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AIRPORT ASSET MANAGEMENT

PLAN MAY 2018

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AIRPORT ASSET MANAGEMENT PLAN 0

DOCUMENT PREPARATION & QUALITY ASSURANCE

NAME DATE

Prepared By Luke Knight & Libby Young Property Manager & Transport Asset Manager, Wairoa District Council

August 2017

Reviewed By Brendon Thompson October 2017

Peer Reviewed by OPUS Internatioal Consultants November 2017

Document Approved Jamie Cox Engineering Manager, Wairoa District Council

Dec 2017

Adopted by Council Resolution 2018/54 September 2018

UPDATE REGISTER

VERSION DATE UPDATE DESCRIPTION UPDATED BY

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EXECUTIVE SUMMARY INTRODUCTION

The management of the airport activity needs to be reviewed as budgets, the economy and customers change. Past practices have generally been reactive rather than proactive with a ‘business-as-usual’ approach, whereas Council is now working towards ‘best for asset’ decision-making processes as the basis for maintenance and forward works programmes.

THE ACTIVITY

The airport activity includes:

• the maintenance of airport assets including the runway, taxiway and aprons, as well as Council-owned buildings and perimeter fencing

• operation of the airport as the controlling authority in line with CAA guidelines.

THE STRATEGIC ENVIRONMENT

The airport activity is managed and maintained in accordance with agreed levels of service. The key drivers are based around statutory requirements and community outcomes set by Council, as well as ensuring that future demand is provided for.

Whilst it is recognised that the population is declining, the level of service required for the airport activity has increased. The arrival of Rocket Lab to the region has significantly boosted tourism opportunities for Wairoa and the airport will become a key gateway for future tourism and growth. The already important air ambulance service has welcomed a new jet engine aeroplane that offers considerable time and medical benefits, if the airport can be improved to accommodate the aircraft. For these reasons, Council has determined that the airport is a strategic asset that should be retained, and improved, to serve the needs of the Wairoa community.

As a consequence, the communities’ ability to continue funding the activity and in particular maintaining the assets, is an area of concern for the future.

Council has determined that the current level of asset management practice should be maintained or improved where it can be done so in a cost-effective way.

ACTIVITY MANAGEMENT PRACTICES

The airport activity is managed in-house by Council staff for both strategic and operational aspects.

Physical works are undertaken by external contractors with contracts awarded in accordance with Council’s Procurement Strategy.

GENERAL ASSET DESCRIPTION

The airport activity includes the airport (runway, buildings and other infrastructure) at the end of Airport Road.

The airport provides a facility for light aircraft, mainly agricultural, medical & charter operations. There is potential for operations at the airport to grow with tourism growth expected in future years.

At the airport, Council owns the land that the facility is located on, the waiting lounge/terminal building (currently occupied by Radio Te Wairoa), toilets and rural blocks immediately surrounding the airport. Assets at the airport include:

• a 910m long all-weather sealed runway

• sealed taxiway linking the runway to the apron area

• runway edge lighting

• the terminal building including waiting lounge and toilets

• windsocks

• perimeter fencing.

There are other buildings at the airport that are owned and maintained by others.

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OPERATIONS, MAINTENANCE, RENEWALS AND CAPITAL WORKS

Key to operations is the functioning of the edge lighting to the runway which is controlled by Council.

Routine maintenance of the airport’s assets is undertaken by contractors and includes the regular ongoing day-to-day work that is necessary to keep assets at their required standards such as grass mowing and cleaning of the terminal building and toilets. Repairs are undertaken on an as-needed basis.

Replacement of assets has historically been reactive, driven by performance and was undertaken on an as-needed basis. With the implementation of this AMP, a change to a proactive approach is proposed to accommodate an expected increase in future demand. When assets are no longer economic to maintain or are incapable of delivering the required level of service, they are either replaced or disposed of, usually on a like-for-like basis. Through improved asset condition and performance monitoring, Council is moving towards a more proactive approach by developing a forward work programme. This will enable future funding requirements to be better identified.

Renewal or replacement works are those that essentially replace like-for-like with no additional capacity or level of service. The following key renewal works are significant and have been identified for the next ten years:

ITEM DESCRIPTION OF WORKS COST ($) FINANCIAL YEAR

1 Runway Lighting $150,000 2018-19

2 Runway Resurfacing Sections $389,000 2019-20 – 2026-27

3 Certification $65,000 2018-19– 2026-27

4 Building Renewals $110,00 2018-19 – 2027-28

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PROJECTED EXPENDITURE

The projected expenditure for the next 10 years for the airport activity is outlined in the table below:

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 OPS/MAINT 187,321 163,732 183,193 202,127 208,496 213,144 219,751 222,247 237,998 233,665

RENEWALS 180,000 209,101 20,880 87,494 21,840 37,978 22,880 11,730 126,282 28,433

CAPEX 0 0 120,000 0 0 0 0 0 0 0 Sub Total Costs 367,321 372,833 324,073 289,621 230,336 251,122 242,631 233,977 364,280 262,098

INCOME -35,500 -36,210 -36,920 -37,701 -38,553 -39,441 -40,328 -41,287 -42,316 -43,381 Net 331,821 336,623 287,153 251,920 191,783 211,682 202,303 192,691 321,964 218,717

Notes:

OPS/MAINT includes: routine expenditure on operation and maintenance of the assets

RENEWALS includes: expenditure on the renewal of an existing asset to the same service standard as existed. (This does not account for residual value of the asset that was replaced)

CAPEX includes: expenditure on creation of new asset or works that upgrade or improve an existing asset beyond its existing capacity. (This does not account for residual value of the asset that was replaced)

INCOME includes: user charges, facilities rent and sundry income.

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PLAN IMPROVEMENT

This 2017 Asset Management Plan (AMP) has shown a more proactive asset management practice than in the past.

In particular, improvements in monitoring of performance and condition of assets will enable a more cost-effective forward works programme which will assist in a smoother spending profile and in the avoidance of peaks in expenditure.

However, there is still room for improvement. Key areas for improvement identified throughout this AMP include:

Development and implementation of a system to monitor the improvement plan itself.

Development and implementation of a more formal condition assessment programme and a formal valuation of assets which will assist in improved forward works programmes for operations, maintenance, renewals and capital works.

Continued improvement in identifying links between levels of service, customer expectations and the cost to deliver those levels of service and expectations.

Review improvements in line with Wairoa Airport Plan.

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CONTENTS

EXECUTIVE SUMMARY ................................................................................................................................................... 1

CONTENTS ............................................................................................................................................................................. 5

1 INTRODUCTION ........................................................................................................................................................ 7 1.1 Creation of Policy – Selecting the Appropriate Asset Management Level ................................................................... 7 1.2 The Strategic Environment ............................................................................................................................................ 7

2 LEVELS OF SERVICE ............................................................................................................................................ 9 2.1 Legislative Requirements .............................................................................................................................................. 9 2.2 Understanding the Customer ........................................................................................................................................ 9 2.3 Customer Consultation and Level of service Options ................................................................................................... 9 2.4 Levels of Service Contribution to the Community Outcomes ................................................................................. 10 2.5 Development of Levels of Service and Performance Measurement........................................................................... 10 2.6 Levels of service improvement plan ............................................................................................................................ 15 2.7 Asset Management Level ............................................................................................................................................. 15

3 DEMAND .................................................................................................................................................................... 16 3.1 Introduction ................................................................................................................................................................. 16 3.2 Growth/Decline ............................................................................................................................................................ 16 3.3 Demand Management ................................................................................................................................................. 16 3.4 Improvement Plan for This Section ............................................................................................................................. 17 3.5 Asset Management Level ............................................................................................................................................. 17

4 ASSET DESCRIPTION ........................................................................................................................................ 18 4.1 Introduction ................................................................................................................................................................. 18 4.2 Asset Description ......................................................................................................................................................... 18 4.3 Critical Assets ............................................................................................................................................................... 21 4.4 Asset Valuation ............................................................................................................................................................ 21 4.5 Asset Condition, Performance and Capacity .............................................................................................................. 21 4.6 Improvement Plan For This Section ............................................................................................................................ 25 4.7 Asset Management Level ............................................................................................................................................. 25

5 RISK MANAGEMENT ......................................................................................................................................... 26 5.1 Risk Identification Phase ............................................................................................................................................. 26 5.2 Risk Evaluation and Treatment Phase ........................................................................................................................ 26 5.3 Critical assets ............................................................................................................................................................... 29 5.4 Emergency and Contingency Planning ....................................................................................................................... 29 5.5 Improvement Plan For This Section ............................................................................................................................ 29 5.6 Asset Management level .............................................................................................................................................. 29

6 LIFE CYCLE MANAGEMENT PLAN .............................................................................................................. 30 6.1 Introduction ................................................................................................................................................................. 30 6.2 Significant Issues/Assumptions ................................................................................................................................... 30 6.3 Maintenance/Operations Plan .................................................................................................................................... 30 6.4 Renewals/Replacement Plan ...................................................................................................................................... 31 6.5 Capital/New Works ...................................................................................................................................................... 32 6.6 Disposal Plan................................................................................................................................................................ 32 6.7 Improvement Plan For This Section ............................................................................................................................ 32 6.8 Asset Management level .............................................................................................................................................. 32

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7 FINANCIAL SUMMARY .................................................................................................................................... 34 7.1 Historical Financial Data.............................................................................................................................................. 34 7.2 Financial Projections ................................................................................................................................................... 34 7.3 Council’s Financial/Funding Strategies & Policies ...................................................................................................... 36 7.4 Improvement Plan for This Section ............................................................................................................................. 36 7.5 Asset Management Level ............................................................................................................................................. 36

8 PLAN IMPROVEMENT AND MONITORING ............................................................................................. 37 8.1 Asset Management Practices ....................................................................................................................................... 37 8.2 Improvement Planning ................................................................................................................................................ 37

GLOSSARY

APPENDICES

Appendix 1: Risk Register

Appendix 2: 10-Year Financial Forecast

Appendix 3: Wairoa Airport Plan (under separate cover)

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1 INTRODUCTION This Asset Management Plan (AMP) details the assets and services that comprise the airport activity of the Wairoa District Council (Council). This is an asset-based activity that relies primarily on a single high value critical asset in the sealed runway, as well as the grass runway adjacent to it. Associated with these critical assets are runway lighting and a range of buildings and peripheral assets to assist with safe and efficient functioning of the facility. The airport is a key strategic asset for the district, and while not self-sustaining economically, successive Councils have recognised the need to maintain the facility for the benefit of the whole district. However, the planned extension of the runway, and airport improvements will improve utilisation with the aim of becoming self-sustaining.

