ANNUAL REPORT PREPARED BY PETER J FALLA SENIOR MANAGER, PROJECTS & ROADS
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1 ANNUAL REPORT 2013 PREPARED BY PETER J FALLA SENIOR MANAGER, PROJECTS & ROADS
2 Contents 1 EXECUTIVE SUMMARY 3 2 ESTABLISHING THE BRAND OF GUERNSEY ROADS 4 3 TRANSFORMING THE WAY GUERNSEY ROADS OPERATES 4 4 WORK COMPLETED IN FINANCES 6 6 LOOKING FORWARD 8 2
3 1). Executive Summary 2013 was a year of transformation for Guernsey Roads during which it established itself as a business with its own identity. It had to mould itself into a business that met the current needs of its customers. It also had to be operated efficiently to support the States in its need to maximise return on investment in its infrastructure, and to ensure it supported both the strategic aims and objectives of the Public Services Department and the States of Guernsey. This transformation could not take place overnight but significant steps took place in 2013 to bring about change, which could be built upon in 2014, allowing the development of a ten year Business Plan. I am grateful for the co-operation and support of all of the staff at Guernsey Roads for their help and assistance in They have enthusiastically faced and met challenges brought about by the need for change and adaptation, and their support in taking on additional challenges and extra duties has been admirable. We are looking forward to a year of further change in 2014 as we continue our transformation to drive Guernsey Roads to deliver well-maintained public highways that enable the efficient movement of people and goods, and make a positive contribution to Island life in social, economic and environmental terms. Peter J Falla Senior Manager, Projects & Roads 3
4 2). Establishing the Brand of Guernsey Roads As part of its mandate, the Public Services Department (PSD) is responsible for the following aspects of the public highway: The maintenance of the structure and wearing surfaces of the 400km road network The maintenance of the surfaces of green lanes Road cleansing The management, collection and disposal of surface waters that fall on and/or pass under the road network (road drainage). Up until 2013 Roads has simply been seen as a section of PSD s Head Office but it was decided that, although it did not have its own source of funding, Guernsey Roads should be more business-like to ensure it spent public funds in the most efficient manner. In recognition of this it became a quasi-business Unit and was given the name Guernsey Roads. Throughout 2013 Guernsey Roads has been establishing its brand. It set out to ensure that Islanders are at the heart of everything it does with its aim being always to deliver services as efficiently and effectively as possible. 3). Transforming the Way Guernsey Roads Operates Business planning is essential for any operation looking after expensive assets and servicing a wide customer base. In 2013 Guernsey Roads carried out a lot of background work to complete this process. Guernsey Roads has not previously carried out long-term business planning. In order for Guernsey Roads to demonstrate it is spending public money in the most effective manner it needed to commence the process of outlining its future strategic direction. To provide this direction it needed to review the current condition and performance of the highways infrastructure, and form a programme of actions necessary to ensure the satisfactory performance of those assets and ensure it has the necessary resources to fulfil that plan. Guernsey Roads has identified the stages that it needs to go through to move to an asset management approach. Specific areas of notable progress in 2013 are as follows: Real-term reduction in the cost of individual resurfacing projects 250 remedial works across the Island Commenced review of laws covering damage to the highways Clearer prioritising of works First condition survey to provide assessment of the condition of all the Island s roads Streamlining of procedure for adoption of new residential and commercial estate roads (for consideration by the States in 2014) Completion of road age database 4
5 Introduction of quarterly reports for all utilities highlighting outstanding reinstatement works has successfully reduced the number of outstanding works Improved contracts for 2014 requiring that contractors find efficiencies in the way they work Established joined-up working with Planning & Building Control to ensure those carrying out development near roads are made aware formally of the need to liaise with Guernsey Roads Development of closer working relationships with the Traffic and Transport Services section of the Environment Department Development of closer working relationships with parishes Over 80 % reduction in printing costs for letters notifying residents of road closures Finalisation of framework contract of rates for 2014 for remedial works. This allows the most cost-effective contractor to be selected, removing the need for quoting, which reduces costs. 4). Increased Engagement with Islanders As part of its transformation Guernsey Roads is adapting to ensure that Islanders are at the heart of everything we do. This means having effective systems in place to record and respond to all feedback that is reported by members of the public, often in relation to newly formed potholes, drainage issues, or areas that have suffered from littering. Any reports such as these are recorded on a database, and where appropriate inspected by a Highways Inspector to assess the issue and recommend an effective solution. These will then be considered by the project managers. They will review the findings and allocate a suitable priority to any works required, based on the scale of the issue and other pending works. Guernsey Roads will provide feedback to the person who raised the issue providing them with details of how the issue will be resolved and an expected timescale. The aim is to ensure that at all times customers are kept well-informed and treated with respect and courtesy. 5
