highways pfi outline business case – december 2009

8/7/2019 Highways PFI Outline Business Case December 2009

1/136Isle of Wight Council Highways PFI Outline Business Case December 2009 1

Copyright Isle of Wight Council 2009

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Index

1. Executive Summary

1.1 Introduction

1.2 Background

1.3 Strategic Context

1.4 The Need

1.5 Scope

1.6 Benefits

1.7 Achieving Value for Money

1.8 Affordability1.9 Programme Delivery

1.10 Member and Stakeholder Support

1.11 Conclusion

2. Strategic Case

2.1 Introduction

2.2 Pathfinder Project

2.3 Local Background2.4 Strategic Policy Context

2.5 National Policy Context

2.6 Regional Policy Context

2.7 Local Community Strategy Eco Island

2.8 The Isle of Wight Economic Strategy

2.9 Isle of Wight Council Corporate Plan One Island

2.10 The Island Plan

2.11 Local Transport Plan 2006 2011 (LTP2)

2.12 Area of Outstanding Natural Beauty (AONB) Management

Plan

2.13 Historic Built Environment

2.13.1 Public Realm

2.13.2 Archaeological Heritage

2.13.3 Natural Environment Species and Habitats

2.13.4 Historic Environment Action Plan (HEAP)

2.14 Transport Asset Management Plan



2.15 The Network

2.15.1 Asset Inventory, Condition and Survey Data

2.15.2 Road Pavement Condition

2.15.3 Street Lighting

2.15.4 Traffic Signals

2.15.5 CCTV

2.16 Current Service Delivery and Performance

2.16.1 Current spend on Island Roads and Bridges

2.17 Drivers for Change

2.17.1 The Service Gap

2.17.2 Carriageways

2.17.3 Footways

2.17.4 Bridges and Other Structures on the Highway

Network.



2.17.7 CCTV

2.17.8 Drainage

2.17.9 On and Off Street Car Parking

2.17.10 Major Works Bouldnor Road

2.18 Project Description/Overview

2.19 Project Scope

2.19.1 Roads

2.19.2 Structures

2.19.3 Street Furniture

2.19.4 Footways


2.19.6 Street LIghting2.19.7 CCTV

2.19.8 Grass Cutting and Street Cleansing

2.19.9 On and Off Street Car Parking

2.19.12 Bouldnor Road Improvement

2.20 Standards of the Project

2.20.1 Core Investment Period

2.20.2 Post CIP

2.21 Conclusion



3. Economic Case

3.1 Introduction

3.2 Options Appraisal

3.3 Service Improvements and Community Benefits

3.3.1 Time savings from higher traffic speeds

3.3.2 Changes in travel times

3.3.3 Vehicle operating cost savings

3.3.4 Reduction in the number of accidents

3.3.5 Reduction in the Councils public liability payments

3.3.6 Reduction in accidents and street crime

3.3.7 Time savings from the removal of weight and width

Restrictions

3.3.8 Efficiency gains

3.4 Value for Money Assessment (TQAT)

3.5 NATA

3.6 Assessment of Funding

3.7 Preferred Investment/Service Delivery Option

3.8 Conclusion

4. Commercial Case

4.1 Introduction

4.2 Procurement Appraisal for PFI

4.3 Procurement Process

4.4 Competitive Dialogue (CD)

4.4.1 Evaluation Criteria

4.5 Output Specification

4.5.1 Performance Requirements

4.6 Project Agreement4.7 Payment Mechanism

4.8 Derogations from SOPC4

4.9 Commercial Issues

4.9.1 Wharf Facilities

4.9.2 Isle of Wight Mineral Background

4.9.3 IWC Property Considerations

4.10 Market Soundings/Market Interest

4.11 Project Data

4.12 Encouragement of Competition



4.13 Bankability

4.14 TUPE

4.15 Insurance

4.15.1 Current Insurance Arrangements

4.15.2 Insurance Arrangements under PFI

4.16 Conclusion

5. Financial Case

5.1 Introduction

5.2 PSC Base Costs

5.2.1 Core Investment Period (CIP)

5.2.2 Lifecycle, Operations and Maintenance Costs

5.3 Shadow Bid Model

5.3.1 Shadow Bid Costs

5.4 Affordability

5.4.1 Budgetary Contribution

5.4.2 Cash flows from PFI Credits

5.4.3 Interest on cash balances

5.5 PFI Credits and Calculation Methodology

5.5.1 Gap Funding

5.5.2 Revenue Abatement

5.5.3 PFI Credit Requirement

5.5.4 Sensitivities

5.6 Preferred bidder debt funding competitions

5.7 Value for Money

5.7.1 Pre and Post Optimum Bias

5.7.2 Quantitative & Qualitative Assessment

5.8 Initial View on Accounting Treatment5.9 Financial Case Summary

6. Management Case

6.1 Introduction

6.2 Project Management & Project Governance Structure (Pre

& Post OBC)

6.2.1 Project Team Structure to OBC

6.2.2 Project Team Structure Post OBC

6.2.3 Contract Management Team Post contract award



6.3 Expert External Advisors

6.4 Meetings

6.4.1 Internal

6.4.2 External

6.5 Project Delivery Plan and Timetable

6.6 Operational phase and contract monitoring

6.7 Project Interface and Dependencies

6.8 Stakeholder Consultations and Communications Strategy

6.8.1 Local Residents

6.8.2 Network Users

6.8.3 All Council staff

6.8.4 Statutory Undertakers

6.8.5 Local Suppliers

6.9 Sponsorship and Support

6.10 Risk Management

6.10.1 Risk Escalation

6.10.2 Current Risk Status

6.11 Data Management

6.12 Gateway Reviews/Independent Scrutiny

6.12.1 Gateway Reviews

6.12.2 Independent Scrutiny

6.13 Statutory Processes

6.14 Readiness to Proceed to Procurement



AppendixNumber Appendix Name

1 Cabinet Report

2 Cabinet Minutes

3Letter of Support from SouthamptonUniversity

4 Inventory and Condition Data

5 Technical Modelling Process

6 Core, Non-Core and Retained Services

7 Justification of Scope Change from the EoI

8 Justification of Bouldnor Road

9 Traffic Modelling

10 Justification of CIP Duration

11 Non-Financial Options Appraisal12 NATA

13 Time Savings and Network Improvements

14 Estimated Costs of Required Work

15 Draft OJEU Contract Notice

16 Project Plan

17 Key Aspects of the Output Specification

18 Derogations from SOPC4

19 Prior Information Notice (PIN)

20 Letters of Support from Soft Market Testing

21 A Basic Guide to TUPE22 Admitted Body Status

23 Pension Rights

24 Shadow Bid Model

25 Annuity Based Affordability Model

26 Qualitative and Quantitative Assessment

27 Monte Carlo Results

28 Letters of Support from External Advisors

29 Communications Strategy

30 Letter of Support from Unison

31 Procurement Cost Breakdown

32 Risk Management Strategy

33 Risk Register

34 Gateway Review Report

35 Industry Day Report

36 Member Review Board Terms of Reference

37 Soft Market Testing Update

38 Section 151 Officer Letter


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OBC Outline Business CaseOJEU Official Journal of the European UnionPB Project BoardPFI Private Finance InitiativePI Principle Inspections

PIN Prior Information NoticePMS Pavement Management SystemPQQ Pre Qualification QuestionnairePUK Partnerships UKPRA Parapet Risk AssessmentPS Performance StandardsPSC Public Sector ComparatorRCI Road Condition IndicatorRoW Rights of WayRPIX Retail Prices Excluding Mortgage

PaymentsRSS Regional Spatial StrategySAC Special Areas of ConservationSCRIM Sideways-force Coefficient Routine

Investigation MachineSEEDA South East England Development

AgencySINC Sites of Importance to Nature

ConservationSMT Stakeholder Management ToolSoPC4 Standardisation of PFI Contracts

Version 4SPA Special Protection Areas

SPV Special Purpose VehicleSRB Single Regeneration BudgetSRO Senior Responsible OwnerSSSI Sites of Special Scientific InterestTA Technical AdvisorTAMP Transport Asset Management PlanTQAT Treasury Quantitative Assessment ToolTRIP The Road Information ProgrammeTUPE Transfer of Undertakings (Protection of

Employment) RegulationsUC Unitary Charge

UKPMS United Kingdom Pavement ManagementSystemUTC Urban Traffic ControlVFM Value for Money



Foreword

It is with great pleasure and expectation that we endorse this Outline Business

Case. The condition of Island roads and the need to improve them is regularly

highlighted by residents as an issue of great, if not most, importance to them. That

in itself is reason enough to be progressing the Highways PFI. However, what is so

exciting about the Project is that it is a catalyst for much more far-reaching benefits

to the Island, its economy, its environment and for the opportunities we offer

residents.

