Property Asset Management Plan

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3 Property Asset Management Plan This Asset Management Plan (AMP) is based on the best information available when it was compiled in September Council decision making both with regard to which projects are implemented and the timing of the projects in the context of the Long Term Plan (LTP) has yet to be finalised. The programmes in this AMP have been used as a planning tool to inform the LTP planning process. The actual programme of work that Council plans to implement will be that in the adopted LTP following formal public consultation. This document was prepared by Palmerston North City Council, City Networks, Parks & Property Division. Name Sign a t u re Date P rep a r e d b y : John Brenkley, Aaron Phillips, Jocelyn Broderick, Ian Stuart September 2014 Rev i e w e d b y : Phil Walker September 2014 Pe e r R e v i e w e d b y : AECOM New Zealand October 2014 App ro v e d f o r I s s u e b y : John Brenkley Vers ion No. Reaso n fo r Amen dmen t Date 1 Original Issue PNCC Re fere nce No : DMS #

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5 Table of Contents Executive Summary i 1. Overview Navigating the AMP 1 AM Plan Review Process 1 AM Changes Since Objective of This Plan 2 Scope of This Plan 3 Structure of This Plan 5 Relationships with Other Plans 5 Management of the Property Activities 6 Key Relationships 7 2. The Activity Activity Description Activity Rationale Significant Negative Effects of the Activity Significant Changes to the Activity The Strategic Environment Council Vision Strategic and Corporate Goals Council Strategic Direction Statutory and Regulatory Requirements Asset Management Policy and Strategy Level of Service Introduction Community Input and Decision Making Process Communication of Levels of Service and Performance Measures Current and Target Levels of Service 22

6 5. Growth and Demand Future Demand Drivers Growth Trends Residential Growth Strategy (2010) Industrial Growth Strategy Retail Strategy Rural Residential Strategy Operational Properties Cultural Facilities, Including Libraries Community Housing Public Rental Housing Investment Properties Community Facilities: Community Centres and Community Agency Houses Demand Management Sensitivity to Demand Changes Climate Change Impact on Demand Key AM Improvement Projects relating to the Growth and Demand section Risks and Resilience Corporate Risk Management Framework Activity Risk Management Key Risks to the Property Activity Resilience of Infrastructure to Natural Disaster Risk Management Strategy Risk Management Programme Civil Defence Preparedness Risks and Resilience Improvement Plan Sustainability Sustainability Strategy Key Sustainability Issues 57

7 7.3. Climate Change - Initiatives Assets and Lifecycle Management Overview Life Cycle Activities General Lifecycle Management Strategies Asset Management Systems Operational Properties Cultural Properties Community (Subsidised) Housing Properties Public Rental Housing Properties Community Centres and Community Agency Housing Investment Properties Forestry Reserve Leasehold Strategic Properties Key AM Plan Improvement Projects for the Assets and Lifecycle Management section Financial Projections and Trends Long Term Financial Forecast Asset Valuation Confidence Levels Funding Policy Asset Management Plan Assumptions Asset Ownership and Provision of Service Population Growth Residential Growth Industrial Growth Retail Growth Rural Residential Growth Levels of Service 150

8 10.8. Construction Costs Maintenance and Operational Costs Inflation Depreciation Vested Assets Service Potential Asset Lives Natural Disasters Council Policy Other Continuous Improvement Overview Improvements over the last three years Future Asset Management Improvements Improvement Plan AMP Review and Monitoring 162 Appendix A: Glossary 165 Appendix B: Requirements of Local Government Act Appendix C: Activity Performance Measures 173 Appendix D: Risk Analysis/Framework and Register 181 Appendix E: Detailed Financial Information - years 1 to Appendix E: Detailed Financial Information - years 16 to Appendix F: SPM Component Base Lives 229 Appendix G: Location of Housing Properties 233 Appendix H: Summary Component Categories and Average Remaining Useful Lives 237 Appendix I: Peer Review Report 257 Table of Figures Figure 1 Property Fair Value 4 Figure 2 Council Planning Framework 6

9 Figure 3 Sustainable City Strategy 14 Figure 4 Whakarongo Structure Plan 31 Figure 5: City West Residential Growth Area 32 Figure 6 Winchester Street (Ashhurst) Residential Growth Area 33 Figure 7 NEIZ Extension Area Proposed Staging Plan 34 Figure 8 Risk Management Hierarchy 42 Figure 9: Risk Management Process (AS/NZS ISO 31000:2009) 44 Figure 10: Summary of Property Portfolio Values 59 Figure 11 Operational Properties Values 65 Figure 12 Condition Grade Profile - Civic Administration Building 69 Figure 13 Condition Grade Profile - Convention Centre 70 Figure 14 Condition Grade Profile - Depot 70 Figure 15 Operational Properties - Projected Operations and Maintenance Costs 74 Figure 16: Projected Renewals Expenditure for Next 5 Years 75 Figure 17: Operational Property - 30 Year Renewal Forecast Profile 76 Figure 18 Operational Property - 50 Year Age Based Renewal Profile 76 Figure 19 Operational Property 30 Year Expenditure Forecast Summary - Operations and Interest 78 Figure 20 Cultural Properties Values 79 Figure 21: Condition Grade Profile for Cultural Properties 84 Figure 22 Detailed Assessments Condition Grade Breakdown for Cultural Facilities 84 Figure 23 Cultural Properties 5 Year Operations and Maintenance Costs 88 Figure 24 Cultural Properties 5 Year Renewal Profile 89 Figure 25 Cultural Properties - 30 Year Renewal Forecast Profile 89 Figure 26 Cultural Property - 50 Year Age Based Renewal Profile 90 Figure 27: Cultural Property - 30 Year Financial Summary: Operations and Interest. 92 Figure 28: Cultural Property - 30 Year New Capital Expenditure Forecast Summary 92 Figure 29: Community Housing Fair Value 93 Figure 30: Condition Grade Breakdown for Community Housing (Excluding Papaioea Place) 98 Figure 31: Average Monthly Occupancy Rates for Community Housing 100 Figure 32: Community Housing 5 Year Projected Operational Costs and Revenue 101 Figure 33 Community Housing - 5 Year Renewal Profile 102 Figure 34 Community Housing 30 Year Renewals Profile 103 Figure 35 Community Housing 50 Year Age Based Renewals Profile 103 Figure 36: Projected Capital Development Expenditure Community Housing 104 Figure 37 Community Housing 30 Year Expenditure Forecast Summary 105 Figure 38 Community Housing 30 Year Renewal Expenditure Forecast Summary 106 Figure 39 Community Housing 30 Year New Capital Expenditure Forecast Summary 106 Figure 40 Public Rental Housing Fair Value 107 Figure 41 Condition Grade Profile - Public Rental Housing 110 Figure 42 Detailed Assessments - Condition Grade Breakdown for Community Housing 110 Figure 43 Public Rental Housing Operational Cost and Revenue 112 Figure 44 5 Year Renewals Profile Public Rental Housing 113 Figure Year Renewals Profile Public Rental Housing and Investment Properties 113 Figure Year Age Based Renewals Profile Public Rental Housing 114 Figure 47 Public Rental Housing - 30 Year Operational Expenditure & Revenue Summary 115 Figure 48 Condition Grade Profile - Community Centres 117

10 Figure 49 Detailed Assessments - Condition Grade Breakdown for Community Centres 117 Figure 50 Operational and Maintenance Financial Forecast Community Centres 119 Figure 51 Community Centres 5 Year Renewal Profile 120 Figure 52 Community Centres 30 Year Renewal Profile 120 Figure 53 Community Centres 50 Year Age Based Renewal Profile 121 Figure 54: Community Centre and Agency Housing - Capital New 121 Figure 55 Community Centres Operational 30 Year Financial Summary 122 Figure 56 Investment Properties Fair Value 123 Figure 57 Condition Grade Profile Holiday Park 128 Figure 58 Investment Properties 5 Year Operations and Maintenance Forecast 130 Figure 59 Public Housing and Investment Properties 5 Year Renewal Profile 131 Figure 60 Public Housing and Investment Properties 20 Year Renewal Profile 131 Figure 61 Investment Properties Age based 50 Year Renewal Profile 132 Figure 62 Investment Property 30 Year Expenditure Forecast Summary 133 Figure 63 Property 30 Year Financial Summary Operations, Interest and Revenue 141 Figure 64 Property 30 Year Financial Summary Renewals 142 Figure 65: Property 30 Year Financial Summary 142 Figure 66: Property Fair Value as at 30 June Figure 67: Location of Community and Public Housing Complexes 233

11 Table of Tables Table 1 Structure of Plan 5 Table 2 Activity Linkages to City Goals 11 Table 3 Levels of Service Matters for Table 4 Customer segmentation, levels of service and linkage to goals 23 Table 5: Key Performance Indicators 25 Table 6: future changes to Level of Service by Property Activity 26 Table 7: Service Level Gaps 26 Table 8 Palmerston North Projected Population Increase 28 Table 9: Projected Population and Household Growth 28 Table 10 Household Growth Projections Table 11 Residential Development Type 29 Table 12 Strategic Risks 39 Table 13 Operational Risks 41 Table 14 Resilience Definition 43 Table 15 Critical Property Assets 46 Table 16 Critical Assets 46 Table 17 Operation Failure 48 Table 18 Asset Failure 48 Table 19 Project and Planning Risks 48 Table 20 Events and Incidents 49 Table 21: Earthquake Prone Buildings 50 Table 22 Seismic Hazard - Council Buildings 51 Table 23: Seismic Hazard - Community Housing 51 Table 24 Interdependencies 52 Table 25 Risk Management Programme 53 Table 26 Sustainability Strategy Drivers and Property Activity Contributions to Them 57 Table 27 Operational Property - High Risks and Their Controls 77 Table 28 Cultural Properties Major Short Term Renewals 88 Table 29 Cultural Properties High Risks and Existing Controls 91 Table 30 High Consequence Risks Community Housing 105 Table 31 High Consequence Risks Public Rental Housing 114 Table 32 Community Centres - Size, Year Built and Value 116 Table 33: High Severity Risks relevant to Investment Properties 133 Table 34 Forestry Operational Expenditure Forecast 135 Table 35 Forestry Development Expenditure Forecast 135 Table 36 Growth versus capital works 143 Table 37 Property Value by Activity as at 30 June Table 38 Data Reliability 145 Table 39 Property Asset Funding Source Allocation 147 Table 40 Indicative AM Improvement Programme 158 Table 41 Timetable for AMP Review 162 Table 42 AM Plan Monitoring 163

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13 Executive Summary Executive Summary Purpose of this Plan This asset management plan describes the strategies and works programmes for the Property Activity so as to meet the objective of delivering the required level of service to existing and future users in the most cost effective way. The plan covers a period from 1 July 2015 to 30 June 2045 with a particular focus on work programmes over the next five years. It informs the Council s 2015/25 Long Term Plan (LTP) and 30 Year Infrastructure Strategy and contributes to meeting Council s identified strategic outcomes. The plan covers: The activity including assessed negative effects The strategic environment (including Council s strategic direction and future demand drivers) for the activity, the key asset management policies and strategies adopted within this environment and the main risk issues identified for the activity. The intended levels of service and performance targets. The projected demand on the assets as a result of growth and drivers The risks faced in operating and owning the assets and how they are being managed to provide for resilience to natural hazards Information on the scope of assets involved in delivering services including: o o o The Activity Description The estimated expense for achieving and maintaining the target levels of service. The implications of changes to demand in service provision levels and standards including the estimated costs of the provision of additional asset capacity and how these costs will be met. How the maintenance, renewal and replacement of assets will be undertaken, and funded. The purpose of the Property activity is to: Provide for accommodation needs of Council activities Provide for cultural events Encourage visitors and business to the City Provide housing options for low and limited income residents Maintain strategic options available to the Council. To achieve this, the Council owns and manages five operational properties, 12 cultural facilities including three libraries, 311 community housing units, 92 public rental housing units, six investment properties, three reserve leasehold properties (properties gifted to the City by the Crown and leased for residential purposes), eight community centres, three community agency houses, and strategic properties to meet the City s future demands and opportunities. Activity Rationale Council has identified the strategic assets of the Property activity to be: Elderly and special needs Community Housing as a whole Public rental housing as a whole That portion of the Civic Administration Building sited on the Square Te Manawa The Regent Theatre City Library (including branch libraries and mobile library) as a whole Community Centres as a whole i

14 Under the provisions of the Local Government Act 2002, Council cannot transfer ownership or control of a strategic asset, or construct, replace or abandon a strategic asset unless it has first consulted with the community and included the proposal in its operative Long Term Plan. Council intends to continue with its present involvement in the Property activity, and this AM Plan has been developed on the basis of continuing Council ownership of the assets. The services provided by the Property activity contribute to the goals adopted by Council for the City. Significant Negative Effects The potential significant negative effects of the Property activity are: Increased built environment and resource consumption Periodic increase in demand on the transportation network (increased traffic flows and parking needs). Logging operations, including creation of new logging roads, harvesting of trees, dust and discharge of potentially contaminated stormwater into the natural watercourses. Buildings susceptibility to major earthquake damage. Council mitigates these potential adverse effects through a mix of planning, regulatory measures, public education, monitoring, corrective work and emergency response procedures. Strategic Environment Council Vision Council s vision for the City is as follows: Palmerston North is recognised as a vibrant, caring, innovative, and sustainable city. The Property Activity supports the Council s overall Vision and Goals in the following way: City Goals Palmerston North is a socially sustainable city where people want to live because of its safe and easy lifestyle and its many social, cultural and recreational opportunities. Palmerston North is a leading city in the quest to become environmentally sustainable. Palmerston North is an economically sustainable city which attracts, fosters and retains businesses and jobs to create a prosperous community. Activity Contribution Cultural properties house art galleries, museums, theatres, libraries and other learning and leisure activities. Community and Public Housing provides sustainable accommodation for selected groups that need assistance. Community facilities enable people to come together and enhance their lifestyle and opportunities. Operational Properties provide the capacity for Council to provide various activities that improve safety and provide cultural, social and recreational opportunities. Property upgrade designs seek to improve long term environmental sustainability. Investment Properties provide an income stream to offset some of the costs of other activities. Operational Properties provide facilities that allow Council to carry out activities that support businesses. Sustainable City Strategy Council s Sustainable City Strategy provides a high-level route map that points the future direction to achieve sustainability. Drivers included in this strategy and its related strategies taken account of in this plan are as follows: ii

15 Executive Summary Relevant Driver Contribution from the Activity Sustainable energy use at home and work Sustainable energy use to move about the City Increased specifications for insulation requirements as part of renewal programmes for property Purchase of energy efficient appliances when upgrading or re-developing property Housing upgrade designs seek to provide best practice in long term environmental sustainability. Renewable energy (solar) generation programmes on buildings. Development of future housing complexes in close proximity to public transport Provide facilities such as cycle racks at high use public venues Increasing health and extent of native biodiversity on land and in water Pest control Managing water Water saving devices specified in new build, renewals and maintenance work. A safe and healthy City Coordinated physical infrastructure Providing well maintained housing for target groups. Renewal and development projects consider urban design opportunities. CEPTED principles applied to property developments. Renewal programming completed. Maintenance & cleaning contracts are in place for all community facilities Surveys carried out to determine the users satisfaction with these services. Current and Target Levels of Service Customers The Property Activity aims to provide a level of service that meets the needs of many user groups including General Public Tenants Council staff (e.g. civic administration building) Elderly and special needs tenants Tenants families/support persons Leaseholders Recreational users (e.g. Gordon Kear Forest) Local Residents Hall management committees Visitors Council (e.g. investment properties) The following table shows the levels of service and performance measures adopted for this Plan. iii

16 Level of Service Key Performance measures Property WHAT WE DO HOW WE SHOW WE ARE DOING A GOOD JOB CURRENT RESULTS OUR TARGETS 2015/ / / QUALITY The Council s building assets are maintained in good condition and are well presented, appropriate to the type and level of use. SAFETY The Council s buildings are safe to use and meet appropriate building standards AVAILABILITY The Council s buildings are available for use by occupants in accordance with levels of service as set out in: Residential tenancy agreement Deed of lease for Recreation and Commercial properties Contractual arrangements with Council Controlled Organisations % of tenants satisfied or very satisfied with the quality of the Council s tenancy liaison service % of tenants, user groups and occupiers satisfied or very satisfied with the appearance and presentation of the Council s public buildings % of tenants, user groups and occupiers satisfied or very satisfied with the healthiness and safety of the Council s public buildings % of tenants, user groups and occupiers satisfied or very satisfied with the fitness for purpose of the Council s public buildings % of tenants, user groups and occupiers satisfied or very satisfied with accessibility to the Council s public buildings Public buildings comply with building warrant of fitness requirements Buildings are available for the agreed time. 93% (2010 survey underway in 2014)) 80% 80% 80% 80% Communitrak survey satisfaction with: 75% 75% 75% 75% Regent Theatre 99% Te Manawa 95% Library 98% Not measured 75% 75% 75% 75% Not measured 75% 75% 75% 75% Not measured 75% 75% 75% 75% 100% 100% 100% 100% 100% Not measured 100% 100% 100% 100% iv

17 Executive Summary WHAT WE DO Planned closures of Council s buildings that cause disruption to daily activities or living circumstance are communicated to occupants and/or public in a timely way. HOW WE SHOW WE ARE DOING A GOOD JOB Amount of advance notice of closure or partial closure to occupants or users. (N.B. planned closures or partial closures are undertaken outside of any hours of normal occupancy to the greatest practicable extent.) CURRENT RESULTS Not measured OUR TARGETS 2015/ / / clear days for residential properties, four weeks for all other properties 90 clear days for residential properties, four weeks for all other properties 90 clear days for residential properties, four weeks for all other properties 90 clear days for residential properties, four weeks for all other properties RESPONSIVENESS The Council responds to requests for service from tenants and occupants in a timely way Response time to requests for service (RFS) were responded to within the allotted times. Overall average of 81% was responded to within the time allocated results were: Operational - 74% Cultural 79% Housing 91% Community Centres 81% Investment 97% 95% within 4 hours 95% within 4 hours 95% within 4 hours 95% within 4 hours FINANCIAL MANAGEMENT The Council manages its property assets in a financially sustainable way The Council s levels of service are delivered within net budget Overall Property budget 2013/14: Controllable budget $4,978,136 Actual spend $5,120, % within budget 100% within budget 100% within budget 100% within budget Growth and Demand Future demand for Property services will be driven by: Urban growth predicted and its impact on demand. Demand for properties providing a revenue stream to Council. Changing community expectations regarding the baseline acceptable quality of accommodation. The significant changes expected in demographic profiles and the need for assets to remain relevant to community needs. Increasing awareness of sustainability and how these principles may be incorporated into any fit out or new building development being considered by Council. v

18 Population and Household Growth Population growth over the period of this Plan has been forecast to increase at an average rate of 0.8% per annum over the next ten years, reducing to an average growth rate of 0.7% over the following ten year period and 0.5% over the final ten year period. Projected average annual household growth is not expected to slow to the same extent as the population growth rate because the average size of households is expected to reduce, primarily due to the aging population and an increase in the number of single person households. Projected household growth is based on an average increase of 0.9% per annum over the period of the plan. Residential Growth Council has recently confirmed its residential growth strategy as: Whakarongo Residential Area for short to medium term residential growth. City West Residential Growth Area for medium to long term residential growth. The Whakarongo area comprises 56.5 ha and is expected to yield approximately lots. It is assumed that development will commence over Years 1-10 of this Plan. City West comprises 220ha yielding approximately lots and scheduled to commence over Years of this Plan. In addition residential growth planned for Ashhurst at Winchester Street comprises 13.2ha and is expected to yield 120 lots. Industrial Growth The two areas identified for industrial growth are Other An extension to the north-east of the existing North East Industrial Zone (NEIZ) for transport, warehousing, distribution and logistics Longburn for wet industry Other demand drivers that inform this AMP are: Potential impact of population growth on staff numbers and floor space beyond the current spare capacity in the civic administration building Reduced demand on cultural facilities due to increased external provision of performing space and demand management techniques The ageing population demographic and the consequential projected increased demand for community housing for the elderly on low income The projected increase in demand for public housing off a base of 95% occupancy and waiting lists, overlaid with the projected population increase Demand for investment properties tempered by the current, low economic climate Reduced demand for community centres and community agency houses due to increased external provision. Additional demand is expected for the new Whakarongo and City West residential developments as they are populated. Risk & Resilience Critical assets are those assets which have the highest consequences in terms of disruption in service and financial, environmental and social cost should they fail. For the Property Activity, the assets in this category are: Operational Properties: Civic Administration Building Council s Depot vi

19 Executive Summary Cultural Properties: City Library Te Manawa Key risks identified for the activity as a whole are: Vandalism affecting operational, cultural and CBD investment properties Fire risks for community and public rental housing Unsuitable tenants Asset failure, due to poor maintenance and renewal programming, water ingress/leaking buildings Project planning capacity does not meet demand A major seismic event Storm or fire damage to Council s forestry Mitigation measures to address these risks are covered in this plan. Resilient infrastructure is able to deal with significant disruption and changing circumstances as a result of the occurrence of natural hazards, such as seismic and volcanic events. For the Property Activity, a major seismic event is the most significant natural hazard. This plan is focussed on being able to provide essential services following a high consequence event. Resilience of critical assets is particularly important for continuation of service delivery. The critical assets of the Property Activity require a high level of resilience because of their role for civil defence and emergency management purposes. Both technical and organisational aspects of resilience have been considered in this plan. Assets Scope and Value of Assets The broad asset groups, quantities and values are as follows: Asset type Quantity Operational Properties 5 Cultural Facilities: Libraries 3 Other 9 Community Housing Units 311 Public Rental Housing 92 Investment Properties 5 Gordon Kear Forest 1 Reserve Leasehold Properties 3 Community Facilities: Community Centres 8 Community Agency Housing 3 vii

20 The total Fair Value as at June 2013 is $150 million (including land) $357,000 $9,411,000 $33,865,000 $7,570,000 $1,465,000 Property Value $1,040,000 $11,597,000 $18,455,000 $65,185,900 Community Centres Community Housing Cultural Facilities Forestry Investment Properties Operational Properties Public Rental Housing Reserve Leasehold Strategic Properties Asset Condition and Performance Operational Properties The condition of Council s operational properties has been assessed as good to very good. The exception is in respect of seismic resistance, with the Civic Administration Building and depot at risk from a significant earthquake event. The capacity and performance of operational properties is good, with the civic administration building under-utilised and the convention centre and depot well used. Cultural Properties 94% of Cultural Properties by value are in good or very good condition. The Square Edge building has been identified as vulnerable to a major earthquake event. Overall the capacity and performance of the Cultural Properties is considered to be high, although discrepancies in quality exist across the facilities, ranging from the Regent Theatre (very high) to the Square Edge Courtyard (moderate/adequate). The range in quality of the assets reflects the end use and profile of the facility. Utilisation of the facilities is believed to be good and within capacity. Occupancy of tenanted space, visitor numbers and number of productions is believed to be high and a reflection of the quality and functionality of the facilities. The exception is the Keith Street Power Station building which does not operate its original function and is currently for historic tours only. Community Housing Properties 93% of the Community Housing assets (by replacement cost) are in Good or Very Good condition. Current utilisation of the facilities is high with an increasing demand for one or two bedroom units. Certain areas of the City and complexes are considered more desirable than others, with the demand for those complexes exceeding current stock. Turnover is on average 6 years with current occupancy of 97.5%. This level is expected to continue to hold especially as the programme of bed-sit conversions to one-bedroom units progresses. Bed-sits are the units most difficult to tenant. Public Rental Housing Properties 96% of the Public Rental Housing assets are in Good or Very Good condition. Performance - units and their fixtures and fittings are generally functional and cost-effective but dated, and the building materials and aesthetics/décor are consistent with the age and function of the viii

21 Executive Summary buildings. The quality of building materials at Rakaia Place are of a lower standard than the other housing complexes which has resulted in ongoing maintenance issues. Current utilisation of the facilities is high with current occupancy of 92%. Each tenancy is for a maximum of five years with a review at two years. Community Centres and Community Agency Housing 97% of Community Centre assets (by replacement cost) are in Good or Very Good condition. The Ashhurst Cambridge Avenue property is in poor condition and was previously identified for disposal. Performance - there has been an increase in 3 rd party provision of community facilities as several schools, church and community organisations have built halls in recent years. As such no short to medium term capacity issues are foreseen. Regular maintenance on the facilities ensures that they are available to users throughout the year. Investment Properties The retail properties incorporated into a complex are generally in a similar condition to that complex. These properties are associated with the Regent, Library and Civic Centre, all of which are in very good condition. The George Street shops are in moderate condition. 83% of the Holiday Park asset components (by replacement cost) are in Good or Very Good condition. Performance - the overall quality and functionality of the investment properties is considered to be adequate. Utilisation of the facilities is currently high with many properties occupied by long-term lease tenants. Forestry The condition of Council improvements within the Gordon Kear Forest (fences, roads and culverts) is assessed to be fair. The key performance measure for Forestry is the return on investment. This is difficult to measure until the forest is harvested, but is expected to be good. Reserve Leasehold Council s assets are limited to the land. No condition assessment is required. Reserve leasehold properties were acquired through historical reasons and stock is shrinking as existing land holdings are bought out by the leaseholder. There are no performance measures associated with Reserve Leasehold land. Strategic Properties Condition and performance - strategic properties are held in a moderate state given the long term intention to dispose of the buildings to allow other development to occur and the uncertainty around timing. Operation and Maintenance of Assets The operations and maintenance strategy is intended to deliver the current levels of service, mitigate risk and minimize costs by implementing a balanced programme of planned, preventative and reactive works. ix

22 2015/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / /45 Property 30 year Financial Summary Operations and Interest $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Operations & Maintenance Interest Revenue The significant trends in the forecast are: Operational costs are forecast to have a small increase. There are few captial projects in the overall portfolio and those that there are will have little impact on operational and maintenance costs over the next 30 years. Renewal of Assets Renewal or restoration of assets is required to ensure that the service potential of the asset is maintained and that the level of service can continue to be delivered. The renewal programme seeks to provide the optimum mix of treatment options and timing for minimising costs over the life of the asset. The renewal programme is based on: Knowledge of historical renewal requirements. Collected asset condition and age data, using a predictive deterioration relationship based on consideration of asset lives and historical rates of condition deterioration. Actual asset condition assessment programme undertaken on key assets to determine remaining life cycles and prioritisation programme for replacements and maintenance. Asset renewal needs are identified through analysis of failure history and in some cases, predictive modeling. Treatment selection and work prioritisation are determined from an economic analysis of options considering all asset life cycle costs. x

23 2015/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / /45 Executive Summary Property 30 year Financial Summary - Renewals $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Capital Renewal Depreciation Renewals in the next 30 years run at about 65% the rate of deprecaition for the following reasons: There will be some building strutural renewals in the years The earthquake strengthening programme ($15 milllion under new capital) will lengthen the lives of some buildngs. The Papioea Community Housing upgrade ($4 million under new capital plus existing 2014/2015 budgets of $4.125 million) will also renew that facility bridging that gap. Development of Assets Asset development needs to meet demand forecasts and deliver the agreed level of service which are identified from an assessment of risks, performance monitoring and demand analysis. All feasible options, including non-asset demand management options, are considered. Project selection and prioritisation is determined from an economic analysis of options considering all asset life cycle costs. Capital development projects undertaken to meet level of service needs and growth are funded from borrowing and developer contributions respectively. xi

24 Property 30 year Financial Summary - Capital New $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Capital new projects shown in the graph above include: $4M Community Housing (Papaioea Place) ( ) $0.945M Kelvin Grove Branch Library/Community Centre ( ) $15.25M Seismic strengthening of Council owned buildings ( ) $0.88M City West new Community Centre ( ) The need for new projects within the term of this Plan, additional to those shown above, will be determined through Council decision making. Key Assumptions The following key assumptions have been made in preparing the expenditure forecasts: Asset ownership and provision of service will remain in Council ownership and management. City population is assumed to grow at an average rate of 0.6% p.a. over the period. That in years 1-10 development for residential growth will commence in the Whakarongo area followed by the City West area in years Changes in technology will not impact on future demand drivers. Industrial growth is assumed to occur as an extension to the existing North East Industrial Zone for transport, warehousing, distribution and logistics and at Longburn for wet industry. Generally a similar level of service to that currently delivered applies. Financial projections are based on June 2015 estimated costs. No inflation factors have been applied. The service potential of the asset is maintained by the renewal programme. Asset lives are accurately stated. There are no major natural disasters requiring additional funds. The City libraries strategic direction including any development programme will be incorporated into the 2015 LTP process and 2017 AMP. No significant Levels of Service changes will occur due to: o Arena Manawatu Master Plan review affecting Strategic Property holdings. xii

25 Executive Summary o Community Housing Strategy review affecting Community Housing and possibly Public Rental Housing. o The Council decisions with regard to earthquake strengthening. Asset Management Improvement A programme of Asset Management Improvement over the next 3 years is included in this plan across the broad range of AM processes with the aim of further optimising the programme of works required to maintain the service potential of the asset and provide the required level of service. Particular attention will be given over this period to developing a more complete understanding of the risks faced from natural hazards and ways to improve the resilience of the assets. Conclusion This plan sets out programmes for operating and maintaining the asset, for asset renewal and asset development over the next 30 years that will ensure the required level of service is delivered to the community, the service potential of the asset is maintained for future generations and growth of the city is provided for. These programmes support progress towards achieving the vision contained within Council s Sustainable City, Biodiversity and Active Recreation Strategies. xiii

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27 Section 1 - Overview 1. Overview This section sets out the objectives and scope of this asset management plan, describes the interrelationships with other Palmerston North City Council planning documents, and shows the plan framework. 1.1 Navigating the AMP This asset management plan (AMP) comprises a series of logical steps that sequentially and collectively build the framework for sustainable asset management. It is made up of five, key, integrated layers: 1. Background and setting the scene Sections The AM review process, scope of the plan, description of the activity, the strategic environment and regulatory framework. 2. AM drivers Sections 3.3, : Strategic direction (from Section 3.1) Levels of service (Section 4.0) establishing the extent and frequency of services to be provided by the Property assets in support of the Council s strategic goals. They are based on user expectations and statutory requirements. Growth and demand (Section 5.0) planning for factors that will impact on the capacity and levels of service of assets, now and in the future. Risk and resilience (Section 6.0) the process of identifying risks that may affect the on-going delivery of services and measures to protect against damage to essential services in the event of a natural disaster. Sustainability (Section 7.0) the contribution from the activity towards the key drivers of Council s Sustainable City Strategy. 3. Managing the assets Section 8.0: Identifying the operations, maintenance, renewal and development programmes required to maintain the agreed current and future levels of service, meet future demand, mitigate risks, and contribute to Council s sustainability strategy. 4. Funding the programmes Sections 9.0 & 10.0: An outline of the long-term (30-year) financial requirements (Section 9.0) for operations, maintenance, capital renewal and development of the activity derived from the drivers, strategies and assumptions (Section 10.0) described in the above Sections. 5. Continuous improvement Section 11.0: Measures, investigations and programmes to inform future reviews of the AMP, validate assumptions, and improve confidence in AM practices and financial projections. 1.2 AM Plan Review Process This asset management plan (AMP) review has been a 12 month project undertaken by Council s asset management (AM) team, led by the Special Projects Manager, covering all Palmerston North City Council (Council) AM plans. Linkages were established early in the process with other Council planning teams including the Long Term Plan (LTP), strategic planning and corporate finance teams to ensure an integrated approach to consistency of information and assumptions across the organisation. The stages of the review have been as follows: 1

28 Section 1 - Overview Strategic environment establishing linkages between Council s strategic direction as expressed in the Council s strategies (e.g. Sustainable City Strategy, Urban Design Strategy etc), and expected outcomes to be delivered through AMPs (December 2013 August 2014) Review of critical assets and key risks, assessment of critical asset resilience to natural hazards and interdependencies (AM workshop 4 June 2014), review of risk management strategies and updating of risk management programmes (July/August 2014) Level of service review building from current levels of service and presenting the issues and options to Councillor workshops (15 and 16 May 2014) Preparation and review of AMP budget forecasts to inform LTP (May - August 2014) Councillor briefings to inform of key AM planning issues and financials (28/29 August and 24 November 2014) Finalisation of AM Plans (September 2014) External peer review (September/October 2014) AMPs referred to Audit NZ (October 2014) Formal reporting of AM Plans to the Council for adoption (December 2014) Any variations between the respective AMPs and the LTP will be the subject of a report to Council following adoption of the LTP. This AMP has been prepared as a team effort by officers dedicated to and trained in AM planning. This team has been supervised and the AMP internally reviewed by professional Council staff having over 10 years experience in preparing AM plans. An external peer review has been undertaken by AECOM Ltd. 1.3 AM Changes Since 2011 Asset management is a process of continuous improvement, contiguous with development of and changes to Council s strategic direction and improved knowledge of asset condition and performance required to achieve the agreed levels of service. Key changes to AM processes since 2011 include: Further identification of asset development required to give effect to Council s strategic direction. Preparation of development, renewal and operational programmes for a 30 year horizon to assist with completing the mandated Infrastructure Strategy that is to be included with the Long Term Plan. Some minor changes to levels of service as a result of the outcomes of the Councillor level of service workshop in May Changes to the order of infrastructure development associated with Council s residential growth strategy for the two proposed growth areas, with Whakarongo now preceding City West Identification of programmes and services associated with the Council s assets located in the CBD in line with the Urban Growth Strategy Slightly revised population and household projections as a result of further analysis of the latest trend information and Statistics NZ data. Review and assessment of asset risks, risk criticality, risk mitigation, resilience and preparedness for natural disasters Inclusion of assets and programmes associated with the extended City boundaries (inclusive of Longburn and Bunnythorpe) following the 2012 boundary changes with neighbouring Manawatu District Adoption and development of the SPM asset management software. Assessment of earthquake prone buildings. Incremental improvement to asset management processes including asset inventories, condition and performance data 1.4 Objective of This Plan This AMP is the basis for the Property activity planning. The objective of asset management is to; 2

29 Section 1 - Overview Deliver the required level of service to existing and future customers in the most cost-effective way. In this context the specific objectives for the AM plan are: To define the services to be provided, the target service standards that Council aims to achieve, and the measures used to monitor the performance of the roading and parking activity. To translate Council s Strategic Vision and Goals into activity strategies and action plans. The plan identifies forward works programmes and financial forecasts required to meet agreed service levels and cater for growth. To demonstrate responsible management of the Property activity infrastructure to stakeholders, ensuring that public funds are optimally applied to deliver cost effective services to meet customer expectations. To document current asset management practices used by Council as part of a sustainable and optimised lifecycle management strategy for the Property infrastructure, and identify actions planned to enhance management performance. To comply with the requirements of relevant legislation. The key outputs of this AMP are input into the LTP process, which will be the subject of a special public consultative procedure. 1.5 Scope of This Plan This AMP is intended to set out how Council manages Property assets and services in a way that is appropriate for a readership including executive management and elected members of the Council, interest groups, business partners associated with the management of the Property activity and interested members of the general community. It covers the services that are provided from ownership and management of the associated assets. This AMP covers a period of 30 years commencing 1 July The main focus of the analysis is the first 3 years and for this period most projects specified have highest certainty of completion. Beyond this period, work programmes are generally based on projected trends and demands and should be taken as indicative only. All expenditure forecasts are based on unit costs as at 1 July Councils Property portfolio has a total fair value $150M. The following graph shows the value by activity: 3

30 Section 1 - Overview Property Value 2013 $357,000 $9,411,000 $33,865,000 $7,570,000 $1,465,000 $1,040,000 $11,597,000 $18,455,000 $65,185,900 Community Centres Community Housing Cultural Facilities Forestry Investment Properties Operational Properties Public Rental Housing Reserve Leasehold Strategic Properties Figure 1 Property Fair Value There are: 5 Operational Properties 12 Cultural Facilities, including Libraries 311 Community Housing Units at 15 locations 92 Public Rental Housing Units at 3 locations 5 Investment Properties Gordon Kear Forest Reserve Leasehold Properties Strategic Properties 11 Community Facilities, including 8 community centres and 3 community agency houses 4

31 Section 1 - Overview 1.6 Structure of This Plan This 2014 AMP follows a similar structure to the 2011 Plan, but with strengthened linkages between Council s vision, goals and strategies, levels of service and associated programmes. The differences in structure between 2011 and 2014 are summarised in the following table: 2011 AMP 2014 AMP Overview The Activity Strategic Environment Levels of Service Growth and Demand Overview The Activity Strategic Environment Levels of Service Growth and Demand Risks and Resilience Sustainability Assets and lifecycle management Assumptions Financial Projections and Trends Continuous Improvement Appendices Sustainability Assets and Lifecycle Management Assumptions Financial Projections and Trends Continuous Improvement Appendices Table 1 Structure of Plan The Risks and Resilience section was previously part of the Assets and Lifecycle Management section. Separating this section out reflects increased awareness of the impacts of natural disasters on lifelines and critical assets following the Christchurch earthquakes in 2010/11 (and other natural disasters), and the new Local Government Act 2002 Amendment Act 2014 requiring the Council to show how it intends to manage its infrastructure assets, taking into account the need to: provide for the resilience of infrastructure assets by identifying and managing risks relating to natural hazards, and make appropriate financial provision for those risks. The new structure also contains a number of formatting changes. For instance, 20-year financial forecasts have been replaced with 30-year forecasts, and renewals profiling is now analysed over a 50 year period. 1.7 Relationships with Other Plans AM plans are a key component of the Council planning process, linking with the following plans and documents: Long Term Plan: A plan required by the Local Government Act (2002) to cover a period of at least 10 years. This AMP contains key information about the Council s activities, assets, levels of service and cost of providing services (refer to Schedule 10 of the Local Government Act 2002 for the list of information to be included in the LTP). It sets out the Council s funding and financial policies and also a financial forecast for the years covered by the plan. This AM Plan will provide key inputs to the LTP. Annual Plan: Provides the programmes and funding plan for each year of the LTP including reporting on variances, Contracts: The service levels, strategies and information requirements contained in AM plans are translated into contract specifications and reporting requirements. Bylaws, Standards and Policies: These tools for asset creation and subsequent management are needed to support AM tactics. 5

32 Section 1 - Overview Funding Policies: These policies state how future expenditure needs will be funded. Key policies are summarised in the LTP. Strategies: o Sustainable City Strategy 2011 o Arts Strategy 2010 o Social Housing Strategy 2007 ( under review). o Social Strategy 2012 Contracts: The service levels, strategies and information requirements contained in AM plans are translated into contract specifications and reporting requirements. Bylaws, Standards and Policies: includes the Housing Policy. These tools for asset creation and subsequent management are needed to support AM tactics. City Networks Business Plan: This plan outlines the specific business objectives of City Networks, the projects and the status of the property portfolio. The following figure depicts the relationship between the various processes and levels of planning within the Council required to deliver on Council s vision and goals. Figure 2 Council Planning Framework 1.8 Management of the Property Activities City Networks, a unit of the Council, is responsible for the management of the Property for other units or organisations. Those other units or organisations manage the activities that take place in the properties. The general services that contribute to the City Networks Property division activities include: Asset Management. Customer Services. Maintenance programmes. 6

33 Section 1 - Overview Refurbishment programmes. Advice on capital programmes to the other units looking after the activities within the properties. 1.9 Key Relationships The Property division has overall responsibility for property services in the Palmerston North City Council. This includes ensuring the required outcomes are achieved as efficiently as possible and quality assurance for the buildings and facilities, not the operations that take place within them. In providing the property service the Property division works with a number of key business partners including contractors, consultants and specialist service providers. This plan recognises the following key stakeholders: External The Palmerston North community, including citizens, ratepayers and tenants Residential and individual users of the services Cultural groups Business groups Community groups Visitors to Palmerston North Manawatu - Wanganui Regional Council Government agencies (e.g. Dept. of Health, Mid-Central Health, Housing Corporation of New Zealand, Audit NZ) Internal Councillors Asset managers and AM staff Financial managers Other Council Units (e.g. the Library) Information technology managers Strategic planning managers Internal auditors 7

34 Section 1 - Overview 8

35 Section 2 The Activity 2. The Activity This section sets out the services provided by the Property activities and; a description of the asset used to deliver the activity, the rationale for Council involvement and ownership of assets, the significant negative effects of the activity, and the significant changes in the activity since the last AM plan. 2.1 Activity Description The Council owns, maintains and manages a range of property around the City. They have a range of purposes including: Meeting accommodation needs of Council activities. Providing for cultural events. Encouraging visitors and business to the city. Providing housing options for low and limited income residents. Maintaining strategic options available to the Council. The Property activity comprises of owning, maintaining and managing a range of properties around the City. This AM plan covers all of the assets outlined below: Operational Properties Civic Administration Building Convention Centre Information Centre Dog Pound Depot Cultural Facilities Regent Theatre Te Manawa Science Centre, Museum and Art Gallery Libraries Central, Ashhurst and Te Pātikitiki Keith Street Power Station Globe Theatre Caccia Birch Square Edge including the Old Workshop Creative Sounds (aka The Stomach) Community Housing 311 units in 15 locations around the city Public Rental Housing 92 units in 3 complexes Strategic Properties 84 Waldegrave Street 7 and 11 Oakley Street 9

36 Section 1 - Overview Council is currently in the process of investigating purchasing 9 Oakley Street as a strategic holding for future Arena Manawatu development. Investment Properties Regent Theatre shops Library shops Civic Centre shops George Street shops Council is in the process of selling these shops Holiday Park Gordon Kear Forest Reserve Leasehold Properties 289 Fitzherbert Avenue 53 Guy Avenue 553 Ruahine Street Community Centre and Community Agency Housing Womans Centre - 53 Waldegrave Street Hancock House King Street Red Cross Building Works Pit Ashhurst Community Centres: o Ashhurst Village Valley Centre o Awapuni, o Highbury Whanau Centre, o Kelvin Grove, o Milson, o Rangiora, o Palmerston North Leisure Centre, o Westbrook, 10

37 Section 2 The Activity 2.2 Activity Rationale Local authorities exist principally to supply services that help to promote the social, economic, environmental and cultural well-being of their communities. The services provided, and how they are provided, depend on the level of service required by the community. The Council has identified its strategic assets as: Elderly and special needs Community Housing as a whole Public rental housing as a whole That portion of the Civic Administration Building sited on the Square Te Manawa The Regent Theatre City Library (including branch libraries and mobile library) as a whole Community Centres as a whole Under the provisions of the Local Government Act 2002, Council cannot transfer ownership or control of a strategic asset, or construct, replace or abandon a strategic asset unless it has first consulted with the community and included the proposal in its operative Long Term Plan. Council intends to continue with its present involvement in the Property activities, excluding the sale of the George Street Shops, and this AMP has been developed on the basis of continuing Council ownership of the assets. The objectives for the Property activities are to: Provide accommodation needs of Council activities so that key services can be delivered; Provide, maintain and promote spaces and facilities for people to pursue arts and cultural activities; Promote the City as a whole by providing venues for arts, culture, entertainment and business facilities which attract visitors to the City; Provide places to meet and foster community identity, including housing options for low and limited income residents; Provide a revenue stream to offset the cost of other Council activities. Ensure the maintenance of strategic options available to Council; The services provided by the Property activities contribute to the goals adopted by Council for the City in the following manner: City Goals Palmerston North is a socially sustainable city where people want to live because of its safe and easy lifestyle and its many social, cultural and recreational opportunities. Palmerston North is a leading city in the quest to become environmentally sustainable. Palmerston North is an economically sustainable city which attracts, fosters and retains businesses and jobs to create a prosperous community. Activity Contribution Cultural properties house art galleries, museums, theatres, libraries and other learning and leisure activities. Community and Public Housing provides sustainable accommodation for selected groups that need assistance. Community facilities enable people to come together and enhance their lifestyle and opportunities. Operational Properties provide the capacity for Council to provide various activities that improve safety and provide cultural, social and recreational opportunities. Property upgrade designs seek to improve long term environmental sustainability. Investment Properties provide an income stream to offset some of the costs of other activities. Operational Properties provide facilities that allow Council to carry out activities that support businesses. Table 2 Activity Linkages to City Goals 11

38 Section 2 The Activity 2.3 Significant Negative Effects of the Activity The potential significant negative effects of the property activity are: Increased built environment and resource consumption. Periodic increase in demand on the transportation network (increased traffic flows and parking needs). Logging operations, including creation of new logging roads, harvesting of trees, dust and discharge of potentially contaminated stormwater into the natural watercourses. Buildings susceptibility to major earthquake damage. Council mitigates these potential adverse effects through a mix of planning, regulatory measures, public education, monitoring, corrective work and emergency response procedures. Overall, the significance of the above negative effects is minor. The majority of Property assets are existing, with new capital development relatively minor. Transportation and parking requirements associated with the property activity are already catered for within the Roading and Parking Activity. The negative effects of logging operations at the Gordon Kear Forest are short term and mitigated through district plan rules and the use of a small scale compartmentalised harvesting regime supported by a harvest management plan including sediment interception facilities. The final compartment of the current production cycle is due for harvest in approximately three years time, with the next harvest cycle due to commence in approximately years. Road maintenance and post-harvest pavement rehabilitation is routinely managed under the Roading and Parking activity. The negative effects of earthquake prone buildings will be managed by a strengthening progamme over the next 7 years meeting or exceeding the minimal legislated standards. 2.4 Significant Changes to the Activity No significant changes to the Property activities are proposed in this plan. At the time of this plans review Council is considering its direction with respect to Community and Public Rental Housing. While a direction is not set, this plan is prepared on the assumption that all of the Community and Public Rental Housing units will be retained, but there may be some reallocation of the types of tenants targeted in the public rental housing. It is assumed there will be no significant asset implications of the tenancy policy changes. 12

