Part 3: Planning for maintenance and renewal work

3.1
In this Part, we set out our findings about:

• setting performance expectations for maintenance and renewal work;
• setting objectives and priorities for maintenance and renewal work;
• managing risks;
• asset management planning; and
• planning for day-to-day maintenance and renewal work.

Our overall findings

3.2
NZTA has the main elements of a planning framework for maintenance and renewal work. The planning framework includes levels of service, asset management plans, and operational maintenance and renewal plans. These plans are informed by the analysis of information in the RAMM and BDS databases.

3.3
NZTA's overarching levels of service for maintaining road pavement (which relate to roughness, rutting, skid resistance, and surface texture) have been in place for many years and are comparable with those of overseas roading authorities. Its underlying levels of service for pavement maintenance (for example, for potholes or road markings) and its levels of service for corridor maintenance are not well aligned with the expectations of road users. If NZTA is to have well-defined levels of service that meet the expectations of road users, it needs to clarify how it determines levels of service and to continue to actively engage with road users.

3.4
NZTA told us that it is seeking to move to a more advanced level of asset management practice. NZTA has yet to finalise its national state highway asset management plan and its regional asset management plans have only recently been completed. These regional plans need improvement and need to be better aligned with detailed annual plans for maintenance and renewal work if NZTA is to implement a more consistent approach to asset management planning across the network.

3.5
In this Part, we make three recommendations for improvement.

Setting performance expectations for maintenance and renewal work

NZTA has a detailed set of technical levels of service and overarching performance targets and measures for maintenance and renewal work. But it was unclear how these levels of service were determined, or what they mean for road users.

3.6
NZTA has a detailed set of technical levels of service and performance targets and measures for maintaining and renewing the network. These cover three main aspects of its work: structural maintenance, corridor maintenance, and miscellaneous activities.

3.7
For structural maintenance, there are levels of service for:

• pavement maintenance:
  • relating to roughness, rutting, skid resistance, and surface texture (we refer to these as "overarching" levels of service); and
  • relating to dig outs, depressions, heaves and shoves, potholes, edge breaks, repair surfacing, unsealed shoulders, unsealed pavements, drainage features, and loose surface fragments (we refer to these as "underlying" levels of service);
• road pavement and road surface treatments;
• major drainage control (for surface drainage systems);
• maintenance of chip seals; and
• bridge maintenance (for bridges and minor structures).

3.8
For corridor maintenance, there are levels of service for amenity/safety maintenance (for incident response and vegetation control), and traffic services (for signs, road markings, and lighting).

3.9
For miscellaneous activities, there are levels of service for sealed carriageway widths.

3.10
The levels of service for all maintenance work (except for the overarching levels of service) include a range of responses for different types of roads on the network. These differing levels of service are based on traffic volumes. For example, NZTA's target for potholes larger than 70mm in diameter for motorways and other busy roads is that there will be no more than three in any continuous 10 kilometre section. For less busy roads, the target is that there will be no more than 10 potholes in any continuous 10 kilometre section.

3.11
Alongside its levels of service, NZTA has overarching technical performance targets and measures outlined in its Statement of Intent 2009-2012. These targets and measures relate to pavement maintenance, bridge maintenance, and corridor maintenance and renewal.

3.12
NZTA's overarching levels of service for pavement maintenance were inherited from Transit New Zealand and have been in place for many years. They have changed over time to reflect the participation of the road engineering industry, legislative changes, a range of technical standards, and consultation with road users and central and local government agencies. However, NZTA told us that it did not know when these levels of service were originally put in place, or how the levels of service were originally approved and adopted. NZTA was also unclear about when and how later changes were put in place and approved.

3.13
NZTA told us that its Group Manager of the Highways and Network Operations Group was now accountable for almost all levels of service on the network, but that NZTA's Board is directly responsible for some levels of service associated with higher levels of risk. NZTA also told us that the Group Manager may delegate decision-making about specific levels of service to the most appropriate NZTA staff.

3.14
It was unclear what the overarching levels of service for pavement maintenance and their performance targets and measures actually mean for road users.