This document sets out how we plan to maximise these opportunities through what

is the most comprehensive project of this scaleever undertaken on the Island.

Throughout its drafting, our PFI team has sought to identify and maximise every

possibility this huge investment to our community will bring. The Council sees the

PFI as a key project around which Council policy will be interwoven for years to

come. The Project will in some way touch the lives of all residents the challenge

for us is to ensure it does so in ways that will benefit them most. That is why we

have placed such emphasis on complementing the aims of our Eco Island agenda,

on why we believe training and education is an integral part of the PFI and why we

believe the maximum economic benefit should be accrued from every single pennyof investment the PFI will bring to our Island.

Our challenge is to be fully inclusive - to ensure that the whole community not only

understands the implications of the PFI but also wants to engage with the Project,

understand its possibilities and enjoy a dividend from it. We should not lose sight of

the fact that the Project will help define our economic prospects for many years to

come. We must remember that those who perhaps stand to gain most from the

Project are the next generation, such is the longevity of opportunity, and such is the

scope of possibility. While we as Leader and Chief Executive put our names to this

document, we hope that our aspirations will be shared by the whole community.

Councillor David Pugh Steve Beynon

Leader of the Council Chief Executive



1. Executive Summary

1.1 IntroductionThe Isle of Wight Council has developed a holistic approach to delivering the

Highways PFI, seeking to bring all relevant aspects of highways services within

the single delivery PFI mechanism. The Highways PFI will upgrade the Islands

adopted highway network between fence to fence along with associated assets

and streetscene and will maintain and operate that network throughout the life of

the Project. The PFI Project will raise the standard of the highway, offer a better

service, improve safety and enhance the street appearance.

1.2 Background

The Department for Transport (DfT) selected the Isle of Wight Council (IWC) as

one of three pathfinder Highways PFI Projects in March 2008. The Islands

highway network has suffered from years of under investment and is badly in

need of significant investment to bring it to an acceptable standard. Without such

major investment, restrictions of the network will continue to grow to a point that

the highway network will not be operated in a safe manner. The approval of the

IWCs Expression of Interest has therefore given the Council the impetus needed

to rehabilitate and operate a safe highway network.

1.3 Strategic Context

The Councils and its partners vision is to make the Island a world renowned Eco

Island with a thriving economy and a real sense of pride where residents and

visitors enjoy healthy lives, feel safe and are treated with respect. The Island,

despite being part of the more prosperous South East region suffers from lowproductivity, low wages and low skill levels. We are determined to improve the job

opportunities and create a sustainable economy whilst we address our failing

transport infrastructure. The Highways PFI has been developed to align itself with

the national, regional and local strategic objectives by placing sustainable

development at the heart of the Islands regeneration plans. The Project, in

addition to offering a higher standard of highway services, will help to create a

significant stimulus to the local economy, offering an opportunity to regenerate

parts of the Island and create highway maintenance related industry on the


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Innovation and Growth Network to develop the local industries to become ready

for delivering the works at sub contractor level. The Council is also developing its

strategy to work with local schools, Isle of Wight College and universities to build

the Islands skills base to ensure there is enough capability and capacity to

support the Highways PFI over the 25 year period. This Council believes

developing the local industry and educational base can help to regenerate the

Island and retain a very high proportion of the PFI investment within the Island,

producing a multiplier growth effect for the local economy.

1.7 Achieving Value for Money

The Councils holistic approach to delivering highway related services will help to

achieve significant synergies and scale benefits. In addition, the Council will be

using carbon footprint as a criteria to better utilise the Islands mineral resources,

encourage efficient use of energy, promote the use of local labour, all of which

will have a significant impact on reducing the cost base. The Isle of Wight is

determined to produce a highway refurbishment solution that addresses some of

the major structural issues of the infrastructure but beyond that, it has taken a

pragmatic approach to raise the average condition by classification of road

usage. At the lowest level of usage, the level of upgrade is kept to a minimum to

deliver a less invasive treatment, appropriate for the Isle of Wight trafficconditions.

The Council has demonstrated, using the DfTs New Approach to Appraisal

(NATA), that the project delivers sound economic benefit. In addition, there are a

number of non-quantifiable, qualitative benefits which have been captured in the

appraisal. The Council has developed a shadow bid model in line with the HM

Treasury methodology and compared it with the Public Sector Comparator to

demonstrate that this Project delivers value for money.

1.8 Affordability

The Council has built up a robust inventory of all its assets and a comprehensive

database of asset condition. Using this, it has built a Cost Model which provided

the basis for the PFI Shadow Bid Model. The Council has taken the opportunity to

model the current financial market uncertainty and taken the worst market

conditions at the beginning of this year to calculate the PFI Credit requirements.

On the basis of this conservative estimate, the Council is seeking a PFI Credit of



364.6 million. The Council has increased its contribution from previously

allocated budgets to 9.02 millions per annum including client side management

cots to deliver this Project.

1.9 Programme Delivery

The Council has put in place a robust governance structure, a dedicated

Programme Delivery Team led by a very experienced Programme Director,

supported by in-house professional engineers, accountants, procurement

specialists and lawyers to bring together the necessary local highway background

and experience. Supporting the in-house team is a strong group of external

advisors, who bring a wealth of PFI experience. The Council has paid particular

attention to building a single integrated project team, setting up a dedicated

office where advisors and the Council officers work in a single team.

The Programme Director has developed a deliverable programme and has

estimated the need for a procurement stage budget of 7.6million. The Council

has formally approved this programme and budget and has made a strong

commitment to making other shared corporate resources available. The Council

is increasing the full-time capacity of the in-house PFI Team, post OBC

submission to enter the procurement phase. The Council has further developedthe Contract Management structure post financial close. The post-OBC structure

will provide the foundation for building capability for the longer term Contract

Management team. Those who are involved in the competitive dialogue phase

will gain considerable insight into contract negotiations and the final contractual

terms agreed with the Service Provider.

The Council has built an excellent inventory and condition database and this will

be made available as part of the data room to bidders. This information is in GISformat and a video of the full network is also available. The Council now has a

very high degree of confidence in its data. The condition assessment surveys will

now be repeated annually to maintain the robustness of the data.

With the combination of a strong governance framework, adequate resourcing,

experienced project leadership, deliverable time scales and an excellent asset

base, the Council now has all ingredients for successful Project delivery.

Moreover, it has a high degree of confidence in delivering a Project with an

appropriate commercial package suitable for the Isle of Wight conditions.



1.10 Member and Stakeholder Support

The Highways PFI Project has strong all party support. The Project was initially

developed under Island First (a Liberal Democrat/Independent administration)

and has continued to progress under the Conservative administration. The

Project plays a vital role in supporting all party aims of creating sustainable

employment on the Island.

The Council cabinet approved the Outline Business Case on 11 August 2009.