39 Section 3 The Strategic Environment 3. The Strategic Environment This section sets out the strategic framework within which the Property assets are managed, describing; The Council Vision, goals and strategic direction. Statutory requirements. The AM policy and strategy consistent with the Vision adopted for the management of these assets. 3.1 Council Vision Council s vision for Palmerston North is that: Palmerston North is recognised as a vibrant, caring, innovative, and sustainable city. The Property activity support this strategic direction by helping the Council to achieve its strategic goals. 3.2 Strategic and Corporate Goals The Council s strategic and corporate goals represent the outcomes Council aims to achieve for the City consistent with its vision and in order to promote community well-being, both now and in the future City Goals Palmerston North is a socially sustainable city where people want to live because of its safe and easy lifestyle and its many social, cultural and recreational opportunities (CG-S) Palmerston North is a leading city in the quest to become environmentally sustainable. (CG - ES) Palmerston North is an economically sustainable city which attracts, fosters and retains businesses and jobs to create a prosperous community.(cg Ec) Organisational Goals Palmerston North City Council is financially responsible and residents are satisfied that they get value for money from their rates.(og F) Palmerston North City Council understands the diverse views of the City s people, makes prudent decisions, and ensures that people know what it is doing and why (OG D) 13

40 Section 3 The Strategic Environment 3.3 Council Strategic Direction The Council s strategic direction is set out in the Sustainable City Strategy which is a route map that points the future direction to achieve sustainability. Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. The Sustainable City Strategy is guided by the Local Government Act 2002 and the need to balance environmental, social, cultural and economic needs Sustainable City Strategy The vision set out in Palmerston North s Sustainable City Strategy is as follows: Palmerston North needs to change to become a sustainable city. In the future it will generate most of its own energy; use physical resources, including water, sparingly; and recycle what little waste is produced. People will travel differently and use open space carefully. People will be proud to live in the City, will have strong social networks and be actively engaged in the City s life. People in need will be well cared for. The economy will be diverse. People will want to work for organisations in the City because of its image and businesses will embrace green technology. This vision will be realised though a range of strategic initiatives. The diagram below shows how the Sustainable City Strategy links to individual activity strategies, which are chapters of the overarching strategy. Figure 3 Sustainable City Strategy 14

41 Section 3 The Strategic Environment There are strategic approaches to drive sustainability that apply to all of Council s strategies: active citizenship encouraging wide participation and connected communities designing places for people taking a design-led approach to infrastructure development creating a vibrant city centre and making better use of existing resources Environmental sustainability drivers are: decreasing energy use increasing active transport and decreasing the need for travel, design prioritise for pedestrians decreasing waste water conservation increasing the health and extent of native biodiversity on land and in water. Social sustainability drivers are: a safe and healthy City recreational, leisure and cultural activity is encouraged and supported Maori and Pacific engagement active citizenship, including migrants and young people facilities are well-used and fit for purpose with well-co-ordinated physical infrastructure Economic sustainability drivers are: enhancing the quality of life enhancing the quality of the City environment and green space strengthening the competitiveness of the City centre improving access to recreation improving participation for people with varying abilities maximising connectivity Asset Management Plans provide a mechanism for converting the infrastructure components of strategies into implementation. The plans respond to key drivers for change and support these approaches to change. 15

42 Section 3 The Strategic Environment 3.4 Statutory and Regulatory Requirements The key legislation relating to the management of the Property activities are listed below. The statutory requirements provide Council with a minimum level of service standard and have been reflected in the levels of service shown in Section 4 and Appendix C. Council is currently complying with all legislative requirements: Local Government Act 2002 Amendment Act defines the purpose of local government as enabling local decision-making and action by and on behalf of communities and to meet the current and future needs of communities for good-quality local public services and performance of regulatory functions in a way that is most cost effective for households and business. The Amendment Act introduces a number of new measures, to: changes what development contributions can be used for; introduces new requirements for infrastructure strategies and asset management planning; requires disclosure of risk management arrangements for physical assets in annual reports. Resource Management Act 1991, which requires Council to; sustain the potential of natural and physical resources to meet the reasonable foreseeable needs of future generation, comply with the District and Regional Plan, to avoid, remedy or mitigate any adverse effect on the environment take into account the principles of the Treaty of Waitangi in exercising functions and powers under the Act relating to the use, development, and protection of natural and physical resources. Health and Safety Amendment Act which requires the provision of safe work places for all activities by local authority staff and contractors, and the maintenance of an audit trail to demonstrate compliance. Building Act which sets minimum standards for buildings and facilities and requires Councils to produce Project Information Memoranda (PIM's) and building Warrants of Fitness. Public Works Act 1981 Public Bodies Contracts Act confers on a local authority similar powers to enter contracts as enjoyed by corporate bodies or natural persons. Council is required to comply with the resource consents issued by the Manawatu- Wanganui Regional Council for the Gordon Kear Forest. Palmerston North City Council Reserves Empowering Act (1966). Residential Tenancies Act1986 (reprinted 2014). There are no current Bylaws enacted by Council relating to property services. 16

43 Section 3 The Strategic Environment 3.5 Asset Management Policy and Strategy Asset Management Policy The policy with respect to asset management is as follows: The discipline of asset management will be directed to the achievement of the Council s Vision and Goals as stated in the LTP. Asset management will be applied to the long term stewardship of assets, over a minimum planning horizon of 30 years (note that the LTP planning horizon is 10 years). Asset management will be focused on delivering the required level of service to existing and future customers in the most cost-effective way. Relevant legislation, regulatory and statutory requirements will be complied with. A robust risk management approach consistent with good AM practice will underpin all asset management activities. The outputs of the asset management process will be endorsed by senior management and the Council. The outputs of the asset management process will be communicated to relevant staff and third parties to ensure they are aware of their asset management responsibilities. The asset management plan will be available to all stakeholders. The asset management plan will be reviewed periodically to ensure it remains relevant and consistent with the LTP. Commit to the continuous improvement of asset management practices to achieve an alignment between the quality of asset management and the nature and scale of Council s assets and activities Asset Management Strategy The asset management strategy to meet the policy and planning objectives is: Levels of Service: To maintain current levels of service, with specific, minor variations by exception, and to formally review levels of service at least every three years. Engagement with the community on satisfaction with the levels of service provided and improvements desired will be undertaken periodically. Consultation on options will be undertaken for specific, significant projects. The level of service review will inform the levels of service adopted by the Council. Demand Forecast and Planning: To invest in works for growth in a timely way. This AMP is based on the Statistics NZ medium projection of an average annual growth rate of 0.6% over 30 years. The need for works to accommodate growth will be reviewed on an annual basis to take into account any changes to the anticipated growth rates or other demand drivers. o To review demand forecasts annually based on analysis of population and economic growth projections, social and demographic data, technological advances and other relevant data. o Demand management options will also be considered when planning to meet growth and to ensure projects qualify for any external financial assistance. Asset Service Potential: To maintain the current service potential of the asset through an appropriate level of maintenance and renewal works. Risk Management and Resilience: To manage risk exposure through: o o o o An annual review of the risk management plan and implementing risk mitigation measures where risk exposure is incompatible with corporate risk policy. Undertaking performance and condition monitoring of critical assets Assess resilience to natural hazards of critical assets Identify and manage risks relating to natural hazards and prepare programmes to address those risks. 17

44 Section 3 The Strategic Environment Optimise Decision Making: Undertake economic analysis for significant decisions related to optimisation and prioritisation of projects required to mitigate unacceptable risks. Measure Operational Performance: Service agreements with contractors will contain performance measures consistent with the AMP and Activity KPIs to achieve alignment from operational level to the LTP Maintain and Improve Information Systems: Data collection programmes (condition, asset performance, registers and service performance) will be closely aligned to the nature and scale of the assets and to tracking achievement of service targets. Asset management system functionality will be progressively developed to meet the requirements of advanced asset management planning. Organisational Development: To develop organisational asset management capabilities to practise advanced asset management techniques Regular Review: To develop the AMP as a living document, reviewed on a regular basis to ensure alignment with current council, organisational and asset management policy and to submit AMPs for formal adoption by the Council Continuous Improvement: To improve AM practices, processes, systems and plans in accordance with the improvement plan which will be reviewed annually Monitoring of levels of service performance measures: Monitor performance measures on a monthly basis and report to City Networks management team 18

45 Section 4 Level of Service 4. Level of Service This section defines the level of service or the qualities of the service that the Council intends to deliver and the measures used to monitor this. The adopted levels of service are used to define the programmes to achieve the Council s strategic goals and are based on user expectations and statutory requirements. 4.1 Introduction A key objective of this AM plan is to match the level of service provided by the asset with the expectations of the users of the service. This requires a clear understanding of user needs and preferences. The levels of service defined in this section will be used: To inform users of the proposed type and level of service to be offered. As a focus for the AM strategies developed to deliver the required level of service As a measure of the effectiveness of this AM plan To identify the costs and benefits of the services offered To enable users to assess the suitability, affordability and equity of the services offered. Levels of Service for the Property activity are based on: Strategic and corporate goals (See Section 3.2) - These provide guidelines for the scope of current and future services offered, the manner of service delivery and defines specific levels of service which the organisation wishes to achieve. Statutory requirements /environmental standards (See Section 3.4) - Regulations, Acts and Council By-Laws that impact on the way assets are managed (i.e. resource consents, building regulations, health and safety legislation). These requirements set the minimum level of service that must be provided. Community feedback (see Section 4.2) - Information gained over the last 3 years on LoS from specific consultation, customer service requests, Annual Plan submissions and community surveys. The adopted levels of service indicators and measures presented in Appendix C have been grouped into two categories: Customer performance measures: These are measures of the overall activity, covering the aspects of service that are of most interest to the community and community satisfaction indicators. They include the government mandated non-financial performance measures to be included in the LTP. The customer performance measures presented in Section 4.4 are expected to be included for community consultation in the LTP and publicly reported against in each Annual Report. Technical performance measures: These are additional measures adopted to ensure that the customer performance measures are robustly achieved. They are used as a management tool and measured and reported internally. The Council and Organisational Goals to which the levels of service link are as follows: City Goals CG S: Palmerston North is a socially sustainable city where people want to live because of its safe and easy lifestyle and its many social, cultural and recreational opportunities. CG En: Palmerston North is a leading city in the quest to become environmentally sustainable (Refer to Section 6) CG Ec: Palmerston North is an economically sustainable city which attracts, fosters and retains businesses and jobs to create a prosperous community (Refer to Section 6). 19

46 Section 4 Level of Service Organisational Goals: OG F: Palmerston North City Council is financially responsible and residents are satisfied that they get value for money from their rates. OG P: Palmerston North City Council understands the diverse views of the City s people, makes prudent decisions, and ensures that people These are linked to the customer user groups, target levels of service and key programmes that contribute to meeting the levels of service in Table Community Input and Decision Making Process The levels of service upon which this plan is based have been derived from an on-going process of community consultation and consideration of levels of service (LoS) options by the Council. During 2005, an extensive level of service review was undertaken which engaged with a broad crosssection of the community to understand how well existing services were meeting user needs and what improvements were desired for the future. Specifically the review set out to ascertain views on: The current levels of service provided by the Council The desired future levels of service Aspects of the services by which the quality of the services can be assessed At that time, a greater user focus was introduced to the measures. This was reflected by having statements of the service provided to each of the key user groups and performance measures that reflected the user view of the services provided. In 2011, an independently facilitated review of the various LoS strands of information was carried out in light of Council s Sustainable City and Urban Design strategies. It included interviews with staff and workshops. New community information on levels of service expectations and satisfaction was assessed against the 2005 survey. The key findings were that the 2005 survey provided a solid platform for the 2008 and 2011 LoS reviews. There were no large gaps or mis-matches in current levels of service and any new service levels were generally of a minor nature that could be accommodated within current programme levels. The 2011 LoS were reviewed again in May Current LoS were presented to a two-day Councillor workshop together with information on community feedback and alignment of the LoS with Council s strategic direction. Councillors were asked to: consider whether the current level of service was about right and what changes, if any, were required. give direction on some specific LoS issues important to the activity. Generally, the Councillors considered the LoS to be about right. However, the following matters were raised and changes made to the LoS to be delivered as indicated in the following table. LOS matter raised at Councillor workshop on 15/16 May Earthquake Strengthening Community Housing completion of the Papaioea renewal and improvements. How dealt with in the 2014 AMP Programme allowed under cultural facilities for $15 million over 7 years for all Council properties. $4 million in years one and two (effectively assumes carry forward of current budgets) Table 3 Levels of Service Matters for

47 Section 4 Level of Service Papers reporting on the LoS changes included in this AMP were subsequently issued to Councillors for information for further LTP workshops. 4.3 Communication of Levels of Service and Performance Measures Council s adopted levels of service and key performance measures will be publicly communicated through the Year Plan consultation document. 21

48 Section 4 Level of Service 4.4 Current and Target Levels of Service Customer Segmentation The following table shows the linkage between customer user group, the level of service for each activity area and the linkage to the City Goals that the activity contributes to: Activity area User Group Target Level of Service Programmes that Contribute to this Level of Service Linkage to City Goals Operational Properties General Public Council Staff/Tenants Operational buildings are accessible and well maintained Provision of buildings which are suitable for their intended use, with support and maintenance provided by Council in accordance with agreed levels of service. Cleaning and maintenance contracts in place and regularly monitored. Cleaning and maintenance contracts in place and regularly monitored. Renewal programmes planned and implemented. CG S OG - F CG S OG - F General Public Cultural Facilities are accessible and well maintained Maintenance contracts are in place and regularly monitored. CG - S Cultural Facilities Tenants Provision of buildings which are suitable for their intended use (i.e. Fit for Purpose), with support and maintenance provided by Council in accordance with agreed levels of service. Maintenance contracts are in place and regularly monitored. Renewal Programmes planned and implemented CG S OG - F Community Housing Elderly and Special needs Tenants Tenant s family/ support persons Units are designed and maintained to meet tenants needs and tenants consider the unit they occupy to be their home. Tenants are well supported by Council s tenancy services Maintenance contracts are in place and regularly monitored. Renewal Programmes planned and implemented. 24 hour support/maintenance phone line for all Community Housing tenants. Annual liaison visits are scheduled and carried out. Annual maintenance inspections are scheduled and carried out. CG S OG - F CG S Public Housing Tenants Units are designed and maintained to meet tenants needs and tenants consider the unit they occupy to be Maintenance contracts are in place and regularly monitored. Renewal Programmes planned and implemented CG - S 22

49 Section 4 Level of Service Activity area User Group Target Level of Service Programmes that Contribute to this Level of Service Linkage to City Goals their home. Investment properties General Public Tenants Investment properties are accessible and well maintained Provision of buildings that meet business needs at a market related price. Maintenance contracts are in place and regularly monitored. Dedicated Council Officer to manage this portfolio. CG - Ec CG - Ec Reserve Leasehold Land Leaseholders Council operates a fair and transparent process for setting lease rentals Dedicated Council Officer to manage this portfolio. OG - D Forestry Community Centres and Commnuity Agency Housing Recreation Public Council/ partners All residents Hall Management Committees The forest is available for a recreational use on a restricted access basis The forest is managed in a manner which maximises potential future yields of quality timber for the least cost Provision of suitable buildings fitted out to meet local community needs. Maintenance of halls and support provided by Council is in accordance with agreed levels of service. A management agreement defines restricted public access. Operational management. Maintenance contracts are in place and regularly monitored. Renewal Programmes planned and implemented Maintenance contracts are in place and regularly monitored. Renewal Programmes planned and implemented 24 hour maintenance phone line for all Community Centre buildings. Annual maintenance inspections carried out. OG - D OG - F CG - S OG - D Table 4 Customer segmentation, levels of service and linkage to goals 23

50 Section 4 Level of Service Key Performance Indicators Key Service Criteria Quality Safety Availability User Group Customer Level of Service Customer Performance Measure Current Performance Tenants, user groups and general public Tenants, user groups and general public Tenants, user groups and general public The Council s building assets are maintained in good condition and are well presented, appropriate to the type and level of use. The Council s buildings are safe to use and meet appropriate building standards The Council s buildings are available for use by occupants in accordance with levels of service as set out in: Residential tenancy agreement Deed of lease for Recreation and Commercial properties Contractual arrangements with Council Controlled Organisations Planned closures of Council s buildings that cause disruption to daily activities or living circumstance are communicated to occupants and/or public in a timely way. % of tenants satisfied or very satisfied with the quality of the Council s tenancy liaison service % of tenants, user groups and occupiers satisfied or very satisfied with the appearance and presentation of the Council s public buildings % of tenants, user groups and occupiers satisfied or very satisfied with the healthiness and safety of the Council s public buildings % of tenants, user groups and occupiers satisfied or very satisfied with the fitness for purpose of the Council s public buildings % of tenants, user groups and occupiers satisfied or very satisfied with accessibility to the Council s public buildings Public buildings comply with building warrant of fitness requirements 93% (2010) Survey underway at time of review in Communitrak survey satisfaction with: Regent Theatre 99% Te Manawa 95% Library 98% For trends refer Appendix C. Performance Targets >80% >95% Not measured 75% Not measured 75% Not measured 75% 100% 100% Buildings are available for the agreed time. Not measured 100% Amount of advance notice of closure or partial closure to occupants or users. (N.B. planned closures or partial closures are undertaken outside of any hours of normal occupancy to the greatest practicable extent.) Not measured 90 clear days for residential properties, four weeks for all other properties Sustainability Tenants, user The Council s cultural, investment and A 30 year asset management plan is in place Asset Management Plan (AMP) AMP in place 24

51 Section 4 Level of Service Key Service Criteria User Group Customer Level of Service Customer Performance Measure Current Performance groups and general public operational properties, rental and social housing, and community facilities, are maintained for current and future needs that has been reviewed and updated at 3- yearly intervals, and independently peer reviewed reviewed in 2014 Performance Targets (key projects from AMP will be outlined) Responsiveness Tenants, user groups and general public The Council responds to requests for service from tenants and occupants in a timely way. Response time to requests for service (RFS) were responded to within the allotted times. Overall average of 81% were responded to within the time allocated results were: Operational - 74% Cultural 79% Housing 91% Community Centres 81% Investment 97% 95% within allotted time Refer Appendix C for trends. Financial Management Legislative Tenants, user groups and general public Tenants, user groups and general public The Council manages its property assets in a financially sustainable way The Council s levels of service are delivered within net budget Overall Property 2013/2014 Controllable budget $4,978,136 Actual spend $5,120,172 Refer Appendix C for detail by individual property activities and trends. 100% within budget Table 5: Key Performance Indicators 25

52 Section 4 Level of Service Future Changes to Current Level of Service Property activity Operational Properties Level of Service change Improvements to the responsiveness to requests for service and complaints. Earthquake strengthening of CAB and Depot Cultural Properties Improved City Library fitout $1,250,000 Community Housing Upgraded Papaioea Complex - $4,000,000 Convert bedsits to one bedroom $2,090,000 within renewals programme Public Housing No change Investment Properties No change Reserve Leasehold Properties No change Council policy is to see the leasehold properties to the leases. Strategic Properties No change Forestry Properties No change Community Centres and Community Agency Housing Providing two new centres in urban growth areas o Kelvin Grove ($945,000 under library budgets) o City West $880,000 Table 6: future changes to Level of Service by Property Activity Service Level Gaps Property activity Level of Service Gap Operational Properties Responsiveness to requests for service. Cultural Properties Community Housing Regent Theatre Trust Board desire a higher level of service with increased foyer size and layout changes. Te Manawa desire a higher level of service with onsite café provision. City Library have requested a higher level of service for the interior fitout cycle of refreshment. Community Housing 2009 tenant surveys identified landscaping, car parking and scooter sheds as issues. Public Housing No change Investment Properties No change Reserve Leasehold Properties Mo change Strategic Properties No change Forestry Properties No change Community Centres and Community Agency Housing Improved responsiveness to requests for service. Community centres in urban growth areas. Table 7: Service Level Gaps Key AM Plan Improvement Project relating to the Level of Service 2017 Level of Service Review (Improvement Plan Category 7) 26

53 Section 5 Growth and Demand 5. Growth and Demand This section sets out the factors impacting on the capacity of and levels of service provided by the Property assets including: Future demand drivers Growth trends Land use strategies (residential, industrial, retail and rural-residential). Consumption and use patterns Climate change impacts on demand 5.1 Future Demand Drivers Future demand for Property services will be driven by: Urban growth predicted and its impact on demand. Demand for properties providing a revenue stream to Council. Changing community expectations regarding the baseline acceptable quality of accommodation. The significant changes expected in demographic profiles and the need for assets to remain relevant to community needs. Increasing awareness of sustainability and how these principles may be incorporated into any fit out or new building development being considered by Council. 5.2 Growth Trends Population Growth The latest Statistics NZ population projections (July 2014 update) suggest Palmerston North will reach a population of 105,100 people by 2046, an increase of 24,300 people from the population in These projections incorporate the impact of the 1 July 2012 boundary change with Manawatu District. Statistics New Zealand has released revised annual population estimates, based on the new boundary, covering the period from Data released for the 2013 Census also reflects the new boundary, with comparative Census data for 2001 and 2006 adjusted for the boundary change. The medium population growth projection for Palmerston North of average annual growth of 0.6% between 2011 and 2046 is only slightly below the national population growth projection of 0.7% per annum. Updated projections, rebased using the 2013 Census population counts, will not be released until 19 February These will show a reduction in the 2013 population estimate and possibly a reduction in the longer-term growth rate but an increase in the rate of population growth in Manawatu District, which is now experiencing a faster rate of population growth than the City. The new projections will be rebased to 2013, covering the 25 year period from 2013 to The major urban areas outside the Auckland region which are projected to increase faster than the average growth rate projected for Palmerston North are Tauranga, Hamilton, Queenstown-Lakes and Wellington. Growth rates in Hastings, New Plymouth, Rotorua, Lower Hutt and Dunedin are expected to be much weaker than for Palmerston North. The projections also show the growing importance of Palmerston North within the Manawatu-Wanganui region, which is projected to increase its share of the region s population from 35% in 2006 to 41% by Statistics New Zealand household projections for Palmerston North have not been updated since December 2010 so currently do not incorporate the 2012 boundary change. Updated projections incorporating the results from the 2013 Census will not be published until late 2015 or early More detailed projections covering household growth, based primarily on the Statistics New Zealand data have been developed for the City by Council s City Future Unit. This has presented the growth rate assumptions for the period from 2015 to 2045 as shown in the following tables. 27

54 Section 5 Growth and Demand Population growth over the period of this Plan has been forecast to increase at an average rate of 0.8% per annum over the next ten years, reducing to an average growth rate of 0.7% over the following ten year period and 0.5% over the final ten year period. Projected average annual household growth is not expected to slow to the same extent as the population growth rate because the average size of households is expected to reduce, primarily due to the aging population and an increase in the number of single person households. Statistics New Zealand Projection (Average Annual Growth Rate) (5 yrs) (5 yrs) (5 yrs) (5 yrs) (5 yrs) (5 yrs) Change Total Pop Average Per Yr High (1.0%) 5,560 5,602 5,522 5,343 5,142 5,021 32,190 1,073 Medium (0.6%) 3,421 3,400 3,082 2,762 2,461 2,161 17, Low (0.1%) 1,414 1, , Table 8 Palmerston North Projected Population Increase The Statistics New Zealand population projections for the period from 2006 to 2046 and household projections for the period from 2006 to 2031 suggest the rate of population and household growth will decline during the period for the projections, as show in table below. Statistics New Zealand Projections Average Annual Population Growth Rate (Medium) Average Annual Household Growth Rate (Medium) % 1.4% % 1.2% % 1.0% % 1.0% % 0.9% % not projected % % Table 9: Projected Population and Household Growth Actual population growth in Palmerston North between 2006 and 2013 has been lower than projected, reflecting the impact of the global financial crisis and increasing population growth in Manawatu District. Overall population growth in New Zealand between 2006 and 2013 was also lower than projected due to weaker net overseas migration than was assumed in the long-term projections. A rapid increase in net migration during the second half of 2013 and to date during 2014 has now lifted the annual growth rate above the annual projections. Palmerston North has also experienced a strong improvement in net overseas migration during late 2013 and early 2014, which has improved by 472 people in the year to June 2014 compared with the previous year. 28

55 Section 5 Growth and Demand Statistics New Zealand Projection (2010) (Average Annual Growth Rate) (5 yrs) (5 yrs) (5 yrs) (5 yrs) (5 yrs) (5 yrs) Change Total Households Ave. Per Yr High (1.4%) 2,680 2,701 2,859 2,849 2,919 2,852 16, Medium (1.0%) 1,821 1,800 1,800 1,710 1,577 1,488 10, Low (0.5%) 1, , Council Projection (0.9%) 1,500 1,480 1,480 1,540 1,500 1,500 9, Table 10 Household Growth Projections Residential Development Type Based on the agreed residential preference and the Council household growth projection, the following distribution of dwelling types is projected and is expected to remain constant over the 30 year period from 2015 to 2045, as shown in table below. Council Projected Residential Dwelling Preference for (30 years) Dwelling Type Greenfield (Lots Per Annum) Infill (Lots Per Annum) Rural/Residential (Lots Per Annum) Minor Dwellings / Apartments Total Dwellings Preference percentage share 40% 33% 12% 15% 100% Council Projection (0.9%) ,000 Table 11 Residential Development Type The agreed residential preference is similar to the actual percentage shares over the period between 2008 and These are different from the 1999 to 2012 average, reflecting strong growth in retirement village development in the City during the last ten years and a significant decline in greenfield housing development in the City. Since 2005 there has been an increase in new housing development occurring in Manawatu District, which appears to primarily be due to differences in average housing costs in Manawatu District and the City. This has slowed the amount of greenfield housing development in the City but the amount of infill housing has been more stable. The proposed residential preference percentage shares also reflect the residential zone review and likely changes to rules affecting infill housing and minor dwellings. 5.3 Residential Growth Strategy (2010) The Residential Growth Strategy 2010 identified Anders Road, Racecourse and Kelvin Grove as the preferred areas for future residential growth. In 2012 Council adopted the Residential Growth Strategy City West and Whakarongo Addendum which: 29

56 Section 5 Growth and Demand 1. Re-labelled the preferred areas from Kelvin Grove to Whakarongo and Anders Road / Racecourse to City West. 2. Confirmed the extent of Whakarongo and City West Areas, in particular that Whakarongo (Kelvin Grove) excluded the land beneath the air noise contours. 3. Confirmed the preferred staging requirements taking into account Council s infrastructure and financial constraints and the uncertainty regarding the costs and effectiveness of liquefaction mitigation measures. Whakarongo was confirmed for short to medium term residential growth with City West deferred for medium to long term residential growth. The Whakarongo area comprises 56.5ha and is expected to yield approximately lots. City West comprises 220ha and will yield approximately lots. The structure plan for Whakarongo and a map showing the City West area are shown in figures 1 and 2 below which is followed by a description for each area. Whakarongo, together with the existing residential zone land bank, provides ha or 17.5 years of greenfield residential growth based on the assumed growth trends. 30

57 Section 5 Growth and Demand Whakarongo Residential Area Figure 4 Whakarongo Structure Plan For the purposes of AM planning, it has been assumed that the Whakarongo development will commence over Years 1-10 of this Plan. It is assumed that the area will develop in four broad stages as follows: 1. The western half of the top terrace. 2. The western half of the bottom terrace. 3. The eastern half of the top terrace. 4. The eastern half of the bottom terrace. It is anticipated that development in the Whakarongo Area will occur in accordance with the Whakarongo Residential Area Structure Plan. 31

58 Section 5 Growth and Demand City West Residential Growth Area Figure 5: City West Residential Growth Area For the purposes of AM planning, it has been assumed that the City West development will commence over Years of this Plan. It is assumed that the area will develop in five broad stages as follows: 1. The block bounded by Te-Wanaka Road to the west, the Mangaone Stream to the east and Pioneer Highway to the north. 2. The block bounded by Te-Wanaka Road to the east, Shirriffs Road to the west and Pioneer Highway to the north. 3. The southern end of the large block north of Pioneer Highway. 4. The northern end of the large block north of Pioneer Highway. 5. The middle of the large block north of Pioneer Highway. 32

59 Section 5 Growth and Demand Winchester Street Residential Growth Area (Ashhurst) Figure 6 Winchester Street (Ashhurst) Residential Growth Area The residential growth area planned for Ashhurst comprises 13.2ha and is identified in Figure 6 above. It is expected to yield approximately 120 lots. The Ashhurst growth area is anticipated to be serviced via capacity within existing infrastructure surrounding the area. Any additional asset capacity required as a result of growth will either be funded directly by developers or through development contributions. A structure plan will be prepared to direct development within this area. 33

60 Section 5 Growth and Demand 5.4 Industrial Growth Strategy The key findings of the Joint Industrial Land Review, undertaken in 2007 by Council and MDC, form the basis of the City s Industrial Land Use Strategy. The Strategy identifies two areas for future industrial expansion: An extension to the north-east of the existing North East Industrial Zone (NEIZ) for transport, warehousing, distribution and logistics Longburn for wet industry The NEIZ and NEIZ Extension Area: The existing NEIZ (107 hectares) is located north-east of the airport on land bounded by Railway Road, Roberts Line (North), Richardsons Line and Setters Line. The NEIZ is well connected to the primary road network to serve as a distribution and warehouse centre for the Lower North Island and it is expected that it will continue to attract these activities. In April 2014, the Council commenced consultation as part of the District Plan Review to rezone an additional 123 hectares of rural land to NEIZ. The land will be known as the NEIZ Extension Area and is identified in figure 4 below. The purpose of the Extension Area is to provide additional land for large floor plate industrial activities such as logistic, transport, and warehousing. These activities have been identified as one of the key sectors expected to contribute the most to employment growth in the City over the next 25 years. It is envisaged the extent of the existing NEIZ and the Extension Area will be sufficient to meet the growth in large floor plate industrial activity over the next 20 to 30 years. For infrastructure roll-out and affordability reasons it is proposed that the NEIZ Extension Area will developed in a staged manner as shown in figure 4 below. Figure 7 NEIZ Extension Area Proposed Staging Plan Wet Industry at Longburn: One of the key recommendations of the 2007 Joint Industrial Land Review was the identification of Longburn as a growth node for wet industry. Wet industries involve primary processing industries where large volumes of water and wastewater disposal are required. Longburn s proximity to the Council s treatment plant, State Highway 56 and the North Island Main Trunk Line make it suitable as a growth node in the medium to long-term (15 to 30 years). 34

61 Section 5 Growth and Demand As part of the District Plan Review Council is currently working with major landowners at Longburn regarding future development of wet industries and supporting distribution activities. Any future industrial development in this location will need to recognise the unique infrastructure constraints which currently exist at Longburn. 5.5 Retail Strategy The Retail Strategy applies a centres based approach to managing retail and office activity throughout the city. The Strategy seeks to keep commercial activity centred in the core of the city and to avoid the dispersion of office and retail activity to the periphery of the urban area. The Strategy is given effect to through the District Plan hierarchy of business zones as follows: Inner Business Zone (IBZ) Outer Business Zone (OBZ) Fringe Business Zone (FBZ) Local Business Zone (LBZ) Inner Business Zone: The primacy of the IBZ within the hierarchy of business zones reflects its role as the commercial heart of the city. The Plan provides for the greatest diversity, intensity and scale of use and development to occur in the IBZ. The Plan actively encourages intensification of development and activity. The primary purpose of the Zone is to provide a high amenity, compact and pedestrian orientated CBD. Development in the IBZ is not expected to be self-sufficient but rather leverage off public investment in on-street car parking; landscaping and beautification works (The Square); lighting, loading and pedestrian facilities. Outer Business Zone: Provides for a less concentrated form of space extensive, low-rise and vehicle orientated development fronting the four arterial entrance roads into the city. Development must be fully self-sufficient with respect to parking; loading; lighting; landscaping and storage. The diverse range of retail, office, light industrial and commercial service activities complements the function of the neighbouring IBZ. Fringe Business Zone: As part of the integrated approach to managing retail activities within the city s business zones the FBZ provides for large format retailing but not in a way that adversely affects the IBZ s function as the primary retailing precinct in the city. Similar to the OBZ, development in the FBZ is expected to be self-sufficient. Unlike the OBZ, the FBZ provides for a relatively narrow range of large format retail activities that are destination and vehicle orientated in nature. Local Business Zone: The LBZ provides for the business areas that serve the city s suburban areas. The primary purpose of the LBZ is to provide for the day to day shopping and service needs of surrounding residential areas. While a number of supermarkets have located within the LBZ over the last decade (Aokautere and Kevin Grove) the Zone controls the size of business activities so that space extensive business activities do not crowd out the provision of a wide range of smaller locally focused retail services. Similar to the OBZ and FBZ, development in the LBZ is expected to be functionally self-sufficient. To reinforce the centres based approach the Plan restricts non-ancillary or standalone retail and office activities in the Industrial Zone; North East Industrial Zone; Residential Zone; Institutional Zone; FBZ; Rural Zone; Recreational Zone; Race Training Zone and Airport Zone. This approach ensures the form and function of the city s business zone hierarchy is not undermined. 5.6 Rural Residential Strategy The Rural-Residential Land-Use Strategy adopted in 2012 seeks to minimise the infrastructure burden of rural-residential development and provide a clear distinction between the services provided in rural and urban areas. Council currently does not provide property services to rural residential and rural properties within the City boundary. Other Demand / Consumption Projections / Patterns. 35

62 Section 5 Growth and Demand 5.7 Operational Properties As the population grows, assuming no major efficiency gains through technology and equipment improvements, there will be an increase in workload and potentially staff numbers for the various operational divisions of Council. This in turn may affect the accommodation and depot facility requirements. There are no short term to medium term pressures foreseen on the operational properties as the CAB building has spare capacity as well as the ability to replace commercial tenants with Council staff areas if the existing capacity is taken up. The convention and information centres have sufficient capacity as does the depot and the dog pound. No new capital expenditure is budgeted to meet demand. 5.8 Cultural Facilities, Including Libraries None of the facilities is forecast to exceed their capacity in the short to medium term. Typically cultural facilities that experience demand issues, e.g. shows selling out, meet the demand by putting on extra shows rather than seeking to increase the size of the theatre. The relatively modest population growth and is unlikely to see any capacity issues for these facilities. This will be reviewed again during the 2017 AMP review. Performance spaces provision has increased over recent years; o The Globe Theatre underwent an upgrade in 2014 increasing its community theatre capacity and adding foyer and hospitality space. o o Square Edge has added a small format space, fx2, Centrepoint Theatre added small format performing arts space at Te Manawa in 2013 The Dark Room. o There has been an expansion in third party provision of performance space in the last 10 years with facilities such as the Speirs Centre (PNBHS) and College St Normal School auditorium. There have also been a number of school and church halls expanded and built in recent years. These facilities often host community as well as school performances and activities reducing demand on Council owned facilities. Te Manawa has been recently upgraded. The Regent Theatre Board has requested a larger foyer to improve the quality of the experience and allow better functioning and flexibility for the facility. This proposal does not include any increase in seat numbers and is unrelated to growth. No provision is made for that request in this AMP. No new capital is planned to meet any growth in demand. 5.9 Community Housing Community housing tenancy ratios are high and this is likely to continue as the subsidised Council accommodation is popular for those elderly on low incomes. Demand is driven by the proportion of elderly on low incomes and is forecast, as per the Community Housing Strategy 2006 (under review) to grow as the population ages. There is some demand for improvements to the quality of facilities, largely around car/scooter parking, bed-sit vs one bedroom, and general modernisation. Capital programmes for conversion of bedsits to one bedroom units and for improvement to Papaioea complex is included in this AMP to address these demands. Further work required to review needs at other complexes is required Public Rental Housing Public rental housing occupancy rates are high, on average more than 95% occupied, with strong demand for the units. It is common to have a waiting list of between 10 and 20 people waiting for units. Demand will likely increase as the population grows. 36

63 Section 5 Growth and Demand Decisions about the provision of capacity are made by Council in its resource allocation decisions. There has been no indication from Council that it wishes to increase its capacity in this form of housing Investment Properties Most investment properties are physically part of a larger building e.g. shops under the Library and Regent Theatre. While demand has been strong with high occupancy levels and enquiries about the investment properties the downturn in the economic climate may reduce demand in the short to medium term. Council does not seek to hold properties for reasons that relate to growth Community Facilities: Community Centres and Community Agency Houses Community Centres are generally well used with up to 2,500 hours of use per year at the busiest centres. Council liaison with the Community Groups, which manage the centres, suggests it is unlikely there will be any capacity issues in the short to medium term as existing centres are coping. There has been an expansion in third party provision of hall and performance space over the last 10 years with schools building specialised performance venues and halls/gymnasiums, as well as church halls being built. An increase in demand in the Whakarongo and City West urban growth areas is expected as they are populated. Provision is made in the LTP for a new community hub/branch library in Kelvin Grove and one in City West. Feasibility work is underway for the Kelvin Grove centre at the time of writing this AMP. Any increase in demand within the existing built area is expected to be met within the existing capacity of the centres as well as the increase in third party provision Demand Management Operational Properties: manage demand through work scheduling optimisation, booking systems and general management activities. Convention Centre also manages demand through referral systems with other Council facilities and third party venues including liaison with Destination Manawatu. Cultural Properties: The various trust boards that operate the theatres, museums and other cultural properties manage community and commercial demand through their booking policies and practices, repeat performances, and referral to other venues, either Council owned or third party, when capacity is exceeded for short terms. Libraries: Demand management occurs through the provision of a mobile library service providing outreach services. New book demand is managed through pricing and waiting lists. Community Centres: Demand is managed through booking systems and referrals to other venue hirers such as school, clubrooms and church halls when short term peak issues occur. Community and Public Housing: Demand is managed through waiting lists and referrals to other providers such as Housing NZ and Mash Trust. Demand management is not applicable for Strategic, Investment and Reserve Leasehold properties. 37

64 Section 5 Growth and Demand 5.14 Sensitivity to Demand Changes The operational, cultural and community centres are generally well positioned to deal with demand changes without requiring significant asset related variations. Operational adjustments are able to be made to meet most demand fluctuations. Demand changes in the Community Housing and Public Rental Housing activities are well understood and sensitivity is not an issue Climate Change Impact on Demand The projected impacts of climate change are likely to become more noticeable towards the end of the planning period of this AMP and have greatest relevance to water supply, wastewater and stormwater assets. The New Zealand Climate Change Office has released a report on the impacts of the changing climate in New Zealand which concludes: Higher temperatures, more in the North Island than the South, (but still likely to be less than the global average) Rising sea levels. More frequent extreme weather events such as droughts (especially in the east of New Zealand) and floods. A change in rainfall patterns - higher rainfall in the west and less in the east. The Ministry of Environment has predicted impacts of a moderate rate of climate change for the Manawatu-Wanganui region including changes in average temperature, sea level rise and rainfall patterns. In general, Manawatu-Wanganui, like much of the west coast of New Zealand, is likely to become warmer and wetter. Climate scientists estimate that average temperatures in Manawatu-Wanganui could be up to 3 C warmer over the next years. This compares to a temperature increase in New Zealand during the last century of about 0.7 C. The impact on the property activities will be centred around reducing climate change impacts with some adaption measures: Building design may need to account for higher rainfall, possibly at higher intensities. Greater demand on ventilation and cooling systems. Long term forestry logging cycles may be affected Key AM Improvement Projects relating to the Growth and Demand section Review demand projections (Improvement Plan Category 1) Review impact of Council s strategies on demand (Category 1) Review property clients future requirements (Category 1) 38

65 Section 6 Risks and Resilience 6. Risks and Resilience 6.1 Corporate Risk Management Framework A corporate risk management policy (MT 76, April 2011) has been established to enable risks to be managed in an effective and appropriate manner. From an asset management perspective, the policy helps prevent the Council taking risks that compromise its ability to provide and maintain key infrastructure and services. Progress with mitigation actions is monitored and reported to Council Risk Management Policy The risk management policy covers strategic, operational and project risks. It applies to all functions performed by the Council and to all staff employed in carrying out its functions. Strategic risks are defined as those things that prevent the Council from implementing its strategies. They can be caused by misalignment between goals and strategies, or the Council simply not implementing its strategies. Operational risks are inherent in the processes chosen to implement the Council s strategies. The benefits of managing operational risks include meeting financial goals, maintaining quality, proactive and effective planning, and preparedness for emergencies. Project risks are of a specific, normally short-term nature. The benefits of managing these risks include the avoidance of time and cost overruns Strategic risks The strategic risks identified in the corporate risk policy relevant to this asset management activity, together with risk mitigation actions and links to the AMP risk register, are shown in the following table: Strategic Risk Corporate Mitigation Strategy Corporate Mitigation Strategy Actions Links to AMP risk register (Appendix D) Council's environmental sustainability effort does not produce a positive change in outcomes Asset Management Plans (AMPs) Implement AMPs Review AMPs three yearly, incorporate climate change, urban design and environmental sustainability. Refer Service Failure Performance Based category for Operational, Cultural, Community and Public Housing activities in the Register. Not applicable for investment, Strategic and Forestry properties. Table 12 Strategic Risks 39

66 Section 6 Risks and Resilience Operational risks: Operational risks identified in the Risk Management Policy, relevant to this activity, are as follows: Operational Risk Corporate Mitigation Strategy Corporate Mitigation Action Links to AMP risk register Report to Council where necessary on the implications of difference in budgets Manage infrastructural assets in accordance with AMPs between 10 Year Plan with AMPs, and determine revised asset management actions. Implement infrastructural programmes (operations and maintenance, renewals and capital new). Refer Programme Planning and Budget Risks in the Risk Register. Council's infrastructural assets are not managed in accordance with the adopted Asset Management Plans (AMPs) and/or granted Resource Consents Operate infrastructural asset activities in compliance with the operative resource consents Maintain a database of all required Resource Consents Monitor compliance against the database Attend to Resource Consent renewals before expiry deadlines Refer Programme Planning and Budget Risks in the Risk Register. Operate infrastructural asset activities in a manner that uses the AMPs risk register controls and/or management options for specific risk situations as and when these may occur Report quarterly on infrastructural asset activities against the appropriate AMP Risk Register items in terms of invoking any of the controls and/or management options. Refer Risk Register Define clear scope of works and establish appropriate planning milestones in the "Programme Summary" of the Ozone Corporate Planning module prior to Council does not deliver the capital programmes within approved scope of works, planned timeframes and budget Set realistic capital revenue and expenditure budgets setting implementation budget. Develop and regularly review Project Execution Plans (PEPs) for significant projects, with specific attention to any change circumstances which may impact on scope of works, timelines and/or budget requirements. Refer Project and Programme Delivery Risks in Risk Register. Scrutinise all capital revenue and expenditure budgets exceeding $250k. Signed off by the relevant General Manager. Refer Project and Programme Delivery Risks in Risk Register. 40

67 Section 6 Risks and Resilience Operational Risk Corporate Mitigation Strategy Corporate Mitigation Action Links to AMP risk register Obtain Management Team approval on all capital projects that require a PEP before the commencement of the projects. Active management by General Manager Report to Chief Executive of all noncompliance instances Refer Project and Programme Delivery Risks in Risk Register. Monitor progress of through Works Programming tool Monitor progress of work for significant projects against approved Project Execution Plans (PEPs) Monitor progress in the delivery of capital programmes Monitor progress of work through monthly financial reports, both actual year to date against the current financial budget and against the total project budget spanning more than one financial year. Refer Project and Programme Delivery Risks in Risk Register. Identify programmes which cannot be delivered due to changed circumstances beyond management influence (e.g. external funding not granted etc) Council does not deliver its operational activities within budget Scrutinise all revenue and expenditure budgets exceeding $250k. Authorise by the relevant General Manager Refer Project and Programme Delivery Risks in Risk Register. Council processes prove inadequate to achieving a successful outcome Prepare Project Execution Plans (PEPs) Review Key Result Areas & KPI s Timely preparation and approved. Ongoing review at milestones and when assumptions change. Review the internal KRAs and KPIs as part of 2015 LTP Refer Programme planning and Budget Risk, and Project and Programme Delivery Risks in Risk Register. Eliminate, isolate or mitigate the hazards Council owned earthquake prone buildings present an unacceptable risk to the safety of staff and the public Immediately assess the risk from a Health and Safety perspective Assess the risk from an engineering perspective identified. Advise staff and the public of the hazards identified and the changed procedures or practices required to satisfy continued use. Complete structural assessments Assess options and determine most appropriate actions (remedial or closure) Complete actions Communicate with staff and public as appropriate. Natural Hazards category in risk Register. Natural Hazards category in risk Register. Council's infrastructure growth provision does not match the actual growth demand Provide Just in Time infrastructure provision to meet growth demand Analyse infrastructure needs to support rezoning for growth Refer programme Planning and Budget risks category in Risk Register Table 13 Operational Risks 41

68 Section 6 Risks and Resilience Project risks: Project risks associated with significant individual projects (both operational and capital) are normally of a short term nature and are managed through specific project plans approved through the Corporate Management Team. They include acquisitions and investments Risk Management Hierarchy The following diagram demonstrates the risk management hierarchy between the three types of risk management strategic (corporate), project specific and operational. Risk is managed at the various levels within the Council s risk management framework. The level of risks included at each layer is appropriate to that layer but filters down where appropriate with increasing detail. Natural & Technologic al Risks Physical/ Asset Failure Risk Public Health & Environment al Risks Corporate Risk Management Civil Defence Management Group Risk Management Activity Risk Management Project Risk Management Operational Risk Management Figure 8 Risk Management Hierarchy Within all the levels of risk management discussed above consideration is given to the management of both everyday risks and the low frequency high impact events such as natural disasters. When existing assets are being renewed or new works constructed the potential of those works to affect the resilience and readiness of all lifeline networks is considered. Contingency plans are prepared to ensure, through operational systems and temporary response structures, that appropriate response can be made Asset Criticality Those assets where failure would likely result in a significant disruption in service and financial, environment and social cost in terms of impact on organisational objectives are considered to be critical assets. The definitions used in this plan for critical assets, customers and suppliers are as follows: Critical assets are defined as those assets with the highest consequence of failure but not necessarily a high probability of failure. In determining consequence of failure both importance to the city and importance to the service provided are taken into account. Critical customers are those relying on essential services provided by the Council (e.g. water supply to schools and hospitals). Critical suppliers are those providing services required for the delivery of the Council s essential services (e.g. energy supply, communication systems, etc.) The criteria used to assess criticality are set out in Section

