Birmingham Highways Maintenance and Management Service CIHT Northern Ireland

Transcription

1 Birmingham Highways Maintenance and Management Service CIHT Northern Ireland 21 st November 2011

2 Birmingham Highways Maintenance and Management Service (PFI) Mike Notman AMEY PROJECT DIRECTOR

3 Amey Today Founded in 1920 Part of Ferrovial since 2003 Leading public services company Award winning consultancy Approx. 90% of business in public sector Over 200 locations across the UK 11,000 strong workforce 2010 turnover 1.2bn ¼ of the UK population use at least 1 Amey service each day Investor in People One of the Top 100 Companies that Count in the BITC Corporate Responsibility Index

4 Birmingham Highways PFI Considerations Birmingham City Council (BCC) Leader s vision to be world class city by 2026 Large maintenance backlog right across city wrong image Public demand something must be done! Outline Business Case Best Value solution outsource to Service Provider PFI only way to get extra funding to deal with maintenance backlog: 600M PFI credits a grant from central government But some concerns still existed: Issues around change of control ring-fences BCC revenue and part of capital budget Potential concerns from staff and trade unions over TUPE

5 Overview of Birmingham PFI Birmingham 2 nd largest city in the UK with 1 million people living there and 500,000 people working in the city Birmingham City Council annual budget of over 3.5Bn largest in Europe The project value of c 2.7 Billion over 25 years Amey responsible for every street, footway and associated assets in Birmingham Financial Close 6 May 2010 Service Commencement Date 7 June 2010 BIRMINGHAM London Almost 18 months into live Project

6 Project Overview Capex in Core Investment Period (CIP) Years 1-5: 2,547 km of carriageway 40% treated 4,923 km of footways 15% treated 95,107 street lights 50% replaced in CIP 27 structures strengthened in CIP 3 tunnels refurbished Upgrade UTC to UTMC standards Opex in Years 1-25 Surveys and inspections Routine, cyclic, emergency and winter maintenance Running UTMC Dealing with customers via Help Desk in Operational Control Room Lifecycle programme to maintain network to performance standards Replacing up to1,000 trees each year

7 Project structure AVAHL/Uberior/ Equitix

8 Facts & Figures 100m Capex cost Approx 330m of capital funding borrowed Amey receive increasing monthly (unitary) payments as capital works are delivered Receiving full payment each month is dependent on achieving specified performance targets CIP 100% UC 55m 60% UC Lifecycle Opex cost 5 Years 25

9 CAPEX Programme Development Network condition survey pavement (carriageway, footway etc) Lighting Structures Tunnels Signals Network Needs / prioritisation UKPMS model run for pavements other asset models Draft Programmes 5 year indicative 1 Year detailed Consultation Authority Consent Works sequencing and coordination

10 Opex Works Routine Maintenance Works continue to progress in all areas with no significant problems or issues: Emergencies/Cat 1 s Winter Maintenance Street Lighting Drainage Trees and Weeds

11 Monthly Reporting of Opex Performance Over 1,300 Performance Items Derived from Output Spec Clauses Initially manual data entry Ultimately approx. 2/3 automated data (MIS) Exception report where failures identified Pay deductions via Payment Mechanic Service point calculator Highly complex resource intensive Individual rectification periods per clause Individual adjustment periods per clause Multiplier [ratchet] mechanism by time (5min, 24hrs, 5days etc) Authority Audit Team Records interrogation Limited moratoria agreed Mitigations considered but no horse trading

12 Opex Works Inspections and Surveys Surveys and Inspections continue in line with programme requirements: Deflectograph DVI Grip Tester Scanner Bridges and Structures Safety Inspections Service Inspections

13 Milestone 10 Targets for Districts 1-11 Service Stream Service Requirement Amount Required Carriageways (Hierarchy 2) Carriageways (Hierarchy H3 and H4) Footways Verges Kerbs Cycle Track Network Condition Index (NCI = SRI + SCI) Network Condition Index (NCI = SCI) Footway Condition Index (FWCI = SCI) Verge Condition Index (VGCI = SCI) Kerb Condition Index (KBCI = SCI) Cycle Track Condition Index (CTCI = SCI) NCI = 9.9 NCI = 6.6 FWCI = 6.6 VGCI = 6.6 KBCI = 6.6 CTCI = 6.6 Street Lighting Number of old columns removed 31,170 no. Non-Standard Street Lighting Number of lanterns upgraded 2,297 no.

14 Milestone 10 Targets for District 12 Strategic Routes Service Stream Service Requirement Amount Required Carriageways (Hierarchy 1) Footways Verges Kerbs Cycle Track Network Condition Index (NCI = PCI + SRI + SCI) Footway Condition Index (FWCI = SCI) Verge Condition Index (VGCI = SCI) Kerb Condition Index (KBCI = SCI) Cycle Track Condition Index (CTCI = SCI) NCI = 18.6 FWCI = 6.6 VGCI = 6.6 KBCI = 6.6 CTCI = 6.6 Street Lighting Number of old columns removed 10,341 no. Non-Standard Street Lighting Number of lanterns upgraded 1,034 no. Pumping Stations Number refurbished 15 no. Traffic Signal Controllers Replace if >15 years old 448 no. Structures and Bridges Strengthen decks 18 no. complete Structures and Bridges Strengthen parapets 55 no. complete Tunnels Upgrade to new standards 3 no. complete