This AMP should be read in conjunction with the ‘Introduction to Asset Management Plans 2017’ which outlines all generic information on Wairoa’s asset management process and AMP development in order to avoid repetition across all AMPs.

1.1 CREATION OF POLICY – SELECTING THE APPROPRIATE ASSET MANAGEMENT LEVEL Key elements of infrastructure asset management practice are:

• providing a defined level of service and monitoring performance

• managing the impact of growth through demand management and asset development

• taking a life cycle approach to development costs through effective management strategies

• identifying, assessing and appropriately controlling risks

• having a long-term financial plan which identifies required expenditure, how it will be funded and seeking to achieve the lowest overall whole-of-life costs.

The links between policy and asset management practice can be found in the level of service (LOS) framework. To ensure delivery of service, performance measures have been created to implement and monitor delivery. LOS is at the heart of business and linking policy in this area ensures integration into the whole business.

AMPs are used to achieve outcomes resulting from the strategic planning process and to ensure the key elements outlined above are incorporated into the overall asset management practice within Council. This process involves looking at relevant plans and strategies and incorporating the key values and outputs into this AMP.

The purpose of adopting policy is to provide mandated guidance from the governance arm of the organisation; in the case of Councils from the elected members. In 2010 Council adopted a policy ‘Selecting the Appropriate Asset Management Level’ which provided asset managers with an understanding of expectations, and direction for development, from a strategic perspective. A core level of asset management was set as Council policy.

As part of this 2017 AMP review, it was recommended, and adopted by Council, that the overall level of asset management practice remain as core whilst implementing improvement plans to increase the level of practice in some areas as deemed appropriate to an intermediate level.

1.2 THE STRATEGIC ENVIRONMENT Council’s vision defines who we are, what we are trying to achieve and who our intended customers are in a single succinct statement. Council’s vision is:

COUNCIL’S VISION: CONNECTED COMMUNITIES, DESIRABLE LIFESTYLES, TREASURED ENVIRONMENTS

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Sitting beneath this vision is a statement outlining the expected strategic result for each activity. Council’s goal or strategic intent for the airport activity is:

To provide a safe and cost-effective facility to meet current needs.

AIRPORT ACTIVITY GOAL: TO PROVIDE A SAFE AND COST-EFFECTIVE FACILITY TO MEET CURRENT NEEDS

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2 LEVELS OF SERVICE

2.1 LEGISLATIVE REQUIREMENTS

Legislation has an effect on LOS by effectively setting the minimum required LOS alongside other drivers such as customer requirements, industry codes of practice and standards, and the desire to achieve best practice.

A community and Council cannot agree to a LOS that does not meet minimum legislative standards, even if they would prefer to do so to reduce costs. As new legislation is created it establishes benchmarks and Council is required to meet certain thresholds. These usually have an associated cost and may increase the cost to deliver the service.

The table below details a summary of relevant legislative requirements that affect the airport activity.

ACT DESCRIPTION

AIRPORT AUTHORITIES ACT 1966

This Act describes the powers of the Crown and the roles and responsibilities of airport companies.

CIVIL AVIATION ACT 1990

This Act establishes rules of operation and divisions of responsibility within the New Zealand civil aviation system in order to promote aviation safety.

Safety inspections are undertaken by the Civil Aviation Authority, pursuant to Section 15 of the Civil Aviation Act 1990, and in accordance with the Civil Aviation Authority’s ongoing safety monitoring programme. The object of the inspection is to assess the Council’s safety performance, and to determine the level of compliance with civil aviation legislation.

2.2 UNDERSTANDING THE CUSTOMER

Understanding the customer gives an understanding of how the service is being consumed. The knowledge gained can be used to improve service delivery which will ultimately lead to more efficient spending and likely cost savings.

Key users of this activity include both commercial and private operators.

2.2.1 CUSTOMER SERVICE REQUEST SYSTEM (CSR)

The airport is not used by the general public to any great degree and so it is not included in the annual Communitrak Survey undertaken for Council by NRB. The 2017 Level of Service review has resulted in Council removing the CSR based measures for the same reason. Council’s feedback on airport issues generally comes direct from pilots or organisations that use the facility on a regular basis. Some more formal documentation of these contacts and some proactive engagement by Council is desirable.

2.3 CUSTOMER CONSULTATION AND LEVEL OF SERVICE OPTIONS

Consultation for this activity is generally done through the LTP submission process. Informal consultation is completed through inspections and meetings.

The Long-term Plan (LTP) places significant emphasis on the need to consult with the community and other stakeholders.

Recently a stakeholder engagement process has been undertaken as part of the development of an ‘Airport Plan.’ Stakeholder feedback and expectations were recorded and where appropriate, a cost to meet the expectations was reported. Engagement with airport users will continue to better understand customer needs and wants and refine levels of service.

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2.4 LEVELS OF SERVICE CONTRIBUTION TO THE COMMUNITY OUTCOMES

As part of the 2012 local government reform, the ‘purpose’ of local government has changed, removing the reference to the four well-beings (economic, social, cultural and environmental) to meeting the current and future needs of communities for good quality local infrastructure, local public services and the performance of regulatory functions in a way that is most cost-effective for households and businesses.

This could be considered a narrower focus but Council has made a commitment to continue to deliver the service currently delivered and hence Council remains focused on the same community outcomes as detailed in Table 2.4 below.

Table 2.4: Contribution of the Airport to the Community Outcomes

COMMUNITY OUTCOMES OPEN SPACE’S CONTRIBUTION

ECONOMIC WELL-BEING

A Strong, Prosperous and Thriving Community

The airport is utilised in an emergency event. Without the airport the district would suffer

A Safe and Integrated Infrastructure System

The airport is considered as means of transport. Correct management will ensure a safe and effective service

SOCIAL AND CULTURAL WELL-BEING

A Community that Values and Promotes its Unique Culture and Heritage

The recreational use of the airport encourages the culture of the district

Safe and Accessible Recreation Facilities The airport is used for recreational activities. Correct management ensures safe facilities

Supportive, Caring and Valued Communities

N/A

Strong District Leadership and a Sense of Belonging

N/A

ENVIRONMENTAL WELL-BEING

A Safe and Secure Community The airport is used for recreational activities. Correct management ensures safe facilities

A Lifetime of Good Health, Education and Wellbeing

Future planning of the activity ensures a sustainable service over time

An Environment that is Appreciated, Protected and Sustained for Future Generations

Compliance with RMA and legislative requirements ensures a protected environment

2.5 DEVELOPMENT OF LEVELS OF SERVICE AND PERFORMANCE MEASUREMENT

2.5.1 PREVIOUS PERFORMANCE

The table below shows achievement against previous levels of service and performance measures for the last three years (information is taken from the respective Annual Reports).

Table 2.5a: Performance Review

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IDENTIFIER RISK OBJECTIVE LEVEL OF SERVICE

STATEMENT PERFORMANCE MEASURE PERFORMANCE 2014/15 PERFORMANCE 2015/16 PERFORMANCE 2016/17

Eng.WA01

Match service provision with the communities’ desired level of service and ability to pay

Council will continue to provide the Wairoa Airport service to meet the current and foreseeable demand of the community Customer LOS Community Outcomes 1,2,3,7,8

Council shall continue to provide the service at Wairoa Airport to standards appropriate for its use

New Measure, not previously assessed

Achieved Achieved

Community’s willingness to pay for the service will be considered

Achieved Achieved Achieved

The provision of the service shall be adequate for current and foreseeable demand


Achieved Achieved

Eng.WA02 To ensure that relevant legislation, regulations, consent conditions and bylaws are monitored and enforced such that Council meets its requirements

Council will comply with current legislation and Council bylaws Technical LOS Community Outcomes 2,4,9

Council shall meet all legislation requirements


Achieved Achieved

Facilities shall meet all relevant safety standards


Achieved Achieved

Eng.WA03 Strategic programming of renewals and preventative maintenance to ensure long-term sustainability of the assets

Council will maintain the airport and associated facilities to ensure long-term sustainability Technical LOS Community Outcomes 1,2,8

Asset database to be maintained


Achieved Achieved

Eng.WA04 All preventative maintenance, renewals and other programmed and reactive works are

Council will undertake operational, maintenance and renewal activities in a cost-effective manner

All maintenance, renewals and other programmed and reactive works are completed on time and within budget

Not Assessed (in this manner)

Achieved Achieved

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STATEMENT PERFORMANCE MEASURE PERFORMANCE 2014/15 PERFORMANCE 2015/16 PERFORMANCE 2016/17

completed on time and within budget

Technical LOS Community Outcomes 2,4,8

Operational and maintenance activities are undertaken in a safe and healthy manner

Achieved Achieved Achieved

Eng.WA05 Airport users will be satisfied with the overall level of service provided

Customers will receive a prompt and efficient service Customer LOS Community Outcomes 2,4,7

Level of customer satisfaction through annual survey indicates a ‘fairly good’, ‘very good’ or better minimum 80% approval rating

Not measured Not measured Not measured

Analysis of CSR complaints to enable issues to be addressed

Not achieved Not achieved Not achieved

Eng.WA06 Emergency planning Council will implement systems/processes to ensure continued service delivery in emergency events Customer LOS Community Outcomes 1,2

Contingency plans shall be implemented for emergency events such as earthquake and flooding where services may be affected or facilities damaged


Achieved Achieved

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These results are considered to be good with few closures of the airport and minimal CSRs received.