69 Section 6 Risks and Resilience Resilience The National Infrastructure Unit defines resilient infrastructure as infrastructure that is able to deal with significant disruption and changing circumstances. This may be due to natural hazards and shock events or events which evolve over time such as changing demographics. However, this plan is largely focussed on being able to provide essential services following a high consequence event such as a natural disaster. Resilience of critical assets is particularly important for continuation of service delivery. Both technical and organisational aspects of resilience have been considered in this plan. Dimension Attribute Definition Technical Organisational Robustness / resistance Redundancy Reliability Preparedness Response and Recovery The strength, or the ability of elements, systems, and other units of analysis, to withstand a given level of stress or demand without suffering degradation or loss of function The extent to which elements, systems, or other infrastructure units exist that are substitutable, i.e. capable of satisfying functional requirements in the event of disruption, degradation, or loss of functionality The extent to which the infrastructure components are inherently designed to operate under a range of conditions and hence mitigate damage or loss from an event. The capacity to mobilize resources when conditions exist that threaten to disrupt some element or system to maintain service and enable a fast and effective response to and recovery from disruptive events. Table 14 Resilience Definition Risk Management Process This plan is based on AS/NZS ISO 31000:2009 as the basis of its approach to risk identification and management. The Standard defines risk as the effect of uncertainty on objectives. Effective management of risk is important to maintain the performance and functionality of the Property activity. Risk management is one of the factors used to determine optimum maintenance frequencies and the level and timing of asset renewals. The risk management process considers the following stages: Risk management context determining the framework within which Council-wide risks will be managed. Risk identification identifying the relevant risks Risk analysis scoring or rating each of the risks identified in a way that makes them comparable across the organisation Risk treatment identify the actions to be taken Monitor and review the risks to ensure mitigation is successful and identify new risks. The above process is summarised in the following diagram: 43

70 Section 6 Risks and Resilience Figure 9: Risk Management Process (AS/NZS ISO 31000:2009) Further details of the process followed and the risk management register are given in Appendix D. 6.2 Activity Risk Management Approach for the Activity Risk assessments at the activity level focus on risks associated with management of the activity and the enabling infrastructure. Activity risk assessment considers risks identified at both the corporate and the operational level. Risk management planning has been used to identify the potential and actual business risks associated with the provision and management of the Council s property assets and services. The process has been applied to prioritise mitigation programmes. The key risk categories adopted for assessing the consequences of identified risks for this activity are: Legal Environmental Corporate Image Service delivery Financial Community Health and Safety A full list of the assessed risks facing this activity, including risks from natural events, is detailed in the Risk Register in Appendix D. The Register also summarises the current mitigation measures and the proposed, or planned, changes to these. 44

71 Section 6 Risks and Resilience Role of Activity as a Lifeline Utility The Civil Defence and Emergency Management Act 2002 contains specific requirements in relation to Lifeline Utilities. The term lifeline utility is defined as an entity named or described in Part A of Schedule 1, or that carries on a business described in Part B of Schedule 1 of the Act. None of the property assets are counted as lifeline utility in terms of the CDEM Act However, from a Civil Defence and core services operational perspective, the Civic Administration Building is an important building for co-ordination of CDEM Group activities Critical Assets Critical assets are regarded as those assets which have the highest consequences should they fail. A simple approach has been taken in this plan applying broad assumptions about the implications of failure using a number of criteria to make an overall assessment of high, medium or low criticality. The criteria used for assessing criticality for the Property activity are as follows. Numbers of people adversely affected Significant business activity interrupted Consequential cost of failure Critical lifeline / disaster recovery asset Other It is noted that while some Operational properties play a key role in delivery of core services to residents, Cultural Facilities are not as important in terms of the basic functioning of the City following a major event. However significant numbers of people use a number of those facilities with few or no alternatives available, and in the case of the City Library, it fulfils an important role for storage and protection of City archives, and as back-up accommodation for staff from the Civic Administration Building. An analysis has been completed of the criticality of the assets comprising each Property facility Most property facilities are not critical in terms of providing core services to the community in the event of a natural disaster, but nevertheless provide an important role. The assessed criticality of the various property assets is shown in the following table 1 Important 5 = Not important Property Facility Asset Criticality to Council s Operations Key Factors Critical components CAB 1 Critical to daily function and providing core services. Utility services Operational Properties Convention 4 Not operationally critical but important City venue Utility services Centre Utility Services Depot 1 Critical to daily function and providing core services. and buildings City Library 2 Important in terms of Councils operational continuity in the event of CAB failure. Houses significant Utility services Archive collection, Library of national importance Cultural Properties Te Manawa Art / Science 2 Regent 3 Non-critical in terms of councils operations, but important City destination and houses taonga Building of national significance, major City destination Utility services Utility services Keith Street Power Station 5 Low importance, but has a heritage classification 45

72 Section 6 Risks and Resilience Property Facility Asset Criticality to Council s Operations Key Factors Critical components Globe Theatre 4 Low importance, other facilities would be available Utility services Caccia Birch 4 has heritage classification Utility services Square Edge 3 Important to art community, has heritage classification Utility services Square Edge workshop 4 Low importance, other facilities would be available Utility services Ashhurst Post Office 5 Important to Library service in Ashhurst, has heritage classification Utility services Community Housing All 3 Important to small section of population, alternative housing would be difficult to obtain at short notice Utility services Public Rental Housing All 3 Important to small population and provides small revenue stream, alternative housing would be difficult to obtain at short notice Utility services Community Centres All 4 Low importance, other facilities would be available Utility services Investment Properties All 4 Provides small revenue, alternative leasing options are available. Utility services Forestry All 5 Low importance, provides little benefit - Table 15 Critical Property Assets From the above analysis, the following assets have been identified as critical assets relevant to the Property Activity: Critical Asset Criteria Dependent Customers & Services Assessed overall criticality Operational Properties: CAB Significant core business activity interrupted Core services to residents High Depot Significant business activity interrupted. Library and Te Cultural Properties City Library Te Manawa Numbers of people adversely affected. Consequential cost of recovery of City archives and associated cultural and heritage records Manawa visitors. Backup accommodation for Council administration.. Low Table 16 Critical Assets Resilience The approach taken in this plan is to assess the impact of particular natural hazards on the critical assets of the Property activity. This considers the current level and desired level of resilience. Section 6.4 summarises this assessment and Section 6.5 outlines the mitigation strategy adopted in this plan to reduce the risk. The interdependencies of other utility services are identified in section

73 Section 6 Risks and Resilience Further work will be undertaken in the next 2-3 years to develop a more comprehensive approach in which the level of criticality is matched against the desired level of resilience together with the options available for achieving this. A programme for further work is included in the Improvement Plan Sources of Risk The sources of risk affecting the activity are as follows: Operational failures Physical Asset risks Project & planning risks Natural hazards Events & Incidents The risks arising from these sources are elaborated on in Section Reference Documents Documents that have informed this plan include: 2005 Risks & Responsibilities - Lifelines Project Report 2009 Hazard Risk Assessment for the Manawatu-Wanganui Region 2011 GNS Liquefaction Report 2011 City Infrastructure and Civil Defence Preparedness 2014 Councils Engineering Standards Resilience Review Earthquake Prone Buildings Assessments, policy and Information 6.3 Key Risks to the Property Activity The five sources of risk impacting on the activity are considered to be operational failure, asset failure, natural disasters, events and incidents and project/ programme risks. The risk register in Appendix D sets out the identified risks arising from these sources. The key risks largely based on criticality are summarised in this section. It should be noted that from these sources there may be consequences in the following areas: Legal Environmental Corporate Image Service delivery Financial Community Health and Safety These have been considered in identifying the key risks for this activity. 47

74 Section 6 Risks and Resilience Operational Failure Operational failures are those events that may prevent service delivery as intended such as contamination, vandalism, operator error, injury, crash or contract management issues but do not involve a physical breakdown of the asset. They may also have other consequences as noted above. The key operational risks for this activity are as follows: Key operational risks Mitigation measures Operational, Cultural and CBD Investment properties - Vandalism Reactive maintenance regime, security systems and patrols. Community and Public Rental Housing fire risks Ensuring smoke detectors are fitted and operational. Unsuitable tenants Tenancy interviews, reference checking, agreements and inspections. Table 17 Operation Failure Asset Failure Asset failure can arise from deterioration of condition leading to structural failure or loss of performance of the asset which then impacts adversely on the service provided to the community. The key risks relating to asset failure have been identified as follows: Key asset failure risks Mitigation measures All property activities asset deterioration due to poor maintenance and renewal Water ingress is an issue for many property activities. Planned and reactive maintenance programmes in place. Condition assessment and renewals programming. Planned and reactive maintenance programmes in place. Condition assessment and renewals programming. Table 18 Asset Failure Project and Planning Risks This is where infrastructure is not provided in a timely way or does not meet the needs of the community as a result of inadequate project management and planning processes and resources. The key risks identified are as follows: Key Project and Planning risks Mitigation measures Capacity does not match demand as required. Strategy review and demographic data analysis. Cultural facility obsolesce Regular review of suitability. AMP development plan reviews. Table 19 Project and Planning Risks 48

75 Section 6 Risks and Resilience Natural Disasters The impact of natural disaster hazard events on the infrastructure of the property activity has been considered with a particular focus on lifelines, critical assets and interdependencies The events considered are those used in the Lifelines Hazard Assessment: Earthquake an MM9 shaking intensity (Return period 1000yrs) Flood equivalent to the 2004 Lower North Island flood event (about a 1:100 yr flood) Volcanic an eruption of Mt Ruapehu with a 12 km high column This is further expanded on in Section 6.4 which describes the hazards and assesses the impacts on critical assets. The initial response will include those measures set out in the CDEM Group Plan and the Business Continuity Plan Events and Incidents Other events and incidents that could impact on the assets and the service provided by the assets are listed in the following table. Event Impact on assets or service Storm or fire for forestry. Assessed as low likelihood. Effect would be loss of income and in the case of fire may include fire fighting costs. Pandemic Cultural facilities and facilities would get low use or be shut down resulting in loss of income. Community Centres might perform some neighbourhood pandemic control or organisational function. Table 20 Events and Incidents These impacts will be managed largely through the measures and procedures set out in the Business Continuity Plan discussed in Section

76 Section 6 Risks and Resilience 6.4 Resilience of Infrastructure to Natural Disaster Introduction This section considers the impact of seismic, flooding and volcanic events on critical level of assets and the assessed level of resilience of these assets. It has been informed by the reports and investigations listed in Section The Lifelines Project Report 2005 found that the region as a whole is most at risk from seismic hazard in particular the liquefaction phenomenon could cause significant damage in a severe earthquake Seismic Hazard Council buildings Council has a number of buildings that have been classed as earthquake prone due to meeting less than 33% of the National Building Standard: Square Edge Main building and Workshop Te Manawa Keith Street Power Station Depot Workshop CAB CAB and Council Chambers Under the Recreation and Community Facilities area: Arena Manawatu former Rugby Museum Building Kelvin Grove Cemetery Crematorium A programme for strengthening work is included in this plan for $15 million over 7 years. Initial cost estimates (+/- 30%) are shown in the following table: Asset >33% NBS >67% NBS 100% NBS Fire Code Compliance Square Edge Main Building $400,000 $1,000,000 $1,400,000 Square Edge Workshop $300,000- $500,000 $500,000 $625, Cuba Street (Old Rugby) - $330,000 $401,000 Crematorium (James Line) - $350,000- $525,000 $420,000-$630,000 Keith Street Power Station $865, Garage/Workshop (Depot) tba $260,000 (+90%) tba $5,000 Te Manawa tba $483,982 (further to tba come) CAB $1,300,000 - $1,500,000 tba tba tba Council Chamber $428,334 $683,079 tba Table 21: Earthquake Prone Buildings From a Civil Defence and core services operational perspective, the most important Council owned building the Civic Administration Building. 50

77 Section 6 Risks and Resilience All other buildings are relatively modern or have been upgraded relatively recently and so seismic design issues are less likely to be an issue. The following tables provide a summary of the assessed resilience of the assets to a MM9 earthquake, with a return period of 1,000 years. Where the current level of resilience is less than the desired level of resilience further work is to be undertaken to determine options for future management and development of the asset. This will include reviewing the desired level of resilience. Asset Criticality Current level of resilience Desired level of resilience Civic Administration Building* High. (2,500 year earthquake return period) Moderate Very High. Regent, Te Manawa, Te Manawa Art Gallery, Library, Arena Medium. (1,000 year earthquake return period) Moderate High All other Council owned buildings* Low. (500 year earthquake return period) High High Table 22 Seismic Hazard - Council Buildings Community Housing All Council owned community housing is single story and unlikely to present significant risk. These are Importance level 2 structure in terms of NZS Asset Criticality Current level of resilience Desired level of resilience Low. Community housing*. (500 year earthquake return period) Moderate Moderate Table 23: Seismic Hazard - Community Housing Flooding Hazard No Property Assets are within flooding zones that put them at risk Volcanic Hazard There would be some risk of heavy ash fall clogging roof and stormwater outlets on Property building assets Other Natural Hazards (landslides, wind, snow, lightning etc) Storm or fire damage to forestry would affect the economic returns. 51

78 Section 6 Risks and Resilience Interdependencies The critical assets are not stand alone. To operate effectively they are dependent on a variety of other utilities / infrastructure providers. Also, other utilities rely on the continued serviceability of the assets of this activity. To effectively manage risk, these interdependencies have been evaluated to identify where the highest levels of dependency exist and the implications of failure. The following table identifies the utility services that this activity depends on, the level of dependence and the mitigation measures in place. Utility services that this activity depends on for continuity of service. Critical Assets Utility service the asset is dependent on Implications of Failure of the asset depended on Mitigation measures Operational Buildings: CAB Depot Power, Sewer, Water, Stormwater, Telecommunications Inability for to operate Refer Business Continuity Plans Cultural Buildings: City Library Power, Sewer, Water, Stormwater, Telecommunications Inability for to operate Refer Business Continuity Plans Table 24 Interdependencies No utility services depend on any of the Property activity assets. 6.5 Risk Management Strategy The approach to managing the asset to provide for mitigation of risk and increasing the resilience of the assets and networks is as follows: On-going management and development of the assets according to sound asset management practise. This includes having a good knowledge of the assets and planning appropriately for maintenance, renewal and development of assets. Developing the assets to provide for future capacity requirements in a timely way to avoid any loss of service through overloading of the system. Implementing programmes for timely renewal of the assets, particularly critical assets, to reduce the risk of unexpected failure and loss of service. Prioritising inspection, maintenance and renewal work to those areas that carry the greatest risk for the Council. On-going review of the risk register with refinement to provide greater understanding of those asset components that carry higher risk Investigating over the next 2-3 years options for increasing the resilience of the asset and developing tools such as risk based economic analysis to assist sound decision making. This is to be part of the Improvement Plan. Including specific programmes for strengthening of structures where warranted or required to meet standards Incorporating greater resilience when renewing or building new assets through choice of materials and higher design standards. Maintaining a readiness for responding to disaster events through having an up to date Business Continuity Plan and participating in the CDEM arrangements. 52

79 Section 6 Risks and Resilience 6.6 Risk Management Programme The programmes that contribute in this plan to mitigate risk and to increase resilience are summarised in the following table: Programme Impact on risk and resilience $ Year General planned and reactive maintenance programmes. Reduce risk of failure from poor maintenance. Various refer financials operating costs. Ongoing Renewals programmes. Reduce risk of failure due to deterioration. Various refer financials renewals forecasts. Ongoing. Seismic (earthquake) strengthening Programme Reduce risk of structural failure in seismic event. $15,250,000 across all Council properties to 2022 Investigation Completion of detailed investigations for seismic strengthening work is being carried out in Operational preparedness and enable Business Continuity Plan availability of business process and services greater resilience. Within operational budgets Ongoing. Table 25 Risk Management Programme 6.7 Civil Defence Preparedness Emergency Events The Civil Defence and Emergency Management Act 2002 defines an emergency as a situation that: (a) (b) (c) is the result of any happening, whether natural or otherwise, including, without limitation, any explosion, earthquake, eruption, tsunami, land movement, flood, storm, tornado, cyclone, serious fire, leakage or spillage of any dangerous gas or substance, technological failure, infestation, plague, epidemic, failure of or disruption to an emergency service or a lifeline utility, or actual or imminent attack or warlike act; and causes or may cause loss of life or injury or illness or distress or in any way endangers the safety of the public or property in New Zealand or any part of New Zealand; and cannot be dealt with by emergency services, or otherwise requires a significant and coordinated response under this Act Emergency Response Plan The Act also requires the establishment of CDEM Groups based on Regional Council boundaries, working in partnership with emergency services, lifeline utilities and others to deliver CDEM at the local level. Each Group is required to prepare a plan to describe the Group s CDEM arrangements that sets out among other things: Hazards and risks to be managed by the Group Civil defence emergency management necessary to manage the hazards and risks Arrangements for declaring a state of emergency in the area Arrangements for co-operation and co-ordination with other Groups 53

80 Section 6 Risks and Resilience The Manawatu-Wanganui Civil Defence Emergency Management Group Plan covers the CDEM operational arrangements for the assets and services described in this AMP. The four phases of disaster management outlined in the plan and their applicability to this activity are as follows: Reduction. Identifying and analysing long-term risks to human life and property from natural or man-made hazards, and taking steps to eliminate these risks where practicable, and where not, reduce the magnitude of their impact and likelihood of their occurring For this activity this is achieved through two key initiatives: a) Council contribution to the Lifelines Advisory Group to facilitate information exchange and collaboration between the various utility service providers in the region with respect to CDEM. This group is also responsible for maintaining and improving the Regional Lifelines Project Report Risks and Responsibilities b) Ensuring that the development of infrastructure development is in keeping with Council District Plan provisions which in turn has been informed by Horizons One Plan with respect to placement of critical infrastructure in areas prone to natural hazard events Readiness. Developing operational systems and capabilities before a disaster happens. These include self-help and response programmes for the general public as well as specific programmes for emergency services. A significant portion of the CDEM Group s work is undertaken as readiness initiatives. The group provides co-ordinated planning to ensure an effective response to the affected communities and for the co-ordination of responding agencies. This activity provides inputs into these activities. Response This relates to response actions taken immediately before an emergency is declared and lasts until the normal systems can accommodate the recovery process. A fundamental principle for this phase is that agencies should respond to an emergency by activating their own plans and co-ordinating with the lead agency. In the case of this activity the Business Continuity Plan described in Section would be activated. Recovery. This relates to activities beginning after initial impact has been stabilised and extending until the community s capacity for self-help has been restored. Recovery is a key part of the comprehensive approach to CDEM and for this reason the Group has a comprehensive Recovery Plan. The impact of a major event can lead to long term recovery needs for the City. This is discussed in section Business Continuity Plan A Business Continuity Action Plan has been prepared for Parks and Property to provide information, and strategies including co-ordination of people and resources that will enable continued availability of business process and services and recovery from events that interrupt those services. 54

81 Section 6 Risks and Resilience The Parks & Property Action Plan contains: The Parks & Property call tree Incident Management Team Parks & Property continuity and recovery strategies o o o o Provision of cemetery and crematorium services Recreation facilities Property assets Commercial and residential tenants Contact Lists for both internal and external contacts Response Centre Details - Arena Manawatu Recovery In the event of a major disruption of service establishing at least a temporary supply to critical customers would be a priority. Should the event have caused widespread disruption to the property assetsand recovery over a long term be required then a recovery programme will need to be put in place. This programme will cover: Priorities for work done on the asset Consideration of changes in the way the assets could be configured if a significant replacement programme was required and materials use Potential funding needs / issues Relationships between the assets and other utilities assets e.g. co-location in road corridors Further work will be undertaken on these aspects in the next 2-3 years Lifeline Utilities Coordination Protocols and arrangements to facilitate communication and co-ordination with other utilities in the event of a major event affecting multiple agencies are set out in the CDEM Group Plan The following organisations are members of the Lifelines Advisory Group Horizons Regional Council Palmerston North City Council Ruapehu District Council Wanganui District Council Rangitikei District Council Manawatu District Council Tararua District Council Horowhenua District Council Transpower NZTA Spark NZ Vodaphone OnTrack PowerCo Vecta GasNet Palmerston North International Airport Mutual aid arrangements for response and recovery need further development 55

82 Section 7 Sustainability 6.8 Risks and Resilience Improvement Plan Particular aspects that require further development over the next 3 years and are included in the Improvement Plan in Section 11 are: Further assessment of risk and programmes to mitigate risk in the light of further investigation and better information about the impact of natural hazards. (Category 1 & 5) Develop a more advanced approach to identifying critical assets that incorporates rating and other dimensions of criticality. (Category 5) Further assessment of the current level of resilience (Category 5) Develop a more comprehensive method of assessing resilience using risk based evaluation and optimised decision making tools to assist decision making around the desired level of resilience. (Category 5) On-going review of the risk register & critical assets. (Category 3) 56

83 Section 7 Sustainability 7. Sustainability This section sets out how the Property activities contribute to the key drivers of Council s Sustainable City Strategy 7.1. Sustainability Strategy Council s vision for Palmerston North to become a sustainable City of the future is articulated through its Sustainable City Strategy (SCS). The key drivers referred to in Section 3.3 that will impact on the sustainable development of community well-being in the City and the associated contributions from this activity, are summarised in the following table: Relevant Driver Sustainable energy use at home and work Sustainable energy use to move about the City Increasing health and extent of native biodiversity on land and in water Managing water A safe and healthy City Coordinated physical infrastructure Contribution from the Activity Increased specifications for insulation requirements as part of renewal programmes for property Purchase of energy efficient appliances when upgrading or redeveloping property Housing upgrade designs seek to provide best practice in long term environmental sustainability. Renewable energy (solar) generation programmes on buildings. Development of future housing complexes in close proximity to public transport Provide facilities such as cycle racks at high use public venues Pest control Water saving devices specified in new build, renewals and maintenance work. Providing well maintained housing for target groups. Renewal and development projects consider urban design opportunities. CEPTED principles applied to property developments Renewal programming completed. Maintenance & cleaning contracts are in place for all community facilities Surveys carried out to determine the users satisfaction with these services Table 26 Sustainability Strategy Drivers and Property Activity Contributions to Them 7.2. Key Sustainability Issues The major priority for the property activities will be a focus on conservation and efficient use of energy when upgrading properties or undertaking significant re-development of sites. Energy conservation is now considered a key component of the design process and has a heavy weighting when considering whether a property is fit for purpose, a key sub-driver for the Property activity. 57

84 Section 7 Sustainability Although traditional heating options are still common throughout the property portfolio more so now there is continual investigation of new heating products, insulation techniques and what appliances are most energy efficient Climate Change - Initiatives The impacts of climate change on the property activities are limited. Building design will need to take account of heavier rainfall expectations while warming temperatures may see demand rise on ventilation and cooling systems. 58

85 Section 8 Assets and Lifecycle Management 8. Assets and Lifecycle Management This section provides the detail of the key asset components comprising the Property activities together with individual AM strategies for the maintenance, renewal and development of these assets Overview The Property Portfolio owned by Council, currently comprises of: 5 Operational properties; Section Cultural facilities, including Libraries; Section Community Housing units at 15 locations; Section Public Rental Housing units at 3 locations; Section Investment properties; Section 8.6 Gordon Kear Forest; Section Reserve Leasehold Properties; Section Strategic Properties Section Community Facilities Section 8.10 The first part of each section outlines background data for the asset type including physical parameters, capacity, performance, and condition. The second part describes the management strategies and work programmes to achieve the levels of service (Section 4), meet anticipated future demand (Section 3) and manage risk (Appendix D). At the end of each section a forecast of the 5-year expenditure for each asset group in each of the categories outlined above has been provided. A financial summary of the major costing groups for the next 30 years is included in Section 9. Detailed projected expenditure for each asset group is provided in Appendix E. The portfolio breakdown by value (as at 30 June 2013) is summarised in the graph below: $357,000 $9,411,000 $33,865,000 $7,570,000 $1,465,000 Property Value $1,040,000 $11,597,000 $18,455,000 $65,185,900 Community Centres Community Housing Cultural Facilities Forestry Investment Properties Operational Properties Public Rental Housing Reserve Leasehold Strategic Properties Figure 10: Summary of Property Portfolio Values 59

86 Section 8 Assets and Lifecycle Management 8.2. Life Cycle Activities The lifecycle management strategies are divided into the following five work categories: Asset Operations The active process of utilising an asset, which will consume resources such as manpower, energy and materials. Operations include routine inspections and testing to monitor asset condition and identify the need for maintenance and repair work (e.g. Warrants of Fitness for buildings). All new capital projects include and O&M and renewal cost assessments which are incorporated into future O&M budgets as applicable Asset Maintenance The on-going day-to-day work activity required to keep assets serviceable and prevent premature deterioration or failure. Two categories of maintenance are carried out: Unplanned Maintenance Work carried out in response to reported problems or defects (e.g. cleaning up graffiti). Planned Maintenance Work carried out to a predetermined schedule (e.g. lawn mowing, routine air conditioning equipment servicing) or programmed as a result of identified needs (e.g. passenger lift overhaul) Asset Renewal Major work that restores an asset to its original capacity or the required condition Asset Development Asset development involves the creation of new assets or works which upgrade or improve an existing asset beyond its existing capacity or performance in response to increased demand for property services.. Within the property context, development works generally involve expansion, reconfiguration, or major refurbishment projects, although construction of new facilities is also included. All new capital projects include and O&M and renewal cost assessments which are incorporated into future O&M budgets as applicable Asset Disposal Disposal is any of the activities associated with the disposal of a decommissioned asset. Assets may become surplus to requirements for any of the following reasons: Underutilisation. Obsolescence. Provision exceeds required level of service. Asset no longer provides the service or fulfils the purpose for which it was intended. Uneconomic to upgrade or operate. Policy change. Service provided by other means (e.g. private sector involvement). Potential risk of ownership (financial, environmental, legal, social, vandalism). 60

87 Section 8 Assets and Lifecycle Management 8.3. General Lifecycle Management Strategies Operations and Maintenance Strategies The following general maintenance strategies are applied to the property assets: General Operations Use and manage the assets in a manner that minimises the long term overall total cost. Undertake scheduled inspections as justified by the consequences of failure on levels of service, costs, public health, safety or corporate image. Modify the inspection programme as appropriate in response to unplanned maintenance trends. General Maintenance Maintain assets in a manner that minimises the long term overall total cost. Ensure competitive pricing by actively comparing prices from City Enterprises Unit with market prices and tendering specialist work. Term contracts are in place for maintenance of Community Housing and Public Rental units, and are being considered for other property groups. Unplanned Maintenance A suitable level of preparedness for prompt and effective response to asset failures is maintained by ensuring suitably trained and equipped staff and replacement components are available to allow the immediate repair of assets critical to the operation of the facilities, or where there would be an unacceptable risk to users/tenants. Term contracts specify response times. Planned Maintenance Undertake programme of planned asset maintenance to minimise the risk of critical asset failure (e.g., passenger lifts and other specialised mechanical and electrical plant) or where justified when considering financial and social impacts (e.g., community housing internal redecoration). Major maintenance needs are identified through the scheduled asset condition inspections undertaken by City Networks staff, consultants and the investigation of customer complaints Renewals Strategies Renewals needs are identified through the scheduled asset condition inspections undertaken by City Networks staff, consultants and the investigation of customer complaints. Scheduled asset condition assessments form the basis of the renewals expenditure forecasts within this AM plan, using the following approach: The majority of the property portfolio has had a physical condition assessment completed using SPM asset management system. The condition assessment of the facilities is ranked on a scale of 1 to 5.Condition grading inspections will be carried out on a at least a three yearly rotation, Opportunities to update condition grading as part of other work may will also be taken as resourcing allows. This information has been used to determine the renewal profiles contained within the 2014 AMP. The general renewal strategy is to rehabilitate or replace assets when justified by: Risk The risk of failure and associated financial and social impact justifies action (e.g. probable extent of property damage, health risk). Asset Performance Renewal of an asset when it fails to meet the required level of service. Non-performing assets are identified by the monitoring of asset reliability, efficiency and market comparability (quality) during routine facility inspections and operational activity. Indicators of non-performing assets 61

88 Section 8 Assets and Lifecycle Management include repeated asset failure, inefficient energy consumption, and inappropriate building components. Economics It is no longer economic to continue repairing the asset (i.e. the annual cost of repairs exceeds the annualised cost of renewal). An economic consideration is the co-ordination of renewal works with other planned works such as development works. Efficiency New technology and management practices relating to increased efficiencies and savings will be actively researched, evaluated and, where applicable, implemented. Renewals works are prioritised and programmed in accordance with the following criteria, or in urgent cases undertaken immediately. Public/tenant safety risk; Criticality of assets to facility operation; Criticality of facility to achievement of service standards and community outcomes; Financial risk of deferring work (including revenue); Intensity of usage; Environmental risk; Political preference. Renewal works identified in accordance with the renewal strategies may be deferred if the cost is beyond the community s ability to fund it. This can occur when higher priority works are required on other infrastructure assets, there are short-term peaks in expenditure or if an inadequate rating base exists. When renewal works are deferred, the impact of the deferral on economic efficiencies and the facility s ability to achieve or contribute to the required service standards will be assessed. Although the deferral of some renewal works may not impact significantly on the short-term operation of assets, repeated deferral will create a liability in the longer term. A register of all deferred works will be maintained, the total value of which will be recognised in the financial reporting Development Strategies Development works are planned in response to identified performance issues including: Quality and Functional Suitability The effectiveness of the facility to meet current and forecast customer expectations and requirements, and therefore to contribute to the required levels of service and community outcomes. This is often assessed on a comparative basis with facilities provided by others to fulfil similar intentions. Compliance issues are included. Options considered to address functional suitability issues include reconfiguration, major refurbishment, relocation and provision of new facilities. Cost and Efficiency Costs to Council to operate and maintain the buildings, including consideration of utilisation and income, and operating efficiency of asset components. Location The location of the property to key facilities. 62

89 Section 8 Assets and Lifecycle Management Health/Welfare Provision of assets which promote the safe and comfortable use of the facilities. Compliance issues are included. Options considered to address safety issues include reconfiguration, and provision of additional asset components. Utilisation and Capacity The ability of the facility to accommodate the current and forecast future demand. Options considered to address capacity shortcomings include reconfiguration, enlargement and provision of new facilities. When evaluating significant development proposals, such as the provision of new facilities or a major upgrade to an existing facility, the following issues are considered: The contribution the new or improved facility will make to the current and anticipated future levels of service and community outcomes; The risks and benefits anticipated to be made from the investment; The risks faced by not proceeding with the development. These could include financial risks (such as usage decline to non-optimal or unsustainable levels), social risks (such as insufficient community housing provisions for those on limited incomes) and political risks; Ability and willingness of the community to fund the works; Future operating and maintenance cost implications; The ability of Council to meet the identified needs in another way (e.g. partnerships, private providers). Significant development works are prioritised and programmed with contributions from: The end user (tenant) who operates out of the building; The general community (through public consultation); Council staff and consultants that may be engaged to provide advice to the Council; The LTP/Annual Plan process. Submissions from these processes may lead to changes in Council activities. A new facility may then be required in order to deliver this new function/need. The elected Council. (Significant proposals are subject to Council decision and available funding through the Annual Plan process) Disposal Strategies Asset disposal processes must comply with Council s legal obligations under the Local Government Act 2002, which covers: Public notification procedures required prior to sale, including a special consultative procedure for the sale of significant, strategic or endowment properties not provided for in the adopted LTP; Restrictions on the minimum value recovered; and Use of revenue received from asset disposal. When considering disposal options all relevant costs of disposal will be considered. include: These may Evaluation of options; Consultation/ advertising; Professional services, including engineering, planning, legal, survey and real estate fees; Demolition/ site clearing / make safe costs; Loss on sale. The Council s long-term policy is that the proceeds from the sale of surplus property assets, unless restricted by statutory requirements, are to be applied towards: The retirement of existing debt; Funding existing land acquisition commitments; 63

90 Section 8 Assets and Lifecycle Management Funding future reserve land acquisitions; or Funding new property asset creation. Options for alternative means of delivering Council services are examined when properties require major refurbishment including disposal of that property and the purchase/lease of an alternative property Asset Management Systems Council began developing the Hansen AM system for the property area in However further consideration of the property activity information needs resulted in the purchase of the SPM asset management system. SPM s system was implemented in early 2013 and is still in the process of capturing the entire Property asset portfolio. SMP is based on internet technology and is Web-browser-based. SPM Mobile is a solution that enables you to complete in-field surveys quickly and accurately using cloud and tablet technology. SMP is comprised of a number of modules; Asset Register Work Orders Inspections Valuations Reporting Lifecycle Maintenance Planner Project Planning Images SPM allows asset managers to produce outputs using the Reporting function. Lifecycle analysis and scenarios can be run using the Analysis function. SPM records the following asset data; Information; ID, Type, Description. Location; Address, Location Description, Area, Sub Area, District, GPS location. Structural; Material, Quantity, Unit Rate, Life, Condition, Manufacturer, Critical Rating. Associated; Install Year, Service Status, Ownership, Drawing No. Asset data can be assigned a condition rating based on a grading of 1 to 5 and a remaining life. These ratings, along with criticality ratings, can be used to analyse the asset data and provide renewal profiles and determine maintenance programmes. Overall the quality and extent of data held in SPM is good. The Asset Register information is well developed and there are only a small handful of properties still to have the component information and condition grading completed. Asset components and types used are listed in Appendix F and summaries of the quantity and average remaining useful life for each broad category of components in each asset group are provided in Appendix H. More detailed information is available within the SPM asset management system reporting. The broad asset categories are: External Works and Sundries: works in the site surrounding the building including access works such as driveways, grounds assets such as bollards and garages, paving, signs, fences, gates, decking and tanks. External Fabric: all the exterior wall cladding of the buildings, roof, external stairs and windows and doors. Interior Finishes: Ceiling Finishes, fixtures and fittings, intrerior walls, floor coverings and finishes, interior doors, wall finishes. Services: Electrical cabling lights and switch boards, fire services and systems, lifts, mechanical services such HVAC, plumbing including toilets and vanities, and special services such as security systems and generators. Building structure is not currently in the SMP asset management system. The remaining life and value of structural components has been assessed in this plan using the 50 year renewal profiles based on 64

91 Section 8 Assets and Lifecycle Management the insurance replacement valuation. No major building structural renewals are forecast within the 30 year period. The improvement plan includes a need to incorporate and reconcile structural renewals in the SMP asset management system prior to the 2017 AMP General Standards and Specifications Used Operations, Maintenance, Renewals and Development Standards Asset lives used for the asset groups are based on the Building Element Guidelines and are consistent with the NZ Infrastructure Asset Valuation and Depreciation Guidelines. The list of the relevant component and sub-element lives are provided in Appendix F. Council comply with the following standards and legislation when maintaining, operating, renewing and developing the property assets: This AM Plan; Resource Management Act 1991; Residential Tenancies Act 1986; Building Act 1991 and 2004 Relevant Technical Standards, including Manufacturers Specifications and Operating Manuals; Electrical Regulations 1993; Fire Regulations 1992; Emergency management plans; Housing Improvement Regulations Energy efficiency guidelines; Health and Safety in Employment Act; Health Act (1956); Council Contract Management Procedures; 8.5. Operational Properties Asset Information The purpose of operational facilities is to meet the accommodation needs of Council activities. The facilities are maintained to a standard appropriate for public usage, and a market return is sought on excess capacity. This section covers the management of the following 5 key facilities with a total value of $33,865,000: Operational Properties - Fair Value $135,000 $3,490,000 $1,240,000 $8,000,000 $21,000,000 Civic Administration Building Convention Centre Information Centre Dog Pound Operational Depot Figure 11 Operational Properties Values The main issues facing Council s management of operational facilities is achieving optimum usage of the CAB vacant space. 65

92 Section 8 Assets and Lifecycle Management Assets and their value included in this asset management plan are: Civic Administration Building Convention Centre Fair Value $21,000,000 Improvements $17,380,000 Land Value $3,250,000 Remaining Useful Life 70 Years Replacement Cost $47,438,000 Fair Value $8,000,000 Improvements $5,401,000 Land Value $2,500,000 Remaining Useful Life 73 Years Replacement Cost $12,656,800 Annual Depreciation $258,200 Annual Depreciation $679,870 Accommodating the Council s administrative operations this building was built in It has 9,199 m2 of office space, and 3,416 m2 of basement space. Council occupies 9,257m2, including lobbies/common areas and basement, 2,351m2 is leased to external parties, and 1,007m2 is vacant This purpose built Convention Centre caters for functions, conferences and other events for numbers over 500. An upgrade to the facility in 2002 significantly increased its usage. 66

93 Section 8 Assets and Lifecycle Management Depot i-site Fair Value $ 3,490,000 Improvements $ 1,590,000 Land Value $ 1,570,000 Fair Value $ 1,240,000 Improvements $ 1,002,500 Land Value $ 200,000 Remaining Useful Life 7 to 45 Years Remaining Useful Life 68 Years Replacement Cost $10,496,800 Annual Depreciation $91,373 The depot comprises: workshops, a nursery, greenhouses and workshop sheds and garages, Offices, staff/toilet block amenity block. the Community Leisure Centre A recycling centre. hard stand areas. Replacement Cost $2,051,200 Annual Depreciation $27,155 As part of the City Heart upgrade in 2005 the i-site was relocated to the building from Square Edge. The building also houses the Square s public toilets. 67

94 Section 8 Assets and Lifecycle Management Dog Pound Totara Road Remaining Useful Life 23 Years Replacement Cost $602,900 Annual Depreciation $5,169 Fair Value $ 135,000 Improvements $ 91,000 Land Value $ 40, kennels and a compound, and a stock paddock. Office, kitchen and toilet. Asset components and types used are listed in Appendix F and summaries of the quantity and average remaining useful life for each broad category of components in each asset group are provided in Appendix H. 68

95 Section 8 Assets and Lifecycle Management Asset Condition Civic Admin Building A detailed condition assessment of the CAB was carried out in 2013 using the SPM asset grading model. From these assessments 97% of the asset was found to be in a very good or good condition. Condition Grade Profile - Civic Administration Building 12% 2% 0% 1% 85% Very Good Good Moderate Poor Very Poor Figure 12 Condition Grade Profile - Civic Administration Building A detailed seismic assessment has been completed highlighting that the CAB is earthquake prone. Analysis of this assessment and detailed costings is currently being sort. This information is to be reported to Council late 2014 highlighting what is required, the cost of this work and the timeframe required to complete. A fire compliance upgrade of the CAB will also be required at the same time the earthquake strengthening work is being carried out. This work is now required due to changes in legislation. Convention Centre A detailed condition assessment of the Convention Centre was carried out in 2013 using the SPM asset grading model. From these assessments 99% of the asset was found to be in a very good or good condition. 69

96 Section 8 Assets and Lifecycle Management Condition Grade Profile - Convention Centre 0% 0% 1% 7% Very Good Good Moderate 92% Poor Very Poor Figure 13 Condition Grade Profile - Convention Centre There is no earthquake strengthening required at the Convention Centre. Depot The depot has had the administration block and staff amenities improved over the last two financial years increasing its overall condition. Condition Grade Profile - Depot 28% 11% 3% 6% 52% Very Good Good Moderate Poor Very Poor Figure 14 Condition Grade Profile - Depot Note; This profile does not include the staff amenities building. A detailed seismic assessment of the garage/workshop at the Depot has deemed it to be earthquake prone. Costings and strengthening options have been received and will be presented to Council in late The plant (truck) shelter is in poor condition and will need improvements which have been programmed in the next 3 years. Information Centre A detailed condition assessment of the I-site internal condition was carried out in 2014 using the SPM asset grading model. The external condition is yet to be completed. As the majority of the internals are classed as Public Toilets they have been included within that section of the Recreation AMP. From the assessment completed to date the asset condition was found to be in a very good condition. 70

97 Section 8 Assets and Lifecycle Management There is no earthquake strengthening required at the I-Site. The Dog Pound A major upgrade of the pens and the installations of new puppy pens was completed in This included a new floor coating system, security and pen realignment and waterproofing areas. The interior of the administration block is in moderation condition. There is no earthquake strengthening required at the Dog Pound Capacity and Performance Quality/Functionality Civic Administration Building The décor of the Civic Administration Building is of comparable standard to other similar facilities and consistent with the function of the building. Convention Centre The Convention Centre décor has been practically updated with the interior painting completed of the downstairs. The first floor is due to be painted in 2014/15. There is a renewal programme in 2014/2015 for the replacement of the carpet. Depot The depot is of a good size and fair functionality. Cost and Efficiency Civic Admin Building Leasing costs for CAB floor space for external organisations are consistent with assessed market rates. There are more equivalent vacant spaces available in the CBD now than 2-3 years ago. As such, a lot of competition for new or relocating tenants. Unless the market picks up again some pricing revision may be required in order to tenant some long term vacant space. Internal costs for occupying the CAB for Council operations are assessed to be comparable with market rates for similar facilities. Convention Centre No rental costs are associated with the Convention Centre, hire rates for users are set by City Enterprises Venues team and revenue generated used to enable the day to day management, operations and minor maintenance of the facility, with profits (if any) directed back into Council. Depot City Enterprises manage the day to day costs of maintaining the depot and it s buildings within City Enterprises budgets. Costs are recovered as overheads within SLA agreements for work requested from other Council departments. Location The location of all properties is considered ideal. The Convention Centre and CAB are both in the heart of the CBD and easily accessible to users. There are adequate parking provisions nearby. The depot is also well located centrally in the city minimising travel time to and from jobs for the City Enterprises staff and relatively close to the CAB. 71

98 Section 8 Assets and Lifecycle Management Health/Welfare The emergency, security, and climate control provisions within the Convention Centre are assessed to be good and issues with the Civic Administration Building have been addressed in the refurbishment. Capacity, Utilisation and Performance Civic Admin Building The CAB building has considerable spare capacity. It is underutilised with a little over 10% or 1,000 sq m of vacant space, much of which has been empty for a number of years. Office Basement Council occupied: 6,487 (incl common areas) 2,770 Leased externally: 1, Vacant space: 1,007 0 The CAB building performs well with modern facilities and amenities, Convention Centre The Convention Centre has the capacity to host events of up to 363 days per year depending on their nature and set up and take down requirements. However the number of break out rooms for conferences has been identified as an issue. A business case is being prepared to meet this shortcoming, no allowance is made in this plan for implementation pending a satisfactory business case. 28,600 people used the Convention Centre in 2011, this has declined slightly to 26,683 in The performance of the building is considered to be good for small to medium sized conferences and renewals ensuring fitout meets modern standards. Depot The depot has sufficient capacity for Council operations. Capacity issues for staff meetings have been dealt with in recent years. Utilisation is good with most areas occupied and actively used. Some unused and inaccessible land on a separate terrace was sold in 2014/2015. Performance is generally considered good. The depot yards are central, of a good size and generally well provided for. Strengthening the earthquake prone workshop is included in the seismic strengthening programme grouped and included under Cultural Facilities budgets. The renewal programme will address the aging plant (machinery) shelter. i-site The i-site is a 10 year old building specifically constructed for the purpose in the middle of the CBD and Square. Utilisation is is excellent with a full i-site service provided, Building performance is excellent with an excellent location, modern facilities and associated public toilets. 72

99 Section 8 Assets and Lifecycle Management Dog Pound Capacity experiences some peak demand issues but manageable with some smaller pen provision in 2013/2014 addressing issues. The dog pond is well used with a good location, and prior security performance issues being resolved in in 2013/ Operations and Maintenance Plan Operations The day-to-day operation and upkeep of the operational facilities is undertaken by City Enterprises. Routine inspections are undertaken to monitor asset condition and identify the need for maintenance and renewal work. The Council inspect individual properties at least once annually, with more detailed condition assessments programmed three yearly. These inspections also provide the opportunity to gather performance information and so provide an input into development work and/or disposal planning. Inspections provide the necessary information so that all unplanned maintenance items are completed, annual routine/programmed maintenance and renewal budgets are sufficient to maintain the buildings to a satisfactory standard, and upgrade/development budgets are sufficient to achieve strategic goals, improved levels of service or to mitigate identified risk events. Maintenance Maintenance for the operational facilities assets is managed by City Networks. There are a number of maintenance contracts in place, especially for specialised works such as Heating and Ventilation and lift maintenance. Maintenance works include: Unscheduled Maintenance Maintenance work for the operational facilities can be highly varied and specialised and is managed by City Networks staff who select an appropriately skilled tradesperson to attend to the maintenance issues as identified either by verified building occupier requests, or through routine inspections. Target response times are reflected in the Levels of Service. Scheduled Maintenance Programmed cyclic maintenance is carried out to ensure assets remain in acceptable condition to manage the risk of asset failure and so that they continue to meet the specified levels of service. Scheduled maintenance programmes are developed from an assessment of factors such as asset condition and routine preventative maintenance requirements for specialised plant items such as passenger lifts and air conditioning equipment. Non-major asset replacement and refurbishment is the key activity within scheduled maintenance and is referred to as Maintenance Renewals in the financial forecasts. Operations and Maintenance Forecast Operations and Maintenance expenditure for operational properties is forecast for the next 30 years, based largely on historical trends. Projected operations and maintenance expenditure for the next 5 years is summarised below. Further information is detailed Appendix E. 73

100 Section 8 Assets and Lifecycle Management $2,500,000 Operational Properties - Operations & Maintenance (excl. Depot) $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2015/ / / / /20 Operations & Maintenance Interest Depreciation Figure 15 Operational Properties - Projected Operations and Maintenance Costs Renewal Plan Renewal needs are identified through the scheduled asset condition assessment inspections undertaken by Council staff, consultants, contractors, and through the investigation of complaints from building occupiers. Renewals in the first 30 years lag depreciation as a significant proportion of depreciation is the structure of the Civic Administration Building, as shown in the 50 Age related renewal profile later in this section. Projected renewal expenditure for the next 5 years is summarised in the following table. Further information is detailed Appendix E. 74

101 Section 8 Assets and Lifecycle Management Operational Properties - 5 year Renewal Profile $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2015/ / / / /20 Capital Renewal Depreciation Figure 16: Projected Renewals Expenditure for Next 5 Years Moderate to long-term renewal needs have been assessed for the CAB and Convention Centre using the SPM condition assessment model. The 30 year renewal profile is shown in Figure 17 with depreciation shown. The 30 yearprofile is the result of an independent, specialised property condition inspection and application of detailed unit rates and typical lives for each component, excluding structural components.(spm). The SPM generated profile, which includes condition grading of fitout and mechanical components, is considered the best basis for projected renewal expenditure. Further work will be undertaken before the 2017 AMP. The gap between forecast renewal expenditure and depreciation over this period is due to the lumpy effect of building renewals and the significant renewal costs well beyond the 30 year period 75