15 How Independent Certifier (IC) certifies the Work Schedule 15 sets out detailed process For Milestones 1 and 2, following applies: Carriageways, Footways, Verges and Kerbs, Districts 1 11 area (m 2) Carriageways, Districts 12 - NCI Footways, Kerbs, Verges, Districts 12 and Cycle Tracks Districts 2,9,11&12 Street Lighting Non-Standard Street Lighting Pumping Stations Traffic Signal Controllers Confirm area treated by desk-top study Validate data entered into Pavement Management Model Validate data entered into Pavement Management Model Desk-top study to count number of columns removed. 10% audit of design certificates and electrical test certificates Desk-top study to count number of lanterns upgraded. 10% audit of electrical test certificates provided Desk-top study to compare designs with Asset Survey Reports. Validate test certificates provided Desk-top study to verify number of Controllers replaced. Validate test certificates provided Inspect 10% of streets treated to check work has been done Check calibration of survey machines and accreditations of DVI staff Check accreditations of DVI staff Inspect 10% of streets to count columns removed No site visit required Visit each site to check work has been done Inspect 5% of streets to count Controllers replaced

16 Challenges - allocation and transfer of risk Contract assesses risks carefully and has allocated to party best able to manage Transferring risks gives incentives for Service Provider to improve delivery through innovative and more efficient ways of working Optimum risk transfer reduces cost and gives greatest value for money Payments aggregated into single lump sum contract Risks that cannot be managed attract a premium Asset, pricing, energy, weather and inflation risk all passed to Amey

17 Risk transfer on Birmingham Highways Output specification defines what is required Amey decides how Payments aggregated into single lump sum payment Amey risk Inflation uplift linked to RPI we predict actual contract cost increases Productivity Amey manages team to deliver affordable services Failure to deliver services reduces payment to Amey TUPE governs Ts and Cs and pensions of 240 people who transferred Amey takes risk of accidents and third party claims related to the highway Amey takes weather risk for winter maintenance in lump sum Statutory Undertakers performance affects network condition Energy: - Amey responsible for consumption in kwh hence LED street lights - City Council keeps risk of unit price in /kwh

18 Birmingham s World Leading Street Lighting PFI enables long-term investment Global leading LED solution New technology/remote monitoring flexibility Improved visibility & community safety Approx 50% energy/carbon savings Dimming, trimming and harvesting Delivering council s carbon reduction targets

19 Innovation; Benefits of LEDs Energy and carbon reduction through - Increased optical control - Ability to dim street lights - Efficient light source Energy savings of 50% ( 2m p.a.) Increased reliability, less outages leading to reduced maintenance costs and better service Uniform lighting appearance leads to improved visibility and feeling of safety Ability to amend lighting regime in the future, future proof and flexible Reduction in sky glow and obtrusive light

20 Headcount Resource Plan Full establishment headcount = 580 November 2011 H E A D C O U N T TUPE Transfer 7/6/2010 Total number of employees

21 Worklessness Agenda and Apprentices Amey, Birmingham City Council, Skills Funding Agency and Jobcentre Plus working together in partnership to engage local workless people to promote access to jobs and training Monthly steering group work together to ensure local people benefit from training and employment opportunities All recruited locally from young people unemployed for over 6 months Future Jobs Fund scheme has already prepared young people for work Developed an assessment centre to select trainees Assessment includes a number of processes such as written, numerical, team exercises and a structured interview All apprentices have access to gold award of the Duke of Edinburgh scheme

22 Supply chain - key statistics strategic supply partners Location Total % Birmingham 53.48% West Midlands 33.23% Other 11.24% East Midlands 2.06% Total 100% Birmingham PFI Supply Chain Partner 90% of the total contract spend is focused with strategic supply base 88% of focused spend targeted with suppliers in Birmingham and the West Midlands Birmingham West Midlands Other East Midlands

23 Community Engagement We have started several community engagement projects including: Engaging with the Midnight Bus to reduce crime whilst working at night Turves Green Leisure Centre Community Day LED Street Lighting Launch Lord Mayor s Birmingham PFI visit Councillors drop-in sessions; 7 December 2010 & 12 January 2011 Presentations to Constituency Committees Highway Stewards embedded in the communities

24 Health Safety and the Environment Target Zero Every Day Visible Felt Leadership Behavioural Safety Near Miss Reporting Alcohol and Drugs Personal Highways Safety

25 Achievements so far one year on Full highway network survey covering 2,500km of roads Full tree survey identifying 76,000 trees 250km of roads resurfaced 300km of pavements resurfaced 30,000 trees pruned 10,000 street lights installed 7,000 potholes repaired

26 Achievements so far one year on 300 new jobs have been created, including 80 Apprentices and Trainees Up to 80 highways emergencies responded to each day within an average of 28 minutes Over 60,000 calls and enquiries received from members of the public 130,000 utility and highway works coordinated 1,200km of roads gritted each night during bad weather 1,200 grit bins filled and placed around the city Total of 48,000 miles of roads gritted

27 Media

28 Awards Won Project Finance Journal Awards - European Services PPP Deal of the Year Jane s Transport Magazine - European Road Finance Deal of the Year Project Finance International Magazine - European PPP Deal of the Year Considerate Contractors Award 2010 Partnerships Bulletin Awards Best Transport Maintenance Project ICE West Midlands Awards - Sustainability Award Forward Planning: Submission for a Personnel Today award Award for Best Original Employment Initiative

29 Summary Cost certainty and lowest whole life costs are built into the contract price Smarter and more innovative ways of working are encouraged to create lowest whole life cost Long term investment decisions will deliver best value approach Allocation of risk to party best placed to manage it New ways of working can be shared across the highways industry Birmingham will have best Local Authority roads in UK

30