2.5.2 LEVEL OF SERVICE REVIEW

In 2017, LOS statements were reviewed to ensure the core asset management level is monitored and achieved through the LOS and performance measurement framework.

2015 LOS STATEMENTS have been reviewed and updated as follows.

• Evaluation of the LOS statements to identify gaps in the achievement of LOS and determine the appropriateness of LOS for the current situation.

• Ensure there is a link between identified risks for the activity and the LOS statements.

• Determine whether new/additional LOS are required for the current and future situation.

2015 PERFORMANCE MEASURES & TARGETS have been reviewed and updated as follows.

• Existing performance measures were evaluated for materiality, cost of monitoring and adjusted to align with these goals.

• Gaps in the achievement of performance measures and targets have been identified.

• The appropriateness of performance measures and targets for the current situation have been determined.

• Risks objectives identified in the risk framework have been incorporated into performance measures to ensure treatments are monitored and achieved.

• Whether any new/additional performance measures and targets are required for the current and future situation has been determined.

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Table 2.5b below details the LOS statements.

Column 1 (risk identifier) is a unique identifier of the LOS statement that correlates with the risk identifier number to ensure LOS are linked with risk events and treatments. Column 2 (risk objective) is taken from the risk register for this activity and is included to ensure that the LOS are linked to the risks identified for this activity. Column 3 (LOS statement) is the service statement Council proposes to deliver. Column 4 are the performance measures for each of those LOS, upon which Council will report and Columns 5-7 are the targets that Council will aim for to ensure the performance measures are met.

Table 2.5b: Level of Service Statements and Performance Measures


STATEMENT PERFORMANCE MEASURE TARGET 2015 TARGET 2016 TARGET 2017

Eng.WA01

Match service provision with the communities’ desired level of service and ability to pay

Council will continue to provide the Wairoa Airport service to meet the current and foreseeable demand of the community Customer LOS Community Outcomes 1,2,37,8

Community’s willingness to pay for the service will be considered.

Monitor for complaints of cost of service through Annual Plan process

Eng.WA02 All preventative maintenance, renewals and other programmed and reactive works are completed on time and within budget.

Council Shall manage airport activity to an acceptable standard, in accordance with CAA Part 139. Technical LOS Community Outcomes 1,2,4,7,8,9

All airport operations and infrastructure shall meet the CAA requirements.

All activities and infrastructure shall comply with the act.

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2.6 LEVELS OF SERVICE IMPROVEMENT PLAN

The recommended improvements in this section are detailed below.

• Identify gaps between levels of service, customer expectation and options to close those gaps.

• All performance measures are reported on annually as part of Council’s Annual Report. A half-year review process should be put in place to review progress towards the performance measures and targets.

• The cost and LOS statements should be better linked. An appropriate process for accurately allocating these costs needs to be developed and implemented.

Timeframes and resources for implementation of these improvements are detailed in Section 9 of the improvement plan for the overall AMP.

2.7 ASSET MANAGEMENT LEVEL

This section of the AMP is delivered at a core asset management level:

• customer groups are defined

• LOS and performance measures are in place

• annual reporting against targets is achieved

• a customer request tracking system is in place.

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3 DEMAND

3.1 INTRODUCTION

Demand forecasts are generally based on robust demand projections and extrapolation of historical trends such as census data and asset use, with consideration given to anticipated tourism traffic and economic development.

For this activity, demand is based on the usage of the airport in terms of the number of commercial and private flights.

An increase or decrease in demand can significantly affect what assets will be needed as well as levels of service and maintenance, operational and renewal requirements of the assets.

3.2 GROWTH/DECLINE

The development of airport infrastructure is normally in response to a known or perceived demand. Factors that could affect demand at the Wairoa Airport include airline economics and competition, public demand for air travel, population growth/decline, the cost and convenience of alternative forms of travel, the development of new industries and businesses, and changes in the popularity of the Wairoa District as a tourism destination. The latter two, tourism and new industry, have the most potential to increase the utilisation of the Wairoa airport, although at present there is limited demand.

The establishment of a launch site on the Mahia Peninsula by Rocket Lab, a US corporation with a New Zealand subsidiary, has opened up the opportunity for rocket tourism in the Wairoa District. It is believed a well-developed tourism offering will significantly benefit the Wairoa District through growth in employment and investment, improvement to the general economy and, as a consequence, enhanced social outcomes to an area of regional New Zealand which requires a boost in terms of economic and social wellbeing.

Findings from BERL’s 2016 Wairoa Population Estimates state that “if the NZ rocket company, Rocket Lab, fulfils its potential and realises its ambition to grow to one launch a week, it will have a significant impact on the local economy and, hence, the District’s population. This level of activity would require a considerable input of services to the launch site, as well stimulating growth in the number of visitors wishing to witness launches. Rocket Lab provides an exciting opportunity to grow and diversify Wairoa’s economy.”

Skyline Aviation currently operate an air ambulance service based in Napier for Hawke’s Bay in conjunction with the Hawke’s Bay District Health Board. One of the air ambulance aircraft utilised by Skyline is a Cessna Mustang Jet which has the potential to service Wairoa through navigational upgrades and a runway extension at the airport. Although flight times from Napier to Wairoa in the Mustang jet will be only marginally quicker than a turbo prop, significant life saving time advantages could come when patients from Wairoa with life threating conditions need to be flown directly to a tertiary hospital.

The recent stakeholder engagement exercise has shown that the provision of an aviation gas supply at the airport could result in an increase in light aircraft visitors.

As part of the Wairoa Airport Plan, a feasibility study was conducted for a possible business park at the airport. Should demand indicate that a business park is viable, this plan can provide a base for its development.

3.3 DEMAND MANAGEMENT A formal demand management plan has not been developed, Council will need to continue to engage with stakeholders to quickly react to demand changes as required. The speed at which Rocket Lab has established and developed has required a quick response from Council.

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3.4 IMPROVEMENT PLAN FOR THIS SECTION

The recommended improvement below describes an addition to the process to ensure the information has integrity. This will give Council the confidence to use the data to project and report on.

• Continue to consult airport users to understand current and future demand changes

Timeframes and resources for implementation of this improvement are detailed in Section 8 of the improvement plan for the overall AMP.


This section of the AMP is delivered at a core asset management level:

• predicted demand is based on robust projection and historical trends.

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4 ASSET DESCRIPTION

4.1 INTRODUCTION

Wairoa Airport provides a service for light aircraft and is used mainly for charter operations. The airport is located at the end of Airport Road, northwest of Wairoa Township.

Council is the controlling authority of the airport and manages and funds the facilities to ensure that an operational airport remains within the Wairoa District in order to serve the district’s needs.

This AMP focuses on the airport.

Council owns the following:

• the area of land that the Wairoa Airport is situated on

• the waiting lounge/Aero Club Rooms building

• the rural land blocks immediately surrounding the airport

The main issues facing Council in relation to the management of the Wairoa Airport are:

• the cost of maintaining and operating the airport, which is currently a financial liability

• ensuring continued service as the airport is used by emergency aircraft – this means managing risks to ensure that the runway is adequately maintained.

Known regular users of the airstrip are subject to a specific landing agreement, which includes certain reporting requirements set out by Council. Main users include:

• Air Napier Ltd

• Farmers Air Ltd

• Skyline Aviation

• Ashworth Helicopters Ltd.

Less frequent users of the airport include:

• Massey University School of Aviation

• Hawke’s Bay and East Coast Aero Club (and Air Hawke’s Bay)

• Wairoa Aero Club.

Of significance to the Wairoa community is the frequent use of the airport by medical doctors and specialists attending the hospital.

4.2 ASSET DESCRIPTION

4.2.1 GENERAL

Council does not hold a specific asset inventory for the airport’s assets. Asset information is generally taken from the fixed asset register (spreadsheet format) and historical information such as maintenance and renewals records. A complete asset inventory should be developed for the airport activity and incorporated into Council’s database.

Figure 4.2 below provides a layout of the Wairoa Airport:

Fig 4.2 Wairoa Airport Layout

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Table 4.2 below provides a general list of the airport’s assets.

Table 4.2 Wairoa Airport List of Council-Owned Assets

ASSET ASSET DESCRIPTION

OPERATIONAL AIRSTRIP

Grass strip of 1371m in total length, including:

• apron/sealed area adjacent to the airport building and fuel service • taxiway/running areas linking the sealed areas with the runway.

SEALED RUNWAY • All-weather sealed strip of 910m in length which can accommodate a wingspan of up to 30 metres

• Central 15.5 metre wide strip of asphaltic concrete, which is flanked by chip-seal of 8-metre width.

The length of the sealed strip constrains its use to aircraft in the category of 5700kg MTOW or less. Normally this means that the largest aircraft to use the airport would be light twin-engine aircraft that carry up to 10 or 12 passengers. In dry conditions, the grass strip along one side of the runway can accommodate light aircraft.

EDGE LIGHTING • Edge lighting extending along either side of the runway.

TERMINAL BUILDING

Comprises:

• waiting lounge/terminal • Kitchen • Radio Te Wairoa • Toilets

OTHER • Windsocks • Boundary fencing (generally post and wire except at entrance where short

length of post and rail with a gate)

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4.2.2 AIRPORT BUILDINGS

There are three main buildings on the airport land as shown below:

Farmers Air Hangar Owned/Leased by Farmers Air

Waiting Lounge/Terminal/Radio Te Wairoa (left) Toilets (left rear)

Owned by Wairoa District Council

Cookson’s/Ashworth Helicopters Hangar Owned by Ashworth Helicopters

The major user of the terminal building is Radio Te Wairoa, a local radio station. The lounge has recently found use as a meeting room or venue for multiple events.

The toilets, located at one end of the terminal building, are used by all operators and users of the airport, as it is the only facility available.

