Case study 2.10

Asset management for public entities: Learning from local government examples.

Upper Hutt City Council – Comprehensive documentation of lifecycle asset management makes for a comprehensive plan, which provides strong support for planned works

In line with good practice, all of Upper Hutt City Council’s asset management plans contain lifecycle asset management strategies. They are very specific, with clear distinctions made between the issues covered in each part of the plan. There are clear, specific sections dedicated to:

  • physical parameters;
  • asset capacity/performance;
  • asset condition;
  • asset valuations;
  • historical data;
  • the Routine Maintenance Plan;
  • the Renewal/Replacement Plan;
  • the Creation/Acquisition/Augmentation Plan;
  • the Disposal Plan; and
  • the financial summary.

Example of detailed planning – The "Deterioration Model Sensitivity" graph for wastewater planning is used to assess the effect of uncertainty in estimating the expected life (or intervention trigger levels) for an asset

Deterioration model

The Council finds that this level of structured planning gives it:

  • greater budgeting surety;
  • better control of costs, supported by confidence that it is replacing what it has to when it has to; and
  • improved knowledge and confidence in the asset replacement programme. This allows changes to be made to accommodate unplanned events (such as a building development) without increasing the risk of asset failure.