The accompanying report and the minutes of the meeting are in Appendix 1 and

Appendix 2 respectively. Members have delegated appropriate authority to the

Project Board and the Project Sponsor to make all procurement decisions

following the approval of the OBC until the Preferred Bidder selection and

appointment.

The Project has wide support among the Islands stakeholders, businesses,

community groups and partners who are aware of the significant social, economic

and regeneration benefits the Project will bring to the Island. The Council staff

who are likely to be affected by the Project are regularly briefed and the Highway

PFI Projects own intranet site provides regular updates.

1.11 Conclusion

The Council values and protects the pathfinder status it gained following the

successful submission of the Expression of Interest. It has now developed the

Project taking a practical and pragmatic approach to developing an attractive but

challenging package for the market, in a sensible timescale backed up by a

strong delivery team. The ethos of this team is partnership working and that

spirit will continue, even through the dialogue period, with the ultimate aim of

delivering a win-win approach to this Project. The Council is now ready to

embark on the procurement stage of the Project, following approval of this

Outline Business Case.



2. Strategic Case

2.1 Introduction

The Isle of Wight Council and its strategic partners have grasped the opportunity

to address some of the major challenges that are fundamental for the

regeneration of the Island. The Council is leading the way by implementing both

challenging internal reform and modernisation, and external service reforms in

the education and highways maintenance sectors. These reforms are driven by

the Islands strategy, the Eco Island Vision 2008-2020, for a sustainable

community that thrives amidst the natural beauty and surroundings.

The Highways PFI forms an integral part of the strategic reform to increase thecapability and capacity of the Island and improve its attractiveness for inward

investment. The Highways PFI is seen as the significant catalyst not just for

improving the condition of the highway network, but also to create a road

construction and maintenance industry and its supply chain, using local natural

and physical resources. The Council and its Strategic Partners are working

towards an economic regeneration programme, underpinned by the Eco Island

vision, to derive significant economic benefits, for example through a multiplier

effect from the Highways PFI investment over the 25 year life of the project.

External Drivers for change stem from National, Regional and Local Policy.

These in turn relate to National Planning Policy Guidance, the special policies in

the South East Plan relating to the Isle of Wight, which underpins the Isle of

Wight Community Strategy, the Isle of Wight Economic Strategy, and AONB

Management Plan formulated and agreed with local partner organisations. Within

this context Internal Drivers are identified from the strategies and policies

developed by and within the Isle of Wight Council, including the Isle of Wight

Development Plan and Local Transport Plan.

The Council has a clear vision for the Highways PFI which is:

To create an efficient highway network and public realm, providing

sustainable, high quality, value for money service to residents and visitors,

whilst acting as a catalyst for social and economic regeneration of the

Island.



Based on this vision, the Council has set the following Project Objectives:

To ensure the provision of a high standard, fit for purpose highway

network to meet the needs and aspirations of residents, business and

visitors for the movement of goods and people.

To promote sustainable transport options and initiatives by ensuring the

availability and maintenance of the whole physical highway and

appropriate traffic management.

To provide a comprehensive and seamless service for all parts of the

highway, fence to fence, both in built up areas and the countryside with

appropriate standards and use of materials to reflect local

distinctiveness and character.

To create a safe highway environment within the context of a well

managed public realm/whole street scene

To create a highway maintenance industry that acts as a stimulus for

the economy.

The Project will be developed to deliver these objectives by designing an

appropriate contract structure defining the project which can be achieved within

the affordability envelope.

The Isle of Wight Highways PFI is a unique Project. In an Island context,

surrounded by water, there are no overlapping local authority boundaries with

neighbours or trunk road network that come under Highways Agency

responsibility. The highway boundaries, ownership and responsibilities are

therefore clearer in comparison to any other local authority on the mainland. As

one of the three pathfinder schemes, it is also well placed to provide valuable

knowledge, direction and lessons for future tranches of maintenance PFI

programmes. In particular, the Council intends to explore new opportunities,

innovative approaches, and future proofing to introduce advances in technology

during the life of the PFI. It also intends to build a locally based highway industry

with its partners in the education sector, industry and the PFI provider.



2.2 Pathfinder Project

In technical terms, the highways on the Island are largely rural in nature, in an

area of outstanding natural beauty, with pockets of urban roads surrounding the

local towns. The pathfinder approach taken by the Council will provide a number

of opportunities to learn lessons for the future and share knowledge for the

benefit of the highway industry:

The Council has built up a complete list of its highways inventory and condition.

Using this data, it is building a suit of condition indices using certain key

parameters. The Council is keen to reflect the island conditions in its

deterioration model and to ensure an affordable specification. Similarly it has

developed skid resistance policy and carriageway and footway condition

models. Standards appropriate to the Island needs will also be appropriate to

rural and semi rural communities elsewhere in the UK.

The Council will record progress and key issues faced at each of the key stages

and to share solutions developed with DfT and the other pathfinder authorities.

The Council is setting in place the foundation for a collaborative framework with

schools, Isle of Wight College, University of Southampton, other local

universities and other educational institutions to build the technical capability

and capacity needed to create an Island based Highways MaintenanceIndustry. A supporting letter from University of Southampton is attached at

Appendix 3. The Island is in a unique position to use the investment on the

roads over the 25 years project period to regenerate the local economy

through planned, strategic investment in the educational sector.

The Council intends to seek proposals from bidders for setting up training and

apprenticeship schemes in association with the educational sector.

The Council aims to create an economic regeneration climate that delivers

visible improvements across the Island and for Islanders and which acts as the

trigger for major regeneration. The economic regeneration benefit of

investment in transport projects is usually very difficult to measure, but the

Island context offers an ideal contained market place to measure investment

and economic growth.

The Council is keen to work with other local authorities, universities, research

organisations and international highway authorities to share the benefits of the

experience gained from the PFI model maintenance procurement.



2.3 Local Background

The Isle of Wight, a diamond shaped island, separated from the UK mainland by

the sinking of the Ancient River Solent during the Bronze Age to become an

island in its own right. The Island, separated from the south coast by the Solent,

measures approximately 13 miles by 23 miles along its diagonals and covers an

area of 38,014 hectares.

The Island has a rich history dating back to the Duke of Warwick, the first King of

the Isle of Wight, to Charles I being held as a prisoner in Carisbrooke Castle, and

Queen Victorias favourite home Osborne House, which still stands proud on the

Island. In 2009 however, the Island is now part of the England and Wales Local

Authority system and has Unitary Authority status.

The Island has a unique and important natural environment, which is protected by

national and local designations. A majority of the Island is rural in character with

isolated farms, hamlets and villages and with over half the area designated as

Areas of Outstanding Natural Beauty, (AONB). Much of the coastline is defined

Heritage Coast and the majority of the coast and some inland areas are

designated for European and/or International nature conservation of wildlife

species and habitats. There is a cluster of five areas designated as the Isle ofWight AONB, 41 Sites of Special Scientific Interest (SSSI), 28 existing and 4

proposed Conservation areas and 34 kms of heritage coast. The Island has over

2000 listed buildings of which 28 are Grade 1, including the historic Osborne

House and Carisbrooke Castle.

Travel to and from the Island is via privately operated and un-subsidised vehicle

and passenger ferry services. The vehicle ferry routes are between Lymington

and Yarmouth in the West, Southampton and East Cowes centrally andPortsmouth and Fishbourne in the East, creating pulses of traffic generation onto

the highway network. High speed passenger boat services are from Southampton

to Cowes, Portsmouth to Ryde and a hovercraft service runs from Southsea to

Ryde.