4.2.3 NON-COUNCIL OWNED ASSETS

There are a number of assets located on the airport land that are not owned by Council. These include:

• Farmer’s Air Hangar owned by Farmers Air Ltd

• Ashworth Helicopters Hangar owned by Ashworth Helicopters

• aviation bowser owned by Z Energy

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• a weather station owned by MetService

• fertiliser bins owned by Farmers Air Ltd.

Formal agreements have been put in place for each of the facilities leased at the airport including land.

4.2.4 SURROUNDING RURAL LAND

The surrounding rural land of the airport is leased by the Council to various local groups and individuals who make use of it for farming and horticultural purposes. These include:

• Taylors Farms Ltd

• David Hayward, Katherine Standring & Michael Thomas

• The Wairoa Racing Club Incorporated

• Rosemary & Richard Clark

• Felix Halkett.

4.3 CRITICAL ASSETS

It is important to identify the critical assets; these will be the assets that have the greatest effect on the customer should they fail or not be available.

The critical asset at the airport is the sealed runway. A failure resulting in closure of the runway will limit the ability of certain aircraft to land. Of particular importance is the use of the airport by emergency aircraft, although there is a helicopter pad at the Wairoa Hospital and at Memorial Park.

4.4 ASSET VALUATION

The last formal valuation was over five years ago and requires updating. The information given here is taken from Council’s database for rating values and is dated August 2012. As such, the following limitations apply:

• The figures include the ‘reinstatement value’ for buildings, replacing like-for-like.

• Buildings were not broken down into components as they are generally of a relatively simple construction form and do not involve significant mechanical plant or ancillary services.

• Land values are based on fair market value in 2012.

• New assets are valued at purchase value and are depreciated every year on a straight-line basis. The valuation figures given do not provide for depreciation.

The total estimated value of the airport assets (land and capital value) is $4,230,000.

This can be broken down as follows: LAND VALUE

CAPTIAL VALUE (ASSETS)

$1,580,000

$2,650,000.

The replacement value of the airport assets is based upon replacing like-with-like. The cost of design, construction, contract administration and supervision has been factored into the rates used to derive values.

4.5 ASSET CONDITION, PERFORMANCE AND CAPACITY

Performance and capacity of the asset relates to its capability to meet defined service criteria. Utilisation relates to current usage of the facilities by the public.

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The airport is primarily used by private light aircraft and helicopters, including for agricultural use. It is also used by emergency aircraft for transfer of patients into and out of the district.

It is important for Council to know the condition of its assets and to address issues that can impact on both planning and public health and safety. Condition assessments are based on visual assessments and age of assets only. Although the asset information given is limited, it is deemed to be fairly accurate and to a suitable level of detail for this asset with limited and non-complex assets, and is adequate to enable forward planning to be effectively implemented to replace and repair assets at the most appropriate time.

The general condition of the various components of the airport (including both land and onsite improvements) is monitored on a regular basis by inspections carried out by Council’s engineering staff, consultants and contractors. Customer feedback is also a useful source of information.

A programme for maintenance, renewals and capital works was prepared in response to stakeholder feedback, and visual inspections by Opus International Consultants as part of the development of the Wairoa Airport Plan. A copy of the plan is attached in Appendix 3. This programme should be treated as a live document, and updated as works are complete, feedback is received and inspections are complete. At this stage, it is considered that visual assessments will be adequate.

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Below is a general outline of the existing condition of assets.

ASSET CONDITION/PERFORMANCE UTILISATION & CAPACITY

LAND Grassed and other vegetated areas are generally well maintained on a routine basis by contractors and the levels of service required are set by Council.

Land not used for airport purposes is leased, generally for agricultural use.

RUNWAY

A visual condition assessment of the runway was completed in December 2016.

• Chip seal margins alongside the runway require treatment to minimise the chip loss (scabbing) that effects plane propellers etc. This is recommended for surface treatment in 2024/25

• The sealed runway (excluding side aprons) is ageing with cracking and wear evident as shown in the photo below (December 2016). It is recommended that the runway be resurfaced 2018/19.

Although a costly asset, it is well used by private and commercial organisations including health professionals serving the community.

In order to meet current and predicted future demand, the runway will need to be resurfaced and extended.

OTHER SEALED AREAS

Other sealed areas comprise aprons, running areas and taxiways to the runway.

A reactive maintenance regime, generally based on observation by Council staff, contractors or airport users, ensures that any performance issues are dealt with effectively and efficiently and work is undertaken as required, generally on a reactive basis.

A visual condition assessment of the taxiway’s and aprons was completed in December 2016. Sealed taxi areas and aprons require treatment to minimise the chip loss (scabbing) that effects plane propellers etc.

In order to meet the present and predicted future demand for at least the next 10 years, it is recommended that the apron and taxiways be resurfaced.

BUILDINGS

Council owns the terminal building, part of which is currently occupied by Radio Te Wairoa. The terminal building is cleaned on a routine basis but more significant maintenance/repairs are carried out on an as-needed basis, following visible signs of a problem. This is adequate to ensure that user groups are generally satisfied with current levels of service and the performance of the facilities.

Based on a visual assessment only, the terminal building is deemed to have a remaining life of more than 10 years and to be adequate for its current and likely future usage.

The existing facilities are adequate to meet the present and predicted future demand for at least the next 10 years.

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ASSET CONDITION/PERFORMANCE UTILISATION & CAPACITY

All other buildings are privately owned and are not the responsibility of Council.

EDGE LIGHTING

Condition currently good based on a visual assessment. There has been an issue with Pilot-Activated-Lighting (PAL), not activating in poor weather. A fix is currently being implemented.

Maintenance generally undertaken on a reactive basis as problems are identified through inspections or notification from users.

Adequate for current runway extent.

RUNWAY & TAXI MARKINGS

Currently in poor condition, very faded, need to be remarked.

Also marking types/layout need to be changed to meet CAA requirements.

Adequate for current runway extent. Need to be improved to meet future demand.

FENCING Boundary fencing is typically post and wire with post and rail at the entranceway.

Condition ranges from very good to very poor. In recent years there have been multiple instances of stock incursions on the runway. Fences will need to be offset to accommodate longer runway.

Need to be renewed to ensure they are stock proof for the safety of air traffic.

WINDSOCK Windsocks are replaced as required, generally following notification from users that they are damaged.

The windsocks have been recently repaired to working condition following damage from a storm.

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The recommended improvements below describe additions to the process to ensure the information has integrity. This gives Council the confidence to use the data to project and report on.

• Incorporate the asset register into Council’s asset database with critical assets identified.

• Develop and implement a condition assessment programme.

• A formal valuation should be undertaken.

• An improved and more formal database management process should be put in place.



This section is delivered at a core asset management level:

• adequate information is held to complete asset valuations

• a programme for data improvement is being developed and implemented

• a condition assessment programme is being developed and implemented – visual assessment is deemed adequate for the scale and complexity of these assets.

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5 RISK MANAGEMENT The risk register is a framework that is used to apply analysis techniques with a goal of minimising risk. The risk register is applied at an activity level, recommending treatments with the highest mitigation results. The framework is covered in detail in the ‘Introduction to Asset Management Plans 2017,’ however, the airport activity specific information is captured in this AMP.

5.1 RISK IDENTIFICATION PHASE The identification phase firstly involved looking at the objectives of the activity. The objectives of the activity are strongly linked to the LOS statements as shown in Table 5.1 below.

Table 5.1: Objectives and Related Risk Register Identifiers

RISK REGISTER UNIQUE IDENTIFIER FOR LOS

OBJECTIVE

Eng.WA.01 Match service provision with the communities’ desired level of service and ability to pay.

Eng.WA.02 All preventative maintenance, renewals and other programmed and reactive works are completed on time and within budget. Council shall manage airport activity to an acceptable level.

5.2 RISK EVALUATION AND TREATMENT PHASE From understanding all the objectives of the activity, a register of risks associated with the objective can be documented. These risks are then assigned one of the following risk levels:

• extremely high

• very high

• high

• moderate

• low.

Treatment options are linked to the risk and the objectives and are assessed across all infrastructure activities to ensure integrated prioritisation of resources. Table 5.2 below identifies the highest risks (extreme, very high and high) from the risk register, the related risk treatments and the status of the treatments (for all risks see Appendix 1).

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Table 5.2: Risks, Treatments and Treatment Status

RISK DESCRIPTION

UNIQUE IDENTIFIER

RISK EVENT TREATMENT STATUS

VERY HIGH

Eng.WA.02.003 Insufficient knowledge of legislation (outside of consent conditions) that relates to the activity (OSH etc.) or failure to monitor for change.

Review and document requirements. Seek external advice.

Formal process to be developed. Currently ad-hoc approach relying on industry information (SOLGM, LGNZ etc.).

VERY HIGH

Eng.WA.02.001 Inadequate maintenance and renewals fails to address deterioration of infrastructure resulting in unsafe facilities/conditions.

• Establish risk-based (prioritised) AMP. • Establish effective condition

assessment programme to reduce uncertainty around life cycle stages of infrastructure.

• Risk management brought into this AMP.

• Valuation planned 2014/15 which will significantly improve asset register.

HIGH Eng.WA.02.005 Insufficient funding for monitoring activities.

• Review enforcement options. • Explore possibility of devolving some

function(s) to contractors i.e. reporting.

To be developed.

HIGH Eng.WA.02.006 Lack of technical expertise to provide planning/design resulting in absence of or inappropriate planning/design knowledge to verify compliance.

Establish resource plan to either obtain knowledge in-house or readily accessible in consultant organisation.

In-house professional services has a senior engineer tasked with procurement effectiveness reviews across infrastructure activities.

HIGH Eng.WA.01.005 Insufficient resources to 'hook into' funding

mechanisms (time, cost, expertise). Resourcing Plan. To be developed.

HIGH Eng.WA.03.005 Absence of, or inaccurate asset valuation

information resulting in inappropriate depreciation values.