3.15
NZTA told us that its overarching levels of service for pavement maintenance are based on sound principles. It told us that, based on its involvement in a range of international roading forums and technical working groups, these levels of service are comparable with those of overseas roading authorities, particularly those that relate to technical levels of service for road pavement maintenance. Advice we received as part of our audit supports NZTA's view that its overarching levels of service for pavement maintenance are comparable with those of overseas roading authorities.

3.16
NZTA attends road-user forums and commissions surveys as ways of getting general comments about the network from road users. However, NZTA has done little to get specific feedback from road users about NZTA's levels of service. NZTA told us that it was working on getting more specific, targeted, and regular responses from road users.

3.17
NZTA has an improvement programme under way to clearly link its technical levels of service with its customer levels of service. A clearer link would enable it to prepare high-quality scenarios for highway maintenance and renewal. Ultimately, this improvement programme is expected to better align NZTA's levels of service (and its funding) with what road users need and want.

3.18
The improvement programme is part of NZTA's preparations for the national state highway asset management plan. An interim state highway asset management plan was published in July 2010. A final state highway management plan, with advanced scenarios showing a greater focus on levels of service, is due to be published in April 2011. Also, the Minister of Transport has recently announced the preparation of a state highway classification system to guide future investment and management of the network. Once the system is finalised, levels of service will be agreed for the different highway categories. The levels of service will take into account the function and form of the different categories, as well as the area they travel through.

3.19
In our view, NZTA needs to clarify and formalise how it determines its levels of service for maintenance and renewal work. This will help ensure that the most appropriate decision-makers are approving NZTA's levels of service. NZTA also needs to continue to actively engage with road users to ensure that its underlying levels of service for pavement maintenance (for example, response time for filling potholes) and levels of service for corridor maintenance are informed by road users' needs and in line with their expectations. In our view, this will help to ensure that NZTA's levels of service are aligned with what road users want. It should also ensure that, over time, its overarching levels of service for pavement maintenance remain relevant to, and are set at levels that support, cost-effective preservation and safe use of the network.

Setting objectives and priorities for maintenance and renewal work

NZTA has clear short- to medium-term maintenance and renewal objectives, priorities and focus areas for the network.

3.20
The National Land Transport Programme gives effect to the Government Policy Statement on Land Transport Funding 2009/10-2018/19⁴ (the Government Policy Statement) and sets out NZTA's funding priorities for state highway operation, maintenance, and renewal work. Priority activities:

• make the most effective and efficient use of the existing infrastructure on major routes to reduce congestion;
• optimise service levels for safety and road network security and resilience;
• carry out timely interventions to make the best use of existing infrastructure; and
• manage adverse environmental effects from land transport.

3.21
NZTA's relevant strategic documents, plans, and its Planning, programming and funding manual set out how maintenance and renewal work on the network will deliver on the Government Policy Statement and the National Land Transport Programme.

3.22
NZTA's Statement of Intent 2009-2012 outlines four main outcomes that interpret the Government's priorities. The maintenance, renewal, and operation of state highways contribute to two of these outcomes – more efficient and reliable infrastructure, and improved transport safety.

3.23
NZTA's State Highway Plan 2009/10 broadly describes the services and products that NZTA will prepare and deliver for road users during the next 10 years, to ensure that the network meets user expectations and is achieving what is set out in the Government Policy Statement.

3.24
NZTA's Planning, programming and funding manual sets out NZTA's strategic investment direction, which was based on the Government Policy Statement. The manual sets out NZTA's priorities and focus for investment, including those for the maintenance, renewal, and operation of the network. NZTA told us that the maintenance and renewal of the network is an investment priority for NZTA's Board, although this is not clear from the manual or from NZTA's Investment and Revenue Strategy (on which the strategic investment direction in the manual is based).

3.25
NZTA's interim state highway asset management plan describes the services that the network provides and how NZTA intends to manage and fund the work needed now and in the future. It provides a national view based on a review cycle relating to the three-year Programme and is aligned with NZTA's statement of intent. It draws from a range of NZTA's national strategies.