102 2015/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / /45 Section 8 Assets and Lifecycle Management Operational Properties - 30 year Renewal Profile $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Capital Renewal Depreciation Figure 17: Operational Property - 30 Year Renewal Forecast Profile The age related 50 year profile has been prepared to provide an indicative assessment of the nominal renewal profile of the structural component. It is based on an overall property value assessment, apportioned over four broad component catgories: roof, services fitout and structure.. This is illustrated in Figure 18. $9,000,000 Operational Facilities - 50 Year Age Based Renewal Profile $8,000,000 $7,000,000 $6,000,000 $5,000,000 CAB & Convention Centre Fitouts CAB Mechanical Depot Structures $4,000,000 $3,000,000 $2,000,000 $1,000,000 CAB Floor Coverings Convention Centre Mechanical Convention Centre Roof $0 Figure 18 Operational Property - 50 Year Age Based Renewal Profile 76

103 Section 8 Assets and Lifecycle Management The SPM generated profile, is considered the best basis for projected renewal expenditure and will be extended before the 2017 AMP to include the structural component of property assets. The fitout renewal requirements for the CAB are overstated in the 50 year profile which assumed all fitout requirements were the responsibility of the Council. 30% of the floor area is either leased or available for lease with the terms of those leases requiring fitout at the leases expense. CAB fitout funding in 2023 is therefore overstated by $2.1million Development Plan There is seismic strengthening work required on the CAB. The CAB comprises of four separate buildings. The Council Chamber, the north and south wings and the central core. All four of these buildings require earthquake strengthening work. Initial estimates for this work are between $1.5 and $3 million Disposal Plan The disposal of an Operational Facility would occur through the need to develop the land upon which the asset sits, when it is not possible or economic to retain the asset in question, or when the asset is no longer suitable for providing the service it is intended for. There is currently no plan to dispose of any Operational facilities Risk Management The AMP risk register for this activity was reviewed in High risks identified for Operational Properties identified in both 2011 and the 2014 review are: Risk Category Risk Event Assets / Functions Affected Caused By Existing Controls Service Failure - Condition Based Major building failure resulting in closure for weeks to months Frequent ingress of water causing moderate damage or inconvenience Buildings - all components Buildings - fittings, interior, structure Poor design or maintenance Leaks or blockages in plumbing or roof Routine inspections, code compliance status, WOF. Business continuity planning. Reactive maintenance capability. Table 27 Operational Property - High Risks and Their Controls Seismic risk assessment has received a heightened focus following the major earthquakes that occurred in Christchurch in September 2010 and February A series of preliminary investigations have been instigated, including: A high level review of existing data covering known liquefaction areas A liquefaction mitigation study. A preparedness assessment covering all Council infrastructure (lifelines). IEP for seismic strength identified CAB including the Council Chamber and the Depot Workshop as being below 33% of the National Building Standard. A programme for strengthening them is under development and budgets are included in this Plan. 77

104 Section 8 Assets and Lifecycle Management Financial Summary Detail on costs and programmes can be found in Appendix E. The following are 30 year summary profiles: $2,500,000 Operational Properties Financial Summary - Operations & Maintenance $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Operations & Maintenance Interest Figure 19 Operational Property 30 Year Expenditure Forecast Summary - Operations and Interest 78

105 Section 8 Assets and Lifecycle Management 8.6. Cultural Properties Asset Information This asset group includes the City s libraries, art galleries, museums, theatres, and other community venues. These facilities provide opportunities for residents and visitors to participate in arts and cultural events, as well as provide access to information and knowledge to inspire and encourage lifelong learning. Jobs are also created and visitors attracted into the City. This section covers the management of the following 10 facilities with a total value of $65,185,900: Regent Theatre Te Manawa Museum, Science Centre and Art Gallery Central Library, Te Pātikitiki and the Ashhurst Library Keith Street Power Station Globe Theatre and Carpark Caccia Birch Creative Sounds Square Edge and the Old Workshop associated with it. Cultural Facilities - Fair Value $900,000 $179,500 $2,781,000 $3,465,000 $272,400 Keith Street Power Station Ashhurst Library $16,850,000 City Library $13,000,000 Highbury Library Regent Theatre Square Edge Square Edge Old Workshop $4,250,000 $320,000 $1,050,000 $21,800,000 $318,000 Te Manawa Art Gallery Te Manawa Science Caccia Birch Globe Theatre Creative Sounds Figure 20 Cultural Properties Values 79

106 Section 8 Assets and Lifecycle Management Regent Theatre Fair Value $ 21,800,000 Improvements $ 18,722,000 Land Value $ 1,800,000 Te Manawa Museum & Science Centre Fair Value $ 13,000,000 Improvements $ 9,786,000 Land Value $ 3,000,000 Remaining Useful Life 73 Years Remaining Useful Life 33 Years Replacement Cost $36,445,500 Annual Depreciation $807,680 This 1,393 seat theatre is an excellent performing arts facility, and is the main civic auditorium. The facility is a heritage building Replacement Cost $45,01,200 Annual Depreciation $325,168 Renovated in 2010/2011, this major public space houses extensive collections of artwork and exhibits offering a wide range of learning experiences which includes the New Zealand Rugby Museum Te Manawa Art Gallery Fair Value $ 4,250,000 Improvements $ 2,662,700 Land Value $ 1,500,000 Library Fair Value $ 16,850,000 Improvements $ 14,855,000 Land Value $ 1,850,000 Remaining Useful Life 63 Years Remaining Useful Life 73 Years Replacement Cost $12,522,600 Annual Depreciation $123,992 Built in 1977 the art gallery accommodates an extensive collection of artwork and wide variety of travelling collections Replacement Cost $46,542,500 Annual Depreciation $545,380 Renovated in 1993 this major public space houses extensive collections of artwork and exhibits offering a wide range of learning experiences 80

107 Section 8 Assets and Lifecycle Management Ashhurst Post Office Library Building Fair Value $ 272,400 Improvements $ 159,900 Land Value $ 110,000 Te Patikitiki Library Building Fair Value $ 318,000 Improvements $ 220,800 Land Value $ 35,000 Remaining Useful Life 33 Years Remaining Useful Life 37 Years Replacement Cost $575,100 Annual Depreciation $5,698 Built in 1977 the art gallery accommodates an extensive collection of artwork and wide variety of travelling collections Replacement Cost $713,100 Annual Depreciation $11,256 Opened in 2008 this is the newest branch library. A conversion of a former Resource Centre Keith Street Power Station Fair Value $ 179,500 Improvements $ 18,000 Land Value $ 179,500 Globe Theatre & Car Park Fair Value $ 3,465,000 Improvements $ 1,343,000 Land Value $ 1,900,000 Remaining Useful Life 1 Years Remaining Useful Life 45 Years Replacement Cost $1,099,700 Annual Depreciation $850 Built in 1923 to provide electricity to the city, investigations are underway as to what to do with this now untenanted building on the outskirts of the city Replacement Cost $8,572,000 Annual Depreciation $186,962 Built in 1982, this facility accommodates amateur performing arts and functions. A major refurbishment and upgrade was completed in 2013/14. 81

108 Section 8 Assets and Lifecycle Management Caccia Birch House Fair Value $ 2,781,000 Improvements $ 1,056,000 Land Value $ 1,480,000 Square Edge Building Fair Value $ 1,050,000 Improvements $ 300,000 Land Value $ 750,000 Remaining Useful Life 50 Years Remaining Useful Life 25 Years Replacement Cost $4,276,500 Annual Depreciation $42,200 This Historic Places Category One Building was originally built in 1892, then in 1993 gifted to Council. It is now a function centre following restoration works. Replacement Cost $8,242,700 Annual Depreciation $10,922 Built in 1893 as a bank, and then used as Council offices from 1900 to 1991, from when the Square Edge Community Arts Centre took occupancy. The centre incorporates galleries, display shops, studios and general office space. Old Workshop Fair Value $ 320,000 Improvements $ 31,000 Land Value $ 280,000 Creative Sounds (Stomach). Fair Value $ 900,000 Improvements $ 647,000 Land Value $ 243,000 Remaining Useful Life 15 Years Remaining Useful Life 53 Years Replacement Cost $2,512,000 Annual Depreciation $3,328 Attached to the Square Edge Building this converted stables and workshop housing offices, night club, dance studio and art studios Replacement Cost $861,300 Annual Depreciation $20,950 Creative Sounds had a $500,000 upgrade in The facility is a music recording, rehearsal and performance centre. 82

109 Section 8 Assets and Lifecycle Management Asset components and types used are listed in Appendix F and summaries of the quantity and average remaining useful life for each broad category of components in each asset group are provided in Appendix H. The main issues facing Council s management of the Cultural Facilities relate to the character and/or specialised nature of the buildings. Maintenance and renewals/refurbishment works are expensive and there is a greater need to undertake these works promptly and in a co-ordinated manner, involving the associated Trust Board. All buildings are subject to compliance with a Building Warrant of Fitness Asset Condition A detailed condition assessment on a component basis was completed using SPM for the following facilities:- Te Manawa Museum and Science Centre Te Manawa Art Gallery Caccia Birch House and Coach House The Square Edge Building and Old Workshop Library The Regent Theatre Ashhurst Post Office Library Building Te Patikitiki Library Building Condition assessments are still to be carried out on the following facilities:- Globe Theatre Creative Sounds Keith Street Power Station Condition grades were assigned using the following scale: Condition Grade Definition 1 Very Good 2 Good 3 Moderate 4 Poor 5 Very Poor The following figure shows that 94% of the Cultural Property assets (by replacement cost) are in Good or Very Good condition. 83

110 Section 8 Assets and Lifecycle Management Condition Grade Profile 11% 2% 1% 3% 83% Very Good Good Moderate Poor Very Poor Figure 21: Condition Grade Profile for Cultural Properties (Excluding Globe Theatre, Creative Sounds and Keith Street Power Station) Creative Sounds and the globe have had recent refurbishments and expected to be in good condition. Keith Street Power Station has been identified as earthquake prone and decisions about its future are yet to be made. The condition grade distribution for each of the Cultural Facilities which were assessed on a detailed basis using SPM is shown in the following graph: Cultural Facilities 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Grade 5 Grade 4 Grade 3 Grade 2 Grade 1 Figure 22 Detailed Assessments Condition Grade Breakdown for Cultural Facilities The Square Edge complex, including the stables located in the courtyard of Square Edge has been assessed as being earthquake prone. A detailed secondary assessment has been completed which 84

111 Section 8 Assets and Lifecycle Management give indicative costs for strengthening options at between $700,000 and $2,025,000 (+/- 30%). These findings are to be reported to Council in late Due to the earthquake status, the complex is currently being maintained to a lower standard, pending decisions on strengthening Capacity and Performance Quality/Functionality Overall the quality of the Cultural Facility assets is considered to be high, although discrepancies in quality exist across the facilities, ranging from the Regent Theatre (very high) to the Square Edge Courtyard (moderate/adequate). The range in quality of the assets reflects the end use and profile of the facility. The functionality of the complexes is also considered to be high overall and appropriate for the end use of the facilities. This rating varies across the properties, generally reflecting age of the buildings. The newer, purpose-built complexes such as the Te Manawa Science Centre and the Library are highly functional, but older facilities, adapted to meet the needs of alternative services, such as the Square Edge, have less optimum layouts and characteristics. Cost and Efficiency No rental or lease costs are associated with the Cultural facilities. These costs and admission charges are set by the respective Trust Boards and revenue generated managed by these organisations to enable the day to day maintenance and operations of the facilities. The efficiency of the assets within these facilities is generally assessed to be adequate, although this varies across the portfolio.. Location The location of all properties is considered good. The key city facilities are in the CBD and close to The Square. All have adequate parking provision nearby. Health/Welfare The emergency, security, and climate control provisions within the facilities are generally considered good. Capacity, Utilisation and Performance Te Manawa Te Manawa has the capacity to host increased numbers of visitors. overcrowding. There are no reports of Utilisation of Te Manawatu is moderate. Peak times see some congestion at some particular exhibits or spaces such as the children s indoor playground, but nothing out of normal operational expectations for a museum /science centre. Performance is good with major capital upgrades over 2009 to 2011 including improved exhibit spaces and adding the New Zealand Rugby Museum to the facility. 85

112 Section 8 Assets and Lifecycle Management Caccia Birch House Caccia Birch house has the capacity to host events and activities 363 days of the year. With the possibility of multiple events and/or activities each depending on their nature and size e.g. multiple small meeting across several rooms. Caccia Birch Trust Board find resource consent conditions on operational hours are the biggest current constraint to their activities and those operational issues are under review as part of the District Plan review. Current utilisation at Caccia Birch house is steady at around 65% average occupancy each year in 2011 through to Performance of the Caccia Birch House facility is good with the facilities provided in keeping with their status as a historic building. Square Edge Square Edge has the capacity to have 33 studio spaces on the upper floors, 10 retail/office spaces on the ground floor, 2 exhibition spaces, 1 small theatre (seats 36), 1 large performance space (seats 100), 1 Dance studio, 2 art/craft rooms and 1 apartment. Utilisation of Square Edge is high with tenanted spaces full and in some cases a waiting list for spaces to become available. Foot count data shows an increase in use from approximately 68,000 in 2010 to approximately 73,000 in Performance is good for the ground floor. The upper floors of the main building are in a moderate condition and have been planned to be refurbished in However seismic strengthening investigations meant this work was deferred. The rear buildings at the courtyard spaces are in moderate to poor condition overall and will need attention in the short and medium term. This work was also deferred pending seismic strengthening decisions. Provision for strengthening is included within the overall $15 million allowance within the cultural facilities budgets. Council direction on options for the renewal of the courtyard buildings are still being investigated and considered at the time of preparing the AMP, ranging from disposal to a complete rebuild. Libraries There is space capacity within the central and branch libraries due to the utilisation trends. Utilisation, both in terms of active users and items borrowed, is on a downward trend. For example the number of issues of items dropped by 13% in from 2012 to 2013 and flattening to This trend is experienced nationally. The Libraries have been refocusing and broadening their functions in response to cater to changing preferences including provision of access to digital books. The performance of the facilities is considered good with the remodelling and refurbishment of the entrance to the central library in 2011/2012. The two branch libraries buildings owned by Council are generally in good condition and performing well. Regent Theatre The Regent Theatre can be utilised for up to 363 days of the year, the exact potential being subject to the size and nature of the use. Assuming say 3 sold out shows per week, 48 weeks a year, the 1,393 seat auditorium could host 200,592 uses per year at an extreme. 86

113 Section 8 Assets and Lifecycle Management Utilisation is good with the auditorium has been consistently used for around 200 days each year over the last three years. The number of attendances at 94,544 is slightly down from the 102,351 in 2011/2012. Performance of the theatre is good with a major renewal of auditorium seating in 2014/2015 ensuring the LoS is maintained. The Regent Theatre Trust Board have identified concerns with performance the foyer space and its functionality. Council has requested a business case be developed for any change to this level of service no allowance is made in this plan for that proposed change Operations and Maintenance Plan Operations The day-to-day operation and upkeep of the cultural facilities is undertaken by the following appointed boards: Regent Theatre Trust Board Globe Theatre Trust Board Caccia Birch Trust Board Te Manawa Trust Board Community Arts Palmerston North (Square Edge) The Library facilities are operated by the Library & Community Services Unit within Council. Routine inspections are undertaken to monitor asset condition and identify the need for maintenance and renewal work. The Council ensures that individual properties are inspected at least once annually, with more detailed condition assessments programmed three yearly. These inspections also provide the opportunity to gather performance information and so provide an input into development work and/or disposal planning. The inspections provide the necessary information so that all unplanned maintenance items are completed, annual routine/programmed maintenance and renewal budgets are sufficient to maintain the buildings to a satisfactory standard, and upgrade/development budgets are sufficient to achieve strategic goals, improved levels of service or to mitigate identified risk events. Maintenance Maintenance for the cultural facilities assets is managed by City Networks. There are a number of maintenance contracts in place, especially for specialised works such as Heating and Ventilation and lift maintenance. Maintenance works include: Unscheduled Maintenance Maintenance work for the cultural properties can be highly varied and specialised and is managed by the Cultural Facilities Officer. The Cultural Facilities Officer selects an appropriately skilled tradesperson to attend to the maintenance issues as identified either by verified building occupier (Trust Board) requests, or through routine inspections. Target response times are reflected in the Levels of Service. Scheduled Maintenance Programmed cyclic maintenance is carried out to ensure assets remain in acceptable condition to manage the risk of asset failure and so that they continue to meet the specified levels of service. Scheduled maintenance programmes are developed from an assessment of factors such as asset condition and routine preventative maintenance requirements for specialised plant items such as lifts and air conditioning equipment. A 10 year Schedule of Planned Maintenance is updated annually. Operations and Maintenance Forecast Operations and Maintenance expenditure for cultural properties is shown at an average of $1,170,870 per year over the 30 year planning period and is based largely on historical trends. Projected operations and maintenance expenditure for the next 5 years is summarised below: 87

114 Section 8 Assets and Lifecycle Management Cultural Facilities - Operational Costs $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2015/ / / / /20 Operations & Maintenance Interest Figure 23 Cultural Properties 5 Year Operations and Maintenance Costs Renewals Plan Renewal needs are identified through the scheduled asset condition assessment inspections undertaken by Council staff, consultants, contractors, and through the investigation of complaints from the building occupier. Detailed condition assessments of all Cultural facilities were carried out in 2013 using the SPM asset grading model. Major renewal works identified for the next three years include: Cultural Property Significant Renewals Works Item Square Edge and the Old Workshop Earthquake Strengthening work is required at both the main building and the Old Workshop to lift the earthquake status from earthquake prone. Regent Theatre The 1393 seats are scheduled to be replaced in January 2015 when the theatre will be closed for the month for this work to be carried out. Te Manawa Earthquake strengthening is required on 7 of the 9 buildings that make up Te Manawa to lift the overall earthquake status from earthquake prone. Keith Street Power Station Earthquake strengthening is required on this building to lift the overall earthquake status from earthquake prone. Table 28 Cultural Properties Major Short Term Renewals Five and thirty year renewal profiles as well as fifty year age based renewal profile is shown on the following graphs. The graph notations indicate major components of the renewals in particular years. 88

115 2015/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / /45 Section 8 Assets and Lifecycle Management Cultural Facilities - 5 year Renewal Profile $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2015/ / / / /20 Capital Renewal Depreciation Figure 24 Cultural Properties 5 Year Renewal Profile Actual renewal budgets are programmed after reviewing asset condition, assessing changes in service capacity, user requirements and where necessary smoothing spend patterns. Figure 25 shows the 30 year renewal programme profile for Cultural properties. Expenditure is less than depreciation over the first 10 years but there is substantial renewal expenditure forecast for the period following. $3,500,000 Cultural Facilities - 30 year Renewal Profile $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Capital Renewal Depreciation Figure 25 Cultural Properties - 30 Year Renewal Forecast Profile A significant bulge in renewal expenditure can be seen in the second 10 year period as Library, Globe and Te Manawa renewal programmes are due. Further condition grading, review of the effect of 89

116 Section 8 Assets and Lifecycle Management current capital works, and fit out requirements will be required to ensure those programmes are investigated and detailed further. The 50 year age based renewal profile for cultural properties is shown in the following graph: 30,000,000 Cultural Facilities - 50 Year Age Based Renewal Profile 25,000,000 20,000,000 Library Mechanical & Fitout and Regent Fitout 15,000,000 10,000,000 5,000,000 Globe & Regent Mechanical Te Manawa Mechanical Te Manawa Fitout 0 Figure 26 Cultural Property - 50 Year Age Based Renewal Profile The 30 year profile is the result of an independent specialised property condition inspection and application of detailed unit rates and typical lives for each component. The indicative age related 50 year profile is shown in the following graph and is based on an overall property value proportioned to four broad component categories, roof, services fitout and structure Development Plan Earthquake strengthening work on Councils cultural facilities will be the major renewal focus over the next three years. Decisions on Square Edge strengthening are still to be made, this plan allows for strengthening to be undertaken Disposal Plan The disposal of a cultural facility would occur through the need to develop the land upon which the asset sits, when it is not possible or economic to retain the asset in question, or when the asset is no longer suitable for providing the service it is intended for. Further consideration may be required when decisions are made around the future of earthquake prone buildings Risk Management The AMP risk management plan for this activity was reviewed in The resulting risk identification and assessment schedule (refer Appendix D) was prepared and forms part of this AMP. No high risks were identified in the 2008 AMP. High risks identified for Cultural Properties identified in the 2011 and 2014 reviews are: 90

117 Section 8 Assets and Lifecycle Management Risk Category Risk Event Assets / Functions Affected Caused By Existing Controls Service Failure - Condition Based Major building failure resulting in closure for weeks to months Frequent ingress of water causing moderate damage or inconvenience Buildings - all components Buildings - fittings, interior, structure Poor design or maintenance Leaks or blockages in plumbing or roof Routine inspections, code compliance status, WOF. Business continuity planning Reactive capability maintenance Table 29 Cultural Properties High Risks and Existing Controls The Council s Earthquake Prone Building Policy and national legislation such as the Building (Earthquake-Prone Buildings) Amendment Bill define and guide earthquake risk assessment for the cultural facilities of Square Edge, Te Manawa and Keith Street Power Station which have been identified earthquake prone, i.e. less than 33% of the National Building Code. Strengthening investigations, programme and funding are included in this AMP to address these risks. 91

118 2015/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / / /45 Section 8 Assets and Lifecycle Management Financial Summary Detail on costs and programmes can be found in Appendix E. The following are 30 year summary profiles. $2,500,000 Cultural Facilities Financial Summary - Operational and Interest $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Operations & Maintenance Interest Figure 27: Cultural Property - 30 Year Financial Summary: Operations and Interest. There is a small increase in the operations and maintenace cost at the Regent while interest costs rise significantly due to the capital investment in earthquake strengthening in the first seven years. 30 year Financial Summary - Earthquake Strengthening $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Figure 28: Cultural Property - 30 Year New Capital Expenditure Forecast Summary Earthquake strengthening has been developed as a single programme and applies to operational, cultural and recreation assets. It appears under the cultural facilities activity. 92

119 Section 8 Assets and Lifecycle Management 8.7. Community (Subsidised) Housing Properties Asset Information The purpose of community housing is to provide affordable and safe accommodation for elderly people with limited incomes, and people with additional physical or mental needs on limited incomes. The Council has 311 units in 15 locations around the City. The rentals for these units are income based and therefore substantially below market rents. The units are small, self-contained and surrounded by other units in a complex. They allow an occupant to have privacy and independence while allowing contact as wanted with neighbouring units. The variety of accommodation available includes bed-sits and one-bedroom units. A bed-sit unit is generally smaller than a one-bedroom unit and includes an open plan area that serves as a lounge/bedroom with a separate bathroom. There are communal laundries in each bed-sit complex. The one bedroom units consist of separate lounge, kitchen and bathroom. Bedrooms generally include wardrobes. This section covers the management of the following 15 complexes with a total value of $18,455,000: Glenmary Close; Castle Court; Church Street; Kopeka Court; Cardrona Close; Rangiora Avenue/ Andrew Avenue; Papaeoia Place and Heretaunga Street; Bodell Place; Elm Tree Court; Vogel Street Units (116); Vogel Street Units (175); Wood Street; Wainui Court; Ashhurst - Stanford North Street (A)/ Stanford North Street (B); Persson Place. Community Housing - Fair Value $700,000 $10,010,000 $7,745,000 Land Improvements Site Works Plant/Chattels Figure 29: Community Housing Fair Value The main issues facing Council s management of the community housing properties are: Reconciling quality and functionality issues with the affordable accommodation intent; Providing sensitive and attentive customer service to tenants; Maintaining the optimum type of units to meet current and future anticipated demand. 93

120 Section 8 Assets and Lifecycle Management Assets and their value included in this asset management plan are: Glenmary Close Units (Albert Street) Castle Court Units (Church Street) Fair Value $ 930,000 Improvements $ 385,000 Land Value $ 500,000 Fair Value $ 880,000 Improvements $ 448,000 Land Value $ 400,000 Remaining Useful Life 36 Years Remaining Useful Life 27 Years Replacement Cost $1,599,300 Annual Depreciation $16, One-bedroom units Church Street Replacement Cost $1,787,500 Annual Depreciation $23, One-bedroom units Kopeka Court (Edwards Place) Fair Value $ 480,000 Improvements $ 145,000 Land Value $ 320,000 Fair Value $ 1,450,000 Improvements $ 474,000 Land Value $ 934,000 Remaining Useful Life 31 Years Remaining Useful Life 47 Years Replacement Cost $675,300 Annual Depreciation $7,862 Replacement Cost $2,485,900 Annual Depreciation $23,106 6 One-bedroom Units 16 One-bedroom Units, 4 Disabled persons units with adjoining carports, 4 Bed-sits and a community lounge 94

121 Section 8 Assets and Lifecycle Management Cardrona Close (Rangiora Avenue) Rangiora/Andrew Avenue (Rangiora Avenue) Fair Value $ 2,075,000 Improvements $ 1,490,000 Land Value $ 523,000 Fair Value $ 720,000 Improvements $ 430,000 Land Value $ 275,000 Remaining Useful Life 47 to 52 Years Remaining Useful Life 42 Years Replacement Cost $4,906,300 Annual Depreciation $53, Bed-sits and one-bedroom units Replacement Cost $1,441,500 Annual Depreciation $16,900 7 one bedroom units and 6 bed-sit units Papaioea Place & Heretaunga St Units (Ruahine Street) Fair Value $ 2,550,000 Improvements $ 1,177,000 Land Value $ 1,255,000 Remaining Useful Life 29 to 34 Years Replacement Cost $5,694,800 Annual Depreciation $69, One-bedroom units 95

122 Section 8 Assets and Lifecycle Management Bodell Place (Ruahine Street) Elm Tree Court (Russell Street) Fair Value $ 1,650,000 Improvements $ 862,000 Land Value $ 716,000 Fair Value $ 1,320,000 Improvements $ 501,000 Land Value $ 775,000 Remaining Useful Life 39 Years Remaining Useful Life 30 Years Replacement Cost $2,999,900 Annual Depreciation $39,674 Replacement Cost $2,694,800 Annual Depreciation $27, Bed-sit units, 2 one-bedroom units 24 One-bedroom units Vogel Street Units (116 Vogel Street) Vogel Street Units (175 Vogel Street) Fair Value $ 465,000 Improvements $ 283,000 Land Value $ 157,000 Fair Value $ 685,000 Improvements $ 429,000 Land Value $ 227,000 Remaining Useful Life 44 Years Remaining Useful Life 43 Years Replacement Cost $837,900 Annual Depreciation $10,955 Replacement Cost $809,600 Annual Depreciation $14,837 6 Bed-sits, 1 one-bedroom unit 8 One-bedroom units 96

123 Section 8 Assets and Lifecycle Management Wood Street Units Wainui Court (Wyndham Street) Fair Value $ 1,100,000 Improvements $ 749,000 Land Value $ 334,000 Fair Value $ 2,300,000 Improvements $ 1,552,000 Land Value $ 654,000 Remaining Useful Life 47 Years Remaining Useful Life 49 Years Replacement Cost $1,775,200 Annual Depreciation $27,316 Replacement Cost $4,833,300 Annual Depreciation $54, Bed-sits, 2 one-bed units, 1 two-bedroom unit Stanford North Street Units (A) & (B) Ashhurst 39 One-bedroom units Persson Place Units Fair Value $ 830,000 Improvements $ 622,000 Land Value $ 180,000 Fair Value $ 1,020,000 Improvements $ 463,000 Land Value $ 495,000 Remaining Useful Life 48 Years Remaining Useful Life 32 Years Replacement Cost $1,3689,300 Annual Depreciation $20,824 Replacement Cost $1,989,100 Annual Depreciation $78, One-bedroom units 18 Bed-sit units 97

124 Section 8 Assets and Lifecycle Management Asset components and types used are listed in Appendix F and summaries of the quantity and average remaining useful life for each broad category of components in each asset group are provided in Appendix H. A schematic map in Appendix G shows the locations of individual complexes Asset Condition A detailed condition assessment on a component basis has been completed using SPM for all Community Housing units with the exception of Papaioea Place Condition grades were assigned using the following scale: Condition Grade Definition 1 Very Good 2 Good 3 Moderate 4 Poor 5 Very Poor The following figure shows that 93% of the Community Housing assets (by replacement cost) are in Good or Very Good condition. Condition Grade Profile Very Good Good Moderate Poor Very Poor 6% 1% 0% 40% 53% Figure 30: Condition Grade Breakdown for Community Housing (Excluding Papaioea Place) The condition grade distribution for each of the Community Housing complexes which were assessed using SPM are shown in the following graph: 98

125 Section 8 Assets and Lifecycle Management Community Housing Condition Grade per Complex 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Grade 5 Grade 4 Grade 3 Grade 2 Grade 1 Figure 28: Detailed Assessments Condition Grade Breakdown for Community Housing The Papieoa Complex was not included in the recent condition grading work as significant renewals and improvements works are budgeted for in the current year Capacity and Performance Community Housing Needs Analysis In 2009 a Community Housing Strategy analysed current provision and future needs for community housing. Key directions set in the strategy were: Convert bedsits to one bedroom units a programme for conversion is underway. Modernise inaccessible units accessibility issues are being progressively addressed. Investigate the efficiency of village land use. Add a further 191 units over 43 years after converting existing units to meet needs of aging population. Council is currently reviewing the 2009 Strategy. It is unlikely Community Housing stock will be increased. No provision has been allowed for in this plan. Cost and Efficiency Rental is based on income and has been set at a maximum of 25% of the resident s gross income. This is estimated to be approximately 60% of market rental. The rates charged contribute to the upkeep of the units. Insulation and hot water supplies in some complexes have been identified as inefficient, and programmes are underway to address this where practical. Health/Welfare The Housing Liaison Officer ensures that tenants concerns and complaints are resolved in line with the desired Level of Service. 99

126 Section 8 Assets and Lifecycle Management Capacity, Utilisation and Performance 311 units are provided for community housing. Council is not proposing any capacity increases in this plan. Current utilisation of the facilities is high with an increasing demand for one or two bedroom units. Certain areas of the City and complexes are considered more desirable than others, with the demand for those complexes exceeding current stock. Turnover is on average 6 years with current occupancy of 97.5%. Historically occupancy rates have tracked between 95 and 100%. This level is expected to continue to hold especially as the programme of bed-sit conversions to one-bedroom units progresses % Community Housing - Average Monthly Occupancy Level by Year 95.00% 90.00% 85.00% 80.00% 75.00% Figure 31: Average Monthly Occupancy Rates for Community Housing The performance of units is mixed. Bed sit units do not meet modern standards and expectations of tenants and Council. They are the most difficult to tenant. The renewal programme, which includes conversion of open plan to one bed units, is addressing this performance issue. The Papaioea complex has a number of moderate and poor condition components that need to be improved. The new capital programme to upgrade these units including provision of better outdoor spaces, living environments and sustainability improvements includes some renewal aspects and will address the performance issues for that complex Operations and Maintenance Plan Operations The day-to-day operations and maintenance of the Community Housing is undertaken by City Enterprises. Routine inspections are undertaken to monitor asset condition and identify the need for maintenance and renewal work. The Council ensures that individual properties are inspected at least once annually, and/or when properties are vacated. These inspections also provide the opportunity to gather performance information and so provide an input into renewal, development and/or disposal planning. 100

127 Section 8 Assets and Lifecycle Management The inspections provide information so that all unplanned maintenance items are identified, annual routine/programmed maintenance and renewal budgets are sufficient to maintain the buildings to a satisfactory standard, and to provide information for upgrade/development proposals. Maintenance An annual maintenance contract is managed by City Networks and undertaken by the Operations Division of City Enterprises. The contract has been put in place in response to the large volume of work generated by the 403 housing units owned by the Council to gain efficiencies both in terms of cost and level of service. Maintenance works include: Unscheduled Maintenance. The contract allows tenants to contact the Operations Unit directly for resolution of unplanned or minor maintenance issues. The Contract has specified response times as reflected in the Levels of Service. Scheduled Maintenance. City Networks develop planned maintenance programmes to ensure that the community housing units remain in acceptable condition. Vacated units are inspected and any necessary maintenance work (and/or refurbishment) is undertaken promptly so that the units may be re-let as soon as possible to reduce resident waiting times and maintain target occupancy rates. Operations and Maintenance Forecast Significant maintenance works planned for the next three years include: Internal redecorations; Internal/external painting; Operations and Maintenance expenditure for Community Housing is shown at an average of around $1,300,000 per year over the 30 year planning period and is based largely on assessment by the Housing Liaison Officer and historical trends. Improved asset management processes and systems will allow the refinement of maintenance programmes. Inflation has not been built into the projection. Projected operations and maintenance expenditure for the next 5 years is summarised in the following graph. Further information is in Appendix E. $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 Community Housing - Operational Costs $0 2015/ / / / /20 Operations & Maintenance Interest Revenue Figure 32: Community Housing 5 Year Projected Operational Costs and Revenue 101

128 Section 8 Assets and Lifecycle Management Renewals Plan Renewal needs are identified through the scheduled asset condition assessment inspections undertaken by Council staff and through the investigation of complaints from tenants as with scheduled maintenance. Renewal Forecasts Moderate to long-term renewal needs have been based on SPM condition grading assessment. Renewal works planned for the next three years continue converting bed-sit to one bedroom. Projected expenditure for the next 5 years is summarised below with further information in Appendix E. Community Housing - 5 year Renewal Profile $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2015/ / / / /20 Capital Renewal Depreciation Figure 33 Community Housing - 5 Year Renewal Profile Renewals budgets include remodelling bed-sits to one-bedroom units. The long-term (30year) forecast renewal expenditure requirement for the Community Housing properties based on condition grade assessments. 102

129 Section 8 Assets and Lifecycle Management Community Housing - 30 year Renewal Profile $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Capital Renewal Depreciation Figure 34 Community Housing 30 Year Renewals Profile Community Housing - 50 Year Age Based Renewal Profile 4,500,000 4,000,000 Cardrona, Kopeka & Wood Structures 3,500,000 3,000,000 2,500,000 Papaieoa Structure Bodell Structure Wainui Structure 2,000,000 1,500,000 1,000, ,000 0 Figure 35 Community Housing 50 Year Age Based Renewals Profile The thirty year profile for renewals is in general keeping with the indicative 50 year age based profile with some smoothing and staging of works. The various components for renewals across the complexes are too complex to reasonably represent on the graph and detail is available in Council replacement valuation data. 103

130 Section 8 Assets and Lifecycle Management Development Plan In 2011 Council adopted a Sustainability Strategy. The first driver is a reduction energy use. The Papaioea Community housing Complex has become the focus for proposals to pilot increased levels of service for both design and sustainability. At the time of compiling the asset management plan the scope, options and costs of a variety of options for that facility are being developed to be considered by Council. The current expenditure forecast allow for $4,125,000 to improve the Papaioea Housing complex. These are a mixture of renewing some aging components as well as improvements to the level of service with improved unit and complex layouts. Development Forecast $2,500,000 Community Housing - 5 year Capital Profile $2,000,000 $1,500,000 $1,000,000 $500,000 $0 2015/ / / / /20 Figure 36: Projected Capital Development Expenditure Community Housing The first two years see significant capital expenditure at the Papaioea Housing complex. These are quality and renewal works and not growth related Disposal Plan The disposal of a Community Housing complex and/or individual units would occur through the need to develop the land upon which the asset sits, when it is not possible or economic to retain the asset in question, or when the asset is no longer suitable for providing the service it is intended for. If a complex had a poor tenancy rate, undesirable fundamental layouts, and/or ongoing high levels of upgrading/development works disposal is considered. Council will consider whether some units would be better relocated to more appropriate locations as part of the Property Review currently underway Risk Management The AMP risk management plan for this activity was reviewed in The resulting risk identification and assessment schedule (refer Appendix D) was prepared and forms part of this AMP. No high risks were identified in the 2008 AMP. High risks identified for Community Housing identified in the 2011 review are: 104

131 Section 8 Assets and Lifecycle Management Risk Category Risk Event Assets / Functions Affected Caused By Existing Controls Natural Hazard or Other Event Risks Fire destroys building(s) and Buildings - all results in serious injuries or components deaths Table 30 High Consequence Risks Community Housing Various sources, e.g. arson, electrical fault, accidental ignition Routine visits and contact by Housing Liaison Officer Fire safety provisions Financial Summary Community Housing property expenditure forecasts are summarised below. information can be found in Appendix E. Detailed financial Operational costs are stable with some increase in interest costs due to new capital works. $1,800,000 $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Community Housing Financial Summary - Operations and Interest Operations & Maintenance Interest Figure 37 Community Housing 30 Year Expenditure Forecast Summary 105

132 Section 8 Assets and Lifecycle Management Renewals are generally in line with depreciation over the period. $1,200,000 Community Housing - 30 Year Renewal Profile $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Capital Renewal Depreciation Figure 38 Community Housing 30 Year Renewal Expenditure Forecast Summary Major Capital Expenditure at the Papaioea complex in the first two years creates and peak of expenditure in the short term. The strategic review of Community Housing being conducted by the City Future Unit will inform the 2015 LTP and 2017 AMP. $2,500,000 Community Housing - 30 Year New Capital Profile $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Figure 39 Community Housing 30 Year New Capital Expenditure Forecast Summary 106

133 Section 8 Assets and Lifecycle Management 8.8. Public Rental Housing Properties Asset Information The purpose of Public Rental Housing is to provide affordable and safe accommodation for those with lower and/or temporary limited incomes such as new arrivals in the city and those receiving benefits or other assistance. Public Rental Housing, in contrast to Community (Subsidised) Housing, provides Council with a rate of return investment. The Council has 92 public rental housing units including one, two and three bedroom units in three locations. The units are small, self-contained and surrounded by other units in a complex. They allow an occupant to have privacy and independence while allowing contact as wanted with neighbouring units. This section covers the management of the following 3 complexes with a total market value of $8,930,000 at: Achilles Court; Waiheke Court; Rakaia Place. Public Rental Housing - Fair Value $283,000 $3,225,000 $5,422,000 Land Improvements Site Works Figure 40 Public Rental Housing Fair Value The major issues facing Council s management of the public housing stock is reconciling quality and functionality with the affordable accommodation intent of these properties. 107

134 Section 8 Assets and Lifecycle Management Assets and their value included in this asset management plan are: Achilles Court Waiheke Court Fair Value $ 4,480,000 Improvements $ 2,712,000 Land Value $ 1,600,000 Fair Value $ 1,080,000 Improvements $ 550,000 Land Value $ 490,000 Remaining Useful Life 58 Years Remaining Useful Life 33 Years Replacement Cost $9,514,700 Replacement Cost $1,480,100 Annual Depreciation N/A Annual Depreciation N/A 23 Amesbury Street, Achilles Court includes 44,one, two and three bedroom units 91 Ferguson Street, Waiheke Court includes 8 two and three bedroom units Rakaia Place Fair Value $ 3,370,000 Improvements $ 2,160,000 Land Value $ 1,135,000 Remaining Useful Life 52 Years Replacement Cost $6,456,600 Annual Depreciation N/A 245 Ferguson Street, Rakaia Place includes 40, one, two and three bedroom units 108

135 Section 8 Assets and Lifecycle Management A map in Appendix G shows the locations of individual complexes. The Public Rental activity also manages some former staff (caretaker) housing which are strategic holdings relating to other activities such as parks or forestry. Council wishes to retain the buildings until the land or buildings are required for other purposes. These are: 1461 Napier Road (Ashhurst Domain strategic holding) 314 Fitzherbert Avenue (Victoria Esplanade strategic holding) 51 Totara Road house (Totara Road properties strategic holding) 1002 Scotts Road (Forestry strategic holding) 84 Waldergrave Street (Arena Manawatu strategic holding) 11 Oakley Street (Arena Manawatu strategic holding) 7 Oakley Street (Arena Manawatu strategic holding) Council is in the process of considering purchasing 9 Oakley Street property (Arena Strategic holding). Asset components and types used are listed in Appendix F and summaries of the quantity and average remaining useful life for each broad category of components in each asset group are provided in Appendix H Asset Condition The buildings at the complexes are relatively new and generally of solid structure with discrepancies in condition of interiors between complexes. Generally upon the departure of a tenant, the unit is redecorated but extensive renewal is required in some units. Rakaia Place units have been constructed cheaply resulting in significant maintenance issues and reduced condition grades. A detailed condition assessment on a component basis has been completed using SPM for all Public Rental Housing units. Condition grades were assigned using the following scale: Condition Grade Definition 1 Very Good 2 Good 3 Moderate 4 Poor 5 Very Poor The following figure shows that 96% of the Public Rental Housing assets are in Good or Very Good condition. 109

136 Section 8 Assets and Lifecycle Management Condition Grade Profile 4% 0% 0% 44% 52% Very Good Good Moderate Poor Very Poor Figure 41 Condition Grade Profile - Public Rental Housing The condition grade distribution for each of the Public Rental Housing complexes which were assessed using SPM are shown in the following graph: Public Rental Housing 100% 90% 80% 70% 60% 50% 40% 30% Grade 5 Grade 4 Grade 3 Grade 2 Grade 1 20% 10% 0% Achilles Court Rakaia Place Waiheke Court Figure 42 Detailed Assessments - Condition Grade Breakdown for Community Housing Capacity and Performance Quality/Functionality Units and their fixtures and fittings are generally functional and cost-effective but dated, and the building materials and aesthetics/décor are consistent with the age and function of the buildings. The quality of building materials at Rakaia Place are of a lower standard than the other housing complexes 110

137 Section 8 Assets and Lifecycle Management which has resulted in ongoing maintenance issues. Privacy issues have also been identified in Rakaia Place. Cost and Efficiency Rental charged for these properties is reviewed annually and set at comparable market rates. The rental charged achieves the target occupancy rates as detailed in the Levels of Service. Location The location of the complexes is considered adequate, with most complexes close to the town centre, shopping complexes and arterial bus routes. Health/Welfare Units are maintained to provide a healthy environment, with heaters installed in most units. The lay-out of the complexes, lighting, smoke alarms, and resident interaction provides a good level of security/safety. The Housing Liaison Officer ensures that tenants concerns and complaints are resolved in line with the desired Level of Service. Investigations are underway to improve dampness and ventilation issues in the Rakaia Place units. Capacity, Utilisation and Performance There are 92 Council rental housing units. Current utilisation of the facilities is high with current occupancy of 92% with the average monthly occupancy for the 2013 calendar year being 93%. Certain areas of the City and complexes are considered more desirable than others, with the demand for those complexes exceeding current stock. Each tenancy is for a maximum of five years with a review at two years. Performance is good with progressive renewals ensuring the units are fit for purpose Operations and Maintenance Plan Operations The day-to-day operations and maintenance of the Public Rental Housing is undertaken by City Enterprises. Routine inspections are undertaken to monitor asset condition and identify the need for maintenance and renewal work. The Council ensures that individual properties are inspected at least once annually, and/or when properties are vacated. These inspections also provide the opportunity to gather performance information and so provide an input into development work and/or disposal planning. The inspections provide the necessary information so that all unplanned maintenance items are completed, annual routine/programmed maintenance and renewal budgets are sufficient to maintain the buildings to a satisfactory standard, and information can be fed into upgrade/development budgets to achieve strategic goals, improved levels of service or to mitigate identified risk events. Maintenance The 3-year term maintenance contract is managed by City Networks and undertaken by the Operations Division of City Enterprises. The contract has been put in place in response to the large volume of work generated by the 92 housing units owned by the Council to gain efficiencies both in terms of cost and level of service. Maintenance works include: 111

138 Section 8 Assets and Lifecycle Management Unscheduled Maintenance. The contract allows tenants to contact the Operations Unit directly for resolution of unplanned or minor maintenance issues. The Contract has specified response times as reflected in the Levels of Service. Scheduled Maintenance. City Networks develop planned maintenance programmes to ensure assets remain in acceptable condition to manage the risk of asset failure and so that they continue to meet the specified levels of service. Vacated units are inspected and any necessary maintenance work (and/or refurbishment) is undertaken promptly so that the units may be re-let as soon as possible to reduce resident waiting times and maintain target occupancy rates. Operations and Maintenance Forecast Preventative maintenance includes: Gutter cleans House washing Tree trimming. Reactive maintenance day-to-day as required to maintain the level of service of the property. Interior redecorating/refurbishment continue as required by fair wear and tear. Operations and Maintenance expenditure for Public Rental Housing is shown at an average of $682,292 per year over the 30 year planning period and is based largely on historical trends. $1,200,000 Public Housing - Operational Costs $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 2015/ / / / /20 Operations & Maintenance Revenue Figure 43 Public Rental Housing Operational Cost and Revenue Renewals Plan Renewal needs are identified through the scheduled asset condition assessment inspections undertaken by Council staff and the investigation of complaints and requests from tenants. 112

139 2015/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / /45 Section 8 Assets and Lifecycle Management Renewal Forecasts $300,000 Public Housing & Investment Property - 5 year Renewal Profile $250,000 $200,000 $150,000 $100,000 $50,000 $0 2015/ / / / /20 Capital Renewal Depreciation Figure 44 5 Year Renewals Profile Public Rental Housing $1,600,000 Public Housing & Investment Property - 30 year Renewal Profile $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Capital Renewal Depreciation Figure Year Renewals Profile Public Rental Housing and Investment Properties The indicative 50 year age based renewal profile is shown in Figure 46 follows. Structural renewals of two of the three complexes fall outside the next 50 years. 113

140 Section 8 Assets and Lifecycle Management Public Rental Housing - 50 Year Age Based Renewal Profile $1,600,000 $1,400,000 Rakaia Structure $1,200,000 $1,000,000 $800,000 $600,000 $400,000 Rakaia Services Waiheke Roof Achilles Roof $200,000 $- Figure Year Age Based Renewals Profile Public Rental Housing Development Plan There are no capital plans for Public Rental housing. Council does not provide Public Rental Housing as a proportion of population. Any increase in the existing stock is a policy decision Disposal Plan There are no plans to dispose of any of the public rental housing stock Risk Management The AMP risk management plan for this activity was reviewed in The resulting risk identification and assessment schedule (refer Appendix D) was prepared and forms part of this AMP. Risks of high severity identified for Public Rental Housing in the 2014 reviews are: Risk Category Risk Event Assets/Functions Affected Caused By Existing Controls Natural Hazard or Other Event Risks Fire destroys building(s) and results in serious injuries or deaths. Buildings - all components. Various sources, e.g. arson, electrical fault, accidental ignition. Response planning and reactive maintenance. Fire safety provisions. Table 31 High Consequence Risks Public Rental Housing A full risk profile is in Appendix D. 114