The County Town of Newport is centrally located with a primarily radial road

network linking the other main settlement areas such as Cowes, East Cowes,

Ryde, Sandown, Shanklin and Ventnor, distributed around the coast. There is a

coastal road system, linked by the Floating Bridge at Cowes, encircling the Island

which is valued by tourists and Islanders alike. The Island has an integrated

public bus network, but services are not available in some rural areas. Island

Line, part of the Stagecoach South Western Trains franchise, operate the eight

and a half mile of passenger railway serving the towns of Ryde, Brading,

Sandown, Lake and Shanklin. A leisure steam railway operates between Wootton

and Smallbrook.

In the absence of a comprehensive public transport network, the largely rural

community relies heavily on private transport. The 2001 census data showed that

compared to England and Wales, the Islanders have slightly higher car

ownership; some 64,000 cars/vans were recorded in the census, some 0.49

cars/vans per person or 67 per km. In addition, there is the daily influx of

passenger and heavy goods traffic, to meet the day to day needs of the

Islanders.

The Islands 803 km of road network has become the lifeline for the Islanders,

playing a vital role in the social, commercial and recreational life of the

community. However, the conditions of the roads have deteriorated over the

years and many roads are no longer fit for purpose. Currently seven roads have

weight restrictions whilst a large number have width restrictions. The failing road

network is considered to be one of the key factors contributing to a slow down in

the economic regeneration of the Island.



The 2001 census recorded an Island population of 132,731. The Islands

population distribution is skewed towards the elderly in comparison to national

averages; over 28% of the population were aged 60 years or over, compared with

around 20% for England and Wales; at the other end of the scale, those aged 16

years and under were significantly lower at around 18%. The skewed age

distribution reduces the available pool of economically active citizens, impacting

the economy of the Island.

The public sector is one of the major employers in the Island namely, the Isle of

Wight Council, NHS, the Prison Service and the Police. The Island also supports

a number of specialist niche industries wind turbine research and development,

radar, electronics/communications, yacht/boat building, composite and resins,

pollution control equipment, Royal National Lifeboat Institution inshore lifeboats,

cosmetics and fashion.

The Islands economy is heavily dependent on the tourist industry and during the

summer months the Islands population can double, with total numbers of visitors

reaching about 2.7 million each year. This can also lead to traffic volumes

doubling during the summer months. The majority of the Worlds leading

yachtsmen and women descend on the Island during Cowes week. The Islands

Music Festivals and Walk the Wight are now nationally famous events attracting

many thousands from far a field. The Island is a paradise for walkers, cyclist and

horse riders. It has over 851km of Rights of Ways traversing through some of

most beautiful parts of the Island.



Whilst the Island sits geographically within the south-east of England it does not

benefit fully from the regions prosperity. The Island has pockets of deprivation

and five wards fall within the 20% most deprived areas in England. The rate of

unemployment has continued to reduce from the historical highs of 10% in the

mid 90s to currently nearer 4% but much of the employment is seasonal, with

high dependency on the tourist industry. Recent economic changes have further

affected locally based industries causing an increase in the claimant count. The

Island has the second lowest average wage in the UK.

The image of an Island full of natural outstanding beauty, buzzing with an influx of

tourists in the summer, sits in stark contrast with the huge need for economic

regeneration, better employment opportunities, and improved standards of living.

Isle of Wight Council works closely with the South East England Development

Agency and stakeholders to support and develop the Islands economy through

regeneration programmes, business critical infrastructure and targeted business

support. The Island's economy is now well placed to continue to grow, particularly

drawing on its environmental assets and strengths in growth sectors such as

renewables, aerospace, composites, tourism and marine related industry and

quality infrastructure/well maintained roads are critical to supporting this.

2.4 Strategic Policy Context

The Councils vision of making the Island a great place to live, work and visit is

being achieved through an integrated series of underlying strategies and policies

consistent with regional and national policies. In this context, the Highways PFI

Project has been developed in line with National and Regional Strategies and is

driven by local strategy and policies as shown in the following diagram.



2.5 National Policy Context

The Chancellor of the Exchequer, in his pre-budget statement in November 2008

set out the Governments long-term economic goal - to secure and maintain

economic stability, in order to achieve its objective of a fair society where there is

security and opportunity for all. Its aim is to raise the rate of sustainable growth,

and achieve rising long term prosperity and a better quality of life with economic

and employment opportunities for all.

The 2004 Government White Paper The Future of Transport, a network for

2030 sets out the Governments vision for transport up to 2030. It recognises the

need for a transport network that can meet the challenges of a growing economy

and the increasing demand for travel, but a network that also achieves

environmental objectives. This strategy is built around three key pillars sustained investment, improvement in transport management, and planning

ahead. This means coherent transport networks providing a more reliable and

free-flowing service for both personal travel and freight.

The Governments Climate Change Bill introduces a legally binding target to cut

greenhouse gas emissions by at least 80 per cent by 2050, the most ambitious in

the G8, building on plans to deliver a one-third reduction in emissions from 1990

levels by 2020.

Against this back drop of the need for long term economic stability, supporting

increasing demand for travel whilst continuing to reduce greenhouse gas

emission, the Department of Transport announced a Highway Maintenance

Pathfinder Programme.

The Government ten-year Plan, Transport 2010, sets out the Strategy for

modernising the transport network nationally. The Plan sets several strategicobjectives including the elimination of the maintenance backlog on local roads,

bridges and street lighting. In addition, the July 2004 White Paper, The Future of

Transport - a network for 2030, reinforces the strategic importance of the

transport network in promoting sustainable, national and local economic growth

and in enhancing social and environmental well-being.



2.6 Regional Policy Context

The South East is a major gateway to Europe and beyond and is the most

prosperous region in England. Even though the Island is part of the South East

Region, it does not share proportionately in the wealth of the Region. However,

the Island has a rich history of innovators and entrepreneurs who have made

valuable contributions to the South Eastern and the national economy. Sustained

inward, private, investment relies heavily on appropriate regional and national

strategies to support transport and other infrastructure development.

The Regional Spatial Strategy (RSS) for the South East of England, known as the

South East Plan, published in May 2009, sets out the long term spatial planning

framework for the region over the next 20 years. The Plan is to develop a

healthier region by achieving more sustainable development, protecting the

environment and combating climate change.

A healthier region means working to improve, among others things, the provision

of community transport facilities, sustainable transport links, a feeling of security

and an approach to a sharing the benefits of regeneration. The South East Plan

will deliver these through local policies which, in the case of Isle of Wight, will

focus on maintaining a high quality of life whilst increasing prosperity andopportunities for the Islanders, at the same time nurturing and enhancing the

environmental assets, and promoting the efficient use of resources.

The Regional vision is By 2016 the South East will be a world class region

achieving sustainable prosperity. The Region faces increasing challenges from:

Globalisation increasing competition but an opportunity to build on past

Entrepreneurial culture,

Smarter growth higher levels of prosperity per head without increasingecological footprint,

Sustainable Prosperity innovating to provide economic prosperity within

environmental limits.

Investment in the Isle of Wights Highways PFI is aimed at strengthening the

highways network and transport across the Island to enhance its attractiveness

as a place for investment, thereby contributing to the success of the Region and

the Island. The Island has a relatively low cost base and an eco friendly business



environment which, with the support of SEEDA, is being revitalised through

economic regeneration. The Highways PFI is the key strand that runs through

this regionally supported regeneration and development.

2.7 Local Community Strategy - Eco Island

The Islands local strategic partnership is known as the Island Strategic

Partnership (ISP); the ISP is made up of leading organisations in the Island

including the Isle of Wight Council, the Health Authority, the Police, Voluntary and

Community Organisations, IW College, the Chamber of Commerce, Business

Community and Government Departments. The Community Strategy Eco Island

sets the vision for the next decade by aiming:

to be a world renowned Eco Island, with a thriving economy and a real

sense of pride, where residents and visitors enjoy healthy lives, feel safe

and are treated with respect

The four main themes that underpin the strategic vision are:

Thriving Island,

Healthy and Supportive Island,

Safe and Well-kept Island, Inspiring Island.