6 5). Work Completed in 2013 SCHEMES Les Tranquesous, St. Saviour/Castel Rue des Marchez/ Rue des Heches, St. Pierre du Bois Petite Hurette, Castel Calais Road, St. Martin Rue du Douit, Castel La Grande Marais, Vale Le Mont Saint/Grande Rue, St. Saviour La Grande Maison, St. Sampson s * Courtil Portier Estate, St. Andrew La Rue du Hurel, St. Martin Croix Martin, St. Saviour * Rue St. Germain, Castel Les Oberlands, SPP/St. Martin s * Les Canichers, St. Peter Port Val Des Terres (patching)* La Route De Braye, Vale Rue des Villets, Forest Les Baissieres, SPP/Castel Le Dos d'ane, Castel Rue du Rignet, St. Saviour Rue de la Grange, St. Saviour Les Petites Fontaines, St. Peter Port Vauvert, St. Peter Port Les Ozouets Road, St. Peter Port Ruette Julienne, Castel Robergerie Road, St. Sampson s Rue Cohu/Landes du Marche, Castel/Vale Les Traudes, St. Martin s Rue des Rigneaux, St. Saviour Route Isabelle, St. Peter Port Castle Road, Vale Route des Barras, Vale Rue des Issues & Rue Fevresse, St. Saviour * Calais Lane, St. Martin s (part)* Le Bouet, St. Peter Port Rue Cohu, Castel *Additional schemes (i.e. not in original programme) 6). Finances 2013 Original Budget ( 000s) 2013 Total Authorised ( 000s) Net Expenditure by Budget 2013 Actual 2012 Actual ( 000s) ( 000s) 1,198 *1,336 Road cleansing 1,270 1,189 2,610 2,636 Road Resurfacing & 2,221 2,281 Reconstruction Minor Repairs and Maintenance *Additional funds provided by Treasury and Resources Department to cover additional costs incurred by Island-wide clear-up after exceptional event caused by snow and high winds was a transitional year for Guernsey Roads with it looking to rapidly enhance its management of the highways under new leadership. The 2013 resurfacing programme had already been costed and scheduled before the change. However, the team began to identify 6
7 new efficiencies, which would not have a negative effect in the long-term, and reduced costs, which meant that savings were made. Several additional resurfacing projects were undertaken on minor roads but additional major projects could not be planned in for the reasons outlined above. Ongoing roads maintenance programmes do not readily fit with annual budget cycles. Works for the following year s resurfacing programme are finalised by the summer of the previous year. This is because utilities need to perform works in the road at least six months before the road is resurfaced, to allow for settlement, and the closures need to be programmed in well in advance around the utilities network maintenance programmes. Should a proportion of the budget remain towards the end of the year because of a cancellation, or because of the cost of works being reduced for various reasons, including the base layers of a road being in a better condition than expected, there is limited opportunity to include other jobs within the works programme in their place. Therefore, remaining funds can often only be used in small amounts on minor roads or remedial works. Even these must be booked several weeks in advance or, for roads near key buildings like schools, several months in advance. Several schemes were cancelled in Rue Flere ( 77k) was cancelled because of a delay in another scheme caused by snow, Upland/Monument Road ( 80k) was cancelled because one utility was unable to complete works at the same time as another and delayed its works until the following year. A scheme at Pedvin Street ( 160k) was also cancelled because the original estimate proved to be inaccurate in terms of both cost and duration was also a transitional year for SAP. Guernsey Roads fully embraced the new system but later found it needed to exercise general caution around the management information available in SAP with regard to spend against budgets. Errors in the reporting function in SAP during the year made it difficult to ascertain the true position of expenditure against budget. This need to be cautious meant that the approach had to be even more prudent than would usually be the case, erring on the side of a possible underspend. Staff changes as a result of retirement created the opportunity to evaluate the management arrangements and to create budgetary savings. The Department is acutely aware that it must drive forward improvement in the management of the finances of roads. In many ways 2013 was a testing year because it was a year of transition to a new way of operating. Such change presents challenges and there has been some overlap between the old and the new will continue the process and it is expected that by the end of this year the fundamental part of the transformation will be complete. 7
8 7). Looking Forward 2014 will be another transitional year for Guernsey Roads as it concludes its current transformation process and continued drive to reduce costs in real terms without reducing the long-term performance of the asset. Continued efforts to reduce costs wherever possible may result in budget figures that are slightly high but staff will work hard to programme in additional works to maximise the amount of work it carries out within its budget. This has to be the ultimate aim as it is proven that earlier intervention in maintaining assets reduces costs in the long-term and the phrase a stitch in time saves nine certainly applies. The States of Guernsey needs to act as it has allowed the roads to deteriorate over the years for a variety of reasons, and the deterioration will continue without additional investment leading to a negative impact on Island life. Counteractive action is needed and Guernsey Roads will be producing a business plan in 2014 setting out how it will address the deteriorating roads. 8
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