Establish plan for periodic valuation review. Formal valuation to be undertaken.

HIGH

Eng.WA.04.004 Inadequate planning for the implementation of the annual programme.

• Ensure robust documentation of current plans to act as template.

• Include issue in handover plans. • Succession planning.

• AMP in place. • Handover plans N/A at this time. • In-house professional services along

with cadetship programmes have strengthened resilience as far as succession planning is concerned.

HIGH

Eng.WA.04.005 Inadequate monitoring of staff, consultants and contractors results in maintenance and renewals not being completed.

Establish quality control/review process. In-house professional services has a senior engineer tasked with procurement effectiveness reviews across infrastructure activities.

HIGH Eng.WA.01.001 Eng.WA.05.001

Insufficient knowledge of airport users’ desires resulting in inappropriate targets.

Develop consultation process/plan. To be developed. Currently consultation limited to statutory processes. Satisfaction monitored via CSR system.

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RISK DESCRIPTION

UNIQUE IDENTIFIER

RISK EVENT TREATMENT STATUS

HIGH

Eng.WA.01.002 Eng.WA.05.002

Insufficient knowledge of what services are currently being delivered to the airport users.

Establish review process. AMP development addresses this issue.

HIGH Eng.WA.01.003 Insufficient knowledge of what the airport

users can/will pay for desired service. Develop consultation process/plan. To be developed. Currently consultation

limited to statutory processes. Satisfaction monitored via CSR system.

HIGH

Eng.WA.02.007 Eng.WA.04.003

Lack of labour resource to implement required changes and/or maintain standard.

• Utilise longer timeframes to allow contractors sufficient time to obtain resources.

• Develop relationship with other labour users in region to synchronise activities.

In house professional services has a senior engineer tasked with procurement effectiveness reviews across infrastructure activities.

HIGH Eng.WA.02.008 Breakdown in communication between

parties results in compliance failure. Develop active communication/relationship plan.

To be developed.

HIGH

Eng.WA.04.002 Lack of technical expertise to provide planning/design resulting in absence of or inappropriate planning/design.


To be developed.

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5.3 CRITICAL ASSETS

Critical assets are generally those that have a high consequence of failure, with the greatest effect on the customer should they fail or not be available; but do not necessarily have a high probability of failure.

The most critical asset is the runway. Beyond that the next most critical is the surrounding land and the importance of Council maintaining control over the use of that land through appropriate lease conditions. Inappropriate land use could have a considerable effect on the safe operation of the airport.

The majority of the other assets are there to assist in the safe functioning of the site as an aerodrome; for example runway lighting, weather stations, windsocks etc. – none of which would stop the airport functioning if they were out of action for a short period.

5.4 EMERGENCY AND CONTINGENCY PLANNING

Council has been working with all the Hawke’s Bay Councils to develop the Hawke’s Bay Civil Defence Emergency Management Plan that details areas of risk management to its operation and how the airport will respond to various incidents such as an earthquake or flooding threat to its operation. This plan is required pursuant to the Civil Defence Emergency Management Act 2002.

Emergency planning takes account of a crash on the airport involving non-scheduled operations where personal injury and/or aircraft damage may occur.

The responses and actions by emergency services follow established procedures for a major emergency in the community. Every two years, emergency procedures should be activated to test participants’ actions in a simulated crash.

Contingency planning would also address such issues as runway lighting failure.


The key improvement areas for Council in the short term in relation to risk management are:

• specifically identify risks for critical assets

• develop contingency plans for airport assets such as runway lighting failure

• develop and publish a Risk Management Manual identified through the risk framework.

Timeframes for implementation of these improvements are detailed in Section 8 of the improvement plan for the overall AMP.


This section is delivered at an intermediate to advanced asset management level:

• a risk-analysis process, including identification of LOS and the linkages to risk objectives is in place

• the risk register is regularly updated

• a formal risk management policy is in place

• risks are quantified with mitigation/treatment options evaluated

• risk is integrated into key decision making.

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6 LIFE CYCLE MANAGEMENT PLAN

6.1 INTRODUCTION

This section of the AMP outlines maintenance plans and planning for the renewal, upgrade and acquisition of assets for the airport.

Council’s involvement with this activity includes managing and funding the airport through the provision of capital development and the management of maintenance of the assets necessary to operate the airport and maintaining it to acceptable safety standards. This ensures that an operational airport remains within the Wairoa District to serve the needs of this district.

Prior to commissioning works on the airport, Council will consult with approved operators who may be affected, to determine the possible impact on their operations and to develop procedures to minimise any risk.

6.2 SIGNIFICANT ISSUES/ASSUMPTIONS

A combination of a steadily reducing funding base, low affordability, ageing infrastructure and declining population creates significant challenges for the future.

In determining the works programme for the next 10 years, the following assumptions and issues have been identified:

• Population is declining and ageing which will have an impact on the community’s ability to pay for the service.

• The level of service needs to increase to accommodate tourism growth and new medical aircraft. This will exacerbate the issue above.

6.3 MAINTENANCE/OPERATIONS PLAN

6.3.1 INTRODUCTION

Maintenance of an asset does not increase the asset’s service potential or keep it in its original condition. It slows down deterioration and delays when rehabilitation or replacement is needed. It is a way of ensuring that an asset continues to deliver the required level of service.

The following types of maintenance and operations apply to the airport activity:

ROUTINE MAINTENANCE & OPERATIONS:

Routine maintenance is the regular ongoing day-to-day work that is necessary to keep assets at their required standards.

Routine maintenance includes activities such as mowing of grassed areas and cleaning of the toilets and terminal building.

Operations include operating edge lighting etc.

REACTIVE MAINTENANCE:

Includes minor repair of damaged assets/facilities.

The airport’s lights are maintained on a regular basis. Inspection of the runway is carried out on a regular basis and maintenance undertaken as required. Lighting outages are reported to the Transport Asset Manager, who is then responsible for originating a notice to all airmen to curtail aircraft operations at night, and advising the approved electrical contractor of the need to take restorative action.

Maintenance/operations cost data is available and is generally broken down sufficiently to allocate costs across the different aspects of work.

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6.3.2 DELIVERY OF SERVICE LEVELS

Routine maintenance is undertaken by a private contractor, generally on a three-year contract. LOS are set by Council and the contracts managed by Council.

Reactive maintenance is also undertaken by private contractors, with the contractor most appropriate to the required works employed as required.

6.3.3 PROGRAMMED MAINTENANCE

Programmed maintenance includes maintenance of buildings, fences, grassed areas, navigation equipment, the runway and apron area, and drainage maintenance. Programmed maintenance expenditure is shown in Section 7.2.3 and detailed in Appendix 3.

6.4 RENEWALS/REPLACEMENT PLAN

6.4.1 RENEWALS ANALYSIS APPROACH

Renewal expenditure is major work that restores, rehabilitates, replaces or renews an existing asset to its original condition/function and is funded from the capital renewals budget and/or depreciation reserves. Work over and above restoring an asset’s original capacity is capital expenditure.

Upgrades or renewals are normally undertaken on an as-needed basis but their timing is generally predictable based on asset life and condition.

Typical works include:

• runway and other sealed areas upgrading repairs

• edge lighting repairs

• building repairs

• fencing remedial works.

Where existing assets are replaced, they are generally replaced with ‘like’ facilities and it is anticipated that this will remain as the approach to renewals for the foreseeable future.

The following process is typically used in evaluating renewal works:

• a visual condition assessment of all assets is completed

• a schedule of replacement/remedial works required in the next ten years based on the above condition assessment is drawn up

• the required works are prioritised based on asset condition as well as safety and security considerations

• rough costs are then assigned to each project

• works are allocated to each of the next ten years, based on the highest priority first, to give an even spread of expenditure.

6.4.2 RENEWAL PLAN

Council’s assets are replaced when they are no longer economic to maintain or are incapable of delivering the required level of service. The current renewal plan is based on limited condition information and visual assessment.

It is recommended that a plan be developed to progressively improve the extent and accuracy of condition rating/risk management information to better plan renewals.

The following renewal works are recommended and have been allowed for in future costs for the next ten years.

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Table 6.4 Renewal Plan to 2028

6.5 CAPITAL/NEW WORKS

New or capital works are those works that create a new asset that did not previously exist, or works that upgrade or improve an existing asset beyond its existing capacity. They may result from growth, social or environmental needs.

Council has not programmed any significant works of this nature.

6.6 DISPOSAL PLAN Council is currently considering disposing of land not required for core airport activities, which is currently leased, in order to help fund the increased level of service.

Apart from this, no further disposals are envisaged at this time. Should the population decline significantly, Council may need to consider further disposal of assets. For now, Council has confirmed the airport is a strategic asset that will be maintained for the foreseeable future.


The trend for decision making is moving towards introducing the principles of the Treasury NIU Better Business Case BBC approach which asks five basic questions.

1. Is there a compelling case for change?

2. Does the preferred investment option optimise value for money?

3. Is the proposed deal commercially viable?

4. Is the spending proposal affordable?

5. How can the proposal be delivered successfully? As such the improvements to the life cycle management section are to:

• undertake condition rating and use with the valuation to update asset registers and better inform renewals planning

• consider the principles of the Treasury NIU Better Business Case BBC approach in future decision making.



This section is achieving core asset management:

• formal decision-making processes have been developed e.g. cost-benefit analysis for major projects and programmes

ITEM DESCRIPTION OF WORKS COST ($) FINANCIAL YEAR

1 Runway Lighting $150,000 2018-19

2 Runway Resurfacing Sections $389,000 2019-20 – 2026-27

3 Certification $65,000 2018-19– 2026-27

4 Building Renewals $110,00 2018-19 – 2027-28

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• for the scale and complexity of the activity, adequate operations and maintenance provisions are in place

• contracts are in place for external service provision as necessary

• core functions are defined

• demand management is considered

• emergency response is considered

• activities are compliant with regulations

• maintenance records are kept

• fault monitoring is in place through maintenance contract and stakeholder consultation

• the next three years are fully scoped and estimated for in terms of operations, maintenance, renewals and capital works.

