# Presentation: 308954

## A Brief History of New Zealand’s National Asset Management Steering Committee

- Anthony Wilson
- General Manager Community Assets

## Background

- NZ is a sovereign nation with a ‘Westminster’ style parliament.
- 2 tiers of government – central and local
- Local Government is a creature of statute
- Water Supply, Sewerage, Flood Control and Stormwater are the responsibility of local government (with some exceptions)
- Size of local government units varies hugely: 500,000 popn to 1,800 popn.
- National population 4,000,000.

## 1989 Reform

- Units of local government significantly reduced
- Local Govt required to be demonstrably ‘efficient’ and ‘effective’.
- Moved from Cash Book to Accrual accounting

## Specifically Local Govt had to:

- Establish clear objectives for each activity and measure its performance in relation to these objectives
- Annually report to the public on stated targets and performance
- Establish a fair valuation of the existing assets and make financial provision for maintaining and replacing the assets.

## All 74 Councils had the same problem:

- Up to 140 years of asset creation
- Poor records
- No values for existing assets
- Uncertainty on performance
- Uncertainty on condition
- Uncertainty of maintenance history
- Uncertainty on service lives

- Clearly if a co-operative solution could be found it would benefit all
- Some models of commonality and co-operation existed
- All Councils used RAMM (Roading Asset Maintenance  Management)
- Water Supply and Drainage Managers (Sub groups of NZWWA) had ‘project fund’ for common need projects

## Examples:

- Model Bylaws (Ordinances)
- Trade Waste
- Water Supply Conditions of Supply
- Standard specification for chemicals for water treatment
- Model public information resource packs for water conservation

## PAMS Project Pipeline Asset Management Software

- Water & Drainage Engineers recognised complexity of asset base needed a digital solution
- 7 leaders of the industry (from big, medium and small Councils) were invited to a meeting in December 1993.
- Individuals were selected for their individual drive not the ‘status’ of their organisation.

## Objectives Agreed:

- Select a software product that would be suitable to both largest and smallest
- 30 of 74 Councils take up seen as ‘critical mass’ to be regarded as ‘national’ system.
- Good products did exist internationally
- Any system may need customisation for NZ (e.g. metrication)
- Needed a probity auditor for selection process
- All Councils should be encouraged to contribute as all stood to benefit

- Project needed to be managed by small team but all contributors needed to be kept routinely informed
- Selected system needed to be flexible for single PC site to multi-user environment
- Dynamic integration needed to GIS, financial, property and customer systems
- Reporting from the system must be simple flexible and user friendly
- Project provided basis for national database and benchmarking
- Needed to recognise NZ’s outsourcing environment

- Municipal Engineers Association (ALGENZ now INGENIUM asked to ‘sponsor’ project
- Project cost $120,000
- Included:
- International literature review
- Workshops to determine user requirements
- Detailed specification
- Peer review
- International registrations of interest
- Standard contract documents
- Customisation of selected product
- Acceptance testing
- National roadshow to market product

## Cost to individual councils:

- Project Cost $120,000
- Largest Councils	$2,000
- Medium Councils 	$1,000
- Small Councils  	$500
- In the end all but 2 of 74 Councils contributed to the project

## Next projects

- A number of different organisations started to develop complementary projects:
- Standardised Data Dictionary
- Asset Numbering Guidelines
- Condition Assessment Guidelines
- Performance Assessment Guidelines
- CCTV Inspection Grading Standards
- National AC condition data collection

## Need for National Co-ordination recognised - multi entity committee formed

- INGENIUM (municipal engineers)
- New Zealand Water and Wastes Assn (equivalent to WEF and AWWA)
- Society of Local Government Managers (accountants and administrators)
- Local Government New Zealand (elected representatives organisation)
- Officer of Controller and Auditor-General (Officer of Parliament)

## NAMS Projects

**PRAMS **Parks &** **Recreation Asset Management Software
- National Asset Management Manual (based on Australian version. Now International Infrastructure Management Manual)
- Asset Valuation and Depreciation Guidelines
- Guidelines for Agreeing and Monitoring Service Levels with Customers

- Optimised Decision Making Guidelines
- ‘Tips for the New Car Owner’ – An elected representatives guide to Asset Management
- RAMM enhancement
- Standard reporting
- On going training programme
- Sessions pitched at newcomer, intermediate and advanced levels
- National roadshows
- Customised to suit topical issues (legislation change etc.)

## Why was and has NAMS been successful?

- It was timely – everyone had a urgent need driven by legislation change.
- We picked the right movers and shakers – individuals not organisations
- It delivered unquestionably value for money -tangible outcomes not just theory
- Financial contributions were project not subscription based.
- Costs were set to be affordable for small entities.
- We didn’t try and reinvent the wheel, we picked good international examples and improved them.

- Communications was good and targeted at right people within organisations often at two or more levels in same organisation
- Individual enthusiasts were encouraged to develop national expertise and status (e.g. asset numbering and asbestos cement pipes)
- Training became the cash cow which provided seed capital to provide critical mass
- We successfully engaged both local and national politicians
- National roadshows

- We had some champions in consultancies who identified projects and approached NAMS to progress them
- A number of different individuals, organisations and disciplines became ‘evangelists’: accountants, engineers, administrators, elected representatives, auditors. NAMS provided a forum fro them.
- Special Interest groups were encouraged to ‘do their own thing’ within a loose framework. (e.g software User Groups)
- By having the Auditor-General ‘inside the house’ we jointly developed the rules. This has lead to ongoing legislation change being strongly influenced by the practitioners

## What could we have done better in hindsight?

- We had a software solution but almost no data to use in it!
- We raised some expectations too high
- Maintaining the drive and consistency is challenging. These projects take years and people move both within and out of the industry
- Some projects, notably the CCTV manual are overdue for updates.
- Medium sized entities appear to manage change better than small or very large ones.
- Don’t worry about freeloaders “Imitation is the greatest form of flattery”

## NAMS today

- Industry based public and private sector interest representation
- Fulltime CEO
- Mechanical Engineer with sales background
- Funded by products and services not subscriptions
- Has relationships with similar organisations in Australia, Canada and South Africa.
- Has marketing agreements with APWA, FHWA & AASHTO in USA (non exclusive)
- 2005 version of IIMM will have USA specific section and USA case studies (Sep/Oct 05)
- Keen to develop new relationships

- _[www.nams.org.nz](http://www.nams.org.nz/)_
**+64 7 868 3930**