141 Section 8 Assets and Lifecycle Management Financial Summary Public Rental Housing property operational expenditure & revenue forecasts are: $1,200,000 Public Rental Housing Financial Summary - Operational Costs and Revenue $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Operations & Maintenance Revenue Figure 47 Public Rental Housing - 30 Year Operational Expenditure & Revenue Summary 8.9. Community Centres and Community Agency Housing Asset information Council provides 8 Community Centres and 3 Community Agency Houses The development of the suburban community centres began in 1971 with the Awapuni Community Centre. This was followed with the purchase of Rangiora Hall in 1976 from the Methodist Church through to the most recent, Highbury Whanau Centre developed in Community Agency Housing includes the new purpose built Community House, Waldegrave and Cambridge Avenue property in Ashhurst. Typically the agencies enter into a lease agreement with Council and the buildings are modified to meet the community s needs. 115

142 Section 8 Assets and Lifecycle Management The size, age and value of each of the Community Centres and Community Agency Housing are shown in the following table: Community Centre Size (m2) Year Fair value Awapuni - Awapuni Park $474,000 Ashhurst Village Valley Centre - Guildford Street $1,482,000 Kelvin Grove - Kaimanawa Park $388,000 Rangiora Hall - Rangiora Avenue $303,000 Milson - Milson Shopping Centre $700,000 Westbrook - Bill Brown Park $539,000 - includes Sportsfield Changing rooms. Highbury Whanau Centre - Monrad Park $1,990,000 Community Leisure Centre Ferguson Street 1, $1,627,000 Works Pit Ashhurst Red Cross (Agency House) Community House - King Street (Agency House) $55,000 1, $2,650,000 Centre - Waldegrave Street (Agency House) $245,000 Table 32 Community Centres - Size, Year Built and Value The Community Agency buildings are leased, the lessee meets all day to day operating costs, rates and insurance, and the Council meets the costs of building maintenance and renewals. Asset components and types used are listed in Appendix F and summaries of the quantity and average remaining useful life for each broad category of components in each asset group are provided in Appendix H Asset Condition A condition assessment of all Community Centres was undertaken in June 2013 using SPM. Condition grades were assigned using the following scale: Condition Grade Definition 1 Very Good 2 Good 3 Moderate 4 Poor 5 Very Poor The following figure shows that 97% of Community Centre assets (by replacement cost) are in Good or Very Good condition. 116

143 Section 8 Assets and Lifecycle Management Condition Grade Profile Very Good Good Moderate Poor Very Poor 2% 0% 1% 19% 78% Figure 48 Condition Grade Profile - Community Centres Community Centres Condition Breakdown 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Grade 5 Grade 4 Grade 3 Grade 2 Grade 1 Figure 49 Detailed Assessments - Condition Grade Breakdown for Community Centres The last three years has seen renewal programmes completed at most centres. This work has included the upgrade of heating, bathrooms, both interior and exterior painting, flooring and roof upgrades as required Capacity, Utilisation and Performance The capacity of Community Centres is generally considered good with a geographic spread of centres across the community. A feasibility assessment is underway in 2013/2014 for the planned new community centre in Kelvin Grove/Whakarongo to assess options. 117

144 Section 8 Assets and Lifecycle Management Community centres are generally well used with particularly strong levels at well managed facilities such as the Palmerston North Community Leisure Centre, Kelvin Grove (Kaimanawa Street) and Rangiora Centres. Some exceptions have included Milson Community Centre and in some cases utilisation has varied depending on the strength of the management committee. The Management Committee at each Community Centre ensures the needs of its community are met through the scheduling of bookings and the determination of the hireage prices. When a centre cannot accommodate a booking, Council provides a liaison service between community centres, on the hirer s behalf, to effect a booking. The Urban Design Strategy 2010 includes a driver to take opportunities to create sense of place. Community Centres provide neighbourhood based opportunities. Future renewals need to consider these opportunities and engage local users and communities to deliver improvements. Community centres buildings are performing well. The exception is Milson Community Centre, which as a converted post office is not generally in keeping with other facilities. Community Agency Housing performance is generally very good. Community House meets community demand for a shared community agency building. Being new its performance is excellent. The exception is Ashhurst Cambridge Avenue (Red Cross) property is in poor condition and was identified for disposal for a number of years. Regular maintenance on the facilities ensures that they are available to users throughout the year. The costs of ongoing maintenance are relatively high as most of the buildings are of wooden construction and are subject to repeated attacks of vandalism. All of the community centres have now been upgraded to accommodate easy access for persons with disabilities Operations and Maintenance Plan The operations and maintenance of the Community Centres is undertaken by the following groups: Community Services provides contract management and liaison with the Management Committees. They are the lead unit and provide direction on community needs and future development. The Community Centre Management Committees deal with the hire, conditions of use and charges for use of the facility in line with conditions set down in the Community Centre Management agreements. The contract between the Council and each Community Centre Management Committee outlines the committee s responsibilities regarding hirers use to groups including damage resulting in any such hire. City Network ensures that building inspections are undertaken, warrant of fitness are current, renewals and major maintenance items are programmed, and provides advice on programmes for capital development lead by Community Services. City Enterprises provides a limited cleaning service, supplies materials, carries out minor internal maintenance and responds to damage within set financial limits on behalf of the client. Work includes: Minor Maintenance - Maintaining the building structure and all permanent fixtures and fittings including response to blocked or broken sewer, water or stormwater pipes, broken windows, doors, locks and any leakage to building. Servicing - Providing a limited cleaning services to include kitchen, toilets, halls and passageways, changing and meeting rooms, windows and internal pipework on a maximum weekly basis. All paper towels, soap, toilet blocks, paper and light bulbs are replenished when necessary. Supply of Utilities - Providing gas, electricity, telephone (billboards), security and sanitation services, rates and insurance. The 5 year financial forecast is shown below. Projected expenditure over the next 30 years is detailed in Appendix E. 118

145 Section 8 Assets and Lifecycle Management Community Centres and Community Agency Housing - Operations & Maintenance $250,000 $200,000 $150,000 $100,000 $50,000 $0 2015/ / / / /20 Operations & Maintenance Revenue Figure 50 Operational and Maintenance Financial Forecast Community Centres The bulk of the income is from Community House. Community Centres booking groups retain the funds generated from hire to use back on the centres and cover some costs Renewal Plan The Community centres renewals programme has been determined as a result of both the condition assessment and the predicted usage of the facilities. Recent renewal has been: Kelvin Grove bathroom upgrade in 2012/13. Awapuni and Westbrook fitout renewal in 2011/12. Rangiora heating upgrade in 2012/13 Renewals forecasted in the next 5 years are shown in the following graph. 119

146 Section 8 Assets and Lifecycle Management Community Centres & Agency Housing - 5 year Renewal Profile $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2015/ / / / /20 Capital Renewal Depreciation Figure 51 Community Centres 5 Year Renewal Profile $600,000 Community Centres & Agency Housing - 30 year Renewal Profile $500,000 $400,000 $300,000 $200,000 $100,000 $0 Capital Renewal Depreciation Figure 52 Community Centres 30 Year Renewal Profile Renewal in the short term are for fitout elements with structural and services renewals are outside the 30 year timeframe for some centres. Data is incomplete in the new asset management system with further work required to incorporate structural renewals profiles. Cross checking using the age based profile shows some structural and services renewals are likely to be required in 2035, 2040 and

147 2015/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / /45 Section 8 Assets and Lifecycle Management Community Centres - 50 Year Age Based Renewal Profile $2,500,000 $2,000,000 Village Valley Centre Structure & Services Westbrook & Leisure Centre Structure $1,500,000 $1,000,000 Leisure Centre Services & Rangiora Structure Ashhurst Structure $500,000 $0 Figure 53 Community Centres 50 Year Age Based Renewal Profile Development Plan New community centres, possibly shared with other community infrastructure such as branch libraries, are planned for Kelvin Grove (covered in the Libraries section as includes a branch library) and City West urban growth area for 2033/ Community Centres & Agency Housing - Capital New Figure 54: Community Centre and Agency Housing - Capital New 121

148 Section 8 Assets and Lifecycle Management Disposal Plan There are no current plans for disposal of any community centres or community agency housing. The review of Community centres lead by Community Services will provide direction for the next AMP Risk Management The AMP risk management plan for this activity was reviewed in No high severity risks were identified. Moderate risks include: Fire, vandalism, failure to meet customers needs or increasing private provision. Council has engaged an engineer to review earthquake strength of its buildings Financial Summary $350,000 Community Centres and Community Agency Housing - Operations & Maintenance $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Operations & Maintenance Interest Revenue Figure 55 Community Centres Operational 30 Year Financial Summary Operating expenses are forecast to remain steady. While some building renewals may decrease maintenance for some facilities other facilities will continue to age and have greater reactive maintenance costs. Revenue is from leases and largely relates to Community House. 122

149 Section 8 Assets and Lifecycle Management Investment Properties Asset Information The purpose of investment properties is to provide income from assets with which to offset costs of other Council activities, and which may also be of strategic importance. The building structures are maintained to a standard appropriate for tenanting, with provision and maintenance of internal fitout the responsibility of the lessee. This section covers the management of the following retail and investment properties with a total fair market valuation of $5,290,000 and a forestry block with a value of $1,670,000: Investment Properties (incl. Forestry) - Fair Value $175,300 $3,700,000 $5,284,700 Land Improvements Site Works Figure 56 Investment Properties Fair Value Assets and their value included in the asset management plan are: Regent Theatre Shops Civic Centre shops Library shops George Street shops Holiday Park Gordon Kear Forest 123

150 Section 8 Assets and Lifecycle Management REGENT THEATRE SHOPS: Fair Market Value - $1,160, Broadway m 2 Retail space 51 Broadway 42.6m 2 Retail space 55 Broadway m 2 Retail space 57 Broadway Regent Arcade 181.5m 2 restaurant/bar, 96 King St m 2 Retail space 124

151 Section 8 Assets and Lifecycle Management CIVIC CENTRE SHOPS - Fair Value $590, Main Street (Gaskin Fabrics) m Main Street (The Hair Company) 76.5 m Main Street (Sumak Sushi Bar) 76.5 m Main Street (Smart Phone repairs) 76.5 m 2 125

152 Section 8 Assets and Lifecycle Management Library Building Shops Fair Market Value - $3,240, George Street (Moxies Cafe) m George Street (Indian Indulgence) m George Street (The Barista Cafe) m George Street (Capelli - Retail Store) 86.9 m George Street (Wildly Gifted Retail Store)) 59.1 m George Street (Tech Boutique) 49.6 m 2 Library Building Shops (ctd.) 51 George St (Bruce McKenzie Books) 4 The Square (Public Trust) - 306m 2 130m 2 126

153 Section 8 Assets and Lifecycle Management George Street Shops Fair Market Value - $300,000 Holiday Park Fair Market Value - $2,200,000 Retail shops at number 62/64 George Street, Located in the South of the city, the Holiday Park is situated adjacent to the Lido, Victoria Esplanade Gardens and the Manawatu River. Gordon Kear Forest Fair Market Value - $1,670,000 Gordon Kear Forest is an investment property but is covered in the Forestry separately section. Asset components and types used are listed in Appendix F and summaries of the quantity and average remaining useful life for each broad category of components in each asset group are provided in Appendix H. 127

154 Section 8 Assets and Lifecycle Management The investment activities also manage the Strategic Properties with a commercial nature until such time as they are required for their strategic purpose. They are covered in a separate section and include107, 107A and 107B Cuba Street (Arena Manawatu Strategic holding) Asset Condition Routine visual inspections of the retail properties indicate that they are generally in good condition. The retail properties incorporated into a complex are generally in a similar condition to that complex. These properties are associated with the Regent, Library and Civic Centre, all of which are in very good condition. The George Street shops are in moderate condition. A condition assessment of the Holiday Park was undertaken in November 2013 using SPM. Condition grades were assigned using the following scale: Condition Grade Definition 1 Very Good 2 Good 3 Moderate 4 Poor 5 Very Poor 83% of the Holiday Park asset components (by replacement cost) are in Good or Very Good condition, with only 4% rated as Poor or below. Holiday Park Condition Grade Profile 13% 3% 1% 42% 41% Very Good Good Moderate Poor Very Poor Figure 57 Condition Grade Profile Holiday Park Asset Capacity and Performance Quality/Functionality The fitout of each Investment Property is the responsibility of the tenant. From inspections undertaken by the Property Management Officer, the overall quality and functionality of the investment properties is considered to be adequate. 128

155 Section 8 Assets and Lifecycle Management Cost The lease costs for investment properties are based on market rates for comparable properties. Location The location of all properties is considered good with all properties situated within the Central Business District. Health/Welfare Emergency and climate control provisions within the properties is considered adequate. Capacity, Utilisation and Performance Utilisation of the facilities is currently high with many properties occupied by long-term lease tenants. The properties are in desirable locations and tenancies have held up well in current downturn to date. There is some threat the changes in retail patterns and general downturn in the economy will reduce tenancy rates. The holiday park capacity is good. There has been some request for a bunk room type facility from the operator. Utilisation is good but there is some mixed performance for some cabins that needs addressing through the renewal programme Operations and Maintenance Plan Operations The day-to-day operations of the investment properties are undertaken by the building occupiers, although City Networks staff carry out routine inspections to monitor asset condition and identify the need for maintenance and renewal work to the building structure. The Council ensures that individual properties are inspected at least once annually, and/or when properties are vacated. Further, these inspections provide the necessary information so that all unplanned maintenance items are completed, annual routine/programmed maintenance and renewal budgets are sufficient to maintain the buildings to a satisfactory standard, and upgrade/development budgets are sufficient to achieve strategic goals, improved levels of service or to mitigate identified risk events. Maintenance Maintenance for the investment properties (other than internal fitout) is managed by City Networks. Unscheduled Maintenance. Maintenance work for the investment property is minor and is managed by the Cultural Facilities Officer. The Cultural Facilities Officer selects an appropriately skilled tradesperson to attend to the maintenance issues as identified either by verified tenant requests, or through routine inspections. Maintenance associated with the fitout of each Investment Property is the responsibility of the tenant. Scheduled Maintenance. Scheduled maintenance programmes are developed from an assessment of factors such as asset condition and routine preventative maintenance requirements. A 10 year Schedule of Planned Maintenance is updated annually. Revenue, Operations and Maintenance Forecast Operations and Maintenance expenditure for investment properties is shown at an average of $ income per year over the 30 year planning period and is based largely on historical trends. Projected operations and maintenance expenditure for the next 5 years is summarised below: 129

156 Section 8 Assets and Lifecycle Management $500,000 Investment Properties - Operational Costs $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Operations & Maintenance Interest Revenue Figure 58 Investment Properties 5 Year Operations and Maintenance Forecast Renewal Plan Major renewals needs are identified through routine inspections undertaken by both independent consultants and staff of the Council. They may also arise from notification by the occupants of the building. The renewal of assets associated with the fitout of each investment property is the responsibility of the tenant. Major renewals works budgeted for within the next 3 years include renewal works to the roofing, services and internal fit-out assets at the holiday park, although these works have only been preliminarily identified from the valuation information and require on-site confirmation. Projected renewal expenditure for the next 5 years is summarised in the following graph. 130

157 2015/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / /45 Section 8 Assets and Lifecycle Management Public Housing & Investment Property - 5 year Renewal Profile $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 2015/ / / / /20 Capital Renewal Depreciation Figure 59 Public Housing and Investment Properties 5 Year Renewal Profile Renewals are largely at the Holiday Park with some minor shop renewals. The long-term (30 year) forecast renewals expenditure requirement for the investment properties and public rental housing is shown below; $1,600,000 $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $0 Public Housing & Investment Property - 30 year Renewal Profile Capital Renewal Depreciation Figure 60 Public Housing and Investment Properties 20 Year Renewal Profile 131

158 Section 8 Assets and Lifecycle Management Investment Properties - 50 Year Age Based Renewal Profile $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 Figure 61 Investment Properties Age based 50 Year Renewal Profile The age based renewal work analysis based off lives assigned to asset components. Most of these renewals are replacement of cabins at the holiday park. The age-based and asset management system generated profiles are generally show consistent trends Development Plan The development of Wildbase Recovery in the Victoria Esplanade presents an opportunity to reuse the existing education centre earmarked for disposal to make way for the new facility. The education layout suits conversion to a bunkhouse for the holiday park although relocating and reinstating it is will cost $130,000 due to the building being built on a concrete slab Disposal Plan The disposal of an investment property would occur through the need to develop the land upon which the asset sits, when it is not possible or economic to retain the asset in question, rates of return are not high enough, or when the asset is no longer suitable for providing the service it is intended for. There is currently no plan to dispose of any Investment Property Risk Management The AMP risk management plan for this activity was reviewed in The resulting risk identification and assessment schedule (refer Appendix D) was prepared and forms part of this AMP. No high risks were identified for investment properties although it is noted that the high risks associated with operational and cultural properties can apply to the retail shops owned by Council since they are often part of the same structure. Those high severity risks identified in the 2014 review are: 132

159 Section 8 Assets and Lifecycle Management Risk Catagory Risk Event Assets/Function Affected Caused By Existing Controls Service Failure Condition Based Major building failure resulting in closure for weeks or months Frequent ingress of water causing moderate damage or inconvenience Building all components Buildings fittings, interior, structure. Poor design or maintenance Leaks or blockages in plumbing or roof. Routine inspections, code compliance status, WOF. Business continuity planning. Enactive maintenance capability. Table 33: High Severity Risks relevant to Investment Properties Work on earthquake risk assessment and mitigation of Council infrastructure is planned over the early stages of this plan. An engineer has been engaged to assess Council properties for earthquake strength Financial Summary Investment property expenditure forecasts are summarised in Figure 62. $390,000 $385,000 $380,000 $375,000 $370,000 $365,000 $360,000 $355,000 $350,000 $345,000 $340,000 Investment Properties - Operational Costs Operations & Maintenance Interest Figure 62 Investment Property 30 Year Expenditure Forecast Summary The costs for this activity are fairly constant. Renewals costs are covered within the Cultural and Operational property portfolios since the investments properties are part of those buildings. 133

160 Section 8 Assets and Lifecycle Management Forestry Asset Information The Council s assets within the Gordon Kear Forest are included in this section. This forest is jointly owned with Manawatu District Council as the joint venture partner and located on Scotts Road. Fair Market Value - $1,670, Asset Condition The condition of Council improvements within the forest (fences, roads and culverts) is assessed to be fair Capacity, Utilisation and Performance The forest has the capacity to around 380 ha of production forestry and is used to its maximum potential accounting for forest harvest consent requirements. The key performance measure for Forestry is the return on investment. This is difficult to measure until the forest is harvested, although provision of enabling assets, such as bridges and roads, are required to enable the necessary operations to maximise this return. It had been anticipated that a good rate of return would be achieved, and recent log prices have been good. However future prices may be affected by the general economic climate Operations and Maintenance Plan Operations Council inspects the improvements periodically so that any unplanned maintenance required is completed, and so that any issues which may arise, including performance issues, are identified. 134

161 Section 8 Assets and Lifecycle Management Maintenance Maintenance work for the Forestry is limited and is managed by the Forester. The Forester selects an appropriately skilled tradesperson to attend to the maintenance issues as identified through routine inspections. Operations and Maintenance Forecast The projected operational costs and revenue associated with maintaining and harvesting the forest over the next 10 years in Gordon Kear forest are shown in the following table. This asset is classified as an investment and is subject to an annual revaluation but no depreciation charge. Operational ($000s) 2015 / / / / / / / / / / 25 Harvest Proceeds Physical works, consultancy, insurance & rates Interest MDC Contribution Net proceeds to Council Table 34 Forestry Operational Expenditure Forecast Renewal Plan Replanting of the forest is included in the development plan Development Plan The development plan is focussed on the development of the internal roading and associated engineering works within Gordon Kear Forest. This is to enable logging trucks to gain access to and transport logs from the forest during harvest. Harvesting has commenced and is scheduled to continue through to 2016/17 in order to realise the investment and repay significant forest encouragement loans. There is no plan to increase the size of the forestry holding. Any change in the size would be a policy decision of Council. Development ($000s) 2015 / / / / / / / / / / 25 Internal forest roads Replanting Total Table 35 Forestry Development Expenditure Forecast 135

162 Section 8 Assets and Lifecycle Management Disposal Plan The disposal of the forest would occur when it is not possible or economic to retain the asset in question, rates of return are not high enough, or when the asset is no longer suitable for providing the return on investment it is intended for. With the introduction of the Emissions Trading scheme there would be penalties for the Council as landowner if there was a change of land use Risk Management Risks for the forestry largely relate to the operations of harvesting and replanting. All contractors are required to apply industry standard to health and safety practices. Public access to the forest is controlled, by permit only, allowing management of public risk Reserve Leasehold Asset Information This asset group includes properties that have been gifted to the city by the Crown which is leased for residential purposes. This section covers the management of the following 3 properties with a total fair market (land) value of $357,000: 289 Fitzherbert Avenue lease expires Guy Ave lease expires Ruahine St lease expires Asset Condition Council s assets are limited to the land. No condition assessment is required Capacity, Utilisation and Performance These properties were acquired through historical reasons and stock is shrinking as existing land holdings are bought out by the leaseholder. There are no performance measures associated with Reserve Leasehold land Operations and Maintenance Plan Operations Operations work activities are limited to administering the leases. Maintenance There are no maintenance work activities. Revenue Projected revenue from these properties is $24,000 per year Renewals Plan There are no planned renewals associated with reserve leasehold properties. 136

163 Section 8 Assets and Lifecycle Management Development Plan There are no planned developments associated with reserve leasehold properties. Policy is to divest these assets not develop or increase the portfolio Disposal Plan Existing stock is shrinking as leaseholders freehold the properties upon which they have built their improvements Risk Management Council only owns the land for these properties. Risks relate to lease arrangements and are relatively minor Strategic Properties Asset Information This asset group includes properties that are held for strategic reasons for long term development of Arena Manawatu: 7 Oakley Street Fair Market Value: $150, Oakley Street Fair Market Value: $280, Cuba Street Fair Market Value: $390, A and 107 B Cuba Street (Waldergrave) Fair Market Value: $247,

164 Section 8 Assets and Lifecycle Management 84 Waldergrave Street Fair Market Value: $220,000 Council is currently in the process of investigating 9 Oakley Street as strategic holding for future Arena Manawatu development Asset Condition Condition grading of these assets is in progress Capacity, Utilisation and Performance There are 5 strategic properties. They are used to generate income until required for their strategic purpose wherever possible with case-by-case assessment. The properties are held in a moderate state given the long term intention to dispose of the buildings to allow other development to occur and the uncertainty around timing Operations and Maintenance Plan Operations The strategic properties are managed under the public rental and investment activities until such time as they are required for their strategic purpose. Maintenance The strategic properties are managed under the public rental and investment activities until such time as they are required for their strategic purpose Revenue Projected revenue from these properties is $24,000 per year Renewals Plan It is anticipated that these properties will be used for their strategic purposes prior to any major renewals being required Development Plan There are no development plans as Councils medium to long term plans are to dispose of the buildings to make way for other uses. 138

165 Section 8 Assets and Lifecycle Management Disposal Plan The 3 strategic properties buildings will be disposed of when Arena Masterplan reviews are complete and Council direction and timing on their development is set Risk Management The risks are the same as those listed for public rental and investment properties Key AM Plan Improvement Projects for the Assets and Lifecycle Management section Develop improved business case template to ensure full assessment of projects (Improvement Plan Category1) Document changes to AMP programmes that arise through LTP & AP process (Category 1) Continue to develop predictive modelling (Category 2) Develop processes to prioritize risk mitigation options (Category 2) Update detailed asset component and condition information in AM system (Category 3) Review AM system data quality process & improve as required (Category 3) Review condition assessment programme (Category 3) Review performance data needs (Category 3) Analyse asset lives using available data (Category 3) Assess advanced AM system needs and implement suitable application (Category 3) Work on optimising O&M programmes (Category 4) Further develop processes to ensure competitive prices are obtained (Category 4) Review delivery of services as required by LGA section 17A (Category 9) 139

166

167 Section 9 Financial Projections and Trends 9. Financial Projections and Trends This section outlines the long-term financial requirements for operations, maintenance and capital renewal and development for the Property activities based on the long-term strategies and tactics described earlier in the Plan. Funding issues are discussed and the key assumptions made in preparing the financial forecasts are identified Long Term Financial Forecast The 30-year financial forecast for all Council property assets are based on the forecasts for each asset group outlined in the lifecycle management plans. The following graphs provide overall profiles while the consolidated financial table provides more detail. $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Property 30 year Financial Summary - Operations and Interest Operations & Maintenance Interest Revenue Figure 63 Property 30 Year Financial Summary Operations, Interest and Revenue Operational costs are forecast to increase over the first few years. There are few captial projects in the overall portfolio and those that there are will have little impact on operationas and maintenece costs in the next 30 years. While revenue appears very strong it is noted that internal transfers are included. Renewals in the next 30 years run at about 65% the rate of deprecaition for the following reasons: There will be a some building strutural renewals in the years The earthquake strengthening programme ($15 milllion under new capital) will lengthen the lives of some buildngs. The Papioea Community Housing upgrade ($4 million under new capital plus existing 2014/2015 budgets of $4.125 million) will also renew that facility briding that gap. 141

168 2015/ / / / / / / / / / / / / / / / / / / / / / / / / / / / / /45 Section 9 Financial Projections and Trends Property 30 year Financial Summary - Renewals $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 Capital Renewal Depreciation Figure 64 Property 30 Year Financial Summary Renewals Capital new projects shown in the graph below include: $4M Community Housing (Papaioea Place) ( ) $0.945M Kelvin Grove Community Centre/Library ( ) $15.25M Seismic strengthening of Council owned buildings ( ) $0.88M City West new Community Centre ( ) $6,000,000 Property 30 year Financial Summary - Capital New $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 Figure 65: Property 30 Year Financial Summary 142

169 Section 9 Financial Projections and Trends Growth versus levels of service The following table summarises the distribution of new capital development works between levels of service increases and growth drivers: Project LOS Growth Community Housing (Papaioea Place) $4,000,000 - Kelvin Grove Community Centre/Library $945,000 Seismic strengthening $15,250,000 - City West Community Centre - $880,000 Table 36 Growth versus capital works 143

170 Section 9 Financial Projections and Trends 9.2. Asset Valuation Council Property assets were revalued as at 30 June 2013 in accordance with Financial Reporting Standard (FRS3) and the NZ Infrastructure Valuation Guidelines. Property Value $357,000 $9,411,000 $1,040,000 $11,597,000 $7,570,000 $1,465,000 $33,865,000 $18,455,000 $65,185,900 Community Centres Community Housing Cultural Facilities Forestry Investment Properties Operational Properties Public Rental Housing Reserve Leasehold Strategic Properties Figure 66: Property Fair Value as at 30 June 2013 Asset Category Land Improvements Site Works Plant/ Chattels Fair Value Community Centres $3,008,500 $8,309,500 $279,000 - $11,597,000 Community Housing $7,745,000 $10,010,000 $700,000 - $18,455,000 Cultural Facilities $13,108,000 $49,801,400 $916,500 $1,360,000 $65,185,900 Forestry $1,150,000 - $315,000 - $1,465,000 Investment Properties $2,445,000 $4,949,700 $175,300 - $7,570,000 Operational Properties $7,560,000 $25,464,500 $840,500 - $33,865,000 Public Rental Housing $3,449,000 $5,653,500 $308,500 - $9,411,000 Reserve Leasehold $357, $357,000 Strategic Properties $705,000 $306,000 $29,000 - $1,040,000 TOTAL $39,527,500 $104,494,600 $3,563,800 $1,360,000 $148,945,900 Table 37 Property Value by Activity as at 30 June

171 Section 9 Financial Projections and Trends 9.3. Confidence Levels The confidence in the asset data used as a basis for the financial forecasts has been assessed using the following grading system. Confidence grade A B C D General meaning Highly reliable. Data based on sound records, procedures, investigations and analysis which is properly documented and recognised as the best method of assessment Reliable. Data based on sound records procedures, investigations and analysis which is properly documented but has minor shortcomings. For example, the data is old, some documentation is missing, and reliance is placed on unconfirmed reports or some extrapolation. Uncertain. Data based on sound records procedures, investigations and analysis which is incomplete or unsupported, or extrapolation from a limited sample for which grade A or B data is available Very uncertain. Data is based on unconfirmed verbal reports and/or cursory inspection and analysis. Area Rating Description Asset Condition Data Asset Performance Data Asset Inventory Accuracy Demand/ Growth Forecasts B B B B Asset condition data is good with complete comprehensive condition grading carried out and recorded in a specialised property AMP system. Structural components data is reliable, assessed through the 2013 Replacement Valuation, although it is limited to broad structural categories. In terms of fitout detail Community Housing good data for fit out components through detailed survey, and annual monitoring inspections as well as liaison visits. Community Centres and Agency Housing Good data for fit out components through recent survey. Cultural Facilities Good staff knowledge but limited documented data. Public Rental housing good data through detailed survey and annual monitoring inspections. Operational Buildings good staff knowledge through continuous monitoring but limited documentation. Strategic Properties limited data. Reserve Leasehold Properties Not applicable land only leases. Constant monitoring of maintenance contract requirements, user surveys and observations provide this level of confidence. Good data on components but residual value/structural components require further investigation, validation and incorporation into renewals profiles. Good forecasting for population demographics based on Statistics NZ data. The Library Strategic Plan provides good direction. Review of Community centres demand and growth limited. Cultural facilities, other than libraries, rely on feedback from the facility operators (Trusts) for direction on demand. Operational Properties demand is well understood through corporate planning. Investment Properties demand is accurate. There is no corporate or political direction to increase the portfolio. Table 38 Data Reliability The confidence level is B Reliable Overall. This overall level should increased from a C uncertain in 2011 AMP following the review and completion of building auditing and condition assessments. Further work on the data for structural components will improve future work. 145

172 Section 9 Financial Projections and Trends 9.4. Funding Policy The Local Government Act 2002 requires the adoption of policies that outline how operating and capital expenditure for each activity will be funded. Council s Revenue and Financing Policy identifies: The community outcomes to which the activity primarily contributes; The distribution of benefits between the community as a whole, any identifiable part of the community, and individuals; The period in or over which those benefits are expected to occur; The extent to which the actions or inactions of particular individuals or a group contribute to the need to undertake the activity; The costs and benefits, including consequences for transparency and accountability, of funding the activity distinctly from other activities; The overall impact of any allocation of liability for revenue needs on the current and future social, economic, environmental and cultural wellbeing of the community. The funding source proportion from public, private, exacerbator and other sources are summarised below using the following scale: High % Med/High 60-79% Med 40-59% Med/Low 20-39% Low 0-19% These funding source proportions are not intended as an exact realisable proportion, rather as a guideline. The different types of expenditure are funded as follows: Operation and Maintenance Funded by subsidies and grants (where applicable), fees and charges (targeted rates where a fee or charge is not practical) and rates depending on how the benefits of the activity are assessed - as being for public or private benefit - or where costs can be attributed to an exacerbator Capital Renewal Funded from subsidies and grants (where available), with the balance of funding collected from rates for the forward 3 year rolling average renewals programme, Capital Development Funded from subsidies and grants (when available), user contributions and where necessary from borrowing. No development contributions are collected for this activity. 146

173 Public Private Exacerbator Other Section 9 Financial Projections and Trends Funding Source Proportions Community Outcome Activity Asset Groups A Growing Economy City Marketing Operational Properties: Convention Centre Information Centre High Low Low Low An Active Community Arts and Cultural Activities Library Te Manawa Cultural Facilities: Square Edge Old Workshop Caccia Birch High Low Low Low Cultural Facilities: Central Library Ashhurst Library Cultural Facilities: Science Centre and Museum An Active Art Gallery Community (ctd.) Performing Arts Facilities Cultural Facilities: Regent Theatre Globe Theatre High Low Low Low Stomach A Strong and Caring Community Community Housing Community Housing Low High Low Low Operational Properties: CAB An Effective and Responsible Council Investments Public Rental Properties Strategic Properties Investment Properties Low High Low Low Reserve Leasehold Properties Forestry Table 39 Property Asset Funding Source Allocation 147

174 Section 9 Financial Projections and Trends 148

175 Section 10 Asset Management Plan Assumptions 10. Asset Management Plan Assumptions This section sets out the key assumptions made in developing the asset lifecycle programmes and financial forecasts and identifies the likelihood and impact of variations from these assumptions Asset Ownership and Provision of Service Properties will remains in Council ownership and management except for reserve leasehold properties for which there is a policy of sale and George St Shops for which Council has directed their sale. There is a very high degree of certainty that all other properties will be retained assumption is valid for: elderly and special needs housing as a whole public rental housing as a whole that portion of the Civic Administration Building sited on the Square Te Manawa the Regent Theatre City Library (including branch libraries and mobile library) as a whole community centres as a whole As they have been identified as Strategic Assets and under the provisions of the Local Government Act 2002, Council cannot transfer ownership or control of a strategic asset, or construct, replace or abandon a strategic asset unless it has first consulted with the community and included the proposal in its operative Long Term Plan. There is no proposal to consult the community on their sale prepared. The balance of properties under the investment and strategic categories also have a high expectation of retention as most are either part of a wider builder structure e.g. shops under the City Library and Regent Theatre or relatively recently acquired. The exception may be the George Street shops that do not fit this description, being less encumbered. The sensitivity to their sale is viewed as low as they have little operational cost, low levels of renewal expenditure planned and small impacts on the investment portfolio Population Growth City population assumed to grow at 0.6% p.a. over the period. Statistics NZ medium growth forecasts recommended for planning purposes have been used. The plan is formally reviewed every 3 years and programmes will be adjusted on an annual basis for variances from that assumed. There is a low risk that planning for capital development projects for growth will not match actual needs Residential Growth Residential growth is assumed to occur within the existing residential land bank at Aokautere and Kelvin Grove followed by the area known as Whakarongo. The City West area is identified for medium to long-term residential growth subject to greater certainty regarding the costs and effectiveness of liquefaction mitigation and financial constraints. The Whakarongo area comprises 56.5ha and is expected to yield approximately lots. City West comprises 220ha and will yield approximately lots. Whakarongo, together with the existing residential zone land bank, provides ha or 17.5 years of greenfield residential growth based on the assumed growth trends. 149

176 Section 10 Asset Management Plan Assumptions The residential growth planned for Ashhurst at Winchester Street will have a no impact on the Property Activity over the term of the Plan Industrial Growth Industrial growth is assumed to occur as an extension to the existing North East Industrial Zone (NEIZ) for transport, warehousing, distribution and logistics and at Longburn for Wet Industry. It is envisaged the extent of the existing NEIZ and the NEIZ Extension Area (123 hectares) will be sufficient to meet the growth in large floor plate industrial activity over the next 20 to 30 years. Any future industrial development at Longburn will need to recognise the unique infrastructure constraints which currently exist in this location. Industrial growth is assumed to have no effect on the Property activity Retail Growth A centres based approach is assumed for managing retail and office activity throughout the city. This approach seeks to keep commercial activity centred in the core of the city and to avoid the dispersion of office and retail activity to the periphery of the urban area. This approach is given effect to through the District Plan hierarchy of business zones as follows: Inner Business Zone (IBZ) Outer Business Zone (OBZ) Fringe Business Zone (FBZ) Local Business Zone (LBZ) Retail growth is assumed to have limited or no effect on the property activity Rural Residential Growth It is assumed rural residential growth will have no impact on the Property activity Levels of Service Generally a similar level of service to that currently delivered applies but with minor adjustments as follows: LOS matter raised at Councillor workshop on 15/16 May Earthquake Strengthening Community Housing completion of the Papaioea renewal and improvements. How dealt with in the 2014 AMP Programme allowed under cultural facilities for $15 million over 7 years for all Council properties. $4 million in years one and two (effectively assumes carry forward of current budgets) Further levels of service changes may occur during this period. Cost implications and updating to the AMP will be made at the time they occur Construction Costs No major changes relative to current cost structure. 150

177 Section 10 Asset Management Plan Assumptions It is likely that the price of some components will change relative to others. Budgets are reassessed each year for the AP process to mitigate this risk. BERL inflation factors applied to the LTP also incorporate an element of price changes in different activity sectors Maintenance and Operational Costs These are largely based on historical rates and assume similar contract rates throughout the planning period. Inflation factors will be applied at the LTP level to reflect forecast price changes in different sectors Inflation Financial projections are based on July 2015 estimated costs. No inflation factors have been applied. BERL inflation factors will be applied to the programmes and budgets in the LTP. Budgets for successive years of the Annual Plan are based on the corresponding year of the LTP Depreciation Average asset lives at a project level for new works have been used to calculate depreciation. New works are a small percentage of total depreciation. Differences from actual due to averaging of lives are relatively minor Vested Assets On average the same level of assets are gifted to the council as a result of subdivision as has occurred over the last 5 years N.B. The rate of change of development will be taken account of in future revisions of the AMP and subsequent O&M and depreciation taken into account Service Potential Service potential of the asset is maintained by the renewal programme. There is low risk that the service potential of the asset will not be maintained by implementation of the renewal programme since this is based on reliable asset and condition information from the asset management system Asset Lives Asset lives are accurately stated. The risk that lives are inaccurate is low. Lives are based on generally accepted industry values modified by local knowledge. The asset database gives a good knowledge of asset condition and an extensive field assessment has recently been undertaken Natural Disasters That there are no major natural disasters requiring additional funds. 151

178 Section 10 Asset Management Plan Assumptions There is medium risk of a natural disaster occurring during this period requiring additional funds to repair or reinstate assets. Some further provision for increasing the resilience of the assets has been built into this plan but there is still further work to be undertaken to determine the desired level of resilience and the further asset improvements to achieve this Council Policy No significant change to Council policy that impacts on assets and services. Any significant change will require a full review of the AMP and implications identified at the time Other No significant LoS changes come out of: Arena Manawatu Masterplan review affecting Strategic Property holdings. Community Housing Strategy review affecting Community Housing and possibly Public Rental Housing. The Council decisions with regard to earthquake strengthening. 152

179 Section 11 Continuous Improvement 11. Continuous Improvement This section details an improvement programme to enhance asset management practices so as to increase confidence in the AM plan strategies and financial projections. It identifies the timetable for future reviews of the plan and measures adopted to monitor its effectiveness Overview The quality of AM practice has been enhanced over the past 17 years in line with the objective to match, but not lead, industry 'best practice' in New Zealand. This version of the AM plan incorporates the following key improvements undertaken over the last three years: Improvements over the last three years Development Works Planning Residential Growth and Industrial Growth Planning (refer to Section 5) Council s Residential Growth Strategy was adopted on 30 September In October 2011 Council authorised the preparation of a proposed District Plan change to give effect to the Residential Growth Strategy within the District Plan. Development works included in the 2011 AMP to meet growth were based on the 2010 Residential Growth Strategy and the identified NE industrial growth area. Planning work was carried out based on these specific growth areas and the expected number of lots to be provided, and from that, the asset development works needed to service this growth. It was assumed that there would be sufficient capacity within the existing assets to service the residential growth proposed for Ashhurst. The 2014 AMP reflects Council s review of the order in which new residential development will take place. Previously, it was assumed that the area known as City West and comprising some 2,500 new residential lots, would precede residential development of the area known as Whakarongo, having some 640 new lots. Subsequent geotechnical assessments of the two sites identified that the soil type at City West was susceptible to liquefaction and lateral spreading. While not ruling the area out for future residential development, the high level of uncertainty regarding possible and affordable mitigation options has meant that the Whakarongo area is now planned to be developed ahead of City West. Demand Projections (refer to Section 5) Demographic and economic trends for the City have been analysed and reported by City Future staff (May 2014). The growth rate assumptions arising from this work provide the basis for population and household growth projections that have been used in this revised AMP. Risk and Resilience (refer to Section 6) A review and assessment of asset risks, risk criticality, risk mitigation, resilience and preparedness for natural disasters has been completed. The risk and resilience assessment aligns with the new Local Government Act 2002 Amendment Act 2014 requirement for 30 year infrastructure strategies to identify and manage risks relating to natural hazards and to make appropriate financial provision for those risks. It has been elevated in the AMP as a driver of AM strategies. 153

180 Section 11 Continuous Improvement Sustainability Strategy (refer to Section 7) The Council adopted its Sustainable City Strategy in It is the overarching Council strategy and outlines what needs to happen to achieve the Council s vision of making Palmerston North a sustainable city. A suite of other strategies set out the detail of how the Council can help make this happen. Workshops have been held between strategic planning staff and asset management staff to ensure that the programmes in this revised AMP reflect the direction that the Council has set in its strategies Renewal works planning Condition data Asset age, condition, performance and risk are the four main determinants of renewals planning. Ongoing condition and performance assessment of Council s assets has taken place during the period. The data collected is fundamental to improved renewal programming. While predictive modelling of residual asset lives has not progressed, provision for this has been included in the improvement plan see Clause A new asset management system has been purchased and all previous database information transferred over to it. Condition grading has been completed on property activities, including using specialist consultants for Councils significant property assets such as the CAB, City Library, Te Manawa and Regent Theatre, while Council staff have condition graded less significant properties. Structural engineering assessments of Councils properties are underway with further detailed investigations due to be completed in 2014 in order to meet seismic National Building Standards. The outcome is better information on structural integrity and the programme for strengthening will lengthen the remaining lives of those buildings. The planning horizon for the 2014 AMPs has been extended from 20 years to 30 years to help inform the 30 year infrastructure strategy now required by the LGA 2002 Amendment Act 2014 as part of the Long Term Plan. Asset renewal planning is based on the asset life cycle and renewal profiling has been undertaken for at least a 50-year planning horizon to ensure major assets due for replacement outside the 30-year planning period are taken into account in financial strategy forecasts Operations and Maintenance Operations and maintenance strategy The O & M strategy and processes have been reviewed in conjunction with development of this Plan. Collaborative Working Practices initiative Internal service level agreements between City Networks and City Enterprises, the in-house service provider, have continued to be advanced to increase transparency and accountability between funding and service provision. Detailed specifications and performance criteria have been enhanced in these agreements. Procurement procedures and issues reporting are monitored through the Collaborative Working Practices initiative. This initiative was started as a pilot project in October 2009 and then extended in July 2010 to cover all service level agreements between the two Units. This continues to add value to management of the operations and maintenance area. Market comparability procedure In conjunction with the collaborative working practices initiative a further process has been developed and implemented to incorporate a market comparability procedure into the Service Level Agreement 154

181 Section 11 Continuous Improvement process. This requires asset management staff to be satisfied that the price being offered by City Enterprises is within the market price-range before accepting the price. A review of the cost effectiveness of current service delivery arrangements will be made by July 2017 in accordance with Clause 17A of the Local Government Act Asset Information Data Quality Processes A complete audit of property assets was conducted in 2013/2014 as part of inputting historical data and its condition grading into the new asset management system SPM Asset Management Improvement The AMP policy and strategy was reviewed in May 2014 and the amended version has been incorporated in the Council s 2014 AMPs. A set of AMP guidelines and programme was prepared in October 2013 to assist the development of the 2014 AMPs. This identified the context and issues that needed to be addressed to enable the AMPs to be completed and aligned with development of the LTP. The programme included a level of service review, risk and resilience workshops, incorporation of Council strategies into the AM planning process, development of capital (new and renewal) and operational programmes and an independent peer review. AMP templates and guidelines were prepared to coordinate the AMP structure and content and to improve consistency between different AM plans. The AMP financials were constructed within the Council s corporate LTP planning system to provide a direct interface with the Long Term Plan projections Asset management staff resources Loss of key knowledge A corporate document management system was introduced into the organisation in 2009/10. It facilitates the storage and recovery of all organisational records including key AM information. AMPs are reviewed on a 3-yearly cycle and provide a single, coordinated document for recording and recovery of important AM planning knowledge. This has been further embedded into the asset management work processes. Skill gaps Skill gaps in AM are identified through routine performance development interviews with follow-up training programmes structured accordingly. AM skill development and updating is substantially addressed through regular attendance of AM staff at NAMS training courses Levels of service review A review of current levels of service and performance measures was work-shopped with the Council in May Feedback from the workshop was assessed by senior managers and has been factored into projects and programmes included in this AMP. Actual performance against service level targets is measured and reported to Council on a quarterly basis. 155

182 Section 11 Continuous Improvement Future Asset Management Improvements Assessment Identification of improvements for asset management over the next period has been a continuous process largely led by the AMP Coordinator in conjunction with the asset managers for each activity. This plan is the result of several sources of assessment including asset management competency through the development process, specific areas of need such as lack of asset information, where the organisation wishes to be in terms of advanced asset management and the processes like level of service review needed to complete the next AMP review These assessments have been formalised into an improvement plan covering the main asset management functions for the next 3 years. At the end of each of the sections of this plan improvement tasks are identified for that part of the AM activity. These are collected together as an overall improvement plan in Table 136 which schedules the improvements, identifies the funding required and allocates responsibility for actioning the particular task Key areas for improvement Key areas of asset management improvement over the next three years are as follows: More rigorous assessment of renewal and development programmes to accompany all projects submitted to the LTP process Inclusion and consideration of sustainability issues, specifically in regard to Council s Sustainable City strategy Progression to a detailed, hazard specific, risk based approach to resilience Further development of the strategy led approach in developing new programmes for inclusion in the AMP to meet Council s objectives. Ongoing asset condition assessment with assessment of renewals required using predictive modelling (SPM) to inform future asset renewals programme. Gaps in current information regarding data completeness, condition assessment and robustness of assumptions Improvement Plan The purpose of the Improvement Plan is to: Identify and develop implementation of AM planning processes Identify, programme and resource measures required to complete studies or measures to confirm planning assumptions or to gather information required to improve the reliability of information used to develop the AMP Identify and prioritise ways to cost-effectively improve the quality of the AM plan Identify indicative time-scales, priorities, and human and financial resources required to achieve AM planning objectives. The following improvement activities have been identified for action over the next 3 years after consideration of priorities identified by the asset management plan team. Many of these improvements are generic across all asset activities (i.e. water, property, roading etc) and will be implemented as coordinated projects across all areas: Capital renewal and development project planning further development of processes to take into account a sustainable development approach Review demand projections on an on-going basis consistent with Council s Residential Growth Strategy 156