This Island Vision is being delivered through a series of prioritised policy

initiatives and the Highways PFI is one of the vital delivery mechanisms for

achieving this vision.

Through this vision the ISP is committed to protecting and enhancing the Islands

natural beauty; creating wealth and reducing carbon footprint; supporting

economic development and regeneration; reducing crime and fear of crime; and

enhancing how our local area looks and feels. The Highways PFI is being

developed to support each of these areas and is the cornerstone for the final

Project options presented in this OBC. The ISP is now committed to deliver, by

2020, the lowest carbon footprint in England and renewal of infrastructure to the

highest ecological standards.


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2.10 The Island Plan

The Local Development Plan, the Island Plan, is in the final stages of the

statutory approval process, but its Core Strategy is used to set the planning

vision for the Island through to 2026. Building and creating sustainable

communities is central to the Sustainable Community Strategy that is focused on

delivering the Eco Island vision.

The Island sustainable travel plan supports a multi-modal transport strategy. This

relies on the highway network for public and private transport, whilst the Rights of

Way network provides the vital links for walking, cycling and riding; the

combination of the two provides a highly integrated interlinked transport network

across the Island. The public therefore rely on a good transport network for

people and goods to travel from wherever they are to destinations of their choice,

both on and off the Island, with safety, reliability, ease of access, and at a

convenient time. The Island is a renowned destination for walking and cycling,

not only through celebrated annual events, but as a real means to getting around,

delivering a healthy Island both in terms of benefits to the population and the

environment.

The strategy aims to achieve improved transport infrastructure, travel plans andimproved public transport provision and an increase in opportunities for walking

and cycling. The aim is to offer people more choice about the ways in which they

travel, whilst seeking not to penalise those for whom the car is the only realistic

solution.

Car ownership on the Island continues to remain relatively high, due in the main

to the rural nature of the Island, which places additional reliance on the car for

certain types of journey. However, during the summer season the traffic on theIsland changes significantly with the influx of tourist traffic.

The ferry ports, both passenger and vehicle services, are important gateways to

the Island. The numbers crossing the Solent for business or pleasure have

increased steadily over time and this increase in cross-Solent traffic, coupled with

increased car ownership and use, has further added to the transport challenges

the Island faces.



A number of new and improved Park and Ride facilities are being promoted to

reduce congestion. Whilst the improvement, maintenance and management of

the highway network alone cannot deliver all of the aspirations set out in the

strategy, it will make a significant contribution to delivering the strategy. The PFI

Project will provide a focused and comprehensive means of injecting much

needed resources to overcome past backlog maintenance and, once appropriate

standards have been met, maintain these over the longer term. As such, a high

quality, fit for purpose highway network should become a consistent, reliable and

integrated part of the Islands infrastructure to support implementation of other

strategies and policies.

2.11 Local Transport Plan 2006-2011 (LTP2)

The Local Transport Plan sets the policy framework for determining the transport

needs of the Island, and brings together the transport policies and strategies in a

cohesive manner. The statutory Isle of Wight Local Transport Plan was adopted

in March 2006 and sets out how transport will be improved on the Island over the

period 2006 -2011. The Plan was approved by the DfT and developed through

extensive consultation to achieve the following objectives:

To increase accessibility for all. To encourage and support economic prosperity and regeneration.

To make Island roads safer.

To improve local air quality and conserve and enhance the environment.

To tackle congestion.

To ensure effective management of the highway network.

To achieve value for money solutions.

The LTP supported the development of the PFI bid and acknowledged the key

role that the initiative would have in delivering the Plan and in particular the road

maintenance and road safety targets set out in the Plan. The PFI will clearly beinstrumental in delivering a large part of the LTP strategy which is set out below;

The Plan seeks to promote alternatives to the car and reduce congestion

and pollution

Increased numbers of people will walk or cycle using improved

cycleways, footways and pavements.



The Plan seeks to reduce traffic accidents through a range of

engineering solutions and hearts and minds initiatives.

The road infrastructure on the Island will be maintained to good

standards, and will assist the public transport network using it.

Provide investment in a safe, well maintained road system, including a

network for buses, lorries and coaches, through for example the private

finance initiative.

The 2006 LTP set a series of ambitious targets for achieving high quality

highways by 2010 - to have no overall deterioration in the condition of the

principal and the unclassified road network, footway condition and to reduce

death and injury on roads. Although 2010 is now recognised as an unachievable

date, the target standards will be achieved on completion of the PFI Project core

investment period.

The LTP incorporates a Rights of Way Improvement Plan, the primary aim of

which is to ensure the most effective use of the Rights of Way network. The Plan

recognises the significant contribution that the Islands 851 km of non-vehicular

highways make to sustainable transport on the Island. It also seeks to ensure that

the Rights of Way network continues to be managed as an important componentof the overall highway network. The Rights of Way Improvement Plan is wholly

concerned with improving facilities for walking and cycling away from road traffic

and will therefore assist in delivering the quality of life objectives of the LTP. The

inclusion of cycleways within the PFI scope will contribute towards achieving that

objective for Islanders and visitors alike.

Whilst the current LTP2 does not cover the whole period of the PFI contract, the

5 year renewable plan will continue to build the Eco Island theme, consistent withthe Highways PFI Project.

Revised LTP guidance is expected in the summer of 2009 and whilst there may

be some changes from the original draft it is anticipated that the final guidance

will still require local authorities to produce a two part plan, including the overall

strategy and detailed delivery programme.



The draft guidance indicates that the plan should take account of the following

five key goals:

Tackle climate change.

Support economic growth.

Promote equality and diversity.

Contribute to better safer, security and health.

Improve quality of life.

The PFI Project will support these goals and will be a fundamental part of the

delivery programme.

2.12 Area of Outstanding Natural Beauty (AONB) Management Plan

The Island has a unique and important natural environment, which is protected by

national and local designations covering both landscape and ecology to help

protect the character of the Island. The Isle of Wight AONB Partnership is a

broad based independent organisation with representatives from many local,

regional and national organisations and individuals with a direct interest in the

AONB. It seeks to ensure a co-ordinated approach to the conservation and

enhancement of the AONB.

The minor and unclassified road network and cycleways, are often key features in

the AONB landscape. Coastal roads, highway verges and hedgerows that form

the boundary define the contours of the undulating landscape; the unclassified

roads contain a number of historic signs which form the rural character; lighting in

rural areas is managed sympathetically to prevent light pollution. The treatment of

the cycleways and the coastal roads in particular, will play a crucial part in

preserving the natural landscape and ecology. The management of the natural

environment is therefore an integral part of highway management. Both the

investment programme and the services of the PFI Project will need to be

sensitive to areas of outstanding natural beauty and the natural environment

through carefully designed output specification requirements.

The aims and objectives of the IWC Highways PFI Project are consistent with the

national economic, transport and environmental policies, enabling these to be

delivered at local level, in order to achieve the nationally set objectives. The Isle



of Wight Council Highways PFI is one of the three Highways pathfinder projects

and will provide a constructive model for delivering highway maintenance and

operations in a largely rural context. The uniqueness of the Islands road network,

characterised by the following, provides a valuable benchmark for future policy

and standards development:

a largely rural road network;

a largely captured economy allowing;

o correlation between transport investment and economic

regeneration

o a significant proportion of the investment and multiplier effects to

remain in the Island to regenerate its economy,

an operational regime for delivering a comprehensive highways service in

an environmentally sensitive area.

This PFI Project clearly meets national regional and local strategic objectives by

removing the backlog of highway and street lighting repairs, providing a long-term

service strategy to maintain assets at an acceptable and appropriate standard,

over a long period, by environmentally sympathetic and sustainable means.

The IWC Highways PFI, together with the other two Highways pathfinder

projects, will provide the Department for Transport with an ability to develop

national standards to cover the full spectrum of highway network characteristics

across local authorities in England and Wales.