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7 FINANCIAL SUMMARY Details of historical costs and future projections are included as Appendix 3.

7.1 HISTORICAL FINANCIAL DATA

Table 7.1: Airport Services – Historical Annual Expenditure

2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16

Cost $82,608 $49,941 $49,419 $54,727 $51,932 $52,108 $54,628 $57,874

Income -$29,907 -$22,396 -$43,480 -$32,821 -$20,838 -$48,129 -$31,924 -$34,322

Net Cost $52,701 $27,545 $5,939 $21,906 $31,094 $3,979 $22,704 $23,552

Note: These figures are taken from the relevant Annual Report.

7.2 FINANCIAL PROJECTIONS

7.2.1 GENERAL

This AMP should be used to provide a framework for decision making and a link to the LTP and other Council strategic documents.

Current Council policy is to continue to fund renewals on a reactive maintenance and renewals basis with no increases in expenditure until further supporting data is available to demonstrate any required additional expenditure for renewals.

The 10-year financial plan is included in the appendices and is summarised in Section 7.2.3 below. This shows the annual expenditure on maintenance and operations to be constant over the 10-year period with peaks in capital and renewal works for the runway extension and resurfacing, lighting renewal and facilities improvements.

7.2.2 KEY ASSUMPTIONS MADE IN FINANCIAL FORECASTS

The following key assumptions have been made when developing the financial forecasts:

• Estimated inflation rates have not been included in the financial data. Costs are based on current day rates.

• Growth, as predicted by Council, is based upon Census 2013 findings.

• Renewals and capital development assumptions have been made based on the best information currently available and may change as knowledge of the assets improves.

• The activity will yield, on average, the income assumed in the financial summary.

• Maintenance will be funded predominantly from general rates with the shortfall being made up from user charges.

• Asset renewals will be funded from depreciation funds.

• The condition of some of the assets is not well documented. Visual assessments and local knowledge has been used to date.

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7.2.3 10-YEAR FORECAST SUMMARY

Below is the 10-year forecast for all airport expenditure including maintenance/operations, renewals and capital works.

Table 7.2: 10-Year Expenditure Forecast Summary

2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 OPS/MAINT 187,321 163,732 183,193 202,127 208,496 213,144 219,751 222,247 237,998 233,665

RENEWALS 180,000 209,101 20,880 87,494 21,840 37,978 22,880 11,730 126,282 28,433

CAPEX 0 0 120,000 0 0 0 0 0 0 0 Sub Total Costs 367,321 372,833 324,073 289,621 230,336 251,122 242,631 233,977 364,280 262,098

INCOME -35,500 -36,210 -36,920 -37,701 -38,553 -39,441 -40,328 -41,287 -42,316 -43,381 Net 331,821 336,623 287,153 251,920 191,783 211,682 202,303 192,691 321,964 218,717

Notes:

OPS/MAINT includes: routine expenditure on operation and maintenance of the assets

RENEWALS includes: expenditure on the renewal of an existing asset to the same service standard as existed (this does not account for residual value of the asset that was replaced)

CAPEX includes: expenditure on creation of new asset or works that upgrade or improve an existing asset beyond its existing capacity (this does not account for residual value of the asset that was replaced)

INCOME includes: user charges and land leases.

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7.3 COUNCIL’S FINANCIAL/FUNDING STRATEGIES & POLICIES The focus of asset management planning is on identifying the optimum (lowest life cycle) cost for assets necessary to produce the desired LOS. How this cashflow is funded is a matter for separate consideration as part of Council’s financial strategy review.

Assets are depreciated on a straight-line basis at rates estimated to write-off cost over the expected useful economic life.

Council has accepted that, while the airport facility is currently a financial burden, it will be retained.

7.3.1 PUBLIC BENEFIT VERSUS PRIVATE BENEFIT

Council’s Revenue and Financing Policy has determined that 60% of airport costs relate to public benefit and 40% to private benefit.

The public benefit portion (60%) is funded via the general rate and includes contingent capability, long-term transport options, public access and options, and emergency medical.

The private benefit portion (40%) has been funded via Council’s fees and charges schedule (i.e. user charges) which sets out the fees and charges applicable to each asset that attracts them. This includes commercial opportunities in private flying, general airport users and commercial operation.

The revenue and financing policy is currently undergoing a review (2017/2018) and may changed based on this.

7.3.2 COMMUNITIES’ ABILITY TO PAY

The high deprivation index in some areas of the district highlights the potential for these communities to have difficulty in paying for publicly provided systems, both in terms of capital/renewal works and maintaining existing facilities to their intended standards.

If the community gets to the point where it cannot fund airport maintenance, the issue is probably one of greater importance than just this activity. There will be options for Council in terms of reducing some LOS if the need arises. By way of example, the lighting system could be decommissioned and only daytime landing allowed, or, in the worst-case scenario, consideration would need to be given to closing the facility.


The recommended improvement to this section is:

• use improved condition information together with improved renewals planning to better inform financial projections.

The timeframes and resources for implementation of this improvement are detailed in Section 8 of the improvement plan for the overall AMP.


This section is achieving core asset management:

• 10-year forecasts are based on extrapolation and identification of specific tasks

• asset information is adequate for revaluations to have ‘C’ grade data confidence (50-80% complete with +/- 15-20% accuracy).

• assumptions made are specific and well-reasoned

• manual reports for revaluations and renewal forecasting are in place.

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8 PLAN IMPROVEMENT AND MONITORING

8.1 ASSET MANAGEMENT PRACTICES

Asset management practices, defined in the ‘Introduction to Asset Management Plans 2017,’ apply to all Council activities.

Key to Council’s asset management practice are:

• an integrated accounting system

• improving asset management data systems – RAMM is the current system being utilised for core assets and it is proposed to incorporate all activities into the same data system

• decision-making processes that are appropriate to the scale and complexity of the asset

• ensuring compliance with relevant legislation, standards and guidelines

The aim is for continuous improvement in the asset management process.

Fig 8.1: Continuous Improvement Process

8.2 IMPROVEMENT PLANNING

8.2.1 2015 AMP IMPROVEMENT PLAN STATUS

The table below lists the improvements recommended in the 2015 AMP and gives an indication of the status of those recommendations.

Assess Asset Management Performance

Identify Improvement

Actions

Prioritise Actions and

develop Improvement

Plan

Deliver Improvement

Plan

Monitor Improvement

Plan

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SECTION RECOMMENDATION CURRENT STATUS

GENERAL • Monitor Improvement Plan Wairoa Airport Plan produced in 2017

LEVELS OF SERVICE • Identify gaps between levels of service, customer expectation and options to close those gaps

Stakeholder engagement completed as part of Airport Plan process. LoS gaps identified & programmed

• The CSR system needs to be better aligned with the performance measures. The monitoring and analysis of CSRs will need to be better documented to link to LOS

CSR system will not be used for the airport

• All performance measures are reported on annually as part of Council’s Annual Report. A half-year review process should be put in place to review progress towards the performance measures and targets

Performance measures are reported on annually

• The cost and LOS statements should be better linked. An appropriate process for accurately allocating these costs needs to be developed and implemented

LoS statements have been reviewed in preparation of this AMP

FUTURE DEMAND • Survey users to determine expected future use over the next 10 years

Stakeholder engagement undertaken as part of Airport plan process. Council will continue to engage and monitor expected use

ASSET DESCRIPTION

• Incorporate the asset register into Council’s asset database (currently Excel spreadsheet format) with critical assets identified

Asset Engineer/ Engineering Manager

• Develop and implement condition assessment programme Internal resources with consultant for runway assessment approx. every five years/ Engineering Manager

• Formal valuation to be undertaken Asset valuation required

• Improved and more formal database management process Database management processes to be developed

RISK MANAGEMENT • Specifically identify risks for critical assets Critical asset risks to be identified

• Develop contingency plans for airport assets such as runway lighting failure

Contingency plan to be developed

• Develop and publish a Risk Management Manual identified through the risk framework

Risk Management Manual is required

LIFE CYCLE MANAGEMENT

• Undertake condition rating and use with valuation to update asset registers and better inform renewals planning

Asset valuation & formal condition rating required

• Consider the principles of the Treasury NIU Better Business Case BBC approach in future decision making

Treasury NIU Better Business Case being introduced for key project decision making

FINANCIAL SUMMARY

• Use condition and valuation information together with improved renewals planning to better inform financial projections

Asset valuation & formal condition rating required

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8.2.2 2017 PLAN IMPROVEMENT AND MONITORING

The table below details the improvements for the airport activity identified through this AMP.