183 Section 11 Continuous Improvement Develop predictive modelling and risk based approaches to help prioritise renewal programmes and better manage risks and costs in achieving the desired outcomes Update City-wide asset development plans as growth and actual development necessitates. Periodically review risk assessments Further develop appropriate mitigation strategies for Council s critical assets in the event of a major natural hazards and programmes to improve resilience of critical assets from natural hazards Operations and maintenance on-going review of contracting and internal service agreement strategies to achieve the best balance of risk transfer, cost and performance Asset information on-going development of systems to meet all asset management needs, and the integration of asset information activities within Council Level of service undertake stakeholder consultation on new, major issues to update understanding of community expectations and preferences. Review levels of service with Council every three years AM resource planning to ensure the recruitment, retention and development of sufficient and suitably qualified staff Review asset management strategy to take account of changes in Council direction and Government policy. The indicative AM improvement programme is detailed in the following table: 157

184 Section 11 Continuous Improvement Table 40 Indicative AM Improvement Programme PNCC - 3 YEAR AM IMPROVEMENT PROGRAMME Resources 2014/ / / /18 AM Category Improvement Activities Resources & Responsibility Est.($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J 1 Development works planning (demand/ LoS) Review and update demand projections considering all trends (population, climate, usage, etc.). Understand forecast scenarios. 2 weeks City Future 8,000 Review impact of Council's sustainability policy on demand projections 1 week Asset Managers 4,000 Review clients future accommodation & facility requirements. 2 weeks Asset Managers 4,000 Develop improved business case template to ensure full programme information and risk/cost/ benefit analysis is undertaken 2 weeks AMP Coordinator 15,00 0 Review project priorities based on risk/cost/benefit analysis 2 weeks Asset Managers 8,000 Review mitigation strategies for major earthquake event. 3 weeks Asset Managers 20,00 0 Document changes to AMP programmes that arise through LTP & AP processes 2 weeks Asset Managers 8,000 2 Renewal works planning Continue to assess asset condition, age and environmental factors to determine residual asset lives (predictive modelling). On-going Asset Managers 15,00 0 Determine AM Implications of lease arrangements review & confirm predictive renewal forecasts On-going

185 Section 11 Continuous Improvement PNCC - 3 YEAR AM IMPROVEMENT PROGRAMME Resources 2014/ / / /18 AM Category Improvement Activities Resources & Responsibility Est.($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J Develop and action processes to identify and prioritise risk mitigation options (ODM). Prepare renewal programme. 3 weeks Asset Managers 10, Asset information Update detailed asset component and condition information and enter into AM system 3 weeks Asset sys Officer Review AM system data quality processes and improve as required 2 weeks Asset managers 8,000 Review and document condition assessment quality process/ programme (to support risk & predictive modelling) 2 weeks Asset managers 10,00 0 Review performance data needs (reporting & decision-making) and document data capture quality process. 2 weeks Asset Managers 8,000 Analyse asset lives (using condition/ capacity/ performance data). Enter into AM system 1 week Asset Officer Sys 4,000 Review/Identify critical assets in the register. 1 week Asset Manager 4,000 Review financial data needed to support ODM and valuation- implement process 2 weeks Asset manager 8,000 Assess advanced AM system needs, and implement suitable application. 2 weeks Asset Sys Officer 20,00 0 Develop process to integrate AMS 2 weeks Asset Sys 8,

186 Section 11 Continuous Improvement PNCC - 3 YEAR AM IMPROVEMENT PROGRAMME Resources 2014/ / / /18 AM Category Improvement Activities Resources & Responsibility Est.($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J Officer Assess future options for development of AM system 2 weeks Asset Sys Officer 8,000 4 Operations and maintenance Document O&M strategy and O&M processes for optimising programmes (benefit/ cost approach) 1 week Asset Managers 4,000 Review processes to ensure that competitive prices are obtained for services delivered, and that there is the correct balance between risk transfer, performance orientation and costs. 2 weeks Asset Managers 8,000 5 Asset management improvement Develop overall AM strategy leading up to next AM review and get adopted by MT 2 weeks Asset coordinator 8,000 Develop a process for regular review of risk. 1 week AMP coordinator 4,000 Develop and enhance methodology & measures for resilience of critical assets to natural hazards. 3 weeks AMP coordinator 5,000 Develop process to ensure that there is better integration between all AM plans 1 week AMP coordinator 4,000 Develop KPIs to monitor Improvement Plan progress 2 days AMP coordinator 1,000 6 Asset management staff resources Adopt succession planning process to minimise risks relating to loss of key staff knowledge 1 week Networks MT 4,

187 Section 11 Continuous Improvement PNCC - 3 YEAR AM IMPROVEMENT PROGRAMME Resources 2014/ / / /18 AM Category Improvement Activities Resources & Responsibility Est.($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J Skill gaps in AM are assessed and training programmes implemented to close any identified gaps 1 week Property Manager 12, Level of service review Review strategy,programme & levels of service 2 weeks AMP coordinator 8,000 Undertake consultation on major issues, case by case. 6 weeks 20, Update AM plan Prepare AM plan using outputs of this improvement programme and incorporate further recommendations from the 2014 Peer Review into the plan 16 weeks Asset Managers 30,00 0 Update AMP programme & financials 4 weeks Asset Managers 16, Delivery of services LGA s17a services review by June 2017 Scope & timing to be decided corporately 161

188 Section 11 Continuous Improvement AMP Review and Monitoring AMP review The AMP is a living document, which is integral to the daily AM responsibilities of the Council. To ensure the Plan remains useful and relevant, the following on-going process of AM plan monitoring and review activity will be undertaken: Three-yearly review of levels of service and performance measures Three-yearly review and adoption of the AMP by Council as an integral contributing part of LTP preparation Revise AM plan annually to incorporate and document changes to works programmes and new knowledge resulting from the AM improvement programme Review and update the risk management register on an annual basis Quality assurance audits of AM information to ensure the integrity and cost effectiveness of gathering data to ensure the AMP meets corporate objectives. The table below details the activity and timetable adopted to achieve these objectives: Activity Action Target Date AM Plan Review and development Annual review of plan content by AM team Check Plan for consistency with adopted Council programmes and plans Compliance with agreed AM improvement programmes Effectiveness and adequacy of AM processes, systems and data Full review of AMP and external review of technical content July-August each year. May October (3-yearly) April July (3 yearly)) Adoption of reviewed AMP by Council November ( 3-yearly Condition data Review condition assessment information 3-yearly Levels of service Review service performance measures and formally adopt. Public consultation on significant changes as required. Measure actual level of service delivered and report in Annual report April May (3 yearly)) Review of risk register by AM team Annually (June) Review effectiveness of risk management strategy 3-yearly Risk Review identification and implementation of measures to improve resilience of critical assets 3-yearly Table 41 Timetable for AMP Review 162

189 Section 11 Continuous Improvement AM Plan monitoring The following indicators will be monitored to measure the effectiveness of this AM Plan: Indicator Measure Source of Information Unit cost of service delivery Cost increase no more than CCI movements LTP financial assumptions Compliance with legislative requirements Quality of services delivered Quality of risk management Independent compliance monitoring Compliance with Annual Plan key performance targets No event occurring outside risk register Peer review report Annual Report Audit of risk register Compliance with documented quality assurance processes for: Project prioritisation & financial planning Data management, customer service requests Risk management Contract management and supervision Improvement programme Table 42 AM Plan Monitoring 100% compliance with quality processes Quality audit 163

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191 Section 11 Continuous Improvement Appendix A: Glossary The following terms and acronyms (in brackets) are used in this AM plan. Activity Advanced Asset Management (AAM) Annual Plan Asset Asset Management (AM) Asset Management System (AMS) Asset Management Plan Asset Management Strategy Asset Management Team Asset Register An activity is the work undertaken on an asset or group of assets to achieve a desired outcome. Asset management which employs predictive modelling, risk management and optimised renewal decision-making techniques to establish asset lifecycle treatment options and related long term cashflow predictions. (See Basic Asset Management). A document produced annually by an organisation to update information reported on within the LTP including its objectives, intended activities, performance, income and expenditure. The Annual Plan will show how that year of the LTP will be funded and will provide detailed financial forecasts for the first 3 years, with summary forecasts provided for years 4 to 10. A physical component of a facility which has value, enables services to be provided and has an economic life of greater than 12 months. The combination of management, financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most cost effective manner. A system (usually computerised) for collecting analysing and reporting data on the utilisation, performance, lifecycle management and funding of existing assets. 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. A strategy for asset management covering, the development and implementation of plans and programmes for asset creation, operation, maintenance, renewal, disposal and performance monitoring to ensure that the desired levels of service and other operational objectives are achieved at optimum cost. The team appointed by an organisation to review and monitor the corporate asset management improvement programme and ensure the development of integrated asset management systems and plans consistent with organisational goals and objectives. A record of asset information considered worthy of separate identification including inventory, historical, financial, condition, construction, technical and financial information about each. 165

192 Appendix A Glossary Basic Asset Management Benefit Cost Ratio (B/C) Business Plan Capital Expenditure (CAPEX) Cash Flow Components Condition Monitoring Asset management which relies primarily on the use of an asset register, maintenance management systems, job/resource management, inventory control, condition assessment and defined levels of service, in order to establish alternative treatment options and long term cashflow predictions. Priorities are usually established on the basis of financial return gained by carrying out the work (rather than risk analysis and optimised renewal decision making). The sum of the present values of all benefits (including residual value, if any) over a specified period, or the life cycle of the asset or facility, divided by the sum of the present value of all costs. A plan produced by an organisation (or business units within it) which translate the objectives contained in an Annual Plan into detailed work plans for a particular, or range of, business activities. Activities may include marketing, development, operations, management, personnel, technology and financial planning Expenditure used to create new assets or to increase the capacity of existing assets beyond their original design capacity or service potential. CAPEX increases the value of an asset. The stream of costs and/or benefits over time resulting from a project investment or ownership of an asset. Specific parts of an asset having independent physical or functional identity and having specific attributes such as different life expectancy, maintenance regimes, risk or criticality. Continuous or periodic inspection, assessment, measurement and interpretation of resulting data, to indicate the condition of a specific component so as to determine the need for some preventive or remedial action Critical Assets Assets for which the financial, business or service level consequences of failure are sufficiently severe to justify proactive inspection and rehabilitation. Critical assets have a lower threshold for action than non-critical assets. Current Replacement Cost Deferred Maintenance Demand Management Depreciated The cost of replacing the service potential of an existing asset, by reference to some measure of capacity, with an appropriate modern equivalent asset. The shortfall in rehabilitation work required to maintain the service potential of an asset. The active intervention in the market to influence demand for services and assets with forecast consequences, usually to avoid or defer CAPEX expenditure. Demand management is based on the notion that as needs are satisfied expectations rise automatically and almost every action taken to satisfy demand will stimulate further demand. The replacement cost of an existing asset after deducting an 166

193 Section 11 Continuous Improvement Replacement Cost (DRC) Depreciation Disposal Economic life Facility Geographic Information System (GIS) allowance for wear or consumption to reflect the remaining economic life of the existing asset. The wearing out, consumption or other loss of value of an asset whether arising from use, passing of time or obsolescence through technological and market changes. It is accounted for by the allocation of the historical cost (or revalued amount) of the asset less its residual value over its useful life. Activities necessary to dispose of decommissioned assets. The period from the acquisition of the asset to the time when the asset, while physically able to provide a service, ceases to be the lowest cost alternative to satisfy a particular level of service. The economic life is at the maximum when equal to the physical life however obsolescence will often ensure that the economic life is less than the physical life. A complex comprising many assets (e.g. a hospital, water treatment plant, recreation complex, etc.) which represents a single management unit for financial, operational, maintenance or other purposes. Software which provides a means of spatially viewing, searching, manipulating, and analysing an electronic database. Infrastructure Assets Stationary systems forming a network and serving whole communities, where the system as a whole is intended to be maintained indefinitely at a particular level of service potential by the continuing replacement and refurbishment of its components. The network may include normally recognised ordinary assets as components. Level of service Life Life Cycle The defined service quality for a particular activity (i.e. roading) or service area (i.e. street lighting) against which service performance may be measured. Service levels usually relate to quality, quantity, reliability, responsiveness, environmental acceptability and cost. A measure of the anticipated life of an asset or component; such as time, number of cycles, distance intervals etc. Life cycle has two meanings: The cycle of activities that an asset (or facility) goes through while it retains an identify as a particular asset i.e. from planning and design to decommissioning or disposal. The period of time between a selected date and the last year over which the criteria (e.g. costs) relating to a decision or alternative under study will be assessed. Life Cycle Cost The total cost of an asset throughout its life including planning, design, construction, acquisition, operation, maintenance, rehabilitation and disposal costs. 167

194 Appendix A Glossary Long Term Council Community Plan (LTCCP) Maintenance Maintenance Plan Maintenance Standards Net Present Value (NPV) Objective Operation Optimised Decision Making (ODM) Performance Indicator (PI) Performance Monitoring Adopted by Council every 3 years. Mandatory requirement of the LGA 2002, this plan describes the activities of Council and its community outcomes, contains long term decisions and financial projections. All actions necessary for retaining an asset as near as practicable to its original condition, but excluding rehabilitation or renewal. Collated information, policies and procedures for the optimum maintenance of an asset, or group of assets. The standards set for the maintenance service, usually contained in preventive maintenance schedules, operation and maintenance manuals, codes of practice, estimating criteria, statutory regulations and mandatory requirements, in accordance with maintenance quality objectives. The value of an asset to the organisation, derived from the continued use and subsequent disposal in present monetary values. It is the net amount of discounted total cash inflows arising from the continued use and subsequent disposal of the asset after deducting the value of the discounted total cash outflows. An objective is a general statement of intention relating to a specific output or activity. They are generally longer-term aims and are not necessarily outcomes that managers can control. The active process of utilising an asset which will consume resources such as manpower, energy, chemicals and materials. Operation costs are part of the life cycle costs of an asset. An optimisation process for considering and prioritising all options to rectify performance failures of assets. The process encompasses NPV analysis and risk assessment. A qualitative or quantitative measure of a service or activity used to compare actual performance against a standard or other target. Performance indicators commonly relate to statutory limits, safety, responsiveness, cost, comfort, asset performance, reliability, efficiency, environmental protection and customer satisfaction. Continuous or periodic quantitative and qualitative assessments of the actual performance compared with specific objectives, targets or standards. Planned Maintenance Planned maintenance activities fall into 3 categories : Periodic - necessary to ensure the reliability or sustain the design life of an asset. Predictive - condition monitoring activities used to predict failure. Preventive - maintenance that can be initiated without routine or continuous checking (e.g. using information contained in maintenance manuals or manufacturers recommendations) and is not condition-based. 168

195 Section 11 Continuous Improvement Rehabilitation Renewal Renewal Accounting Repair Replacement Remaining Economic Life Risk Cost Risk Management Routine Maintenance Works to rebuild or replace parts or components of an asset, to restore it to a required functional condition and extend its life, which may incorporate some modification. Generally involves repairing the asset using available techniques and standards to deliver its original level of service (i.e. heavy patching of roads, slip-lining of sewer mains, etc.) without resorting to significant upgrading or replacement. Works to upgrade, refurbish, rehabilitate or replace existing facilities with facilities of equivalent capacity or performance capability. A method of infrastructure asset accounting which recognises that infrastructure assets are maintained at an agreed service level through regular planned maintenance, rehabilitation and renewal programmes contained in an asset management plan. The system as a whole is maintained in perpetuity and therefore does not need to be depreciated. The relevant rehabilitation and renewal costs are treated as operational rather than capital expenditure and any loss in service potential is recognised as deferred maintenance. Action to restore an item to its previous condition after failure or damage. The complete replacement of an asset that has reached the end of its life, so as to provide a similar, or agreed alternative, level of service. The time remaining until an asset ceases to provide service level or economic usefulness. The assessed annual cost or benefit relating to the consequence of an event. Risk cost equals the costs relating to the event multiplied by the probability of the event occurring. The application of a formal process to the range of possible values relating to key factors associated with a risk in order to determine the resultant ranges of outcomes and their probability of occurrence. Day to day operational activities to keep the asset operating (replacement of light bulbs, cleaning of drains, repairing leaks, etc.) and which form part of the annual operating budget, including preventative maintenance. Service Potential The total future service capacity of an asset. It is normally determined by reference to the operating capacity and economic life of an asset. SPM Strategic Plan SPM Assets is a software and services company specialising in the assessment, analysis and long term planning in the management of property and facility assets. Strategic planning involves making decisions about the long-term goals and strategies of an organisation. Strategic plans have a strong external focus, cover major portions of the organisation and identify major targets, actions and resource allocations relating to the 169

196 Appendix A Glossary long term survival, value and growth of the organisation. Unplanned Maintenance Upgrading Valuation Corrective work required in the short term to restore an asset to working condition so it can continue to deliver the required service or to maintain its level of security and integrity. The replacement of an asset or addition/ replacement of an asset component which materially improves the original service potential of the asset. Estimated asset value which may depend on the purpose for which the valuation is required, i.e. replacement value for determining maintenance levels or market value for life cycle costing. 170

197 Appendix B Requirements of Local Government Act 2002 Appendix B: Requirements of Local Government Act 2002 Section 101B from the LGA 2002 Amendment Act 2014 and LGA Schedule 10 outline the information to be included in Long Term Plans. Much of this information is provided through asset management plans. LGA Section 101B Infrastructure Strategy 101B Infrastructure strategy (1) A local authority must, as part of its long-term plan, prepare and adopt an infrastructure strategy for a period of at least 30consecutive financial years. (2) The purpose of the infrastructure strategy is to (a) identify significant infrastructure issues for the local authority over the period covered by the strategy; and (b) identify the principal options for managing those issues and the implications of those options. (3) The infrastructure strategy must outline how the local authority intends to manage its infrastructure assets, taking into account the need to (a) renew or replace existing assets; and (b) respond to growth or decline in the demand for services reliant on those assets; and (c) allow for planned increases or decreases in levels of service provided through those assets; and (d) maintain or improve public health and environmental outcomes or mitigate adverse effects on them; and (e) provide for the resilience of infrastructure assets by identifying and managing risks relating to natural hazards and by making appropriate financial provision for those risks. (4) The infrastructure strategy must outline the most likely scenario for the management of the local authority s infrastructure assets over the period of the strategy and, in that context, must (a) show indicative estimates of the projected capital and operating expenditure associated with the management of those assets (i) in each of the first 10 years covered by the strategy; and (ii) in each subsequent period of 5 years covered by the strategy; and (b) identify (i) the significant decisions about capital expenditure the local authority expects it will be required to make; and (ii) when the local authority expects those decisions will be required; and (iii) for each decision, the principal options the local authority expects to have to consider; and (iv) the approximate scale or extent of the costs associated with each decision; and (c) include the following assumptions on which the scenario is based: (i) the assumptions of the local authority about the life cycle of significant infrastructure assets: (ii) the assumptions of the local authority about growth or decline in the demand for relevant services: (iii) the assumptions of the local authority about increases or decreases in relevant levels of service; and (d) if assumptions referred to in paragraph (c) involve a high level of uncertainty, (i) identify the nature of that uncertainty; and (ii) include an outline of the potential effects of that uncertainty. (5) A local authority may meet the requirements of section 101A and this section by adopting a single financial and infrastructure strategy document as part of its long-term plan. (6) In this section, infrastructure assets includes (a) existing or proposed assets to be used to provide services by or on behalf of the local authority in relation to the following groups of activities: (i) water supply: (ii) sewerage and the treatment and disposal of sewage: (iii) stormwater drainage: (iv) flood protection and control works: (v) the provision of roads and footpaths; and (b) any other assets that the local authority, in its discretion, wishes to include in the strategy. 171

198 Appendix B Requirements of Local Government Act 2002 Extract from LGA Schedule 10 Part 1 Information to be included in long-term plans 1 Community outcomes A long-term plan must, to the extent determined appropriate by the local authority, describe the community outcomes for the local authority s district or region. 2 Groups of activities (1) A long-term plan must, in relation to each group of activities of the local authority, (a) identify the activities within the group of activities: (b) identify the rationale for delivery of the group of activities (including the community outcomes to which the group of activities primarily contributes): (c) outline any significant negative effects that any activity within the group of activities may have on the local community: (d) include the information specified in clauses 4 and 5 (i) in detail in relation to each of the first 3 financial years covered by the plan; and (ii) in outline in relation to each of the subsequent financial years covered by the plan. (2) In this schedule, each of the following activities is a group of activities: (a) water supply: (b) sewerage and the treatment and disposal of sewage: (c) stormwater drainage: (d) flood protection and control works: (e) the provision of roads and footpaths. (3) Despite subclause (2), a local authority may treat any other activities as a group of activities. 3 Capital expenditure for groups of activities (1) A long-term plan must, in relation to each group of activities of the local authority and for each financial year covered by the plan, include a statement of the amount of capital expenditure that the authority has budgeted to (a) meet additional demand for an activity; and (b) improve the level of service; and (c) replace existing assets. (2) For the purpose of this clause, capital expenditure budgeted for 2 or all of the purposes in subclause (1) may be treated as if it were made solely in relation to the primary purpose of the expenditure. 4 Statement of service provision A long-term plan must, in relation to each group of activities of the local authority, include a statement of the intended levels of service provision that specifies (a) any performance measures specified in a rule made under section 261B for a group of activities described in clause 2(2); and (b) the performance measures that the local authority considers will enable the public to assess the level of service for major aspects of groups of activities for which performance measures have not been specified under paragraph (a); and (c) the performance target or targets set by the local authority for each performance measure; and (d) any intended changes to the level of service that was provided in the year before the first year covered by the plan and the reasons for the changes; and (e) the reason for any material change to the cost of a service. 5 Funding impact statement for groups of activities (1) A long-term plan must, in relation to each year covered by the plan, include a funding impact statement in relation to each group of activities of the local authority. (2) The funding impact statement must be in the prescribed form and must identify (a) the sources of funding to be used by the local authority; and (b) the amount of funds expected to be produced from each source; and (c) how the funds are to be applied. 172

199 Appendix C Activity Performance Measures Appendix C: Activity Performance Measures Key Service Criteria City and Organisational Goals User Group (e.g. All, commercial, residential, pedestrians etc.) Customer Level of Service Customer Performance Measure Current Performance Performance Targets Technical Performance 2015/ / / Measures How Performance Measured Quality CG - S Tenants, user groups and general public The Council s building assets are maintained in good condition and are well presented, appropriate to the type and level of use. % of tenants satisfied or very satisfied with the quality of the Council s tenancy liaison service % of tenants, user groups and occupiers satisfied or very satisfied with the appearance and presentation of the Council s public buildings 93% (2010) Survey underway at time of review in Communitrak survey satisfaction with: Regent Theatre 99% Te Manawa 95% Library 98% For trends refer Appendix C. >80% >80% >80% >80% 3-yearly survey of tenants (next due in 2014) >95% >95% >95% >95% 3-yearly survey of tenants user groups and visitors % of tenants, user groups and occupiers satisfied or very satisfied with the healthiness and safety of the Council s public buildings Not measured 75% 75% 75% 75% % of tenants, user groups and occupiers satisfied or very satisfied with the fitness for purpose of the Council s public buildings Not measured 75% 75% 75% 75% % of tenants, user groups and occupiers satisfied or very satisfied with accessibility to the Council s public buildings Not measured 75% 75% 75% 75% Safety CG S Tenants, user groups and general public The Council s buildings are safe to use and meet appropriate building standards Public buildings comply with building warrant of fitness requirements 100% 100% 100% 100% 100% Monthly report from building WOF assessor. OG - P Availability CG S OG - P Tenants, user groups and general public The Council s buildings are available for use by occupants in accordance with levels of service as set out in: Residential tenancy agreement Deed of lease for Recreation and Commercial properties Contractual arrangements with Council Controlled Organisations Buildings are available for agreed time. the Not measured 100% 100% 100% 100% Annual report requested from building manager or maintenance service provider Planned closures of the Council s buildings that cause disruption to daily activities or living circumstance are communicated to occupants Amount of advance notice of closure or partial closure to occupants or users. (N.B. Any planned closures or Not measured 90 clear days for residential properties, four weeks for all other 90 clear days for residential properties, four weeks 90 clear days for residential properties, four 90 clear days for residential properties, four weeks Annual report requested from building manager or maintenance service provider 173

200 Appendix C Activity Performance Measures Key Service Criteria City and Organisational Goals User Group (e.g. All, commercial, residential, pedestrians etc.) Customer Level of Service Customer Performance Measure Current Performance Performance Targets Technical Performance 2015/ / / Measures How Performance Measured and/or public in a timely way. partial closures are undertaken outside of any hours of normal occupancy to the greatest practicable extent.) properties for all other properties weeks for all other properties for all other properties Sustainability CG S OG - F Tenants, user groups and general public The Council s cultural, investment and operational properties, rental and social housing, and community facilities, are maintained for current and future needs A 30 year asset management plan is in place that has been reviewed and updated at 3- yearly intervals, and independently peer reviewed Asset Management Plan (AMP) reviewed in AMP in place (key projects from AMP will be outlined) AMP in place (key projects from AMP will be outlined) AMP in place (key projects from AMP will be outlined) AMP in place and reviewed 3- yearly (key projects from AMP will be outlined). Council s Annual Report Papaioea Community Housing complex refurbishment design includes energy efficiency, accessibility and CEPTED considerations. New facilities are designed with accessibility, energy efficiency and CEPTED principles in mind Design brief reviewed and project reporting. Responsiveness CG S OG - P Tenants, user groups and general public The Council responds to requests for service from tenants and occupants in a timely way. Response time to requests for service (RFS) were responded to within the allotted times. Overall average of 81% were responded to within the time allocated results were: - Operational - 74% 95% within 24 Cultural 79% hours. Housing 91% Community Centres 81% Investment 97% Refer Appendix C for trends. 95% within 4 hours 95% within 4 hours 95% within 24 hours. 95% within 4 hours 95% within 24 hours. 95% within 4 hours 95% within 24 hours. Response time to RFS recorded as Urgent (risk to the buildings ability to function on a daily basis) K-Base requests for service database K-Base requests for service database - Not measured 80 % within 5 working days. Not measured 80 % within 5 working days. 80 % within 5 working days. 80 % within 5 working days. Response time to RFS recorded as Routine (all other requests) K-Base requests for service database Financial Management CG Ec Tenants, user groups and general public The Council manages its property assets in a financially sustainable way Overall Property 2013/2014 Controllable budget $4,978,136 Actual spend $5,120, % 100% 100% 100% The Council s levels of service are delivered within net budget Council s Report Annual OG - F Refer Appendix C for detail by individual property activities and trends. Legislative CG - S Tenants, user groups and general public - - All relevant statutory and regulatory reporting requirements are met Reporting procedures as specified in the relevant Act or regulation 174

201 Appendix C Activity Performance Measures Key Service Criteria City and Organisational Goals User Group (e.g. All, commercial, residential, pedestrians etc.) Customer Level of Service Customer Performance Measure Current Performance Performance Targets Technical Performance 2015/ / / Measures How Performance Measured 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Building Warrant of Fitness current and met. Compliance with building consent and resource consent conditions Reserves Act leasing and Residential Tenancies Act requirements met. Copies of WoF with Property Contract Coordinator. Property Officer 175

202 Appendix C Activity Performance Measures Activity Performance Measures Trend Graphs Requests for Service Responsiveness 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% ALL Properties - Requests and Compliants responded to within time % responded to within allocated timeframe Target 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Operational Properties - Requests and Compliants responded to within time % responded to within allocated timeframe Target Cultural Properties - Requests responded to within allowed time 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% % responded to within allocated timeframe Target 176

203 Appendix C Activity Performance Measures 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Housing (Community and Public) - Requests responded to within time % responded to within allocated timeframe Target 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Investment Properties - Requests responded to within time % responded to within allocated timeframe Target 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Community Centres- Requests responded to within allowed time % responded to within allocated timeframe Target 177

204 Appendix C Activity Performance Measures Activity Performance Measures Trend Graphs Controllable Cost Financial Performance $7,000,000 $6,000,000 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 ALL Properties - Operational Budget Performance $ O& M Spend O & M Budget $3,000,000 Operational Properties - Operational Budget Performance $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ O & M spend O & M Budget $1,400,000 Cultural Facilities - Operational Budget Performance $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Actual Spend - Net Budget - Net 178

205 Appendix C Activity Performance Measures $800,000 $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $- Public Rental Housing Properties - Operational Budget Performance O& M Spend O & M Budget Investment Properties - Operational Budget Performance $700,000 $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $ O& M Spend O & M Budget Community Facilities Properties - Operational Budget Performance $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $ Actual Spend - Net Budget - Net 179

206 Appendix C Activity Performance Measures Activity Performance Measures Trend Graphs Satisfaction with Cultural Facilities Te Manawa - Community Satisfaction (of those that had an opinion) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Satisfaction (Excl. "Don't know") Target Regent - Community Satisfaction (of those that had an opinion) 100% 80% 60% 40% 20% 0% Satisfaction (Excl. "Don't know") Target Library - Community Satisfaction (of those that had an opinion) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Satisfaction (Excl. "Don't know") Target 180

207 OPTIMISED DECISION COMMUNICATE AND CONSULT MONITOR AND REVIEW RISK ASSESSMENT Appendix D - Risk Analysis/Framework and Register Appendix D: Risk Analysis/Framework and Register Council strives to manage risk in a responsible manner to enable business objectives to be consistently met. The risk management process is designed to ensure that: All significant operational and organisational risks are understood and identified. The highest risks that should be addressed in the short to medium term are identified. Risk reduction treatments which best meet business needs are applied. Responsibilities for managing risk are allocated to specific staff. This section looks at the risk management processes set up by Council for assessing and managing risk. Introduction The adopted Council risk management process is consistent with Australian/New Zealand standard AS/NZ 4360 (see Figure ), which defines risk assessment and management. A risk management workshop was completed with key management staff from Council to establish the overall risk framework, including the impact and likelihood rating definitions described in Section 0. Further, workshops were held with key Council staff managing the property assets to establish and review key asset related risks. ESTABLISH THE CONTEXT Objectives Stakeholders Criteria Key issues IDENTIFY THE RISKS Cause of failure what risks might be encountered Mode of failure how might these occur EVALUATE THE RISKS Probability of failure Consequences of failure Risk ranking cost of failure Existing controls TREAT THE RISKS Identify risk cost reduction treatment options Option evaluation & selection process Develop & implement improvement plan MAKING SECTION 3.6 Figure: Risk Management Process 181

208 Appendix D - Risk Analysis/Framework and Register Risk Management Process Risk Context A framework for successfully identifying, analysing, evaluating and managing risk was established based on the Australian/New Zealand standard AS/NZ Council has introduced a risk framework for the assessment of risk consequences and a risk priority treatment matrix to be applied throughout the organisation. The following steps were undertaken to establish the context: Definition of the relationship between the organisation and the environment, and the organisation s strengths, weaknesses, opportunities and threats to provide an understanding of the big picture potential risk areas and opportunities to manage these risks. Identification of internal and external stakeholders. Identification of the organisation s capabilities to meet the objectives (levels of service and community outcomes). Identification of broad categories for sources of risk of not achieving the levels of service and community outcomes, and areas of impact. The key risk criteria adopted for Council for assessing the consequences of identified risks are: Legal (including environmental and other consequences); Corporate Image (including political, public image and councillor/management time consequences); Service Delivery (including loss of service or other service standard failure); Financial (Council); Financial (Community); Community Health and Safety Risk Identification Events leading to failure to achieve defined levels of service, and therefore compromising achievement of community outcomes have been identified. All moderate, high and critical risks identified the related consequences and adopted risk reduction treatments are shown in Section 8. All risks identified, the related consequences and likelihoods, and the risk severity ratings are shown in the risk register. Risk Analysis The impact and likelihood ratings used to determine initial risk ratings are defined in the following tables. Risk Evaluation The matrix of consequence of failure and likelihood ratings is used to assess the level of risk, ranking events as low, moderate, high or critical risk. This allows all asset risks to be compared and ranked. The risk policy specifies the following broad treatment strategy for the levels of risk: C Critical Risk Immediate action required to reduce risk H High Risk: Treatment options must be reviewed and additional action taken to manage risk M Moderate Risk: Management responsibility must be specified L Low Risk: Manage by routine procedures 182

209 Appendix D - Risk Analysis/Framework and Register Risk Treatment Options Options for mitigating risks considered to reduce the cause, probability or impact of failure, are; Do nothing- accept the risk. Management strategies- implement enhanced strategies for demand management, contingency planning, quality processes, staff training, data analysis and reporting, reduce the target service standard, etc. Operational strategies- actions to reduce peak demand or stresses on the asset, operator training, documentation of operational procedures, etc. Maintenance strategies- modify the maintenance regime to make the asset more reliable or to extend its life. Asset renewal strategies- rehabilitation or replace assets to maintain service levels. Development strategies- investment to create a new asset or augment an existing asset: Asset Disposal / Rationalisation- divestment of assets surplus to needs because a service is determined to be a non-core activity or assets can be reconfigured to better meets business needs. 183

210 Used For Management and Process Improvement Appendix D - Risk Analysis/Framework and Register Area of Impact Factor Extreme Major Moderate Minor Insignificant Legal Legal Council sued or fined or otherwise liable for more than $20M. Council sued or fined or otherwise liable for $5M - $20M. Council sued or fined or otherwise liable for $250K - $5M. Council sued or fined or otherwise liable for up to $250K. Council prosecuted for minor offence. Environmental Environmental Catastrophic environmental damage of national importance. Prosecution. Long term study. Impact permanent. Serious environmental damage of national importance. Prosecution. Long term study. Impact not fully reversible. Serious environmental damage of national importance. Prosecution expected. Impact reversible within 10 yrs Serious environmental damage of local importance. Prosecution possible. Impact fully reversible within 1 yr. Minor localised environmental damage. Prosecution unlikely Impact fully reversible within 3 months Political Appointment of a Commissioner. Council decision-making process breaks down. Breakdown in the relationship between Council and the CEO. Relationship difficulties within the organisation. Localised relationship tensions. International adverse political comment fover a period of time National adverse political comment ongoing Regional adverse political comment for several days. Local adverse political comment for one week. Local adverse political comment. Corporate Image Image Negative international multi media coverage for several weeks or more Negative national multi media coverage for a month or more, or international coverage for one to several days Negative national multi media coverage for several days. Negative national media coverage for a day Some negative local media coverage for a day Councillor / Management Time Unplanned collective 30 days of Councillor or Management time, several months or more of staff time days of Managers time, or several weeks to months of staff time Up to 2 days of Managers time, or days total staff time Up to several days of staff time Several hours of staff time Service unavailable over a significant part of the city for weeks to months Service unavailable over several suburbs for days to weeks Service unavailable across all or most of a suburb for several days Service unavailable in a few streets for up to a day Service unavailable in part of a street for a few hours Service Delivery Service Delivery Widespread and serious customer complaints about the breakdown of Council services over a period of many months from a large proportion of the community Customer complaints a significant management and political issue, relating to multiple issues covering several key business areas. Systematic customer complaints, many complaints relating to issues across a key business area. Several customer complaints about a particular activity or concern. Isolated customer complaints. Financial Council Financial Unplanned loss or cost to reinstate of $3.5M or greater Unplanned loss or cost to reinstate between $1.5M - $3.5M. Unplanned loss or cost to reinstate between $0.5M - $1.5M. Unplanned loss or cost to reinstate less than $500K. Unplanned loss or cost to reinstate less than $25K. Ongoing loss of over $500K pa. Ongoing loss $200-$500K pa. Ongoing loss $50K-$200K pa. Ongoing loss $10K-$50K pa. Ongoing loss less than $10K pa. Financial - Community Financial Catastrophic consequential loss in the community (>$20 M) Major consequential loss in the community ($5 M - $20 M) Significant consequential loss in the community ($250K - $5 M) Consequential loss in the community <$250,000 Minimal consequential loss in the community <$50,000 Community Health and Safety Community Multiple loss of life and serious injuries, city-wide epidemic, pandemic or serious illness. People in several suburbs ill through contaminated water or similar. Small numbers of loss of life, multiple injuries, widespread longterm hospitalisation or illness across several suburbs People in 2-3 suburbs ill through contaminated water or similar. Illness or multiple injury across one or two suburbs, multiple hospitalisations. People in one suburb ill through contaminated water or similar. Injuries, medical treatment required for several people Several people ill through contaminated water or similar. Potential health issue, one or two may require medical treatment Human Resource Loss of life or permanent work injury with no return to work. Work injury with more than 6 months time-off. Work injury with 3 to 6 months timeoff. Work injury with up to 3 months time-off. Work injury with up to one week off. 184

211 Appendix D - Risk Analysis/Framework and Register Area of Impact Factor Extreme Major Moderate Minor Insignificant Breakdown of confidence in organisational structure and large exodus of staff - poor staff engagement Staff turnover exceeds 25% pa, poor engagement. Staff turnover exceeds 20% p.a., disengagement becoming a problem Staff turnover exceeds 15%, some disengaged staff Staff turnover 10% p.a. Loss of CEO and Management Team from the organisation Loss of CEO confidence in Management Team members. Loss of staff confidence in Management Team members. Several incidents of staff Occasional discontent Many of the organisation's key positions remain unfilled for months Inability to recruit into key positions on an ongoing basis. Inability to recruit into a number of key skilled positions. Recruiting difficulties, taking longer than usual to recruit Occasional recruiting problems Information Management Breakdown of information systems and loss of all historical information including backups Key information systems disrupted for one to several weeks, financial system not available at year-end, or loss of a significant number of archived records / backup. Key information systems disrupted for up to a week, back-ups available Key information systems disrupted for 1 working day. Key information systems disrupted for up to 2 hours. Table : Risk Impact Guide Code Descriptor Description (probability) A Almost Certain The event could occur in most circumstances, e.g. 90% + chance of occurring in the next 12 months (or in 9 out of every 10 years). B Likely The event will probably occur in most circumstances, e.g. 70% chance of occurring in the next 12 months (or in 7 out of every 10 years). C Moderate The event should occur at some time, e.g. 50% chance of occurring in the next 12 months (or in 5 out of every 10 years). D Unlikely The event could occur at some time, e.g % chance of occurring in the next 12 months (or in 2-3 out of every 10 years). E Rare The event may occur only in exceptional circumstances, e.g. up to 10% chance of occurring in the next 12 months (or once in 10 years). F Extremely Rare The event may occur only in extremely exceptional circumstances, e.g. up to 2% chance of occurring in the next 12 months (or once or less in 50 years). Table: Risk Likelihood Guide 185

212 Appendix D - Risk Analysis/Framework and Register Impact Likelihood Insignificant Minor Moderate Major Extreme A (almost certain) H H C C C B (likely M H H C C C (moderate) L M H C C D (unlikely) L L M H C E (rare) L L M H H F (extremely rare) L L L M M Legend C: Critical risk; immediate action required H: High risk; senior management attention is needed M: Moderate risk; management responsibility must be specified L: Low risk; manage by routine procedures Number of Risk Events - Operational Impact Number of Risk Events - Strategic Impact Likelihood Insignificant Minor Moderate Major Extreme Likelihood Insignificant Minor Moderate Major Extreme A (almost certain) 1 A (almost certain) B (likely 5 B (likely C (moderate) 12 4 C (moderate) 4 D (unlikely) D (unlikely) 5 2 E (rare) E (rare) 2 F (extremely rare) F (extremely rare) 186

213 Appendix D - Risk Analysis/Framework and Register Number of Risk Events - Cultural Impact Number of Risk Events - Investment Impact Likelihood Insignificant Minor Moderate Major Extreme Likelihood Insignificant Minor Moderate Major Extreme A (almost certain) 1 A (almost certain) B (likely 5 B (likely 4 C (moderate) 10 4 C (moderate) 7 2 D (unlikely) D (unlikely) 7 2 E (rare) E (rare) F (extremely rare) F (extremely rare) 1 3 Number of Risk Events - Community Housing Impact Number of Risk Events - Reserve Leasehold Impact Likelihood Insignificant Minor Moderate Major Extreme Likelihood Insignificant Minor Moderate Major Extreme A (almost certain) A (almost certain) B (likely 4 B (likely C (moderate) C (moderate) 1 D (unlikely) 8 5 D (unlikely) 2 1 E (rare) 4 7 E (rare) 1 1 F (extremely rare) F (extremely rare) 187

214 Appendix D - Risk Analysis/Framework and Register Number of Risk Events - Public Rental Housing Impact Number of Risk Events - Forestry Impact Likelihood Insignificant Minor Moderate Major Extreme Likelihood Insignificant Minor Moderate Major Extreme A (almost certain) A (almost certain) B (likely 4 B (likely C (moderate) C (moderate) 3 D (unlikely) 6 5 D (unlikely) 1 1 E (rare) 5 7 E (rare) F (extremely rare) F (extremely rare) 1 High Consequence Summary Risk Category Risk Event Assets / Functions Affected Caused By Affected Property Group Impact Existing Controls Service Failure - Condition Based Major building failure resulting in closure for weeks to months Frequent ingress of water causing moderate damage or inconvenience Major building failure resulting in closure for weeks to months Buildings - all components Poor design or maintenance Operational Properties H Buildings - fittings, interior, structure Leaks or blockages in plumbing or roof Buildings - all components Poor design or maintenance Cultural Properties H Routine inspections, code compliance status, WOF. Business continuity planning Operational Properties H Reactive maintenance capability Routine inspections, code compliance status, WOF. Business continuity planning Frequent ingress of water causing moderate damage or inconvenience Buildings - fittings, interior, structure Leaks or blockages in plumbing or roof Cultural Properties H Reactive maintenance capability Natural Hazard or Other Event Risks Fire destroys building(s) and results in serious injuries or deaths Buildings - all components Various sources, eg arson, electrical fault, accidental ignition Community Housing H Routine visits and contact by Housing Liaison Officer Fire safety provisions Fire destroys building(s) and results in serious injuries or deaths Buildings - all components Various sources, eg arson, electrical fault, accidental ignition Public Rental Housing H Response planning and reactive maintenance. Fire safety provisions. 188

215 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - Council Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Operational Properties: Civic Administration Building; Depot; Convention Centre Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Poor maintenance and delayed response - poor contractual control or labour shortage. Insignificant Moderate Minor Minor Insignificant Insignificant Minor C M Defined contractual requirements, staff experience, alternative suppliers Rate of asset deterioration increases significantly or unexpectedly Buildings - all components Inadequate inspections, market (demand and competition) awareness and renewal/refurbish ment planning. Minor Insignificant Minor Insignificant Insignificant Insignificant D L Routine inspections, opportunistic market information gathering, dedicated facility management, capital works programme Budget constraints reduce maintenance and renewals Insignificant Moderate Minor Moderate Moderate Minor E L Service Failure - Condition Based Major building failure resulting in closure for weeks to months Vandalism - graffiti, wanton damage Buildings - all components Buildings - exterior, interior Poor design or maintenance Moderate Major Extreme Major Moderate Major Major E H Vandal behaviour Minor Minor Insignificant Insignificant Insignificant B M Routine inspections, code compliance status, WOF. Business continuity planning Reactive maintenance capability Occasional ingress of water causing serious damage Buildings - fittings, interior Leaks or blockages in plumbing or roof Minor Moderate Moderate Moderate Moderate Insignificant Minor E L Inspections and planned maintenance, reactive maintenance Frequent ingress of water causing moderate damage or inconvenience Buildings - fittings, interior, structure Leaks or blockages in plumbing or roof Insignificant Minor Minor Minor Insignificant Insignificant A H Reactive maintenance capability Failure of electrical services resulting in closure of facility for up to several days Electrical services Electrical fault, poor equipment Insignificant Minor Moderate Moderate Minor Minor Minor D L Inspections and programmed maintenance/renewal s work programmes, response planning and reactive maintenance. Business continuity planning 189

216 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - Council Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Failure of HVAC plant resulting in closure of facility for up to several days HVAC plant Plant failure Insignificant Minor Moderate Moderate Insignificant Insignificant Minor D L Inspections and programmed maintenance/renewal s work programmes, response planning and reactive maintenance Failure of lifts resulting in closure of facility for up to several days Lifts Equipment failure, power failure Insignificant Minor Moderate Minor Insignificant Insignificant Minor C M Inspections and programmed maintenance/renewal s work programmes, response planning and reactive maintenance Failure of automatic doors (confinement) resulting in closure of facility for up to several days Automatic doors Equipment failure, power failure Insignificant Minor Major Insignificant Insignificant Insignificant Minor D L Inspections and programmed maintenance/renewal s work programmes, response planning and reactive maintenance Failure of security systems resulting in closure of facility for up to several days Security systems Equipment failure, power failure Insignificant Minor Moderate Moderate Moderate Minor E L Inspections and programmed maintenance/renewal s work programmes, response planning and reactive maintenance Venue size/layout/flexibilit y cannot meet demand Minor Moderate Moderate Minor D L Market awareness, dedicated facility management boards or trusts Service Failure - Performanc e Based Long waiting lists or few available times Buildings - all components Venue operating hours don't meet demand Liquidation receivership contracted organisation or of Long lead time for building components Insignificant Insignificant Insignificant Insignificant D L Flexibility, forward planning, dedicated management boards/trusts Minor Minor Insignificant Insignificant D L Alternative suppliers Insignificant Minor Minor Insignificant D L Alternative suppliers Directional and information signage inadequate or confusing Signage Not enough or ambiguous signs Signage updated not with Insignificant Insignificant Insignificant Insignificant C L Insignificant Insignificant Insignificant Insignificant C L User feedback analysis, routine inspections Staff experience and planning procedures 190

