the data in RAMM and accuracy of the valuation were undertaken by Tairāwhiti Roads: Missing asset construction dates updated progressively in RAMM as part of the maintenance contracts. Cycleways/walkways asset data captured and inputting into RAMM. Inventory of missing assets and collection of all missing asset data in RAMM being added progressively into RAMM. The guideline for valuing land was followed with the regularity required (yearly). As the recording of the land valuation affects neither financial performance nor funding, there are no adverse implications by continuing to record the land value as part of the roading asset. The above improvement actions are continuing into financial year 2016/17 with the following additional improvement works planned or being undertaken in the financial year: Remaining useful life assessments; and Total useful life breakdown of all roading assets. The results of these actions will be used in the next valuation. 4. APPENDICES Appendix 1 Maps of Differential Rating Zones Page 9 of 11

10 Appendix 1 Maps of Differential Rating Zones Page 10 of 11

11 Page 11 of 11