Marlborough District Council Roading Assets - Activity Management Plan 2015 - 2018 SECTION 1 EXECUTIVE SUMMARY Flood Damage Costs adjusted to 2014 (incl SPR) 6,000 5,000 4,000 3,000 2,000 1,000 0 03/0404/0505/0606/0707/0808/0909/1010/1111/1212/1313/14 (May ytd) Table 6.6.5.2: Flood Damage Costs 1.6.6.5.3 Cost / Financial / FWP The costs associated with emergency works and emergency preparedness are scheduled as day rates and are funded from contingencies. A very small portion of the cost to cover radio and other communication systems together with the costs of having a contact person on standby after hours is part of the tendered lump sums in the maintenance contracts. Considerable savings in time and management effort is accrued by allowing minor to medium scale emergency works to be dealt with as a continuing first response undertaken by the maintenance contractor rather that opening to one lane and calling tenders to complete the works. The costs for the completion phase of emergency works are negotiated and where the damage is weather related and widespread will involve the employment of many contractors. Emergency works often result in the transportation of slip material and heavy machinery over the network roads which are maintained under a lump sum regime. Allowing the incumbent maintenance contractor to have some control over the completion phase manages the risk taken under the lump sum. With the current contracts giving a good level of service, it is recommended no changes be made to this activity at this time. The rules around NZTA funding of Emergency Events change as from the 01 Jul 2015. From that date the following rules will apply: For events up to $100k will be funded from w/c 140. Events between $100k and 10% of programming an emergency works claim will be required and will be funded at base rate. Events over 10% of programme will be base rate plus 20% Elevated assistance rates for emergency works will be set by adding 20 percentage points to a council's normal funding assistance rate, eg if their normal rate is 52% their elevated emergency works rate will be 72%. Elevated funding assistance rates for emergency works will be available only for out of ordinary short duration natural events that are greater than 10% of the council's approved road maintenance, operations and renewals programme for the relevant year. The funding of the Council share of emergency works requires the continuation of the Flood Damage Reserve and Emergency accounts. The level of funding needs to be sufficient to cover the anticipated emergency works costs, based on the last five years average costs. This amount has been assessed at $2.5mil. Where there are no emergency events or the total cost of events is less than this amount the balance of this fund will be declared surplus. The longer history of damage in the Marlborough Region indicates that the level of expenditure over the last 5 years is not uncommon. 30 September 2014 Page 89 of Section 1 0001$