2.13 Historic Built Environment

2.13.1 Public Realm

The visual impact of highway works can significantly affect the quality and

appearance of the public realm. This is particularly important in designated areas

such as AONBs, conservation areas or directly affecting the setting of listed

buildings and historic assets. Traditional materials for surfacing, kerbs, structures

and other details should be maintained or replicated.

In addition there are some remaining traditional street lamps, railings, signs and

other structures which make an important contribution to the locally distinctive



character of towns and villages. Any historic street furniture will therefore be

recorded and retained.

The overall quality and appearance of the Islands public realm is important to

residents and businesses and directly affects the tourist industry. The use of

appropriate design and materials should therefore be given prominence in the

output specification.

2.13.2 Archaeological Heritage

The Island has in excess of 6500 known Archaeological Sites and Monuments. In

addition there are other Scheduled Monuments and Areas of High Archaeological

Potential. It is unlikely that the reconstruction and resurfacing of carriageways will

result in disruption of any archaeological site; however, the Council will set out all

known sites to prevent the PFI Provider unwittingly trespassing into these areas.

Where the refurbishment of the highway is likely to encroach into an identified

site, the PFI Provider will be required to carry out a comprehensive assessment

and develop appropriate mitigation measures.

2.13.3 Natural Environment - Species and Habitats

The Island is home to a number of rare and endangered species and also to

significant and varied areas of sensitive habitats. Works within the boundary of

the highway and cycleways have the potential to adversely impact on these or

nearby species and habitats.

Whilst the highway surface itself does not form a natural habitat, verges, hedges,

banks, ditches and roadside trees contribute to the natural environment. Natural

habitats are recognised through a hierarchy of designations from those of local

importance such as Sites of Importance to Nature Conservation (SINC), nationalSites of Special Scientific Importance (SSSI), through to European Special

Protection Areas (SPA) and Special Areas of Conservation (SAC) and wider

international designation as Ramsar Site for wetlands and wildfowl. Some

species have specific protection under UK or international legislation.

The PFI Provider will be expected to develop highway schemes that protect the

natural environment for these species. Good practice and protocols built into the

maintenance of highways and verges in rural environment will ensure that the



natural environment will be protected and enhanced throughout the PFI contract

period.

2.13.4 Historic Environment Action Plan (HEAP)

The HEAP contains the historic roads, tracks and lanes and their associated

boundaries, hedgerows and earthworks. These are described in the "Historic

Routeways" HEAP report. The HEAP requires early liaison with the County

Archaeology Service, the Conservation and Design Team and the AONB Unit to

ensure that any work does not have an adverse effect on the historic

environment. These requirements will form part of the Output Specification and

the PFI Service Provider will be required to carry out the required consultations.

2.14 Transport Asset Management Plan

A Transport Asset Management Plan (TAMP) was produced, in partnership with

Chris Britton Consultants, during 2006 to aid knowledge based decision making.

The highway inventory was initially prepared by John Reid Consultants. This has

now been updated to take into account the fact that the Isle of Wight Council has

been chosen as a pathfinder Highways Maintenance PFI authority.

The TAMP is the Councils primary document for detailing the standards andpriorities applied to maintaining the Islands transport network for all users. The

plan mirrors the proposed PFI since it covers all elements of the transport

infrastructure. The TAMP will serve as a baseline to the PFI Project.

2.15 The Network

Existing assets that will become the components of the Project can be

summarised as follows:

Highways (803km in length)

Cycleways (31 kms)Bridges and Structures

Footways and Kerbs

Drainage

Safety Fencing

Street Lighting

Street Furniture

CCTV



Grass Cutting

On/Off Street Car Parking maintenance

2.15.1 Asset Inventory, Condition and Survey Data

The Council has built an exceptionally thorough record of its assets, and

repeatedly surveyed the network to improve the confidence level in related

condition data. The information is fully digitised and held in layers linked to an in-

house Geographic Information System (GIS) and will be available in the Project

Data Room. The Council will continue to survey assets and maintain records up

to the point at which responsibility is handed over to the PFI Provider.

A full inventory of street lighting, illuminated signs, bollards and other electrical

apparatus (e.g. CCTV), linked to a GIS system and including substantial column,

lantern, control and supply data forms part of the commercial database, together

with annual assessments of condition of the entire stock.

The asset inventory information available in the Project Data Room is outlined

below:

a. A detailed inventory of all bridges and retaining walls supported by six-yearly Principal Inspections (PIs) and bi-annual General Inspections (GIs)

of all structures on the highway network. Complete data for the last three

rounds of both PIs and GIs will be kept in the Data Room.

b. A full inventory of all street lighting points and illuminated road signs,

bollards verified by an independent sample site survey based on inspection

of 272 lighting points on the 32 streets selected at random across the

network indicated an error rate for the street lighting inventory of just 1%.

c. A drainage inventory made up of surface features, gullies and manholes,

has been completed and partial information is available on underground

features such as pipe locations and size. The sub-surface inventory is

about 60% complete but with an accuracy of 90+%. Some "poor" condition

drains have CCTV footage coverage to compliment visual surveys.



d. Car parking inventory data on the primary assets, including ticket

machines, the number of parking spaces (on and off-street), their locations

and type of surfacing.

e. Full inventory data for all other assets including:

Traffic signals (with age profile data)

Road signs and street nameplates

Street furniture (bollards, benches, bins, shelters, planters)

Safety fencing

Highway trees.

A summary of the assets covered in the asset data base is set out below;

Appendix 4 sets out the details.



Asset Item Quantity Unit

Type

PEDESTRIAN GUARDRAIL 13.1 kmSAFETY BARRIER 2.3 km

GULLY 19626 no

MANHOLE 8512 no

LINEAR DRAINAGE CHANNEL 4.2 km

CARRIER PIPE 370 km

CULVERT 189 no

CARRIAGEWAY - A ROAD 128.3 route km

CARRIAGEWAY - B ROAD 92.1 route km

CARRIAGEWAY - C ROAD 171.9 route km

CARRIAGEWAY - UNCLASSIFIED 410.4 route km

HIERARCHY 1 (to be used for PFI

Output Specification) 105 route km

HIERARCHY 2 (to be used for PFIOutput Specification) 82 route km



FOOTWAY - 1, 1a and 2FOOTWAY - 3 and 4

Rights of Way Cycleways (see para 1.7.6) 31 km

KERB 1031.2 kmSOLID CHANNEL 145.6 km

ROAD SIGN (NON-ILLUMINATED) 14815 noSTREET NAMEPLATE 3501 noROAD STUD 127.1 km

STREET LIGHT 12068 noILLUMINATED SIGN OR BOLLARD 2438 noCCTV 76 noTRAFFIC SIGNAL 78 sets

BRIDGE 119 noRETAINING WALL 599 no

BOLLARD 3812 noHAZARD MARKER 4634 noSHELTER 241 noBIN 1046 no

SEAT 1027 noPLANTER 219 no

Landscape TREE 1715 no

ON STREET TICKET MACHINE 70 noOFF STREET TICKET MACHINE 79 noPAY-AND-DISPLAY ON-STREET

PARKING SPACE890 no

PAY-AND-DISPLAY OFF-STREETPARKING SPACE

4899 no

FREE OFF-STREET PARKING SPACE 1009 noPAY-AND-DISPLAY ON-STREETPARKING ZONE

15 no

PAY-AND-DISPLAY OFF-STREET CARPARK 52 no

FREE OFF-STREET CAR PARK 29 no

INVENTORY DATA

Structures

Car Parking

767.22 km

Street Furniture

Footways

Kerbs andChannels

Road Signs

Electrical Items

ASSET

Drainage

Pavements

Safety Fencing



The following information on asset condition will also be available in the Project

Data Room;

1. A video of the entire network is available from SCANNER. This provides

additional information to the basic numerical data, and enables a view of the

network without having to repeatedly drive it.