3.26
The interim plan sets the direction and identifies long-term funding requirements. It also clarifies that NZTA aims to manage the physical assets of the network to provide the required levels of service in the most cost-effective way. NZTA is due to publish a final state highway asset management plan in April 2011.

Managing risks

NZTA had a wide range of detailed processes, procedures, and programmes for managing strategic and operational risks to the network.

3.27
NZTA had a range of registers, processes, procedures, and programmes for managing strategic and operational risks to the network. NZTA's regional asset management plans also contained information about risks.

3.28
In the areas that we looked at, risk registers, a security study, business continuity planning, and emergency management procedures identified parts of the network susceptible to specific events (for example, snow, ice, earthquakes, strong winds, subsidence/slope instability, major slips, and flooding) and how NZTA and other relevant agencies will manage these.

3.29
Some specific parts of the network that are important for access had their own specific road closure plans for emergency events. For example, there were specific road closure plans for the Coast Road and the Rimutaka Hill Road in the Wellington area.

3.30
There were also a range of programmes and plans specific to a range of hazards and conditions. For example, in the Southland area, NZTA managed an internationally recognised avalanche control programme on State Highway 94 (which includes the Milford Road from Te Anau to Milford Sound). This programme involved active monitoring and forecasting of avalanche conditions for a 21 kilometre section of the highway near the Homer Tunnel. Also, NZTA actively monitors retaining walls and slope instabilities at various places on state highways 93, 94, and 99 in the Southland area.

Asset management planning

NZTA is working to improve its recently prepared regional asset management plans and to finalise its national state highway asset management plan. It has recently finalised an asset management plan for Auckland Harbour Bridge.

3.31
NZTA's first regional asset management plans for the network were prepared in 2008. These plans have a short- to medium-term focus of three years, in line with the preparation of the National Land Transport Programme. There are 14 regional asset management plans across the whole network.

3.32
Asset management plans had been prepared for the five areas we looked at. In 2006, a draft strategic asset management plan was prepared for Auckland Harbour Bridge but never finalised. In 2009, NZTA again began work on an asset management plan for Auckland Harbour Bridge, in line with its preparation of an interim national state highway asset management plan. During our audit, NZTA was preparing the Auckland Harbour Bridge plan, and a final version was completed in June 2010.

3.33
In 2008, NZTA's area managers and network management consultants started using a nationally prescribed regional asset management plan template, along with relevant regional and local network asset information and analysis from the RAMM and BDS databases. NZTA's national office staff provided workshops and support for regional office staff and consultants and contractors before and during the preparation of the regional asset management plans. These measures were to bring more consistency to the planning process.

3.34
All the regional asset management plans that we examined set out prioritised improvement actions, and a comprehensive review of all plans is scheduled to take place in 2011.

3.35
However, the asset management plans varied in terms of completeness, level of detailed information provided, and discussion and analysis of the major issues for the regions.

3.36
For most of these regional asset management plans:

• the aims were unclear;
• it was unclear how the plans aligned with, or were informed by, wider NZTA outcomes or overarching government transport policies and programme priorities;
• other than pavements and surfacings, there was minimal to variable information describing the condition and capacity of structural assets (for example, bridges and drainage) and traffic assets (for example, signs, lighting, and road marking);
• although there was information and trends about demands on the network and possible influences on those demands, this information was seldom used to forecast future demand;
• there was no comprehensive information about risks for an entire region, although information existed for specific risks; and
• there was little information about the assumptions underpinning the financial forecasts.

3.37
NZTA is aware of these issues. After completing the regional asset management plans, NZTA commissioned an external consultant to carry out a high-level review of these plans, along with a review of regional asset management practices and improvement plans.

3.38
In general, the review found a good level of asset management practice in the regions. The review team identified a need to strengthen improvement planning, lifecycle-optimised decision-making, network-level risk management, and levels of service. In our view, NZTA needs to make sure that it carries out all the actions recommended by the review to improve regional asset management plans.