SECTION DESCRIPTION RESOURCES/OFFICER IN CHARGE

TIMEFRAME INDICATIVE COST

GENERAL • Monitor Improvement Plan Engineering Manager

Allocate internal resources as appropriate to each of the improvements

Include as an agenda item at least bimonthly from adoption of 2018 LTP

Insignificant – part of monthly reporting

LEVELS OF SERVICE • Monitor gaps between levels of service, customer expectation and options to close those gaps

Internal resources/ Engineering Manager

Ongoing Minimal (part of overheads)

• All performance measures are reported on annually as part of Council’s Annual Report. A half-year review process should be put in place to review progress towards the performance measures and targets


Ongoing Minimal <$2,000 (overheads)

• The cost and LOS statements should be better linked. An appropriate process for accurately allocating these costs needs to be developed and implemented

Internal resources/ Engineering Manager & Finance Manager

For 2021 AMP $5,000 (overheads)

FUTURE DEMAND

• Continue to engage with airport users to understand future demand


For 2021 AMP $1,000 (overheads)

ASSET DESCRIPTION

• Incorporate the asset register into Council’s asset database (currently Excel spreadsheet format) with critical assets identified

Asset Engineer/ Engineering Manager

Start 2017/18 financial year No additional costs – part of Asset Engineer’s daily role

• Develop and implement condition assessment programme Internal resources with consultant for runway assessment approx. every five years/ Engineering Manager

Develop annual programme 2017/18 with implementation ongoing from then

General assessment $1,000 per annum (as part of overheads) Runway assessment $5,000 every five years

• Formal valuation to be undertaken Consultant/Engineering Manager

For 2021 AMP $4,000

• Improved and more formal database management process Asset Engineer/ Engineering Manager

Start 2017/18 financial year No additional costs – part of Asset Engineer’s daily role

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RISK MANAGEMENT • Specifically identify risks for critical assets Asset Engineer/ Engineering Manager

2017/18 financial year $2,000 (from overheads)

• Develop contingency plans for airport assets such as runway lighting failure

Internal Resources/ Engineering Manager

2017/18 financial year $2,000 (from overheads)

• Develop and publish a Risk Management Manual identified through the risk framework

Consultant to develop with other non-core activities

In place for 2021 AMP $10,000 across all non-core activities

LIFE CYCLE MANAGEMENT

• Undertake condition rating and use with valuation to update asset registers and better inform renewals planning

Asset Engineer with consultant for valuation/ Engineering Manager

Ongoing as asset information, condition assessments and valuations progress

Fully in place for 2021 AMP

Internal works covered under overheads Valuation as above

• Consider the principles of the Treasury NIU Better Business Case BBC approach in future decision making

Internal resources Introduce the five questions of the principles from now on

Part of assessment of any major capital works

FINANCIAL SUMMARY

• Use condition and valuation information together with improved renewals planning to better inform financial projections

Internal resources/ Engineering and Financial Managers

Ongoing as asset information, condition assessments, valuations and works planning progresses Fully in place for 2021 AMP

No additional cost

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GLOSSARY This glossary is generally consistent with the International Infrastructure Management Manual’s (2011) glossary which contains a larger range of items. The following terms and acronyms (in brackets) may be used in this asset management plan.

Activity An activity is the work undertaken by Council to support and/or deliver services to the community. In the context of infrastructural assets, it is the work undertaken on an asset or group of assets to achieve a desired outcome.

Advanced Asset Management

Asset management, which employs predictive modelling, risk management and optimised renewal decision-making techniques to establish asset life cycle treatment, options and related long-term cashflow predictions.

Annual Plan The Annual Plan provides a statement of the direction of Wairoa District Council and ensures consistency and co-ordination in both making policies and decisions concerning the use of Wairoa District Council resources. It is a reference document for monitoring and measuring performance for the community as well as Council itself.

Asset A physical component of a facility, or a collective or network of physical assets, which has value, enables services to be provided and has an economic life of greater than 12 months.

Asset Inventory/Register A record of asset information considered worthy of separate identification including inventory, historical, condition, construction, technical and financial information.

Asset Management (AM) 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.

Asset Management Plan (AMP)

A plan developed for the management of one or more infrastructure assets that combines multi-disciplinary management techniques (including technical and financial) over the life cycle 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 cash flow projection for the activities.

Asset Management System

A system (usually computerised) for collecting, analysing and reporting data on the utilisation, performance, life cycle management and funding of existing assets.

Asset Management Team The co-ordinator or 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.

Capital Expenditure (CapEx)

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. Expenditure falls into two main categories operational (or expensed) cost and CapEx.

Components 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.

Condition Monitoring 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.

Core Asset Management 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.

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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).

Council Wairoa District Council.

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.

Depreciated Replacement Cost (DRC)

The replacement cost of an existing asset after deducting an allowance for wear or consumption to reflect the remaining economic life of the existing asset.

Depreciation The wearing out, consumption or other loss of value of an asset whether arising from use, the 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.

Disposal Activities necessary to dispose of decommissioned assets.

Economic Life 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.

Facility A complex comprising many assets (e.g. a hospital, wastewater treatment plant, recreation complex, etc.) which represents a single management unit for financial, operational, maintenance or other purposes.

IIMM International Infrastructure Management Manual.

Level of Service (LOS) The defined service quality for a particular activity (e.g. Wairoa Airport) or service area (e.g. playgrounds) against which service performance may be measured. LOS usually relate to quality, quantity, reliability, responsiveness, environmental acceptability and cost.

Life A measure of the anticipated life of an asset or component, such as time, number of cycles, distance intervals etc.

Life Cycle Life cycle has two meanings: (a) The cycle of activities that an asset (or facility) goes through while it retains an identity as a

particular asset i.e. from planning and design to decommissioning or disposal. (b) 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.

Long-term Plan (LTP) The LTP provides a formal and public statement of Council’s intentions regarding the airport activity over a period of not less than 10 consecutive financial years and provides for more community vision for the district.

Maintenance All actions necessary for retaining an asset as near as practicable to its original condition, but excluding rehabilitation or renewal.

Maintenance Standards The standards set for the maintenance service, usually contained in preventive maintenance schedules and specifications, operation and maintenance manuals, codes of practice, estimating criteria, statutory regulations and mandatory requirements, in accordance with maintenance quality objectives.

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National Asset Management Steering Group (NAMS)

A local government initiative, this group is responsible for the International Infrastructure Management Manual (IIMM), also known as the NAMS manual.

New Work Works that create new assets or increase the capacity of existing assets beyond their original design capacity or service potential. New work increases the value of the asset.

Objective An objective is a general statement of intent relating to a specific output or activity. It is generally a longer term aim and is not necessarily an outcome that managers can control.

ODRC Optimised depreciated replacement cost – the depreciated value of the optimised replacement cost – is used in determining optimised depreciated value.

ORC Optimised replacement cost – the cost of replacing an existing asset with a more appropriate, less expensive alternative – is used in determining the replacement value.

Operation The active process of utilising an asset that will consume resources such as manpower, energy, chemicals and materials. Operation costs are part of the life cycle costs of an asset.

Renewal Works to upgrade, refurbish, rehabilitate or replace existing facilities with facilities of equivalent capacity or performance capability.

Repair Action to restore an item to its previous condition after failure or damage.

Replacement 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.

Risk Management 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.

Strategic Plan 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 long-term survival, value and growth of the organisation.

Upgrading

The replacement of an asset or addition/replacement of an asset component, which materially improves the original service potential of the asset.

Valuation 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.

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APPENDICES Appendix 1: Risk Register

Appendix 2: 10-Year Financial Forecast

Appendix 3: Airport Plan (under separate cover)

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APPENDIX 1 RISK REGISTER

Unique Identifier Objective Issue Risk Event

Crit

ical

ity

Thre

at o

r Opp

ortu

nity

CONSEQUENCE

Con

sequ

ence

Rat

ing

(Hig

hest

of C

onse

quen

ce S

core

s)

Like

lihoo

d R

atin

g

Ris

k Sc

ore

(Con

sequ

ence

x L

ikel

ihoo

d)

Ris

k D

escr

iptio

n *

Trea

tmen

t

Res

idua

l Ris

k Sc

ore SERVICE

DELIVERY SOCIAL / CULTURAL

Envi

ronm

ent

Econ

omic

Leve

l of S

ervi

ce (L

oS)

LoS

Adj

uste

d

Hea

lth &

Saf

ety

Crim

e

Com

mun

ity /

Soci

al

Com

plia

nce

Rep

utat

ion

Eng.WA.01.001

Match service provision with airport users desired level of service and ability to pay.

Knowledge of desired service

Insufficient knowledge of airport users desires resulting in inappropriate targets.

0.1 Threat 40 1 0 0 40 0 40 0 0 40 2 80 HIGH Develop consultation process / plan. MODERATE

Eng.WA.01.002

Potential inappropriate renewals and maintenance programme

Insufficient knowledge of what services are currently being delivered to the airport users.

0.1 Threat 40 1 0 0 40 0 10 0 0 40 2 80 HIGH Establish review process MODERATE

Eng.WA.01.003

Knowledge of ability (preparedness) to pay

Insufficient knowledge of what the airport users can/will pay for desired service.


Eng.WA.01.004

Alternative funding mechanisms (subsidy etc)

No awareness of alternative funding mechanisms.

0.1 Threat 40 1 0 0 40 0 40 0 10 40 1 40 MODERATE Resourcing Plan MODERATE

Eng.WA.01.005 Funding

Insufficient resources to 'hook in to' funding mechanisms (time, cost, expertise).

0.1 Threat 40 1 0 0 40 0 40 0 10 40 3 120 HIGH Resourcing Plan MODERATE

Eng.WA.02.001

To ensure that relevant legislation, regulations consent conditions and bylaws are monitored and enforced such that Council meets its requirements.

asset deterioration

Inadequate maintenance and renewals fails to address deterioration of infrastructure resulting in unsafe facilities / conditions.

0.1 Threat 40 1 40 0 70 70 40 10 10 70 3 210 VERY HIGH

1) Establish risk based (prioritised) asset management plan 2) Establish effective condition assessment programme to reduce uncertainty around lifecycle stages of infrastructure.

MODERATE

Eng.WA.02.003 Non-compliance with legislation

Insufficient knowledge of legislation (outside of consent conditions) that relates to the activity (OSH etc) or failure to monitor for change.

0.1 Threat 10 1 0 0 40 70 40 0 40 70 4 280 VERY HIGH 1) Review and document requirements 2) Seek external advice

MODERATE

Eng.WA.02.004 Non-compliance with legislation

Failure to identify changes required by changing Council bylaws.