2. SCRIM for the A, B and C class roads measured annually.

3. Annual SCANNER data for all A, B, C and unclassified roads. This

information is also available broken down into road hierarchies 1 to 4. A mini-

SCANNER survey has recently been used to provide the information on the

unclassified road network.

4. Historic Annual Coarse Visual Inspection (CVI) data for the unclassified road

network. (now superseded by use of mini scanner).

5. 100% Detailed Visual Inspection (DVI) data for all categories of footways for

the last year along with historic data for category 1 and 2 footways.

6. Deflectograph data for all A class roads, together with those B and C class

roads that are subject to substantial HGV traffic.

7. A full inventory and condition data of kerbs, channels (solid and linear

drainage), edgings, street furniture, road signs, safety fencing and bollards.

2.15.2 Road Pavement Condition

The highway network has been reclassified into hierarchy 1 to 4 as follows:

Hierarchy 1 (H1) >10,000 vehicles

Hierarchy 2 (H2) 5-10,000 vehicles

Hierarchy 3 (H3) 2 5,000 vehicles

Hierarchy 4 (H4)



The Council, through its consultant WDM Ltd, commissioned a survey condition

assessment model to calculate the carriageway/footway backlog and on-going

lifecycle requirements of the network incorporating suitable hand-back provisions.

Through the model, industry standard survey data is translated to an output

based performance measurement which is repeatable, transparent, and

accurately reflects asset condition at specified milestones during the project life.

The model operates at three levels; network hierarchy, condition banding, and

road section criteria. An overall hierarchy based Network Condition Indicator

(NCI) is generated to reflect the specific needs of the network where differing

target criteria are applied depending on the road hierarchy to which it relates.

Surface condition (SCANNER) together with skid resistance (SCRIM) and

residual life as a measure of structural strength (Deflectograph) are used as

survey inputs. Individual thresholds are set to represent the required service

levels. The use of nationally recognised survey methods will give prospective

Service Providers confidence in the resulting information and allow future

predictions based on the trend analysis of previous annual data.

SCANNER surveys are to be used for all Hierarchies 1-4. The DfT national

indicator, the Road Condition Indicator (RCI), allocates road lengths, or networks,into three condition bands Red, Amber, and Green. Red indicates a length of

highway where maintenance should be considered. For Hierarchies 1 to 3 the

prime NCI will be a maximum % of RCI by length; the value chosen reflects the

performance of good standard of service. As Red levels can be maintained or

reduced by allowing the Amber band to increase at the expense of the Green

the NCI will be required to have default levels of Amber and Green.

Previously, Coarse Visual Inspections (CVI) have been used as the basis forHierarchy 4 roads condition. In a move to embrace innovation, SCANNER output

has recently been developed nationally for unclassified roads and these now form

the basis from which IWC models Hierarchy 4 condition.

In order that an indicator cannot be influenced by visual assessment of the

surface alone the NCI for Hierarchies 1-2 will include an assessment of

strength, from Deflectograph. Safety must also influence the indicator; skid

resistance from CSC values will provide the necessary inputs. Upper threshold of



RCI, and/or intervention levels for individual parameters will act as trigger for

maintenance.

The national indicator for footways (Class 1 and 2) will form the Footway

Condition Index (FCI), based on the results of DVI surveys. A lower standard FCI

will apply to Class 3 and 4 footways to reflect an appropriate service level.

The detailed operational aspects of the technical modelling process are

discussed in further detail at Appendix 5.


The table below provides an overview of the age and stock profile of the street

lighting asset.

Age Steel Conc AlumWood

PoleOther Total Profile

0-10 Years 3535 0 0 145 19 3699 30.65%

10-20 Years 3149 8 55 292 40 3544 29.37%

20-30 Years 429 259 1033 456 13 2190 18.15%

30-40 Years 235 468 1483 161 1 2348 19.46%

40-50 Years 39 61 103 36 48 287 2.38%

Total 7387 796 2674 1090 121 12068

Profile 61.21% 6.60% 22.16% 9.03% 1.00% 100.00%

In addition there are 2,438 illuminated signs and bollards.

Electrical Supply Network: Information within the Street Lighting and Illuminated

Traffic Signs Inventory indicates that between 2% and 5% of the electrical supply

network consists of private cable network. The remaining 95% to 98% of the

electrical supply network is provided by the Distribution Network Organisation

(Southern Electric).


The Council has assessed the condition of the Traffic Signals asset throughout

the Island to determine the level of refurbishment/upgrading required. The

assessment works have indicated that the asset is in very poor condition and

could result in electrical safety issues in the future.

Details, including age and stock profile of the Traffic Signals are provided below:



Age SitesSites

Profile

Signal

Points

Signal

Profile

0-10 Years 51 66% 304 76%

10-20 Years 24 31% 90 22%

20-30 Years 2 3% 6 2%30-40 Years 0 0% 0 0

40-50 Years 0 0% 0 0

Total 78 100% 400 100%

2.15.5 CCTV

The Council has assessed the condition of the CCTV asset throughout the Island

to determine the level of refurbishment/upgrading required. This assessmentindicates that the asset is in poor condition. The Council is currently progressing

a CCTV refurbishment scheme for which tenders were returned in May 2009; the

scope includes an increase in the number of cameras, refurbishment of the

control room and maintenance of the existing stock.

2.16 Current Service Delivery and Performance

The majority of the Councils highways related services are managed from

Newport, the exception of a Street Lighting office at Ryde. Most of the

professional, technical, administrative and financial functions are carried out in

house with only a small amount of backup from technical consultants.

In relation to works, the Council acts as a commissioning agent and no longer

has a direct labour organisation. Construction and maintenance work is carried

out through annual or framework contracts.

Performance is monitored by a combination of National and Local performance

indicators. Service performance is good regarding cyclical maintenance, such as

highway verge maintenance and street cleansing. However, national indicators

show the Council is generally in the bottom quartile on asset condition

2.16.1 Current Spending on Island Roads and Bridges

Following years of less than adequate investment in the Islands roads and

bridges, the rate of deterioration has outstripped the rate of investment, resulting

in continually declining standards of service. Last year, the road network

condition had reached such a low point, that the Council had to find additional



funding to prevent further deterioration and road closures. The current levels of

annual spend are:

2006/07 2007/08 2008/09

Capital 1,516,897 750,520 2,724,633

Revenue 1,803,228 1,661,255 1,969,766

2.17 Drivers for Change

2.17.1 The Service Gap

The Council's statutory duty under the Highways Act 1980 to maintain the

highway network means that it will be necessary to provide a highway

maintenance service for the foreseeable future.

Paragraph 3.4.1 of "Well-maintained Highways - Code of Practice for Highway

Maintenance Management" published by the UK Roads Liaison Group of CSS in

2005, declares that the purpose of highway maintenance is to maintain thehighway for the safe and convenient movement of people and goods. The core

objectives of highway maintenance are stated as the delivery of:

Safety;

Serviceability; and

Sustainability.

The six most significant elements of work on the Council's highway network are:

1. Carriageways

2. Footways

3. Bridges and other structures

4. Street lighting

5. Drainage

6. Car Parks



The differences between the current and desirable positions (the "Service Gap")

for each of the three core objectives in relation to the most significant elements of

work on the Council's highway network are described below.

2.17.2 Carriageways

Safety

The safety of carriageways can be quantified by:

Surface skid resistance;

Number of carriageway Insurance Claims by third parties; and

Number of urgent defects (ie. those treated within 24 hours)

Surface skid resistance - the skid resistance of A, B and C class roads on the

Council's network is tested annually. The 2008 surveys indicated that 32 percent

of A roads, 22 percent of B roads and 31 percent of C roads are currently at or

below the Investigatory Level.