3.39
In 2009, NZTA prepared a draft national state highway asset management plan for 2009/10. NZTA was revising this plan during our audit, and an interim version was published in July 2010. A final state highway asset management plan is due to be published in April 2011.

3.40
NZTA's interim national state highway asset management plan is not the first attempt at preparing such a plan. Transit New Zealand had prepared at least three draft national asset management plans for the network. For various reasons, including the creation of NZTA and a change of focus towards regional asset management planning, none of these was finalised.

3.41
In our view, NZTA needs to complete the national state highway asset management plan. This will give more consistency to long-term asset management planning. It will also help ensure that, in the long term, maintenance and renewal work is focused on the most important strategic priorities.

Planning for day-to-day maintenance and renewal work

NZTA's detailed annual plans for maintenance and renewal work were not clearly aligned with the relevant regional asset management plans. However, clearer alignment should eventuate when regional asset management plans are improved and the national state highway asset management plan is finalised.

3.42
In each area, network management consultants prepare and maintain a long-term (10-year) work programme for all maintenance and renewal work. Preparing long-term work programmes, as part of annual planning, is now part of preparing the National Land Transport Programme.

3.43
At the area level, NZTA uses a range of information and tools to prepare long-term work programmes for road pavement and road surfacing maintenance and renewal work. These include information from the RAMM database, results from the annual pavement and surfacing condition survey, a pavement deterioration modelling tool used to estimate the future deterioration of the road pavement, and visual inspections done while driving over the network.

3.44
In some of the areas, network management consultants had created their own specific tools. For example, consultants in the Northland and Southland areas had created a "viewing method" for combining various types of road pavement and road surfacing information. This information could then be viewed as a whole during visual inspections.

3.45
Internally, to support regional consistency, NZTA carries out regular rating and prioritisation reviews of the long-term area work programmes against standards. To give some degree of consistency throughout a region, these reviews are referenced against required maintenance and renewal standards.

3.46
At the area level, NZTA's annual plans outline requests for funding for all maintenance and renewal activities. For each maintenance and renewal activity, annual plans also provide long-term work programmes that outline forecast expenditure for the next 10 years.

3.47
The regional asset management plans that we examined included reasons for each maintenance and renewal activity that underpinned the 10-year forecast expenditure. The plans also identified, albeit broadly, relevant policies that informed work programmes and included some risks associated with each activity.

3.48
Requests for funding in annual plans are set out in four main groupings, each with specific activities:

• road maintenance and operations (which includes structural maintenance, corridor maintenance, and asset management activities);
• road renewals (which includes structural renewals, corridor renewals, and associated improvements activities);
• other maintenance and renewal activities (which includes emergency reinstatement and preventative maintenance activities); and
• maintenance within capital (which includes pavement smoothing and maintenance within capital funding activities).

3.49
NZTA's area managers work closely with the network management consultants in finalising annual plans, discussing the most suitable interventions and treatments, and driving through their parts of the network to confirm that those interventions and treatments have taken place.

3.50
Of the five annual plans that we examined, one referred briefly to the relevant regional asset management plan. Otherwise, links between the annual plans and regional asset management plans were unclear.

3.51
Also, the annual plans we examined were unclear about:

• what the objectives or priorities were;
• which policies linked to which work programmes;
• what each activity or work category involved;
• the cost-benefit analysis and risks of alternative options; or
• whether there had been any consideration of risks or constraints.

3.52
We expect that clearer links between NZTA's detailed annual plans for maintenance and renewal work and relevant regional asset management plans will eventuate, as regional asset management plans are improved and the national state highway asset management plan is finalised. Clearer links are essential to help NZTA make sure that its maintenance and renewal work is focused on the most appropriate areas for the long-term future of the network.

4: The Government Policy Statement on Land Transport Funding 2009/10-2018/19 was published in May 2009. It details the Government's desired outcomes and funding priorities for the use of the NLTF to support activities in the land transport sector. The Government Policy Statement covers what the Government wishes to achieve from its investment in land transport, how it will achieve this by funding certain activity classes, how much funding will be provided, and how this funding will be raised.