217 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - Council Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop changes facilities to Insufficient carparks Car parks Special event or unforeseen increased demand for carparks Insignificant Insignificant Insignificant C L Planning for major events Disabled people are not catered for adequately. Access Increasing disability standards Insignificant Minor Insignificant Minor Insignificant Insignificant D L User feedback analysis, routine inspections, legislative awareness and forward planning Limited or hard to find key information Knowledge centres No/inadequate active promotion Lack of knowledge at the call centre Minor Insignificant Insignificant Insignificant C L Minor Minor Insignificant Insignificant C L Dedicated facility management boards or trusts, promotion strategies and routine reviews Staff experience and documented information Web page failure Insignificant Insignificant Insignificant B M Routine monitoring and maintenance Booking errors resulting in user dissatisfaction Poor booking system, record management and staff performance Insignificant Minor Insignificant Insignificant Insignificant Insignificant D L Staff experience and electronic booking systems, dedicated management boards/trusts Confusion over booking process and/or support offered Booking system Unclear procedures or poor staff awareness/training Lack of adequate resourcing Insignificant Moderate Insignificant Insignificant Insignificant D L Insignificant Moderate Insignificant Insignificant C L Staff experience and electronic booking systems, dedicated CC management board Business reviews and planned recruitment Layout and facilities dated - décor and style of the fitout Buildings - interior and fit-out Inadequate inspections and refurbishment planning. Inadequate market competition awareness Minor Insignificant Minor Insignificant E L Minor Insignificant Minor Insignificant Insignificant E L Annual inspections and assessments, market awareness, capital works programme Opportunistic information capture Layout and facilities unable to meet user requirements Building facilities Inappropriate use of the facilities through inadequate promoter communication/ad vice or control Minor Insignificant Minor Insignificant Insignificant D L Dedicated facility management boards or trusts 191

218 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - Council Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Layout and facilities too small for significant proportion of opportunities Building facilities Inadequate market awareness and development planning. Minor Insignificant Minor Insignificant Insignificant E L Opportunistic information capture Reduction in income Building facilities Out of date facilities no longer fit for users needs Insignificant Minor Minor Minor Insignificant D L Lack of buy in to sustainability benefits when making investment property decisions Moderate Minor Minor Insignificant Minor D L Properties fail to achieve sustainability objectives Buildings - all components Not using best available expertise for financial analysis of sustainable buildings Minor Minor Minor Minor Minor E L Not getting the strategy right for moving to sustainable solutions Moderate Minor Minor Insignificant Minor D L Facilities do not meet modern standards Building facilities Reluctance to adopt new technologies / changes in design standards Moderate Insignificant Minor Moderate Minor E L Facilities do not meet statutory standards Building facilities Government directives change the service delivered / assets provided Moderate Minor Minor Moderate Minor D L Strategic planning team to ensure adequate warning provided Planning Risks Not enough or too much demand for facilities Reduced demand and obselesence of assets Building facilities Building facilities Not understanding demographics Not meeting customer needs, increasing costs and increased private competition Minor Moderate Moderate Minor Minor E L Minor Minor Moderate Minor Minor C M Strategic planning team to ensure demographi c data up to date 192

219 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - Council Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Fire warning systems ineffective during fire event resulting in injury / death Fire safety equipment Failure of fire safety equipment (alarms, fire egress, sprinklers, extinguishers, hoses) Moderate Moderate Extreme Major Moderate Extreme Major F M Inspections and programmed maintenance/renewal s work programmes, response planning and reactive maintenance. Business continuity planning Health and safety plan not complied with Buildings - all components Plan not well understood, poor knowledge Moderate Minor Minor Insignificant Minor D L Audits and staff follow-up Complaints or injuries resulting from noncompliance with regulatory standards Buildings - all components Non compliance with regulatory standards / labour dept / WoF Minor Minor Insignificant Minor Minor Minor Minor F L Customer Risks - Safety Injury due to slipping Buildings - floors, accessways Slip hazards caused by cleaning operations Slip hazards caused by asset failure (plumbing/roofing/ plant leaks) Minor Minor Insignificant Insignificant Insignificant Moderate Minor D L Minor Minor Minor Insignificant Insignificant Moderate Minor D L Health and safety plan, audits Response planning and reactive maintenance Serious injury due to tripping / falling Buildings - floors, balustrades, plant Trip/fall hazards caused by asset failure (flooring, balustrading, plant malfunction) Moderate Major Moderate Minor Insignificant Major Moderate D M Inspections and programmed maintenance/renewal s work programmes, response planning and reactive maintenance Other types of injury Buildings - fit out Cuts by sharp edges on corners, protruding screws or other fasteners, broken or nonsafety glass Minor Minor Minor Insignificant Insignificant Minor Minor D L Inspections and programmed maintenance/renewal s work programmes, response planning and reactive maintenance Illness / outbreak in community Catering facilities Inadequate hygiene procedures in catering facilities Insignificant Moderate Minor Insignificant Insignificant Moderate Minor E L Audits and staff follow-up 193

220 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - Council Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Legionaires disease outbreak Air conditioning plant Legionaires disease in public building Moderate Moderate Major Minor Minor Major Moderate F L Inspections and programmed maintenance/renewal s work programmes, response planning and reactive maintenance Poor procedures/resour cing Insignificant Moderate Insignificant Insignificant B M Documented and reviewed procedures, planned recruitment and training Customer Risks - Other No or late response to enquiries or requests for service Buildings - all components Poor staff performance Insignificant Moderate Insignificant Insignificant C L Documented and reviewed procedures, planned recruitment and training. Routine performance appraisals Poor contract control Insignificant Moderate Insignificant Insignificant C L Documented contractual procedures Collapse of buildings resulting in injury or death Buildings - structure Major earthquake event on Wellington fault or other nearby fault >M7 Major Moderate Major Extreme Major Moderate Extreme Major F M Reactive maintenance capability, insurance. Business continuity planning. Audit of public buildings completed & plan to rectify being investigated. COUNCIL staff have asked for assurance about safety in buildings Natural Hazard or Other Event Risks Interior floodwater damage resulting in closure of facility for days to weeks Buildings - interior, fitout, contents Flooding of streets during extreme rainfall event Minor Moderate Major Moderate Insignificant Minor Minor E L Reactive maintenance capability, insurance. Business continuity planning Wind or storm damage to exterior resulting in closure of facility for days to weeks Buildings - exterior Extreme events weather Minor Major Moderate Insignificant Minor Minor D L Reactive maintenance capability, insurance. Business continuity planning Damage or contamination by animal, vermin or bird pests resulting in closure of Buildings - fittings / structure Infestation of animal, vermin or bird pests Minor Moderate Minor Minor Minor Minor E L Reactive maintenance capability, insurance 194

221 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - Council Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop facility for a few days Terrorist action resulting in major damage, loss of life and/or injury Buildings - all components Terrorist action Insignificant Minor Major Major Major Moderate Extreme Major F M Response Business planning planning. continuity Inefficient use of space Minor Insignificant Minor Insignificant C L Periodic assessments of specific facility needs, dedicated facility management boards or trusts, capital works programmes Reducing numbers staff Minor Moderate Insignificant C L Periodic assessments of specific facility needs, dedicated Convention Centre management board, capital works programmes Programme Planning and Budget Risks Net costs of service increase significantly - higher costs and / or reduced investment revenue Buildings - all components Increased building operating, maintenance and renewal costs Inefficient building management Insignificant Minor Insignificant B M Minor Moderate Insignificant E L Competitively tendered contracts for major works Staff experience, routine business performance reviews, dedicated Convention Centre management board Significant labour and materials cost increases Insignificant Minor Insignificant B M Competitively tendered contracts for major works Bookings reduced below critical number Minor Minor Insignificant D L Management Board, promotion strategies Increased safety standards required Insignificant Minor Minor Insignificant D L Limited advocacy role, legislative awareness and forward planning Poor opportunity identification, market awareness Minor Moderate Insignificant D L Management Board, promotion strategies 195

222 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - Council Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop and promotion Inadequate funding provided to undertake necessary renewal work Buildings - all components Lack of asset condition information and predictive modelling techniques Minor Moderate Minor Minor E L AM and improvement activity planning, routine condition assessments and works forecasting Insufficient planning undertaken to identify necessary upgrading work Buildings - all components Lack of asset performance information and analysis techniques Inadequate demand forecasting and analysis Minor Moderate Moderate Minor D L Minor Moderate Moderate Minor E L Periodic assessments of specific facility needs, dedicated Convention Centre management board, capital works programmes Opportunistic market awareness, user feedback analysis, periodic analysis of specific facility needs Slippage in project budget / scope / time Buildings - all components Risks from large projects Minor Minor Minor Minor Minor D L Inadequate certainty that the levels of service provide optimum benefit for the cost Moderate Moderate Minor C M Comprehensive consultation and reviews undertaken on levels of service, including cost implications Programme and Project Delivery Risks Inefficient management of facilities Buildings - all components Lack of documented and understood strategies and procedures Lack of operational efficiency information and analysis Insignificant Moderate Insignificant D L Insignificant Moderate Insignificant C L Routine business performance reviews, AM planning and improvement plans AM processes, staff experience, business planning and routine reviews Inadequate analysis of condition, performance, operations and maintenance cost tracking, and capital works forecasts Minor Moderate Insignificant C L AM processes, staff experience, business planning and routine reviews 196

223 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - Council Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Inadequate works prioritisation techniques Minor Minor Moderate Minor D L Planned use of riskbased decision making. Requirement for business cases for Capex. Annual Plan process Significant unexpected service or asset failure occurs Buildings - all components Risk analysis and management failed to identify the risk Moderate Moderate Moderate Moderate Minor Moderate Moderate E M Routine planned reviews of risks Cultural Properties: Regent Theatre; Te Manawa Science Centre; City Library; Keith St Power House; Globe Theatre; Te Manawa Art Gallery; Caccia Birch; Square Edge; Ashhurst Library Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Service Failure - Condition Based Rate Riof asset deterioration increases significantly or unexpectedly Buildings - all components Poor maintenance and delayed response - poor contractual control or labour shortage. Inadequate inspections, market (demand and competition) awareness and renewal/refurb ishment planning. Budget constraints reduce maintenance and renewals Insignificant Moderate Minor Minor Insignificant Insignificant Minor C M Minor Insignificant Minor Insignificant Insignificant Insignificant D L Insignificant Moderate Minor Moderate Moderate Minor E L Defined contractual requirements, staff experience, alternative suppliers Routine inspections, opportunistic market information gathering, dedicated facility management, capital works programme 197

224 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Major building failure resulting in closure for weeks to months Vandalism - graffiti, wanton damage Occasional ingress of water causing serious damage Frequent ingress of water causing moderate damage or inconvenience Failure of electrical services resulting in closure of facility for up to several days Failure of HVAC plant resulting in closure of facility for up to several days Failure of lifts resulting in closure of facility for up to several days Failure of automatic doors (confinement) resulting in closure of facility for up to several days Failure of security systems resulting in closure of facility for up to several days Buildings - all components Buildings - exterior, interior Buildings - fittings, interior Buildings - fittings, interior, structure Electrical services Poor design or maintenance Vandal behaviour Leaks blockages plumbing roof Leaks blockages plumbing roof or in or or in or Electrical fault, poor equipment Moderate Major Extreme Major Moderate Major Major E H Minor Minor Insignificant Insignificant Insignificant B M Minor Moderate Moderate Moderate Moderate Insignificant Minor E L Insignificant Minor Minor Minor Insignificant Insignificant A H Insignificant Minor Moderate Moderate Minor Minor Minor D L HVAC plant Plant failure Insignificant Minor Moderate Moderate Insignificant Insignificant Minor D L Lifts Automatic doors Security systems Equipment failure, power failure Equipment failure, power failure Equipment failure, power failure Insignificant Minor Moderate Minor Insignificant Insignificant Minor C M Insignificant Minor Major Insignificant Insignificant Insignificant Minor D L Insignificant Minor Moderate Moderate Moderate Minor E L Routine inspections, code compliance status, WOF. Business continuity planning Reactive maintenance capability Inspections and planned maintenance, reactive maintenance Reactive maintenance capability Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance. Business continuity planning Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance 198

225 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Service Failure - Performanc e Based Long waiting lists or few available times Directional and information signage inadequate or confusing Insufficient carparks Disabled people are not catered for adequately. Limited or hard to find key information Booking errors resulting in user dissatisfaction Layout and facilities dated - décor and style of the fitout Buildings - all components Signage Car parks Access Knowledge centres Booking system Buildings - interior and fit-out Venue size/layout/fle xibility cannot meet demand Venue operating hours don't meet demand Liquidation or receivership of contracted organisation Long lead time for building components Not enough or ambiguous signs Signage not updated with changes to facilities Special event or unforeseen increased demand for carparks Increasing disability standards No/inadequat e active promotion Lack of knowledge at the call centre Web page failure Poor booking system, record management and staff performance Inadequate inspections and refurbishment planning. Inadequate market competition awareness Minor Moderate Moderate Minor D L Insignificant Insignificant Insignificant Insignificant D L Market awareness, dedicated facility management boards or trusts Flexibility, forward planning, dedicated management boards/trusts Minor Minor Insignificant Insignificant D L Alternative suppliers Insignificant Minor Minor Insignificant D L Alternative suppliers Insignificant Insignificant Insignificant Insignificant C L Insignificant Insignificant Insignificant Insignificant C L Insignificant Insignificant Insignificant C L Insignificant Minor Insignificant Minor Insignificant Insignificant D L Minor Insignificant Insignificant Insignificant C L Minor Minor Insignificant Insignificant C L Insignificant Insignificant Insignificant B M Insignificant Minor Insignificant Insignificant Insignificant Insignificant D L Minor Insignificant Minor Insignificant E L Minor Insignificant Minor Insignificant Insignificant E L User feedback analysis, routine inspections Staff experience and planning procedures Planning for major events User feedback analysis, routine inspections, legislative awareness and forward planning Dedicated facility management boards or trusts, promotion strategies and routine reviews Staff experience and documented information Routine monitoring and maintenance Staff experience and electronic booking systems, dedicated management boards/trusts Annual inspections and assessments, market awareness, capital works programme Opportunistic information capture 199

226 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Planning Risks Layout and facilities unable to meet user requirements Layout and facilities too small for significant proportion of opportunities Properties fail to achieve sustainability objectives Facilities do not meet modern standards Facilities do not meet statutory standards Not enough or too much demand for facilities Reduced demand and obselesence of assets Building facilities Building facilities Buildings - all components Building facilities Building facilities Building facilities Building facilities Inappropriate use of the facilities through inadequate promoter communicatio n/advice or control Inadequate market awareness and development planning. Lack of buy in to sustainability benefits when making investment property decisions Not using best available expertise for financial analysis of sustainable buildings Not getting the strategy right for moving to sustainable solutions Reluctance to adopt new technologies / changes in design standards Government directives change the service delivered / assets provided Not understanding demographics Not meeting customer needs, increasing costs and increased private competition Minor Insignificant Minor Insignificant Insignificant D L Minor Insignificant Minor Insignificant Insignificant E L Moderate Minor Minor Insignificant Minor D L Minor Minor Minor Minor Minor E L Moderate Minor Minor Insignificant Minor D L Moderate Insignificant Minor Moderate Minor E L Moderate Minor Minor Moderate Minor D L Minor Moderate Moderate Minor Minor E L Minor Minor Moderate Minor Minor C M Dedicated facility management boards or trusts Opportunistic information capture Strategic planning team to ensure adequate warning provided Strategic planning team to ensure demographic data up to date 200

227 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Customer Risks - Safety Fire warning systems ineffective during fire event resulting in injury / death Health and safety plan not complied with Complaints or injuries resulting from noncompliance with regulatory standards Injury due to slipping Serious injury due to tripping / falling Other types of injury Illness / outbreak in community Legionnaires disease outbreak Fire safety equipment Buildings - all components Buildings - all components Buildings - floors, accessways Buildings - floors, balustrades, plant Buildings - fit out Catering facilities Air conditioning plant Failure of fire safety equipment (alarms, fire egress, sprinklers, extinguishers, hoses) Plan not well understood, poor knowledge Non compliance with regulatory standards / labour dept / WoF Slip hazards caused by cleaning operations Slip hazards caused by asset failure (plumbing/roof ing/plant leaks) Trip/fall hazards caused by asset failure (flooring, balustrading, plant malfunction) Cuts by sharp edges on corners, protruding screws or other fasteners, broken or non-safety glass Inadequate hygiene procedures in catering facilities Legionnaires disease in public building Moderate Moderate Extreme Major Moderate Extreme Major F M Moderate Minor Minor Insignificant Minor D L Minor Minor Insignificant Minor Minor Minor Minor F L Minor Minor Insignificant Insignificant Insignificant Moderate Minor D L Minor Minor Minor Insignificant Insignificant Moderate Minor D L Moderate Major Moderate Minor Insignificant Major Moderate D M Minor Minor Minor Insignificant Insignificant Minor Minor D L Insignificant Moderate Minor Insignificant Insignificant Moderate Minor E L Moderate Moderate Major Minor Minor Major Moderate F L Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance. Business continuity planning Audits and staff followup Health and safety plan, audits Response planning and reactive maintenance Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance Audits and staff followup Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance 201

228 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Customer Risks - Other No or late response to enquiries or requests for service Buildings - all components Poor procedures/re sourcing Poor staff performance Insignificant Moderate Insignificant Insignificant B M Insignificant Moderate Insignificant Insignificant C L Documented and reviewed procedures, planned recruitment and training Documented and reviewed procedures, planned recruitment and training. Routine performance appraisals Natural Hazard or Other Event Risks Programme Planning and Budget Risks Collapse of buildings resulting in injury or death Interior floodwater damage resulting in closure of facility for days to weeks Wind or storm damage to exterior resulting in closure of facility for days to weeks Damage or contamination by animal, vermin or bird pests resulting in closure of facility for a few days Terrorist action resulting in major damage, loss of life and/or injury Net costs of service increase significantly - higher costs and / or reduced investment revenue Buildings - structure Buildings - interior, fitout, contents Buildings - exterior Buildings - fittings / structure Buildings - all components Buildings - all components Poor contract control Major earthquake event on Wellington fault or other nearby fault >M7 Flooding of streets during extreme rainfall event Extreme weather events Infestation of animal, vermin or bird pests Terrorist action Inefficient use of space Increased building operating, Insignificant Moderate Insignificant Insignificant C L Major Moderate Major Extreme Major Moderate Extreme Major F M Minor Moderate Major Moderate Insignificant Minor Minor E L Minor Major Moderate Insignificant Minor Minor D L Minor Moderate Minor Minor Minor Minor E L Insignificant Minor Major Major Major Moderate Extreme Major F M Minor Insignificant Minor Insignificant C L Insignificant Minor Insignificant B M Documented contractual procedures Reactive maintenance capability, insurance. Business continuity planning. Audit of public buildings completed & plan to rectify being investigated. COUNCIL staff have asked for assurance about safety in buildings Reactive maintenance capability, insurance. Business continuity planning Reactive maintenance capability, insurance. Business continuity planning Reactive maintenance capability, insurance Response planning. Business continuity planning Periodic assessments of specific facility needs, dedicated facility management boards or trusts, capital works programmes Competitively tendered contracts for major works 202

229 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Programme and Project Delivery Risks Inadequate funding provided to undertake necessary renewal work Insufficient planning undertaken to identify necessary upgrading work Inefficient management of facilities Buildings - all components Buildings - all components Buildings - all components maintenance and renewal costs Inefficient building management Significant labour and materials cost increases Increased safety standards required Poor opportunity identification, market awareness and promotion Theft of materials from existing buildings (e.g. copper) Lack of asset condition information and predictive modelling techniques Lack of asset performance information and analysis techniques Inadequate demand forecasting and analysis Inadequate certainty that the levels of service provide optimum benefit for the cost Lack of documented and understood strategies and procedures Lack of operational efficiency information and analysis Minor Moderate Insignificant E L Insignificant Minor Insignificant B M Insignificant Minor Minor Insignificant D L Minor Major Insignificant Insignificant Minor D L Insignificant Insignifica nt Minor Minor Insignificant E L Minor Moderate Minor Minor E L Minor Moderate Moderate Minor D L Minor Moderate Moderate Minor E L Moderate Moderate Minor C M Insignificant Moderate Insignificant D L Insignificant Moderate Insignificant C L Routine business performance reviews Competitively tendered contracts for major works Limited advocacy role, legislative awareness and forward planning Management Boards/Trusts, promotion strategies AM and improvement activity planning, routine condition assessments and works forecasting Periodic assessments of specific facility needs, dedicated facility management boards or trusts, capital works programmes Opportunistic market awareness, user feedback analysis, periodic analysis of specific facility needs Comprehensive consultation and reviews undertaken on levels of service, including cost implications Routine business performance reviews, AM planning and improvement plans AM processes, staff experience, business planning and routine reviews 203

230 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Significant unexpected service or asset failure occurs Buildings - all components Inadequate analysis of condition, performance, operations and maintenance cost tracking, and capital works forecasts Inadequate works prioritisation techniques Risk analysis and management failed to identify the risk Minor Moderate Insignificant C L Minor Minor Moderate Minor D L Moderate Moderate Moderate Moderate Minor Moderate Moderate E M AM processes, staff experience, business planning and routine reviews Planned use of riskbased decision making. Requirement for business cases for Capex. Annual Plan process Routine planned reviews of risks 204

231 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Community Housing Properties Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Service Failure - Condition Based Service Failure - Performance Based Rate of asset deterioration increases significantly or unexpectedly Major building failure Vandalism - graffiti, wanton damage Ingress of water causing damage Properties fall behind modern standards Properties do not meet accessibility needs of users, esp the disabled Not enough car parking available Layout and facilities dated - décor and style of the fitout Loss of one or more key services for more than several days - power, water, wastewater Buildings - all components Buildings - all components Buildings - exterior, interior Buildings - fittings, interior, structure Buildings - all components Buildings - exterior, interior Carparks Buildings - exterior, interior Buildings - services Poor maintenance and delayed response - poor contractual control or labour shortage. Maintenance falling behind, inadequate inspections and renewal/ refurbishment planning (COUNCIL). Poor design or maintenance Insignificant Moderate Minor Minor Insignificant Insignificant Minor D L Insignificant Moderate Moderate Moderate Insignificant Minor C M Moderate Major Major Minor Minor Major Moderate F L Vandal behaviour Minor Minor Insignificant Insignificant Insignificant B M Leaks or blockages in plumbing or roof Reluctance to adopt new technologies / changes in design standards Properties don't meet latest mobility / disability / accessibility standards e.g. Mobility scooters Unforeseen increased demand for carparks Inadequate inspections and poor refurbishment planning. Failure of service provider Insignificant Minor Insignificant Insignificant Insignificant Insignificant D L Moderate Insignificant Minor Moderate Minor E L Insignificant Minor Minor Insignificant Minor Minor Minor D L Insignificant Minor Minor Insignificant C L Insignificant Moderate Minor Insignificant E L Insignificant Moderate Major Minor Minor Minor Minor D L Term maintenance contracts with response time requirements Routine inspections and condition assessments, maintenance and capital works programmes Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance. Alternative accommodation options Reactive maintenance through term contract Inspections and planned maintenance, reactive maintenance Staff abreast of legislation / renewals plan Tenant feedback analysis, relocation options, CAPEX consideration Routine inspections and condition assessments, maintenance and capital works programmes 205

232 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop etc Planning Risks Customer Risks - Safety Properties fail to achieve sustainability objectives Units built in 50's to 80's no longer fit for purpose Layout and facilities unable to meet user requirements Insufficient demand for rental units Long waiting lists for housing units Injury due to slipping / tripping / falling Other types of injury Complaints or injuries resulting from noncompliance with regulatory standards Fire warning systems ineffective during fire event resulting in injury / death Buildings - all components Buildings Buildings - exterior, interior Buildings Buildings Buildings - floors, accessways Buildings - fit out Buildings - all components Fire safety equipment Lack of buy in to sustainability benefits when making investment property decisions Ageing population and higher vulnerability, eg health risk Inadequate communication/ad vice or control Not understanding demographics Inadequate housing units provided to meet demand Hazards caused by asset failure (eg flooring, floor finishes, plumbing/roofing/pl ant leaks) Cuts by sharp edges on corners, protruding screws or other fasteners, broken or nonsafety glass Non compliance with regulatory standards / labour dept / WoF Failure of fire safety equipment (alarms, fire egress, sprinklers, extinguishers, hoses) Minor Minor Minor Insignificant Insignificant D L Minor Insignificant Minor Minor Insignificant Insignificant D L Insignificant Moderate Moderate Insignificant Insignificant Minor D L Minor Moderate Moderate Minor Minor E L Minor Moderate Minor Minor Insignificant Minor C M Insignificant Insignificant Minor Minor Moderate Minor C M Insignificant Insignificant Minor Minor Moderate Minor C M Minor Minor Insignificant Minor Minor Minor Minor F L Minor Moderate Major Moderate Minor Major Moderate F L Dedicated Housing Liaison Officer, staff experience Routine analysis of waiting lists, turnover trends and forecast projections Inspections and programmed maintenance/renewals work programmes, reactive maintenance Inspections and programmed maintenance/renewals work programmes, reactive maintenance Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance. Alternative accommodation options Strategic planning team to ensure demogra phic data up to date 206

233 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Customer Risks - Other Natural Hazard or Other Event Risks Programme Planning and Budget Risks No or late response to enquiries or requests for service Lack of occupant health knowledge (eg unknown death) Fire destroys building(s) and results in serious injuries or deaths Loss of housing stock with injuries Interior floodwater damage Wind or storm damage to exterior Damage or contaminatio n by animal, vermin or bird pests Net costs of service increase significantly - higher costs and / or Buildings - all components Tenant welfare Buildings - all components Buildings - structure Buildings - interior Buildings - exterior Buildings fittings / structure Buildings - all components Poor procedures/resour cing Poor staff performance Poor contract control Poor procedures/resour cing Various sources, eg arson, electrical fault, accidental ignition Major earthquake event on Wellington fault or other nearby fault >M7 Flooding of streets during extreme rainfall event Extreme weather events Infestation of animal, vermin or bird pests Inefficient use of space Insignificant Moderate Insignificant Insignificant Moderate Insignificant Insignificant Moderate Insignificant Insignificant Moderate Insignificant Insignificant Insignifica nt Insignifica nt Insignifica nt Insignifica nt Moderate Moderate Major Major Major Major Moderate C H Moderate Moderate Major Extreme Major Major Major F M Insignificant Insignificant Moderate Moderate Insignificant Minor Minor E L Insignificant Insignificant Moderate Moderate Insignificant Minor Minor D L Insignificant Insignificant Minor Minor Insignificant Insignificant Insignificant Insignifica nt Minor Insignifica nt Insignifica nt B C C C E C M L L L L L Documented and reviewed procedures, staff experience, dedicated Housing Liaison Officer Documented and reviewed procedures, routine performance appraisals Documented contractual procedures Routine visits and contact by Housing Liaison Officer Routine visits and contact by Housing Liaison Officer Fire safety provisions Inspections and planned maintenance, reactive maintenance. Response planning and alternative accommodation options Inspections and planned maintenance, reactive maintenance. Response planning and alternative accommodation options Inspections and planned maintenance, reactive maintenance. Response planning and alternative accommodation options Inspections and planned maintenance, reactive maintenance. Community Housing performance study and report. Routine inspections, occupant feedback analysis, staff experience 207

234 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop reduced investment revenue Increased building operating, maintenance and renewal costs Insignificant Insignificant Insignificant B M Competitively tendered contracts for major works. Competitively tendered term maintenance contract Programme and Project Delivery Risks Insufficient planning undertaken to identify necessary upgrading work Inadequate funding provided to undertake necessary renewal work Inefficient management of facilities Buildings - all components Buildings - all components Buildings - all components Inefficient property management Increased safety standards required Units built in 50's to 80's no longer fit for purpose Theft of materials from existing buildings (e.g. copper) Significant labour and materials cost increases Inadequate demand forecasting and analysis Lack of asset performance information and analysis techniques Lack of asset condition information and forward programme development capability Inadequate certainty that the levels of service provide optimum benefit for the cost Lack of documented and understood strategies and procedures Lack of operational efficiency information and analysis Minor Minor Insignificant E L Insignificant Insignificant Insignificant Insignificant D L Insignificant Insignificant Minor Minor Insignificant D L Insignificant Insignificant Insignificant Insignificant Insignificant E L Insignificant Insignificant Insignificant B M Minor Moderate Moderate Insignificant Minor E L Minor Moderate Moderate Insignificant Minor E L Minor Moderate Minor Insignificant Minor E L Minor Minor Insignificant C L Insignificant Minor Insignificant D L Insignificant Minor Insignificant C L Routine business performance reviews Limited advocacy role, legislative awareness and forward planning Competitively tendered contracts for major works. Competitively tendered term maintenance contract Routine analysis of waiting lists, turnover trends and forecast projections Community Housing performance study and report. Routine inspections, occupant feedback analysis, staff experience Routine inspections, condition assessment and forward planning by HLO Comprehensive consultation and reviews undertaken on levels of service, including cost implications Routine business performance reviews, AM planning and improvement plans AM processes, staff experience, business planning and routine reviews 208

235 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Significant unexpected service or asset failure occurs Buildings - all components Inadequate analysis of condition, performance, operations and maintenance cost tracking, and capital works forecasts Poor maintenance and / or response - poor contractual control by COUNCIL Inadequate works prioritisation techniques Risk analysis and management failed to identify the risk Insignificant Minor Insignificant C L Insignificant Insignificant Minor Insignificant Insignificant Insignificant D L Minor Minor Minor Insignificant D L Minor Minor Moderate Minor Insignificant Moderate Minor E L AM processes, staff experience, business planning and routine reviews Defined contractual processes Planned use of riskbased decision making. Requirement for business cases for Capex. Annual Plan process Routine planned reviews of risks 209

236 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Public Rental Properties: Archillies Court; Waiheke Court; Rakaia Place Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Service Failure - Condition Based Rate of asset deterioration increases significantly or unexpectedly Major building failure Buildings - all components Buildings - all components Poor maintenance and delayed response - poor contractual control or labour shortage. Maintenance falling behind, inadequate inspections and renewal/ refurbishment planning (COUNCIL). Insignificant Moderate Minor Minor Insignificant Insignificant Minor D L Insignificant Moderate Moderate Moderate Insignificant Minor C M Poor design or maintenance Moderate Major Major Minor Minor Major Moderate F L Term maintenance contracts with response time requirements Routine inspections and condition assessments, maintenance and capital works programmes Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance. Alternative accommodation options Vandalism - graffiti, wanton damage Buildings - exterior, interior Vandal behaviour Minor Minor Insignificant Insignificant Insignificant B M Reactive maintenance through term contract Ingress of water causing damage Buildings - fittings, interior, structure Leaks or blockages in plumbing or roof Insignificant Minor Insignificant Insignificant Insignificant Insignificant D L Inspections and planned maintenance, reactive maintenance Properties fall behind modern standards Buildings - all components Reluctance to adopt new technologies / changes in design standards Moderate Insignificant Minor Moderate Minor E L Service Failure - Performance Based Properties do not meet accessibility needs of users, esp the disabled Not enough car parking available Layout and facilities dated - décor and style of the fitout Buildings - exterior, interior Carparks Buildings - exterior, interior Properties don't meet latest mobility / disability / accessibility standards e.g. Mobility scooters Insignificant Minor Minor Insignificant Minor Minor Minor D L Unforeseen increased demand for carparks Insignificant Minor Minor Insignificant C L Inadequate inspections and poor refurbishment planning. Insignificant Moderate Minor Insignificant E L Staff abreast of legislation / renewals plan Tenant feedback analysis, relocation options, CAPEX consideration Routine inspections and condition assessments, maintenance and capital works programmes 210

237 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Loss of one or more key services for more than several days - power, water, wastewater etc Properties fail to achieve sustainability objectives Buildings - services Buildings - all components Failure of service provider Insignificant Moderate Major Minor Minor Minor Minor D L Lack of buy in to sustainability benefits when making investment property decisions Minor Minor Minor Insignificant Insignificant E L Layout and facilities unable to meet user requirements Buildings - exterior, interior Inadequate communication/advice or control Insignificant Moderate Moderate Insignificant Minor D L Dedicated Housing Liaison Officer, staff experience Planning Risks Insufficient demand for rental units Buildings Not understanding demographics Minor Moderate Moderate Minor Minor E L Strategic planning team to ensure demographic data up to date Long waiting lists for rental units Buildings Inadequate housing units provided to meet demand Minor Moderate Moderate Minor Minor C M Routine analysis of waiting lists, turnover trends and forecast projections Injury due to slipping / tripping / falling Buildings - floors, accessways Hazards caused by asset failure (eg flooring, floor finishes, plumbing/roofing/plant leaks) Insignificant Insignificant Minor Minor Moderate Minor C M Inspections and programmed maintenance/renewals work programmes, reactive maintenance Customer Risks - Safety Other types of injury Buildings - fit out Cuts by sharp edges on corners, protruding screws or other fasteners, broken or non-safety glass Insignificant Insignificant Minor Minor Moderate Minor C M Inspections and programmed maintenance/renewals work programmes, reactive maintenance Complaints or injuries resulting from noncompliance with regulatory standards Buildings - all components Non compliance with regulatory standards / labour dept / WoF Minor Minor Insignificant Minor Minor Minor Minor F L 211

238 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Customer Risks - Other Fire warning systems ineffective during fire event resulting in injury / death No or late response to enquiries or requests for service Fire safety equipment Buildings - all components Failure of fire safety equipment (alarms, fire egress, sprinklers, extinguishers, hoses) Minor Moderate Major Moderate Minor Major Moderate F L Poor procedures/resourcing Insignificant Moderate Insignificant Insignificant B M Poor staff performance Insignificant Moderate Insignificant Insignificant C L Poor contract control Insignificant Moderate Insignificant Insignificant C L Inspections and programmed maintenance/renewals work programmes, response planning and reactive maintenance. Alternative accommodation options Documented and reviewed procedures, staff experience, dedicated Housing Liaison Officer Documented and reviewed procedures, routine performance appraisals Documented contractual procedures Fire destroys building(s) and results in serious injuries or deaths Buildings - all components Various sources, eg arson, electrical fault, accidental ignition Moderate Moderate Major Major Major Major Moderate C H Response planning and reactive maintenance. Fire safety provisions. Natural Hazard or Other Event Risks Loss of housing stock with injuries Interior floodwater damage Wind or storm damage to exterior Damage or contamination by animal, Buildings - structure Buildings - interior Buildings - exterior Buildings fittings / structure Major earthquake event on Wellington fault or other nearby fault >M7 Flooding of streets during extreme rainfall event Moderate Moderate Major Extreme Major Major Major F M Insignificant Insignificant Moderate Moderate Insignificant Minor Minor E L Extreme weather events Insignificant Insignificant Moderate Moderate Insignificant Minor Minor D L Infestation of animal, vermin or bird pests Insignificant Insignificant Minor Minor Insignificant Insignificant Insignificant E L Inspections and planned maintenance, reactive maintenance. Response planning and alternative accommodation options Inspections and planned maintenance, reactive maintenance. Response planning and alternative accommodation options Inspections and planned maintenance, reactive maintenance. Response planning and alternative accommodation options Inspections and planned maintenance, reactive maintenance. 212

239 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop vermin or bird pests Programme Planning and Budget Risks Net costs of service increase significantly - higher costs and / or reduced investment revenue Insufficient planning undertaken to identify necessary upgrading work Buildings - all components Buildings - all components Inefficient use of space Insignificant Insignificant Minor Insignificant C L Increased building operating, maintenance and renewal costs Insignificant Insignificant Insignificant B M Inefficient property management Minor Minor Insignificant E L Increased safety standards required Insignificant Insignificant Insignificant Insignificant D L Economic downturn impacts rentals Insignificant Minor Minor Minor Insignificant D L Theft of materials from existing buildings (e.g. copper) Significant labour and materials cost increases Inadequate demand forecasting and analysis Lack of asset performance information and analysis techniques Insignificant Insignificant Insignificant Insignificant Insignificant E L Insignificant Insignificant Insignificant B M Minor Moderate Moderate Minor E L Minor Moderate Moderate Minor E L Routine inspections, occupant feedback analysis, staff experience Competitively tendered contracts for major works. Competitively tendered term maintenance contract Routine business performance reviews Limited advocacy role, legislative awareness and forward planning Competitively tendered contracts for major works. Competitively tendered term maintenance contract Routine analysis of waiting lists, turnover trends and forecast projections Community Housing performance study and report. Routine inspections, occupant feedback analysis, staff experience Inadequate funding provided to undertake necessary renewal work Buildings - all components Lack of asset condition information and forward programme development capability Minor Moderate Minor Minor E L Routine inspections, condition assessment and forward planning by HLO Programme and Project Delivery Risks Inefficient management of facilities Buildings - all components Uncertainty that the levels of service provide optimum benefit for the cost Minor Minor Insignificant C L Comprehensive consultation and reviews undertaken on levels of service, including cost implications 213

240 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Lack of documented and understood strategies and procedures Lack of operational efficiency information and analysis Inadequate analysis of condition, performance, operations and maintenance cost tracking, and capital works forecasts Poor maintenance and / or response - poor contractual control by COUNCIL Inadequate works prioritisation techniques Insignificant Minor Insignificant D L Insignificant Minor Insignificant C L Insignificant Minor Insignificant C L Insignificant Insignificant Minor Insignificant Insignificant Insignificant D L Minor Minor Minor Insignificant D L Routine business performance reviews, AM planning and improvement plans AM processes, staff experience, business planning and routine reviews AM processes, staff experience, business planning and routine reviews Defined contractual processes Planned use of riskbased decision making. Requirement for business cases for Capex. Annual Plan process Significant unexpected service or asset failure occurs Buildings - all components Risk analysis and management failed to identify the risk Minor Minor Moderate Minor Insignificant Moderate Minor E L Routine planned reviews of risks 214

241 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Investment Properties: Regent Shops; Library Shops; Civic Centre Shops; George St Shops; Backpackers; Holiday Park Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Rate of asset deterioration increases significantly Buildings - all components Poor maintenance and / or delayed response by tenants Insignificant Insignificant Minor Minor Insignificant Insignificant Insignificant C L Lease condition enforcement processes Service Failure - Condition Based Service Failure - Performance Based Planning Risks Customer Risks - Safety Rate of asset deterioration increases significantly or unexpectedly Ingress of water causing damage Vandalism - graffiti, wanton damage Properties falling into disrepair / decline Facilities fail to meet investment objective or tenant expectations Properties fail to achieve sustainability objectives Facilities fall behind modern standards Not enough or too much demand for facilities Injury due to slipping / tripping / falling Buildings - all components Buildings - fittings, interior, structure Buildings - exterior, interior Buildings - all components Buildings - all components Buildings - all components Buildings - all components Buildings - all components Buildings - floors, accessways Maintenance falling behind, inadequate inspections and renewal/ refurbishment planning (Council). Insignificant Moderate Minor Minor Insignificant Insignificant Minor C M Leaks or blockages in plumbing or roof Insignificant Minor Minor Insignificant Insignificant Insignificant D L Vandal behaviour Properties being vacated (poor urban design outcome) Poor design, or not responsive to changing needs Lack of buy in to sustainability benefits when making investment property decisions Reluctance to adopt new technologies / changes in design standards Insignificant Minor Minor Insignificant Minor Insignificant B M Minor Minor Minor Minor Insignificant Minor E L Moderate Major Major Moderate Minor Insignificant Moderate E M Minor Minor Minor Insignificant Insignificant E L Moderate Insignificant Minor Moderate Minor E L Not understanding demographics Minor Moderate Moderate Minor Minor E L Hazards caused by asset failure (e.g. flooring, floor finishes, plumbing/roofing/plant leaks) Insignificant Insignificant Minor Minor Moderate Minor C M Routine inspections, reactive maintenance, renewal, capital works programmes Reactive maintenance capability Reactive maintenance capability Property officer aware of market forces / drivers Asset managers maintain property to required standards Routine inspections, reactive maintenance Strategic planning team to ensure demographic data up to date 215

242 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Fire warning systems ineffective during fire event resulting in injury / death Fire safety equipment Failure of fire safety equipment (alarms, fire egress, sprinklers, extinguishers, hoses) Minor Moderate Major Moderate Minor Major Moderate F L Routine inspections, response planning Complaints or injuries resulting from noncompliance with regulatory standards Buildings - all components Non-compliance with regulatory standards / labour dept / WoF Minor Minor Insignificant Minor Minor Minor Minor F L Routine inspections, code compliance status, WOF Customer Risks - Other Natural Hazard or Other Event Risks Programme Planning and Budget Risks No or late response to enquiries or requests for service Fire destroys building(s) and results in serious injuries or deaths Collapse of buildings resulting in injury or death Interior floodwater damage Wind or storm damage to exterior Damage or contamination by animal, vermin or bird pests Net costs of service increase significantly - higher costs and / or Buildings - all components Buildings - all components Buildings - structure Buildings - interior Buildings - exterior Buildings fittings / structure Buildings - all components Poor procedures or insufficient internal resources Insignificant Moderate Insignificant Insignificant B M Poor staff performance Insignificant Moderate Insignificant Insignificant C L Poor contract control Various sources, e.g. electrical services fault Major earthquake event on Wellington fault or other nearby fault >M7 Flooding of streets during extreme rainfall event Insignificant Moderate Insignificant Insignificant C L Minor Moderate Major Major Minor Major Moderate F L Insignificant Moderate Major Extreme Moderate Major Moderate F L Insignificant Minor Minor Insignificant Minor Insignificant E L Extreme weather events Insignificant Minor Insignificant Insignificant Minor Insignificant D L Infestation of animal, vermin or bird pests Insignificant Insignificant Insignificant Insignificant Insignificant E L Inefficient use of space Insignificant Minor Insignificant Insignificant C L Increasing building operating, maintenance and renewal costs Insignificant Insignificant Insignificant B M Defined customer service processes Routine performance appraisals Defined contractual processes Response planning and reactive maintenance Review buildings earthquake standards Response planning and reactive maintenance Response planning and reactive maintenance Response planning and reactive maintenance Market awareness Market awareness and forward planning Implementation of recommendations 216

243 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop reduced investment revenue Increased safety standards required Insignificant Insignificant Insignificant Insignificant D L Legislative awareness and forward planning Unsuitable tenants push rents down Insignificant Insignificant Insignificant Insignificant D L Programme and Project Delivery Risks Insufficient planning undertaken to identify necessary upgrading work Inadequate funding provided to undertake necessary renewal work Inefficient management of facilities Buildings - all components Buildings - all components Buildings - all components Decline in market attractiveness and subsequent vacancy Significant labour and materials cost increases Inadequate demand forecasting and analysis Lack of asset performance information and analysis techniques Lack of asset condition information and forward programme development capability Uncertainty that the levels of service provide optimum benefit for the cost Lack of documented and understood strategies and procedures Lack of operational efficiency information and analysis Inadequate analysis of condition, performance, operations and maintenance cost tracking, and capital works forecasts Poor maintenance and / or response - poor contractual control by COUNCIL Minor Moderate Insignificant E L Insignificant Insignificant Insignificant B M Minor Moderate Moderate Minor E L Minor Moderate Moderate Minor E L Minor Moderate Minor Minor E L Minor Minor Insignificant C L Insignificant Minor Insignificant D L Insignificant Minor Insignificant C L Insignificant Minor Insignificant C L Insignificant Insignificant Minor Insignificant Insignificant Insignificant D L Market awareness and forward planning Market awareness and forward planning Market awareness and monitoring against relevant KPIs (e.g. occupancy rates, rates of return) Market awareness and monitoring against relevant KPIs (e.g. occupancy rates, rates of return) Routine condition assessments as part of AM practice AM processes and routine LOS reviews AM processes, business planning and routine reviews AM processes, business planning and routine reviews AM processes Defined contractual processes 217

244 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Inadequate works prioritisation techniques Minor Minor Minor Insignificant D L Planned use of risk-based decision making. Requirement for business cases for Capex. Annual Plan process Significant unexpected service or asset failure occurs Significant negative public perceptions Buildings - all components Buildings - all components Risk analysis and management failed to identify the risk High profile tenants going out of business, especially in the Square Minor Minor Moderate Minor Insignificant Moderate Minor D L Minor Moderate Moderate Moderate Moderate Minor D L Routine planned reviews of risks 218

245 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Reserve Leasehold Properties: Risk Category Risk Event Assets / Functions Affected Caused By Impact on Goals Sector Consequence Controls Existing To Develop Programme Planning and Budget Risks Net costs of service increase significantly - higher costs and / or reduced investment revenue Leased property Theft of materials from existing buildings (e.g. copper) Failure to sell properties Insignificant Insignificant Insignificant Insignificant Insignificant E L Minor Major Minor Minor E L Reduced / attractive cost to tenants Customer Risks - Safety Site based accident resulting in injury or death Leased property Hazards from unsafe trees, unsupported banks, washouts etc Hazards from unsafe or poorly maintained assets (e.g. fences) Insignificant Minor Minor Insignificant Moderate Minor D L Insignificant Insignificant Minor Insignificant Minor Insignificant D L Response planning and reactive maintenance capability. Response planning and reactive maintenance capability. Customer Risks - Other No or late response to propertyrelated enquiries or requests for service Customer service Poor procedures/resourcing Insignificant Minor Insignificant Insignificant C L Poor staff performance Insignificant Minor Insignificant Insignificant D L Defined customer service processes Routine performance appraisals 219

246 Easy lifestyle Social, economic and leisure opportunities Environmental sustainability Attract, foster and retain businesses Financially responsible and value for money Community - Council understanding Legal Environmental Corporate Image Service Delivery Financial - COUNCIL Financial - Community Community Health & Safety Total Consequence Likelihood Risk Severity Appendix D - Risk Analysis/Framework and Register Forestry Impact on Goals Sector Consequence Controls Risk Category Risk Event Assets / Functions Affected Caused By Existing To Develop Programme Planning and Budget Risks Poor financial rate of return on forestry investment Forestry site assets Downturn in forestry industry and markets Inefficient management Unforeseen asset development required Moderate Moderate Minor D L Minor Minor Insignificant C L Insignificant Minor Insignificant C L Routine monitoring of market and options Routine performance appraisals and business reviews AM planning Customer Risks - Safety Site based accident resulting in injury or death Forestry site assets Poor management of hazards, relating to unsafe or poorly maintained assets (e.g. fences, bridges) Moderate Moderate Moderate Moderate Moderate Major Moderate F L Planned routine inspections of critical assets (bridge) Customer Risks - Other No or late response to propertyrelated enquiries or requests for service Customer service Poor procedures/resourcing Poor staff performance Insignificant Minor Insignificant Insignificant C L Insignificant Minor Insignificant Insignificant D L Defined customer service processes Routine performance appraisals 220