The number of third party insurance claims relating to carriageway defects

increased by a factor of three in the past five years, as shown in the chart below.

Third Party Claims Relating to Carriageway Defects (June 2009 Data)

The number of instructions to attend highway emergencies due to urgent

carriageway defects, such as potholes, has increased by a factor of three in the

last three years, as shown in the chart below.

162

104

56 47 51

04/05 05/06 06/07 07/08 08/09

Year

NumberofClaims



Carriageway Emergency Instructions Issued (2 hour response)

These charts indicate an increasing number of events that are compromising the

safety of the carriageway.

Serviceability

The serviceability of carriageways can be quantified by:

Asset condition; and

Ride quality (e.g. smooth, pothole free surface);

Asset Condition - Until recently, the general condition of carriageways was

measured and compared nationally using a series of BVPIs which indicate the

percentage of the network where structural maintenance should be considered.

The table below shows the 2007/08 BVPI results for the Isle of Wight incomparison with the top and bottom quartile thresholds for that year. The Isle of

Wight results mostly fall into the bottom quartile for both unitary authorities and all

English authorities.

Carriageway Condition Indicators 2007/08

Performance Indicator IWC

Actual07/08

Unitary Authorities All England

Ref Description Topquartile

Bottomquartile

Top quartile Bottomquartile

BV223 % of the principal road

network where structural

maintenance should be

considered

9 3 7 3 7

BV224a % of the non principal road



10 4 11 5 10

1892

747

581

06/07 07/08 08/09

Year

NoofInc

idents



considered

BV224b % of the Unclassified road



considered.

38 7 15.5 8.5 18

Since 1 April 2008, national indicators NI168 and NI169 have replaced best value

performance indicators BV223 and BV224a. However the national indicators are

measured on the same basis as the 2008 best value performance indicators. A

comparison of the BV results and the available NI results are given in the table

below, which shows that carriageway condition continues to deteriorate.

Carriageway Condition Indicators 2007/08 and 2008/09

IWC Actual Performance

2007/08 2008/09

Performance Indicator BV223 NI168

Percentage of the principal road

network where structural maintenance should be

considered

9 12

BV224a NI169

Percentage of the non principal

road network where structural maintenance should

considered

10 15

The condition of all categories of the Council's carriageways falls well short of

that achieved by the best performing, or even average performing, authorities

and these gaps can only be closed by a significant increase in investment in the

future.

Ride Quality - Longitudinal Road Profile has been used as a measure of ride

quality. The latest 10m Profile and 3m Profile SCANNER results given in the

table below indicate the percentage of A, B and C class roads that have road

profiles worse than the upper threshold contained within UKPMS.



Road ClassPercentage of network above the upper threshold

10m Profile 3m Profile

A 18 12

B 17 14

C 34 27

Sustainability

Some recycling of carriageway material takes place at present, and some in-situ

recycling has been undertaken. There are no carriageways surfaced with noise

attenuating materials on the Council's network.

2.17.3 Footways

Safety

The safety of the footways can be quantified by:

Number of footway insurance claims by third parties;

Number of urgent defects requiring treatment within 24 hours

As shown in the chart below, the annual number of third party insurance claims

relating to footways defects is variable but has been on a generally upward trend

in recent years.

Third Party Claims Relating to Footway Defects (June 2009 Data)

As shown in the chart below, the number of emergency instructions to attend to

urgent footway defects has also been on an upward trend but dramatically

increased in 2008/9. It remains to be seen whether that is a random annual

variation or indicative of the impact of a deteriorating network condition.

30 28 27

23 18

04/05 05/06 06/07 07/08 08/09Year

NumberofClaim



Footway Emergency Instructions Issued (2 hour response)

Serviceability

The general condition of footways, until recently, was measured and compared

nationally using BVPI 187. The table below shows the 2007/08 BVPI result for the

Isle of Wight in comparison with the top and bottom quartile thresholds for that

year. The Isle of Wight performance falls into the bottom quartile for both unitary

authorities and all English authorities.

Footway Condition Indicator 2007/08

Performance Indicator IWC Actual

07/08

Unitary Authorities All England

Ref Description Top quartile Bottom quartile Top

quartile

Bottom

quartile

BVPI 187

Conditions

surface footway 46 12 30.3 14 29

Sustainability

Sustainability is not currently a significant factor in the maintenance of highway

pavements.

No recycling of footway material takes place at present.

2.17.4 Bridges and Other Structureson the Highway Network

Safety

Parapet risk assessments (PRAs) were undertaken in 2005 by OPUS and a

priority ranking for upgrade works was derived from its report. Three bridge

218

149153

06/07 07/08 08/09

Year

NoofIncidents



parapet upgrades are being carried out in 2009/10, and more will be undertaken

prior to commencement of the PFI contract.

This assessment of parapets did not include the 600 or so retaining walls which

are the Council's responsibility. It is anticipated that a substantial number of these

will not conform to modern standards.

Serviceability

From a user perspective the key requirements for structures are:

Structural condition (i.e. safe for use and structurally sound);

Adequate parapets (in terms of height and strength);

Full access (no temporary weight restrictions or height limits); and

Aesthetic appearance. (i.e. evidence of regular routine maintenance)

Structural Condition The Council calculates a Bridge Condition Score (BCS)

from its inspection data. This is an 'existing condition' score with a numerical

value between 1.0 and 5.0, but it does not recognise structurally sub-standard

elements. For example, a bridge parapet without significant defects would be

given a BCS score of "good", even though that parapet does not meet current

containment standards. The current distribution of BCS values is shown below.

2009 Highway and Car Parks Bridges and Retaining Walls BCS Values

BCS ValuesVery Good Good Fair Poor Very Poor Failure

1.00 - 1.30 1.31 - 1.80 1.81 - 2.70 2.71 - 3.70 3.71 - 4.70 4.71 - 5.00

No.

structures112 (16%) 238 (33%) 306 (42%) 56 (8%) 6 (1%) Nil

Total Number of bridges and retaining walls for Highways Department / Car Parks = 718

Structural assessments are undertaken on an intermittent basis but the majority

were carried out over 10 years ago and reviews are required to re-evaluate the

load-carrying assessment calculations.

The BCS figures demonstrate that the overall 'existing condition' of the bridge

stock is in fair to good condition, however, given that some structural



assessments were undertaken some years ago and as illustrated by the backlog

of PRAs significant work may be required to upgrade to current standards.

Sustainability

Sustainability is not currently a significant factor in the maintenance of highway

bridges.


Safety

In common with many other local authorities the Isle of Wight has a history of

under investment in its lighting stock. This is compounded by the corrosive effect

of the salt-air which accelerates the degradation of street lighting columns and

traffic sign posts. Consequently, a significant proportion of the IWC street lighting

and illuminated traffic signs asset is in seriously degraded condition due to the

combination of age and environmental conditions. Additionally it is estimated that

50% of the existing lighting levels fall below current European and British lighting

standard requirements. As part of this Project, lighting levels will be reviewed

and modifications made to provide a solution inline with BS5489.

Serviceability

The Isle of Wight has a term maintenance contract arrangement for the provision

of a street lighting maintenance service with SEC Ltd. The contract is operated

under a traditional term contract arrangement procured using the ICE model form

of contract.

The table below, which shows the term maintenance contractors self reported

performance in rectifying street lighting faults against the BVPI performance

indicators, indicates a performance levels consistently above target standards.

Ref Performance Indicator Definition Target IOW Actual Performance

05/06 06/07 07/08

BV215a

Average no of days taken to repair a street

lighting fault which is under the control of the

local authority

3 1.89 2.39 1.98

BV215b

Average no of days taken to repair a street

lighting fault where response time is under the

control of a DNO

20 9.01 6.13 9.91



The table below, which details the

highways pfi outline business case – december 2009

Documents