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Mike Notman, Part 2: Vision for Highways Maintenance and Management in Birmingham


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Mike Notman is responsible for the strategic leadership of the flagship Amey project which includes acting as SPV manager while also being responsible for the successful delivery of the contract, including accountability for health and safety compliance and culture together with ownership of P&L, cash flow and operational performance. The role includes managing the lenders and various technical advisors, managing and maintaining relationships with key stakeholders including key client staff and the Cabinet Member for Transportation and Regeneration, together with overall responsibility for delivering the 25 year, £2.7bn capital improvement and operation and maintenance phases of the contract. The contract is building up to staff levels of around 550, including the successful transfer of around 270 TUPE transferees with subsequent transformation into a one Amey culture through strong leadership and effective communication, leading to a highly motivated and powerful team.

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Mike Notman, Part 2: Vision for Highways Maintenance and Management in Birmingham

  1. 1. The Future of Local Transport Delivery: Birmingham road show Birmingham Council House, 27 September 2011
  2. 2. <ul><li>Mike Notman </li></ul><ul><li>Amey </li></ul><ul><li>Project Director </li></ul>
  3. 3. Overview - project structure AVAHL/Uberior/ Equitix
  4. 4. Project overview <ul><ul><li>‘ Capex’ in Core Investment Period (CIP) Years 1 - 5: </li></ul></ul><ul><ul><ul><li>2,547 km of carriageway – 40% treated </li></ul></ul></ul><ul><ul><ul><li>4,923 km of footways – 15% treated </li></ul></ul></ul><ul><ul><ul><li>95,107 street lights – 50% replaced in CIP </li></ul></ul></ul><ul><ul><ul><li>27 structures strengthened in CIP </li></ul></ul></ul><ul><ul><ul><li>3 tunnels refurbished </li></ul></ul></ul><ul><ul><ul><li>Upgrade UTC to UTMC standards </li></ul></ul></ul><ul><ul><li>‘ Opex’ in Years 1 - 25 </li></ul></ul><ul><ul><ul><li>Surveys and inspections </li></ul></ul></ul><ul><ul><ul><li>Routine, cyclic, emergency and winter maintenance </li></ul></ul></ul><ul><ul><ul><li>Running UTMC </li></ul></ul></ul><ul><ul><ul><li>Dealing with customers via Help Desk in Operational Control Room </li></ul></ul></ul><ul><ul><ul><li>Lifecycle programme to maintain network to ‘performance standards’ </li></ul></ul></ul><ul><ul><ul><li>Replacing up to1,000 trees each year </li></ul></ul></ul>
  5. 5. Funding and payments <ul><ul><li>Approx £330m of capital funding borrowed </li></ul></ul><ul><ul><li>Amey receive increasing monthly (unitary) payments as capital works are delivered </li></ul></ul><ul><ul><li>Receiving full payment each month is dependent on achieving specified performance targets </li></ul></ul>
  6. 6. Doing PFI – highway assets <ul><li>Understand and define the assets within the scope that you have. This includes: </li></ul><ul><ul><ul><li>What kind of assets you have </li></ul></ul></ul><ul><ul><ul><li>How many of each asset type </li></ul></ul></ul><ul><ul><ul><li>Their current condition </li></ul></ul></ul><ul><ul><ul><li>Their likely condition at contract commencement </li></ul></ul></ul><ul><ul><ul><li>Defining the standards you require during the concession period </li></ul></ul></ul><ul><ul><ul><li>Identifying the condition you would like them handed back in </li></ul></ul></ul><ul><ul><ul><li>Recognising these assets will grow (and shrink) in volume and the need for a mechanism within the contract for inventory change </li></ul></ul></ul>
  7. 7. Doing PFI – highway assets <ul><li>Identifying other assets that are currently used to deliver services within the scope e.g. employees, depots, vehicles and plant, external contracts </li></ul><ul><li>The same criteria are equally applicable for these assets </li></ul><ul><li>The need to “place” these assets within the contract framework in such a way as to get value for money; this may mean not wholly including them </li></ul><ul><li>The need to consider how services are delivered outside of the scope that are currently delivered using some/all of part of these assets </li></ul>
  8. 8. Challenges - allocation and transfer of risk <ul><ul><li>Contract assesses risks carefully and has allocated to party best able to manage </li></ul></ul><ul><ul><li>Transferring risks gives incentives for Service Provider to improve delivery through innovative and more efficient ways of working </li></ul></ul><ul><ul><li>Optimum risk transfer reduces cost and gives greatest value for money </li></ul></ul><ul><ul><li>Payments aggregated into single lump sum contract </li></ul></ul><ul><ul><li>Risks that cannot be managed attract a premium </li></ul></ul><ul><ul><li>Asset, pricing, energy, weather and inflation risk all passed to Amey </li></ul></ul>
  9. 9. Achievements so far – one year on <ul><ul><li>Full highway network survey covering 2,500km of roads </li></ul></ul><ul><ul><li>Full tree survey identifying 76,000 trees </li></ul></ul><ul><ul><li>160km of roads resurfaced </li></ul></ul><ul><ul><li>190km of pavements resurfaced </li></ul></ul><ul><ul><li>30,000 trees pruned </li></ul></ul><ul><ul><li>2,600 street lights installed </li></ul></ul><ul><ul><li>7,000 potholes repaired </li></ul></ul>
  10. 10. Achievements so far – one year on <ul><ul><li>300 new jobs have been created </li></ul></ul><ul><ul><li>Up to 80 highways emergencies responded to each day within an average of 28 minutes and 20 seconds </li></ul></ul><ul><ul><li>Over 60,000 calls and enquiries received from members of the public </li></ul></ul><ul><ul><li>130,000 utility and highway works co-ordinated </li></ul></ul><ul><ul><li>1,200km of roads gritted each night during bad weather </li></ul></ul><ul><ul><li>1,200 grit bins filled and placed around the city </li></ul></ul><ul><ul><li>Total of 48,000 miles of roads gritted </li></ul></ul>
  11. 11. Achievements <ul><ul><li>Innovation - use of LED lights </li></ul></ul><ul><ul><li>Energy and carbon reduction through: </li></ul></ul><ul><ul><ul><li>Increased optical control </li></ul></ul></ul><ul><ul><ul><li>Ability to dim street lights </li></ul></ul></ul><ul><ul><ul><li>Efficient light source </li></ul></ul></ul><ul><ul><li>Energy savings of 50% (£2m p.a) </li></ul></ul><ul><ul><li>Increased reliability, less outages leading to reduced maintenance costs and better service </li></ul></ul><ul><ul><li>Uniform lighting appearance leads to improved visibility and feeling of safety </li></ul></ul><ul><ul><li>Reduction in sky glow and obtrusive light </li></ul></ul>