247 Appendix E Detailed Financial Information Appendix E: Detailed Financial Information - years 1 to 15 Operations & Maintenance Community Centres 2015/ / / / / / / / / / / / / / /30 Community House $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $1,186,800 Community Centres $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $212,688 $6,435,640 Cap Exp - Community Halls & Facilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Community CentresTotal $252,248 $252,248 $252,248 $252,248 $252,248 $252,248 $252,248 $252,248 $252,248 $252,248 $252,248 $252,248 $252,248 $252,248 $252,248 $7,622,440 Total AMP Community Housing Social Housing Buildings $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $38,864,010 Cap Exp - Social Housing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Community Housing Total $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $38,864,010 Cultural Facilities Caccia Birch Building $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $2,558,370 Creative Sounds $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $450,870 Globe Theatre Building $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $1,182,930 Library Buildings Exterior $322,370 $322,370 $328,370 $328,370 $328,370 $328,370 $328,370 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $10,312,440 Keith Street Power Station Building $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $371,370 Arts & Culture Facilities $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $138,840 Cap Exp - Arts & Cultural Facilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Regent Theatre Buildings $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $8,284,290 Square Edge Building $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $3,120,690 Te Manawa/Art Gallery $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $8,706,300 Cultural Facilities Total $1,149,492 $1,149,492 $1,155,492 $1,155,492 $1,155,492 $1,155,492 $1,155,492 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $35,126,100 Investment Properties Holiday Park $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $1,261,500 Investment Property $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $78,300 Investment Property Buildings $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $9,137,310 Maint Strategic Properties $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $252,000 Cap Exp - Strategic Properties $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment PropertiesTotal $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $10,729,110 Operational Buildings CAB Building $1,337,799 $1,537,799 $1,737,799 $1,747,799 $1,757,799 $1,767,799 $1,777,799 $1,787,799 $1,797,799 $1,807,799 $1,817,799 $1,827,799 $1,837,799 $1,847,799 $1,857,799 $55,313,970 Cap Exp - CAB/OP Property $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Convention Centre - Building $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $3,958,020 Information Centre $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $443,370 Animal Pound $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $359,370 Operational Buildings Total $1,496,491 $1,696,491 $1,896,491 $1,906,491 $1,916,491 $1,926,491 $1,936,491 $1,946,491 $1,956,491 $1,966,491 $1,976,491 $1,986,491 $1,996,491 $2,006,491 $2,016,491 $60,074,730 Public Rental Properties Public Rental Housing $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $20,468,760 Operations & Maintenance Total $5,233,627 $5,433,627 $5,639,627 $5,649,627 $5,659,627 $5,669,627 $5,679,627 $5,710,207 $5,720,207 $5,730,207 $5,740,207 $5,750,207 $5,760,207 $5,770,207 $5,780,207 $172,885,

248 Appendix E Detailed Financial Information Interest Community Centres 2015/ / / / / / / / / / / / / / /30 Community House $80,420 $76,987 $71,637 $67,058 $64,097 $60,980 $57,634 $53,924 $50,126 $46,139 $42,503 $39,377 $36,103 $33,081 $29,911 $1,057,015 Cap Exp - Community Halls & Facilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $658,084 Community Centres Total $80,420 $76,987 $71,637 $67,058 $64,097 $60,980 $57,634 $53,924 $50,126 $46,139 $42,503 $39,377 $36,103 $33,081 $29,911 $1,715,099 Community Housing Social Housing Buildings $177,227 $311,167 $370,966 $361,577 $354,117 $346,203 $337,720 $328,470 $318,802 $308,560 $298,441 $288,632 $278,232 $267,746 $256,610 $6,929,173 Cultural Facilities Globe Theatre Building $89,356 $85,541 $79,596 $74,508 $71,219 $67,755 $64,038 $59,915 $55,695 $51,266 $47,226 $43,752 $40,114 $36,757 $33,235 $1,174,460 Library Buildings Exterior $1,050 $49,013 $94,418 $92,780 $91,026 $89,150 $87,143 $84,996 $82,698 $80,240 $77,609 $74,794 $71,782 $68,559 $65,111 $1,638,375 Arts & Culture Facilities $142,042 $250,669 $381,657 $511,931 $677,412 $857,568 $1,017,492 $1,086,851 $1,067,648 $1,047,196 $1,026,082 $1,004,425 $981,339 $957,225 $931,499 $21,696,470 Te Manawa/Art Gallery $169,777 $162,527 $151,233 $141,566 $135,315 $128,735 $121,672 $113,839 $105,821 $97,405 $89,729 $83,129 $76,217 $69,838 $63,146 $2,231,474 Cultural FacilitiesTotal $402,225 $547,750 $706,904 $820,785 $974,972 $1,143,208 $1,290,345 $1,345,601 $1,311,862 $1,276,107 $1,240,646 $1,206,100 $1,169,452 $1,132,379 $1,092,991 $26,740,779 Investment Properties Investment Property $26,807 $25,662 $23,879 $22,353 $21,366 $20,327 $19,211 $17,975 $16,709 $15,380 $14,168 $13,126 $12,034 $11,027 $9,970 $352,340 Operational Buildings CAB Building $268,068 $256,622 $238,789 $223,525 $213,656 $203,266 $192,113 $179,745 $167,086 $153,798 $141,677 $131,256 $120,343 $110,271 $99,705 $3,523,382 Interest Total $954,747 $1,218,188 $1,412,175 $1,495,298 $1,628,208 $1,773,984 $1,897,023 $1,925,715 $1,864,585 $1,799,984 $1,737,435 $1,678,491 $1,616,164 $1,554,504 $1,489,187 $39,260,773 Depreciation Community Centres Community House $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $874,200 Community Centres $368,490 $368,490 $368,490 $368,490 $368,490 $368,490 $368,490 $368,490 $368,490 $361,970 $350,210 $350,210 $350,210 $350,210 $350,210 $10,852,382 Community Centres Total $397,630 $397,630 $397,630 $397,630 $397,630 $397,630 $397,630 $397,630 $397,630 $391,110 $379,350 $379,350 $379,350 $379,350 $379,350 $11,726,582 Community Housing Social Housing Buildings $537,350 $553,656 $553,026 $565,834 $578,628 $539,399 $544,051 $502,344 $413,029 $377,087 $353,695 $366,968 $323,130 $319,298 $292,707 $11,834,304 Cultural Facilities Caccia Birch Building $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $1,266,000 Creative Sounds $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $628,500 Globe Theatre Building $186,962 $186,962 $186,962 $186,627 $186,147 $186,147 $186,147 $186,147 $186,147 $186,067 $185,987 $185,987 $185,987 $185,987 $185,987 $5,584,055 Library Buildings Exterior $545,380 $546,046 $579,643 $591,310 $590,998 $590,891 $590,777 $582,080 $571,656 $571,656 $571,656 $571,656 $571,656 $571,656 $571,656 $16,984,869 Keith Street Power Station Building $850 $850 $850 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $17,400 Regent Theatre Buildings $807,680 $807,680 $805,327 $789,227 $789,227 $789,227 $789,227 $789,227 $786,801 $770,961 $770,961 $770,961 $768,743 $766,299 $762,315 $23,198,588 Square Edge Building $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $427,500 Te Manawa/Art Gallery $449,160 $449,160 $449,160 $449,160 $449,160 $449,160 $449,160 $449,160 $449,160 $449,160 $449,160 $449,160 $449,160 $418,192 $418,192 $12,948,344 Cultural Facilities Total $2,067,432 $2,068,098 $2,099,342 $2,094,274 $2,093,482 $2,093,375 $2,093,261 $2,084,564 $2,071,714 $2,055,794 $2,055,714 $2,055,714 $2,053,496 $2,020,084 $2,016,100 $61,055,256 Investment Properties Holiday Park $54,080 $54,080 $54,080 $54,080 $54,080 $54,080 $54,080 $54,080 $54,080 $54,080 $54,080 $54,080 $54,080 $54,080 $46,185 $1,465,675 Operating Property $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $1,864,200 Maint Strategic Properties $0 $3,477 $6,954 $10,431 $13,908 $17,385 $20,862 $24,339 $27,816 $31,293 $34,770 $38,085 $43,515 $56,254 $61,814 $1,791,043 Investment Properties Total $116,220 $119,697 $123,174 $126,651 $130,128 $133,605 $137,082 $140,559 $144,036 $147,513 $150,990 $154,305 $159,735 $172,474 $170,139 $5,120,918 Total AMP 222

249 Appendix E Detailed Financial Information Operational Buildings 2015/ / / / / / / / / / / / / / /30 Total AMP CAB Building $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $20,396,100 Convention Centre - Building $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $7,746,000 Animal Pound $5,740 $5,740 $5,740 $5,740 $5,740 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $157,925 Operational Buildings Total $943,810 $943,810 $943,810 $943,810 $943,810 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $28,300,025 Public Rental Properties Public Rental Housing $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $1,094,100 Depreciation Total $4,098,912 $4,119,361 $4,153,452 $4,164,669 $4,180,148 $4,143,718 $4,151,733 $4,104,806 $4,006,118 $3,951,213 $3,919,458 $3,936,046 $3,895,420 $3,870,915 $3,838,005 $119,131,185 Capital New Community Centres Community Centres (Growth related) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $880,000 Community Housing Cap Exp - Social Housing (LoS related) $2,000,000 $2,000,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,000,000 Cultural Facilities Cap Exp Kelvin Grove Community Centre/Library Buildings (Growth related) $30,000 $915,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $945,000 Cap Exp Earthquake Strengthening for all Council facilities (LoS related) $1,250,000 $2,000,000 $2,000,000 $2,000,000 $3,000,000 $2,500,000 $2,500,000 $0 $0 $0 $0 $0 $0 $0 $0 $15,250,000 Cultural Facilities Total $1,280,000 $2,915,000 $2,000,000 $2,000,000 $3,000,000 $2,500,000 $2,500,000 $0 $0 $0 $0 $0 $0 $0 $0 $16,195,000 Capital New Total $3,280,000 $4,915,000 $2,000,000 $2,000,000 $3,000,000 $2,500,000 $2,500,000 $0 $0 $0 $0 $0 $0 $0 $0 $21,075,000 Capital Renewal Community Centres Cap Exp - Community Halls & Facilities $33,000 $60,000 $10,000 $130,000 $50,000 $344,000 $118,000 $33,000 $30,000 $549,000 $220,000 $165,000 $102,000 $330,000 $30,000 $3,153,000 Community Housing Cap Exp - Social Housing $701,000 $540,000 $630,000 $550,000 $164,000 $200,000 $237,000 $644,000 $330,000 $463,000 $1,055,000 $672,000 $424,000 $250,000 $500,000 $10,858,000 Cultural Facilities Cap Exp - Arts & Cultural Facilities $250,000 $60,000 $200,000 $405,000 $200,000 $700,000 $280,000 $150,000 $800,000 $540,000 $785,000 $875,000 $1,265,000 $2,398,000 $1,799,000 $32,222,000 Investment Properties Cap Exp - Strategic Properties $172,209 $202,209 $202,209 $253,344 $165,717 $164,677 $393,074 $315,826 $286,810 $210,246 $413,485 $470,569 $603,650 $310,054 $283,902 $10,846,849 Operational Buildings Cap Exp - CAB/OP Property $1,306,000 $870,000 $945,000 $360,000 $80,000 $475,000 $65,000 $270,000 $370,000 $230,000 $270,000 $605,000 $190,000 $490,000 $765,000 $14,186,000 Cap Exp - City Marketing Facilities $100,000 $200,000 $10,000 $0 $5,000 $2,400 $45,000 $100,000 $50,000 $140,000 $15,000 $300,000 $20,000 $54,000 $3,000 $3,264,400 Operational Buildings Total $1,406,000 $1,070,000 $955,000 $360,000 $85,000 $477,400 $110,000 $370,000 $420,000 $370,000 $285,000 $905,000 $210,000 $544,000 $768,000 $17,450,400 Capital Renewal Total $2,562,209 $1,932,209 $1,997,209 $1,698,344 $664,717 $1,886,077 $1,138,074 $1,512,826 $1,866,810 $2,132,246 $2,758,485 $3,087,569 $2,604,650 $3,832,054 $3,380,902 $74,530,

250 Appendix E Detailed Financial Information Revenue Community Centres 2015/ / / / / / / / / / / / / / /30 Total AMP Community House ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($2,825,730) Community Centres ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($934,950) Community Centres ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($3,760,680) Community Housing Social Housing Buildings ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($42,368,670) Investment Properties Holiday Park ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($3,381,600) Investment Property Buildings ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($10,800,000) Investment Properties ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($14,181,600) Operational Buildings CAB Building ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($64,403,100) Information Centre ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($1,912,500) Operational Buildings ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($66,315,600) Public Rental Properties Public Rental Housing ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($30,709,500) Revenue Total ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($157,336,050) 224

251 Appendix E Detailed Financial Information Appendix E: Detailed Financial Information - years 16 to 30 Operations & Maintenance Community Centres 2030/ / / / / / / / / / / / / / /45 Community House $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $39,560 $1,186,800 Community Centres $212,688 $212,688 $212,688 $212,688 $217,688 $217,688 $217,688 $217,688 $217,688 $217,688 $217,688 $217,688 $217,688 $217,688 $217,688 $6,435,640 Cap Exp - Community Halls & Facilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Community Centres Total $252,248 $252,248 $252,248 $252,248 $257,248 $257,248 $257,248 $257,248 $257,248 $257,248 $257,248 $257,248 $257,248 $257,248 $257,248 $7,622,440 Community Housing Social Housing Buildings $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $38,864,010 Cap Exp - Social Housing $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Community Housing Total $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $1,295,467 $38,864,010 Cultural Facilities Caccia Birch Building $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $85,279 $2,558,370 Creative Sounds $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $15,029 $450,870 Globe Theatre Building $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $39,431 $1,182,930 Library Buildings Exterior $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $348,950 $10,312,440 Keith Street Power Station Building $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $12,379 $371,370 Arts & Culture Facilities $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $4,628 $138,840 Cap Exp - Arts & Cultural Facilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Regent Theatre Buildings $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $276,143 $8,284,290 Square Edge Building $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $104,023 $3,120,690 Te Manawa/Art Gallery $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $290,210 $8,706,300 Cultural Facilities Total $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $1,176,072 $35,126,100 Investment Properties Holiday Park $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $42,050 $1,261,500 Investment Property $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $2,610 $78,300 Investment Property Buildings $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $304,577 $9,137,310 Maint Strategic Properties $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $8,400 $252,000 Cap Exp - Strategic Properties $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Investment Properties Total $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $357,637 $10,729,110 Operational Buildings CAB Building $1,867,799 $1,877,799 $1,887,799 $1,897,799 $1,907,799 $1,917,799 $1,927,799 $1,937,799 $1,947,799 $1,957,799 $1,967,799 $1,977,799 $1,987,799 $1,997,799 $2,007,799 $55,313,970 Cap Exp - CAB/OP Property $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Convention Centre - Building $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $131,934 $3,958,020 Information Centre $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $14,779 $443,370 Animal Pound $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $11,979 $359,370 Operational Buildings Total $2,026,491 $2,036,491 $2,046,491 $2,056,491 $2,066,491 $2,076,491 $2,086,491 $2,096,491 $2,106,491 $2,116,491 $2,126,491 $2,136,491 $2,146,491 $2,156,491 $2,166,491 $60,074,730 Public Rental Properties Public Rental Housing $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $682,292 $20,468,760 Total AMP Operations & Maintenance Total $5,790,207 $5,800,207 $5,810,207 $5,820,207 $5,835,207 $5,845,207 $5,855,207 $5,865,207 $5,875,207 $5,885,207 $5,895,207 $5,905,207 $5,915,207 $5,925,207 $5,935,207 $172,885, / / / / / / / / / / / / / / /45 Total 225

252 Appendix E Detailed Financial Information Interest Community Centres Community House $27,186 $26,470 $24,871 $20,940 $17,215 $14,443 $9,576 $10,354 $11,855 $12,722 $12,992 $13,193 $14,394 $16,154 $14,673 $1,057,015 Cap Exp - Community Halls & Facilities $0 $0 $2,800 $33,541 $60,884 $60,182 $59,431 $58,627 $57,767 $56,846 $55,862 $54,808 $53,680 $52,473 $51,183 $658,084 Community Centres Total $27,186 $26,470 $27,671 $54,481 $78,099 $74,625 $69,007 $68,981 $69,622 $69,568 $68,854 $68,001 $68,074 $68,627 $65,856 $1,715,099 Community Housing Social Housing Buildings $245,581 $236,716 $226,120 $211,822 $197,164 $183,099 $165,514 $154,680 $143,978 $131,541 $117,359 $102,065 $87,015 $71,544 $50,505 $6,929,173 Cultural Facilities Globe Theatre Building $30,206 $29,411 $27,634 $23,267 $19,128 $16,048 $10,640 $11,505 $13,173 $14,135 $14,435 $14,659 $15,994 $17,949 $16,303 $1,174,460 Library Buildings Exterior $61,421 $57,473 $54,593 $51,512 $48,216 $44,688 $40,914 $36,876 $32,553 $27,931 $20,591 $17,689 $14,583 $11,261 $7,705 $1,638,375 Arts & Culture Facilities $904,789 $878,896 $850,173 $816,728 $781,529 $745,350 $704,314 $667,721 $629,386 $587,460 $541,799 $492,833 $441,646 $387,454 $325,356 $21,696,470 Te Manawa/Art Gallery $57,392 $55,881 $52,505 $44,207 $36,343 $30,491 $20,217 $21,859 $25,028 $26,857 $27,427 $27,852 $30,388 $34,103 $30,975 $2,231,474 Cultural Facilities Total $1,053,808 $1,021,661 $984,905 $935,714 $885,216 $836,577 $776,085 $737,961 $700,140 $656,383 $604,252 $553,033 $502,611 $450,767 $380,339 $26,740,779 Investment Properties Investment Property $9,062 $8,823 $8,290 $6,980 $5,738 $4,814 $3,192 $3,451 $3,952 $4,241 $4,331 $4,398 $4,798 $5,385 $4,891 $352,340 Operational Buildings CAB Building $90,619 $88,233 $82,903 $69,801 $57,383 $48,144 $31,921 $34,515 $39,518 $42,406 $43,306 $43,977 $47,981 $53,846 $48,909 $3,523,382 AMP Interest Total $1,426,256 $1,381,903 $1,329,889 $1,278,798 $1,223,600 $1,147,259 $1,045,719 $999,588 $957,210 $904,139 $838,102 $771,474 $710,479 $650,169 $550,500 $39,260,773 Depreciation Community Centres Community House $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $29,140 $874,200 Community Centres $345,464 $343,217 $343,217 $343,217 $343,217 $370,462 $370,462 $370,462 $370,462 $370,462 $370,462 $370,462 $370,462 $370,462 $370,462 $10,852,382 Community Centres Total $374,604 $372,357 $372,357 $372,357 $372,357 $399,602 $399,602 $399,602 $399,602 $399,602 $399,602 $399,602 $399,602 $399,602 $399,602 $11,726,582 Community Housing Social Housing Buildings $291,670 $296,322 $312,558 $317,210 $321,862 $326,514 $331,166 $335,818 $340,470 $345,122 $349,774 $354,426 $359,078 $363,730 $368,382 $11,834,304 Cultural Facilities Caccia Birch Building $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $42,200 $1,266,000 Creative Sounds $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $20,950 $628,500 Globe Theatre Building $185,987 $185,987 $185,987 $185,987 $185,987 $185,987 $185,987 $185,987 $185,987 $185,987 $185,987 $185,987 $185,987 $185,987 $185,987 $5,584,055 Library Buildings Exterior $571,656 $571,656 $571,656 $559,989 $559,989 $559,989 $559,989 $559,989 $559,989 $559,989 $559,989 $542,818 $542,818 $542,818 $542,818 $16,984,869 Keith Street Power Station Building $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $550 $17,400 Regent Theatre Buildings $762,315 $762,315 $762,315 $762,315 $762,315 $762,315 $762,315 $762,315 $762,315 $762,315 $762,315 $762,315 $762,315 $762,315 $762,315 $23,198,588 Square Edge Building $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $14,250 $427,500 Te Manawa/Art Gallery $418,192 $418,192 $418,192 $418,192 $418,192 $418,192 $418,192 $418,192 $418,192 $418,192 $418,192 $418,192 $418,192 $418,192 $418,192 $12,948,344 Cultural Facilities Total $2,016,100 $2,016,100 $2,016,100 $2,004,433 $2,004,433 $2,004,433 $2,004,433 $2,004,433 $2,004,433 $2,004,433 $2,004,433 $1,987,262 $1,987,262 $1,987,262 $1,987,262 $61,055,256 Investment Properties Holiday Park $44,158 $44,158 $44,158 $44,158 $44,158 $44,158 $44,158 $44,158 $44,158 $44,158 $44,158 $44,158 $44,158 $44,158 $44,158 $1,465,675 Operating Property $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $62,140 $1,864,200 Maint Strategic Properties $65,142 $68,649 $69,282 $71,656 $78,569 $83,757 $87,026 $97,045 $97,873 $103,014 $109,503 $115,488 $116,532 $117,057 $119,547 $1,791,043 Investment Properties Total $171,440 $174,947 $175,580 $177,954 $184,867 $190,055 $193,324 $203,343 $204,171 $209,312 $215,801 $221,786 $222,830 $223,355 $225,845 $5,120,

253 Appendix E Detailed Financial Information Operational Buildings 2030/ / / / / / / / / / / / / / /45 Total AMP CAB Building $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $679,870 $20,396,100 Convention Centre - Building $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $258,200 $7,746,000 Animal Pound $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $5,169 $157,925 Operational Buildings Total $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $943,239 $28,300,025 Public Rental Properties Public Rental Housing $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $36,470 $1,094,100 Depreciation Total $3,833,523 $3,839,435 $3,856,304 $3,851,663 $3,863,228 $3,900,313 $3,908,234 $3,922,905 $3,928,385 $3,938,178 $3,949,319 $3,942,785 $3,948,481 $3,953,658 $3,960,800 $119,131,185 Capital New Community Centres Community Centres (Growth related) $0 $0 $80,000 $800,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $880,000 Community Housing Cap Exp - Social Housing (LoS related) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,000,000 Cultural Facilities Cap Exp - Library Buildings Exterior (LoS related) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $945,000 Cap Exp - Arts & Cultural Facilities (LoS related) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $15,250,000 Cultural Facilities Total $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $16,195,000 Capital New Total $0 $0 $80,000 $800,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $21,075,000 Capital Renewal Community Centres Cap Exp - Community Halls & Facilities $65,000 $39,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $65,000 $3,153,000 Community Housing Cap Exp - Social Housing $200,000 $698,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $200,000 $10,858,000 Cultural Facilities Cap Exp - Arts & Cultural Facilities $2,500,000 $2,000,000 $1,900,000 $1,750,000 $1,700,000 $500,000 $2,300,000 $165,000 $1,000,000 $1,200,000 $1,000,000 $1,000,000 $1,000,000 $500,000 $3,000,000 $32,222,000 Investment Properties Cap Exp - Strategic Properties $342,033 $236,537 $336,064 $365,372 $723,342 $289,068 $382,179 $334,179 $543,138 $567,159 $1,461,800 $272,292 $160,169 $156,595 $228,941 $10,846,849 Operational Buildings Cap Exp - CAB/OP Property $310,000 $715,000 $230,000 $75,000 $940,000 $320,000 $830,000 $580,000 $685,000 $410,000 $660,000 $655,000 $105,000 $120,000 $260,000 $14,186,000 Cap Exp - City Marketing Facilities $70,000 $75,000 $100,000 $30,000 $190,000 $140,000 $750,000 $0 $120,000 $45,000 $270,000 $185,000 $135,000 $50,000 $60,000 $3,264,400 Operational Buildings Total $380,000 $790,000 $330,000 $105,000 $1,130,000 $460,000 $1,580,000 $580,000 $805,000 $455,000 $930,000 $840,000 $240,000 $170,000 $320,000 $17,450,400 Capital Renewal Total $3,487,033 $3,763,537 $2,831,064 $2,485,372 $3,818,342 $1,514,068 $4,527,179 $1,344,179 $2,613,138 $2,487,159 $3,656,800 $2,377,292 $1,665,169 $1,091,595 $3,813,941 $74,530,

254 Appendix E Detailed Financial Information Revenue Community Centres 2030/ / / / / / / / / / / / / / /45 Total AMP Community House ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($94,191) ($2,825,730) Community Centres ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($31,165) ($934,950) Community Centres ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($125,356) ($3,760,680) Community Housing Social Housing Buildings ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($1,412,289) ($42,368,670) Investment Properties Holiday Park ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($112,720) ($3,381,600) Investment Property Buildings ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($360,000) ($10,800,000) Investment Properties ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($472,720) ($14,181,600) Operational Buildings CAB Building ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($2,146,770) ($64,403,100) Information Centre ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($63,750) ($1,912,500) Operational Buildings ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($2,210,520) ($66,315,600) Public Rental Properties Public Rental Housing ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($1,023,650) ($30,709,500) Revenue Total ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($5,244,535) ($157,336,050) 228

255 Appendix F SPM Component Base Lives Appendix F: SPM Component Base Lives Component Group: Exterior Works, Sundries Type Component Baselife Unit Type Component Baselife Unit Ext Wks - Access Ext Wks - Signs Asphalt/Sealed Areas 10 m2 Sign (ACM info sign) 10 no Carpark Marking 5 m Sign (Exterior) 10 no Concrete Slab/Driveway 50 m2 Sign (Half sized panel sing) 10 no Kerb & Channelling 50 m Sign (Park name routed in timber) 10 Metal (Loose) 5 m2 Sign (Route) 10 no Parking Barrier/Kerbs 25 m Sign (Sail/Flag) 10 no Ext Wks - Grounds Sign (T imber) 10 no Bollard (Fixed) 25 no Fences Bollard (Removable) 25 no Block Wall 75 m2 Carport 50 m2 Brick Wall 50 m2 Channels & Grating 35 m Corrugated Iron Fence 25 m2 Cloth Lines 25 no Fence - Paint Finish 10 m2 Edging - Concrete 50 m Picket Fence 25 m Edging - Timber 25 m Pool Safety Fence 35 m Garage 50 m2 Post & Rail Fence 25 m Letter Boxes 25 no Post & Wire Fence 35 m Paint 10 m2 Post/Rail/Mesh Fence 25 m Paint Finish 10 m2 Post/Rail/Mesh Fence (tennis court) 25 m Park Seat 15 no Retaining Walls (concrete) 75 m2 Picnic T able 15 no Retaining Walls (timber) 50 m2 Picnic Table & Seats (Metal) 15 no Security Fence 25 m Picnic T able & Seats (Wood) 15 no Steel Bar Fence 50 Lm Rubbish Bin 15 no T imber Paling Fence 25 m Rubbish Bin (T ilt, Powder Coated) 18 no Wire Mesh Fence 25 m2 Rubbish Bin (Tilt, Stainless, Logo) 18 no Gates Shade Cloth 15 m2 Metal Gate 50 no Shed (Garden/Tool Shed) 35 no Motorised Sliding Gate 25 no Ext Wks - Paving Steel/Mesh Gate 25 no Asphalt Paths 10 m2 T imber Gate 25 no Astro Turf 10 m2 Wrought Iron Gate 50 no Chipseal 8 m2 Misc Cobblestone 25 m2 Covered Ways 50 m2 Concrete - Exposed Aggregate 50 m2 Decking 50 m2 Concrete Paths/Ramps 50 m2 Sun Screen/Awning 30 no Concrete Paver/Interlocking Blocks 50 m2 Verandah - Roof only 50 m2 Limestone Path 8 m2 Tanks Rebound Synpave 12 m2 Water T ank - Concrete 50 no T iles 20 m2 Water T ank - Metal 35 no Unsealed - Gravel 12 m2 Water T ank - Plastic 35 no 229

256 Appendix F SPM Component Base Lives Component Group: External Fabric Type Component Baselife Unit Type Component Baselife Unit External Walls External Stairs Aluminium 75 m2 Handrail - Metal 50 m Aluminium Sunshade Louvres 35 m2 Handrail - Timber 50 m Brick Cladding 75 m2 Staircase - Metal 75 m/h Curtain Walling (Glass) 55 m2 Staircase - Timber 50 m/h Fibrolite Sheeting 50 m2 Windows & Doors Hardiplank 50 m2 Alum Frame Glass - Dble Door 50 no Marble/Granite 100 m2 Alum Frame Glass - Sgle Door 50 no Metal Cladding 50 m2 Alum/Glass - Sliding Dble Door 50 no PVC Weatherboards 35 m2 Alum/Glass - Sliding Sgle Door 50 no Paint Finish 10 m2 Aluminium A/C Louvres 50 m2 Plaster 50 m2 Aluminium Panel Door 50 no Plywood 50 m2 Aluminium Windows 50 m2 Precast Concrete Wall Panels 100 m2 Automatic Opening Doors 25 no Shiplap 75 m2 Door Closer 25 no T imber Base Boards 35 m2 Door Hardware (handles/locks) 25 no Translucent Sheeting 25 m2 Emergency Exit Door - Double 50 no Weatherboard - T imber 75 m2 Emergency Exit Door - Single 50 no Roof Glass Door 50 no Bitumous Sheeting 20 m2 Louvre Windows 35 m2 Butynol Roofing 20 m2 Metal Clad Doors 35 no Colour Steel 30 m2 Metal Framed Doors 35 no Compressed Fibre 50 m2 Metal Framed Windows 50 m2 Concrete Roof Slabs 100 m2 Metal Roller Doors 35 m2 Decramastic 35 m2 Paint Finish 10 m2 Downpipes - Metal 35 m Sliding Doors 50 no Downpipes - PVC 35 m Solid Flush Door 30 no Glass 50 m2 T imber Entrance Door 50 no Metal Roofing 25 m2 T imber Framed Windows 50 m2 Paint Finish 10 m2 T imber/glass Door 50 no Paint Finish - Soffits/Fascia 10 m2 Shingles - T imber 35 m2 Skylight 50 m2 Soffits - Fibrolite 50 m2 Soffits - T imber 50 m2 Spouting - Metal 35 m Spouting - PVC 35 m Tile Roofing - Clay 50 m2 Tile Roofing - Concrete 75 m2 Tile Roofing - Slate 100 m2 T imber Fascia 50 m Translucent Sheeting 25 m2 230

257 Appendix F SPM Component Base Lives Component Group: Interior Finishes Type Component Baselife Unit Type Component Baselife Unit Ceiling Finishes Floor Finishes Fibrolite 75 m2 Carpet 15 m2 Gib-board Lining 50 m2 Ceramic tiles 50 m2 Hardboard 75 m2 Cork 25 m2 Insulation 75 m2 Floating timber 15 m2 MDF sheet 75 m2 Floor - Particle Board 75 m2 Melteca/Seratone 50 m2 Floor - T imber T & G 75 m2 Paint Finish 10 m2 Paint Finish 10 m2 Particle Board 75 m2 Parquet 50 m2 Plaster Finish 50 m2 Plywood 75 m2 Plywood 75 m2 Polyurethane Finish 10 m2 Softboard/Pinex T iles/lining 50 m2 Rubber 35 m2 Suspended Panel (incl Frame) 50 m2 Stair Nosing 15 m T imber Lining 75 m2 Sureshield 20 m2 Fixtures & Fittings T erraflake 20 m2 Baby Change Table 24 no Vinyl 20 m2 Blinds/Curtains 10 m2 Interior Doors Fireplaces 75 no Accordion/Folding 20 m2 Fixed Desks, T ables, Seating 20 no Aluminium/Glass - Double 50 no Fixed Seating 20 no;lm Aluminium/Glass - Single 50 no Hand Drier 15 no Automatic 20 no Handrail Stainless 25 no Door Closer 25 no Hot Water Cylinder 25 no Door Hardware (handles/locks) 25 no Internal Sign (Non-Illum) 25 no Doors - Hollow-core 35 no Joinery Fttgs - Built-in 40 m Doors - Solid 50 no Kitchen Bench, Formica 20 m Fire Doors 50 no Kitchen Bench, S/S 40 m Glass Door 50 no Mirror 20 no Metal Doors 50 no Paint Finish 10 m2 Metal Roller Door 35 m2 Range Hood 25 no Paint Finish (per leaf) 10 no Shelving 35 m Polyurethane Finish (per leaf) 10 no Shower Seat 25 no Sliding Doors (Cavity) 50 no Stoves 15 no Swing Doors - ( Smoke Stop) 50 no Super T ub 25 n T imber Glass 50 no Undersink Water Boiler/Cooler 20 no Wall Finishes Ventilation fan - Domestic 18 no Fibrolite 75 m2 Water Boiler/Automatic 25 no Fibrous Plaster Lining 50 m2 Work Benches 40 m Gib-board Lining 50 m2 Interior Walls Glass 50 m2 Int Window - Metal 25 m2 Hardboard 35 m2 Int Window - Timber 25 m2 MDF sheet 75 m2 Proprietary Office Partitions 25 lm Melteca/Seratone 50 m2 Proprietary Toilet Partitions 18 lm Metal 30 m2 Paint Finish 10 m2 Particle Board 75 m2 Plaster Finish 50 m2 Plywood 75 m2 Polyurethane Finish 10 m2 T iles - Ceramic 50 m2 T imber Lining 75 m2 Vinyl Wall Lining 20 m2 Wallpaper Finish 10 m2 231

258 Appendix F SPM Component Base Lives Component Group: Services Type Component Baselife Unit Type Component Baselife Unit Electrical Mechanical Cabling/Internal Wiring 40 m2 Air Conditioner 12 no Display Lights 15 no Air Handler Units 20 no Emergency Lights 25 no Axial Ventillation Fans 20 no Exit Signs(Illuminated) 15 no Boilers 20 no Flood Lights 15 no Building Management System 10 no Fluorescent Lights 25 no Centrifugal Ventilation Fans 15 no Incandescent Lights 15 no Chiller 18 no LED lights 15 no Chillers - Centrifigal 18 no Light Switches & Powerpoints 30 no Chillers - Recpricating 18 no Local DBS 40 no Chillers - Screw 18 no Local Security Lighting 15 no Cooling Tower 18 no Main Fusebox 40 no Ductwork 25 m2 Main Switch Board 40 no Fan Coil Units 18 no Meter Boxes 40 no Flues 50 m Pole T op Lights (External) 15 no Header T ank 20 no Fire Services Heat Exchanger, chilled water 25 no EWIS system 18 no Heat Exchanger, heating 25 no Ext. Alarm Panel/Fire Sys. 40 no Piping 25 m Fire - Heat detectors 35 no Radiators (oil) 30 no Fire Alarm System 15 no S/S Extractor Hood 25 no Fire Extinguishers 20 no Space Heaters 25 no Fire Hose reels 15 no Split Air Conditioning Units 12 no Fire Sprinklers 30 no Underflr/wall &/or Ceiling Heat. 35 m2 Manual Call Point 10 no Valves - HVAC 12 no Pipework 20 m Ventilating Fans 25 no Siren/Sounder 10 no Walk-in Chiller 30 no Smoke Detectors 10 no Walk-in Freezer 30 no Valves - fire system 12 no Water Pump 7 no Lifts / Hoist Sanitary Plumbing Car Interior & Call Buttons 10 no Bath 50 no Cleaner Cradle - BMU 25 no Generic T ap 20 no Controller 10 no Handbasin 35 no Door sets 15 no Laundry T ub/ Cleaners Sink 50 no Escalators 25 no Shower Slide 20 no Goods and Service Lift 40 no Shower Unit (Acrylic) 25 no Motor 50 no Shower Unit (Lined 3 sided) 25 no Passenger Lift - Hydraulic 25 no Sink Faucet 20 no Passenger Lift - Traction 40 no Toilet - China Bowl /Cistern 35 no Pulley hoists 25 no Toilet - China Urinal 35 no Ropes 7 no T oilet - S/S Bowl /Cistern 35 no Stage lift 40 no T oilet - S/S Urinal 35 no Walkways (moving) 25 no Vanity (incl Basin) 25 no Winch gear 50 no Wet Floor Shower Unit 25 no Special Services Barrier arms 20 no CCTV Camera/Monitor 7 no Card Reader 20 no Elect. Security Sys. - Domestic 15 no Generators (Standby) 20 no Parking Control 10 no Surveillance and Security System 10 no Table: SPM Component Base Lives 232

259 Appendix G Location of Housing Properties Appendix G: Location of Housing Properties Figure 67: Location of Community and Public Housing Complexes 233

260 Appendix G Location of Housing Properties 234

261 Appendix H Summary Component Categories 235

262

263 Appendix H Summary Component Categories Appendix H: Summary Component Categories and Average Remaining Useful Lives Asset Site Ashhurst Library Average Component Group Component Type Unit Quantity Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m Ext Wks - Paving m Fences m 12 7 m Ext Wks - Grounds no 1 10 Ext Wks - Signs no 1 8 Exterior Wks, Sundries Total External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no 7 27 External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m m no 4 16 Floor Finishes m Interior Doors no Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no 8 10 Mechanical no 9 16 Sanitary Plumbing no Special Services no 1 10 Services Total Special Special no 1 40 Special Total 1 40 Ashhurst Library Total

264 Appendix H Summary Component Categories Asset Site Caccia Birch Average Component Group Component Type Unit Quantity Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m m Ext Wks - Paving m Fences lm m m Gates no 2 30 Misc m Ext Wks - Grounds no Exterior Wks, Sundries Total External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no Floor Finishes m 7 10 m Interior Doors no Interior Walls lm 6 15 m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Lifts / Hoist no 1 15 Mechanical no 7 20 Sanitary Plumbing no Services Total Special Special m m no Special Total Caccia Birch Total

265 Appendix H Summary Component Categories Asset Site Central Library Average Component Group Component Type Unit Quantity Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m m Ext Wks - Paving m Misc no Swimming Pools m Exterior Wks, Sundries Total External Fabric External Stairs m m/h 2 60 External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no Floor Finishes m m Interior Doors m no Interior Walls lm m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Lifts / Hoist no 4 28 Mechanical m m no Sanitary Plumbing no Special Services no 16 6 Services Total Special Special m m no Special Total Central Library Total

266 Appendix H Summary Component Categories Asset Site Civic Administration Building Component Group Component Type Unit Quantity Average Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m Ext Wks - Paving m Fences m Gates no Exterior Wks, Sundries Total External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no Floor Finishes m m Interior Doors m no Interior Walls lm m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Lifts / Hoist no 6 21 Mechanical m m no Sanitary Plumbing no Special Services no Services Total Special Special m m no Special Total Civic Administration Building Total

267 Appendix H Summary Component Categories Asset Site Convention Centre Average Component Group Component Type Unit Quantity Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m m Ext Wks - Paving m Ext Wks - Grounds no 3 13 Exterior Wks, Sundries Total External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no Floor Finishes m m Interior Doors m no Interior Walls lm m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Lifts / Hoist no 2 18 Mechanical m m no Sanitary Plumbing no Special Services no 19 7 Services Total Special Special m m no (blank) 1 30 Special Total Convention Centre Total

268 Appendix H Summary Component Categories Asset Site Highbury Branch Library Component Group Component Type Unit Quantity Average Remaining Life in Years Exterior Wks, Sundries Misc m Exterior Wks, Sundries Total External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m 5 30 m2 6 8 no 7 18 Floor Finishes m Interior Doors no Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no 9 9 Mechanical no 3 8 Sanitary Plumbing no Services Total Highbury Branch Library Total

269 Appendix H Summary Component Categories Asset Site I-Site (Information Centre) Component Group Component Type Unit Quantity Average Remaining Life in Years External Fabric External Stairs m Roof m External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m m2 4 7 no Floor Finishes m Interior Doors no Interior Walls lm 9 10 m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no 39 9 Mechanical no 1 6 Sanitary Plumbing no Special Services no 3 7 Services Total I-Site (Information Centre) Total

270 Appendix H Summary Component Categories Asset Site Operational Depot Average Component Group Component Type Unit Quantity Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m Ext Wks - Paving m Fences m m Gates no 5 18 Misc m no 6 20 Exterior Wks, Sundries Total External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m m no Floor Finishes m Interior Doors no Interior Walls m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no 82 9 Mechanical m no Sanitary Plumbing no Special Services no 1 10 Services Total Special Special no 2 25 Special Total 2 25 Operational Depot Total

271 Appendix H Summary Component Categories Asset Site Regent Theatre Average Component Group Component Type Unit Quantity Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m Ext Wks - Paving m Gates no 6 24 Exterior Wks, Sundries Total External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no Floor Finishes m m Interior Doors m no Interior Walls lm m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Lifts / Hoist no 1 15 Mechanical m m no Sanitary Plumbing no Special Services no 12 5 Services Total Special Special no sum 2 14 Special Total Regent Theatre Total

272 Appendix H Summary Component Categories Asset Site Square Edge Main Building Average Component Group Component Type Unit Quantity Remaining Life in Years Exterior Wks, Sundries Ext Wks - Paving m Exterior Wks, Sundries Total 6 25 External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no Floor Finishes m Interior Doors m no Interior Walls lm 2 20 m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Lifts / Hoist no 1 12 Mechanical no Sanitary Plumbing no Special Services no 4 6 Services Total Special Special m no sum 2 33 Special Total Square Edge Total

273 Appendix H Summary Component Categories Asset Site Square Edge Rear courtyard buildings Component Group Component Type Unit Quantity Average Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m Ext Wks - Paving m Gates no 3 43 Exterior Wks, Sundries Total External Fabric External Stairs m 7 30 External Walls m Roof m m Windows & Doors m no 9 20 External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no 4 14 Floor Finishes m Interior Doors no Interior Walls m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no 9 8 Mechanical no 3 11 Sanitary Plumbing no Services Total Square Edge Rear courtyard buildings

274 Appendix H Summary Component Categories Asset Site Te Manawa Art Gallery Component Group Component Type Unit Quantity Average Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m 24 4 m Ext Wks - Paving m Fences lm m Gates no 1 40 Ext Wks - Grounds no 7 11 Exterior Wks, Sundries Total External Fabric External Stairs m m/h External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no Floor Finishes m Interior Doors no Interior Walls lm 9 15 m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Lifts / Hoist no 1 15 Mechanical m m no Sanitary Plumbing no Special Services no 17 6 Services Total Special Special m no 3 35 Special Total Te Manawa Art Gallery Total

275 Appendix H Summary Component Categories Asset Site Te Manawa Museum and Science Component Group Component Type Unit Quantity Average Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m m Ext Wks - Paving m Fences lm Gates no 4 40 Misc m Ext Wks - Grounds no 4 11 Exterior Wks, Sundries Total External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no Floor Finishes m m Interior Doors m no Interior Walls lm m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Lifts / Hoist no 4 23 Mechanical m m no Sanitary Plumbing no Special Services no 25 6 Services Total Special Special m no Special Total Te Manawa Museum and Science Total Grand Total

276 Appendix H Summary Component Categories Asset Type Community Agency Facilities Average Component Group Component Type Unit Quantity Remaining Life in Years Exterior Wks, Sundries Ext Wks - Access m Ext Wks - Paving m Fences m Gates no 1 23 Exterior Wks, Sundries Total External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no Floor Finishes m m Interior Doors m no Interior Walls Lm m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Mechanical no Sanitary Plumbing no Services Total Special Special m sum 1 25 Special Total Community Agency Facilities Total Community Centres Exterior Wks, Sundries Ext Wks - Access m m Ext Wks - Paving m Fences Lm m Gates no 4 24 Ext Wks - Grounds no 4 8 Ext Wks - Signs no

277 Appendix H Summary Component Categories Asset Type Community Centres Total Community Housing Misc m Average Component Remaining Group Component Type Unit Quantity Life in Years Exterior Wks, Sundries Total External Fabric External Stairs m m/h 8 30 External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m no Floor Finishes m Interior Doors m no Interior Walls Lm m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Mechanical no Sanitary Plumbing no Services Total Special Special m m no (blank) 1 10 Special Total Exterior Furniture and Fittings Play Equipment m no 3 10 Exterior Furniture and Fittings Total Exterior Wks, Sundries Ext Wks - Access m m Ext Wks - Paving m Fences Lm m m Gates no

278 Appendix H Summary Component Categories Asset Type Ext Wks - Grounds m no Average Component Remaining Group Component Type Unit Quantity Life in Years Ext Wks - Signs no 7 4 Exterior Wks, Sundries Total External Fabric External Stairs m External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m m no n Floor Finishes m Interior Doors m no Interior Walls m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no Mechanical no Sanitary Plumbing no Services Total Community Housing Total Investment Properties Exterior Wks, Sundries Ext Wks - Access m m Ext Wks - Paving m Fences m m Ext Wks - Grounds no 10 8 Ext Wks - Signs no 2 9 Misc m Exterior Wks, Sundries Total External Fabric External Stairs m 8 30 External Walls m Roof m m

279 Appendix H Summary Component Categories Asset Type Windows & Doors m no External Fabric Total Average Component Remaining Group Component Type Unit Quantity Life in Years Interior Finishes Ceiling Finishes m Fixtures & Fittings m m no 79 9 Floor Finishes m Interior Doors no Interior Walls Lm 69 9 Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no 10 7 Mechanical no 16 6 Sanitary Plumbing no Services Total Special Special no Special Total Exterior Furniture and Fittings Play Equipment m no 8 8 Exterior Furniture and Fittings Total Investment Properties Total Public Rental Housing Exterior Wks, Sundries Ext Wks - Access m m Ext Wks - Paving m Fences m m Gates no 8 25 Ext Wks - Grounds no Exterior Wks, Sundries Total External Fabric External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m m no

280 Appendix H Summary Component Categories Asset Type n 1 25 Floor Finishes m Interior Doors no Average Component Remaining Group Component Type Unit Quantity Life in Years Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no 95 7 Mechanical no Sanitary Plumbing no Services Total Special Special no Special Total Exterior Furniture and Fittings Play Equipment m no 4 11 Exterior Furniture and Fittings Total Public Rental Housing Total Strategic Properties Exterior Wks, Sundries Ext Wks - Access m Ext Wks - Paving m Fences m m Gates no 6 49 Ext Wks - Grounds m no 3 19 Exterior Wks, Sundries Total External Fabric External Walls m Roof m m Windows & Doors m no External Fabric Total Interior Finishes Ceiling Finishes m Fixtures & Fittings m m no Floor Finishes m Interior Doors no Interior Walls m Wall Finishes m Interior Finishes Total Services Electrical no Fire Services no

281 Appendix H Summary Component Categories Asset Type Mechanical no Sanitary Plumbing no Services Total Average Component Remaining Group Component Type Unit Quantity Life in Years Special Special m no Special Total Strategic Properties Total Grand Total

282 Appendix H Summary Component Categories 256

283 Appendix I Peer Review Report Appendix I: Peer Review Report 257

284 Appendix I Peer Review Report 258