0.1 Threat 10 1 0 0 40 40 40 0 10 40 1 40 MODERATE Establish review process MODERATE

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Crit

ical

ity

Thre

at o

r Opp

ortu

nity

CONSEQUENCE

Con

sequ

ence

Rat

ing

(Hig

hest

of C

onse

quen

ce S

core

s)

Like

lihoo

d R

atin

g

Ris

k Sc

ore

(Con

sequ

ence

x L

ikel

ihoo

d)

Ris

k D

escr

iptio

n *

Trea

tmen

t

Res

idua

l Ris

k Sc

ore SERVICE


Envi

ronm

ent

Econ

omic

Leve

l of S

ervi

ce (L

oS)

LoS

Adj

uste

d

Hea

lth &

Saf

ety

Crim

e

Com

mun

ity /

Soci

al

Com

plia

nce

Rep

utat

ion

Eng.WA.02.005 Resources for enforcement

Insufficient funding for monitoring activities. 0.1 Threat 40 1 40 0 70 70 40 10 10 70 2 140 HIGH

1)Review enforcement options 2)Explore possibility of devolving some function(s) to contractors i.e. reporting

MODERATE

Eng.WA.02.006


Lack of technical expertise to provide planning/design resulting in absence of or inappropriate planning/design knowledge to verify compliance.

0.1 Threat 40 1 40 0 70 70 40 10 0 70 2 140 HIGH


MODERATE

Eng.WA.02.007 asset deterioration

Lack of labour resource to implement required changes and/or maintain standard

0.1 Threat 40 1 40 0 40 40 40 10 10 40 2 80 HIGH

1) Utilise longer time frames to allow contractors sufficient time to obtain resources 2) Develop relationship with other labour users in region to synchronise activities.

MODERATE

Eng.WA.02.008 Communication

Breakdown in communication between parties results in compliance failure.

0.1 Threat 40 1 0 0 40 40 40 0 0 40 2 80 HIGH Develop active communication / relationship plan

MODERATE

Eng.WA.03.001

Strategic programming of renewals and preventative maintenance to ensure long term sustainability of the assets.

potential inappropriate renewals and maintenance programme

Incorrect demand projections (increase). 0.1 Threat 10 1 0 0 10 0 10 0 40 40 1 40 MODERATE

Utilise Census data and Statistics New Zealand projections.

MODERATE

Eng.WA.03.002


Incorrect demand projections (reduction) 0.1 Threat 10 1 0 0 10 0 10 0 10 10 2 20 LOW

1) Establish review process to identify deviations in timely manner 2) Establish operating plans to reduce treatment levels (capacity)

LOW

Eng.WA.03.003


Asset inventory incomplete resulting in deterioration or loss of assets.

0.1 Threat 40 1 0 0 40 0 40 0 0 40 1 40 MODERATE Establish plan for periodic review of inventory. MODERATE

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Crit

ical

ity

Thre

at o

r Opp

ortu

nity

CONSEQUENCE

Con

sequ

ence

Rat

ing

(Hig

hest

of C

onse

quen

ce S

core

s)

Like

lihoo

d R

atin

g

Ris

k Sc

ore

(Con

sequ

ence

x L

ikel

ihoo

d)

Ris

k D

escr

iptio

n *

Trea

tmen

t

Res

idua

l Ris

k Sc

ore SERVICE


Envi

ronm

ent

Econ

omic

Leve

l of S

ervi

ce (L

oS)

LoS

Adj

uste

d

Hea

lth &

Saf

ety

Crim

e

Com

mun

ity /

Soci

al

Com

plia

nce

Rep

utat

ion

Eng.WA.03.004


Absence of or inaccurate asset condition information resulting in inappropriate maintenance or renewal.

0.1 Threat 40 1 0 0 10 0 10 0 0 10 3 30 MODERATE Establish plan for periodic condition assessment. LOW

Eng.WA.03.005


Absence of or inaccurate asset valuation information resulting in inappropriate depreciation values.

0.1 Threat 40 1 0 0 0 0 40 0 0 40 3 120 HIGH Establish plan for periodic valuation review. MODERATE

Eng.WA.04.001

All preventative maintenance, renewals and other programmed and reactive works are completed on time and within budget

Funding

Insufficient funding available for completion of required activities resulting in escalated deterioration.

0.1 Threat 40 1 0 0 0 0 40 0 0 40 1 40 MODERATE

1) Ensure robust forecasting 2) Develop risk based (prioritised) asset management plan

MODERATE

Eng.WA.04.002


Lack of technical expertise to provide planning/design resulting in absence of or inappropriate planning/design.

0.1 Threat 10 1 0 0 10 0 40 0 0 40 2 80 HIGH


LOW

Eng.WA.04.003 asset deterioration

Lack of labour resource to implement required changes and/or maintain standard.

0.1 Threat 40 1 0 0 10 0 40 0 0 40 2 80 HIGH

1) Utilise longer time frames to allow contractors sufficient time to obtain resources 2) Develop relationship with other labour users in region to synchronise activities.

LOW

Eng.WA.04.004


Inadequate planning for the implementation of the annual program.

0.1 Threat 70 1 0 0 40 40 40 0 0 40 3 120 HIGH

1) Ensure robust documentation of current plans to act as template. 2) Include issue in handover plans 3) Succession planning

MODERATE

Eng.WA.04.005


Inadequate monitoring of staff, consultants, and contractors results maintenance and renewals not being completed.

0.1 Threat 40 1 0 0 40 40 40 0 0 40 3 120 HIGH Establish quality control / review process MODERATE

Eng.WA.05.001

Airport users will be satisfied with the overall level of service provided.


Insufficient knowledge of airport users desires resulting in inappropriate targets.


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Crit

ical

ity

Thre

at o

r Opp

ortu

nity

CONSEQUENCE

Con

sequ

ence

Rat

ing

(Hig

hest

of C

onse

quen

ce S

core

s)

Like

lihoo

d R

atin

g

Ris

k Sc

ore

(Con

sequ

ence

x L

ikel

ihoo

d)

Ris

k D

escr

iptio

n *

Trea

tmen

t

Res

idua

l Ris

k Sc

ore SERVICE


Envi

ronm

ent

Econ

omic

Leve

l of S

ervi

ce (L

oS)

LoS

Adj

uste

d

Hea

lth &

Saf

ety

Crim

e

Com

mun

ity /

Soci

al

Com

plia

nce

Rep

utat

ion

Eng.WA.05.002

lack of knowledge of services and cost to deliver

Insufficient knowledge of what services are currently being delivered to airport users.

0.1 Threat 40 1 0 0 40 0 10 0 0 40 2 80 HIGH Establish review process MODERATE

Eng.WA.05.003 Knowledge of communities' perception of delivered LoS

Incomplete knowledge of the airport users’ perception of delivered service.

0.1 Threat 40 1 0 0 10 0 10 0 0 10 2 20 LOW Develop consultation process / plan. LOW

Eng.WA.05.004

Communities' knowledge of what they are currently being delivered and at what cost

Inadequate information supplied to airport users resulting in an inability to determine value.

0.1 Threat 40 1 0 0 10 0 10 0 0 10 2 20 LOW

Develop education plan i.e. Engineering Department Newsletter and local newspaper articles.

LOW

Eng.WA.06.001 Emergency planning

Reaction in emergency events

Damage caused by natural hazard (earthquake / fire) results in inability to deliver service.

0.1 Threat 100 10 0 0 10 0 10 0 0 10 3 30 MODERATE

Develop contingency plans due to possibility that an earthquake event will also affect other modes of transport into the area.

MODERATE

*Risk Description based on Risk Score

Risk Matrix Qualitative Description Low Score High Score Risk Description

350 500 EXTREME 160 300 VERY HIGH 70 140 HIGH 30 50 MODERATE 4 20 LOW 1 3 NEGLIGIBLE

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APPENDIX 2 10-YEAR FINANCIAL FORECAST

FUNDING STATEMENTWAIROA AIRPORTWairoa Airport

2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28ANNUAL PLAN BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET

OPERATIONAL EXPENDITURE22,060 Depreciation and Amortisation 64,512 52,992 67,200 73,114 77,832 80,194 86,371 86,841 99,905 94,631 48,728 Finance Costs 2,786 5,143 9,171 8,400 7,629 6,857 6,086 5,314 4,543 3,772

257,564 Other Operating Expense 120,023 94,883 96,108 101,328 103,751 106,808 108,009 110,807 114,265 115,977

328,352 NET OPERATING EXPENDITURE 187,321 153,018 172,479 182,842 189,211 193,859 200,466 202,962 218,713 214,380

CAPITAL EXPENDITURECapital Costs - Debt Repaid - 10,714 10,714 19,285 19,285 19,285 19,285 19,285 19,285 19,285

1,512,140 Capital expenditure - to improve the level of service 170,000 - 130,440 - 10,920 - 11,440 - 12,020 - 461,000 Capital expenditure - to replace existing assets 10,000 209,101 10,440 87,494 10,920 37,978 11,440 11,730 114,262 28,433

1,973,140 TOTAL CAPITAL COSTS 180,000 219,815 151,594 106,779 41,125 57,263 42,165 31,015 145,567 47,718

2,301,492 TOTAL EXPENDITURE 367,321 372,833 324,073 289,621 230,336 251,122 242,631 233,977 364,280 262,098

FUNDED BY48,485 Fees and Charges 35,500 36,210 36,920 37,701 38,553 39,441 40,328 41,287 42,316 43,381

500,000 Capital Subsidy - - - - - - - - - - 812,140 Loans - - - - - - - - - -

- Other Expenditure Not Funded - - - - - - - - - - - Non Funded Depreciation 10,714 10,714 19,285 19,285 19,285 19,285 19,285 19,285 19,285 19,285

643,956 Reserves 180,000 209,101 140,880 87,494 21,840 37,978 22,880 11,730 126,282 28,433 - Reserves - Smoothing of Rates 38,370 33,137 33,137 - (17,441) (17,441) (17,441) (17,441) (17,441) (17,441)

296,911 Rates 102,737 83,671 93,851 145,141 168,099 171,860 177,579 179,117 193,838 188,440

2,301,492 367,321 372,833 324,073 289,621 230,337 251,123 242,632 233,977 364,280 262,098

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APPENDIX 3 WAIROA AIRPORT PLAN

(UNDER SEPARATE COVER)

airport asset management plan - wairoa · airport asset management plan 7 1 introduction this asset...

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