Wastewater Asset Management Plan - Palmerston North · Wastewater Asset Management Plan . This...

Wastewater Asset Management Plan

This Asset Management Plan (AMP) is based on the best information available when it was completed in December 2017. Council decision making both with regard to programmes that are implemented and the timing of the programmes in the context of the 2018-28 10 Year Plan has yet to be finalised. The programmes in this AMP have been used as a planning tool to inform the 10 Year Plan planning process. The actual programme of work that Council plans to implement will be that in the adopted 2018-28 10 Year Plan following formal public consultation.

This document was prepared by Palmerston North City Council, City Networks, Water and Waste Services Division.

Name Signature Date

Prepared by: Phil Burt

Robert van Bentum

Dec 2017

Reviewed by: Phil Walker

Feb 2018

External Peer Review by: AECOM Ltd

March 2018

Approved for Issue by:

Version No. Reason for Amendment Date

D Peer Review Feedback Incorporated April 2018

PNCC Reference No: 8833152

Water & Waste Division Palmerston North City Council l Private Bag 11034 l Palmerston North P: +64 (6) 3568199 l F: +64 (6) 3514489 l www.pncc.govt.nz

http://www.pncc.govt.nz/

Contents Executive Summary................................................................................................................................. i

1 Overview ........................................................................................................................................... 1

1.1 Purpose of this Plan ................................................................................................................... 1

1.2 Relationship with Other Plans .................................................................................................... 1

1.3 AMP review process................................................................................................................... 3

1.4 Changes to AM since 2014 ........................................................................................................ 3

1.5 Navigating the AMP.................................................................................................................... 4

2 The Activity ...................................................................................................................................... 7

2.1 Activity Description ..................................................................................................................... 7

2.1.1 Palmerston North Main Urban Area ................................................................................... 10

2.1.2 Ashhurst .............................................................................................................................. 10

2.1.3 Aokautere............................................................................................................................ 10

2.1.4 Linton (Excluding Army Camp & Prison) ............................................................................ 10

2.1.5 Bunnythorpe ....................................................................................................................... 10

2.1.6 Longburn ............................................................................................................................. 10

2.2 Activity Rationale ...................................................................................................................... 11

2.3 Key Relationships ..................................................................................................................... 12

2.4 LGA Section 17A Review ......................................................................................................... 13

2.5 Significant Negative Effects of the Activity ............................................................................... 13

2.6 Significant Changes to the Activity ........................................................................................... 14

3 Strategic Environment .................................................................................................................. 15

3.1 Internal Strategic Context ......................................................................................................... 15

3.1.1 Council Vision, Goals & Strategic Direction ........................................................................ 15

3.1.2 Infrastructure Strategy ........................................................................................................ 16

3.2 External Strategic Context ....................................................................................................... 17

3.2.1 Horizons Regional Council One Plan ................................................................................. 17

3.3 Statutory and Regulatory Requirements .................................................................................. 17

3.3.1 Key Legislation ................................................................................................................... 17

3.3.2 Local Bylaws ....................................................................................................................... 18

3.3.3 Standards & Specifications ................................................................................................. 18

3.4 Asset Management Policy & Strategy ...................................................................................... 19

3.4.1 Asset Management Policy .................................................................................................. 19

3.4.2 Asset Management Strategy .............................................................................................. 19

4 Levels of Service ........................................................................................................................... 23

4.1 Introduction ............................................................................................................................... 23

4.2 Community Input & Decision Making Process ......................................................................... 24

4.3 Communication of Levels of Service & Performance Measures .............................................. 25

4.4 Current and Future Levels of Service & Performance Measures ............................................ 25

4.4.1 Key Performance Indicators ............................................................................................... 25

4.4.2 Future Changes to Levels of Service .................................................................................. 31

4.4.3 Service Level Gaps ............................................................................................................. 31

5 Growth and Demand ...................................................................................................................... 33

5.1 Future Demand Drivers............................................................................................................. 33

5.2 Growth Projections .................................................................................................................... 33

5.2.1 Population Growth ............................................................................................................... 33

5.2.2 National Policy Statement – Urban Development Capacity ................................................ 34

5.2.3 Household Growth ............................................................................................................... 34

5.2.4 Residential Development Type ........................................................................................... 35

5.3 Residential Growth Strategy ..................................................................................................... 35

5.4 Industrial Growth Strategy ........................................................................................................ 39

5.5 Office and Retailing (Commercial) Land Use Strategy ............................................................. 40

5.6 Rural Residential Strategy ........................................................................................................ 41

5.7 Other Demand / Consumption Projections / Patterns ............................................................... 42

5.7.1 Wastewater Collection Services Demand/Wastewater Production Trends ........................ 42

5.7.2 Changes to Water Use Pattern ........................................................................................... 42

5.7.3 Projected Flows & Loads ..................................................................................................... 44

5.7.4 Wastewater from Private Systems ...................................................................................... 45

5.7.5 Wastewater from Other Sources ......................................................................................... 45

5.7.6 Stormwater Inflow & Infiltration............................................................................................ 45

5.7.7 Regional Council One Plan Standards ................................................................................ 45

5.7.8 National Policy Statement – Freshwater Management ....................................................... 46

5.7.9 Technology Changes .......................................................................................................... 46

5.8 Demand Management .............................................................................................................. 46

5.9 Sensitivity to Demand Changes ................................................................................................ 47

5.10 Climate Change – Impact on Demand...................................................................................... 47

6 Assets & Lifecycle Management .................................................................................................. 49

6.1 Overview of Wastewater Network Assets ................................................................................. 49

6.1.1 Description of Assets ........................................................................................................... 49

6.1.2 Wastewater Supply Asset Components .............................................................................. 51

6.2 The Wastewater Collection Assets ........................................................................................... 51

6.2.1 The Western Trunk Sewer Main Catchment ....................................................................... 52

6.2.2 Featherston/Tremaine Trunk Catchment ............................................................................ 52

6.2.3 Ferguson Street Trunk Catchment ...................................................................................... 52

6.2.4 Eastern Trunk Catchment ................................................................................................... 52

6.2.5 Confluence of Trunks .......................................................................................................... 52

6.2.6 Aokautere Reticulation ........................................................................................................ 53

6.2.7 Linton Reticulation ............................................................................................................... 53

6.2.8 Ashhurst Reticulation .......................................................................................................... 53

6.2.9 Bunnythorpe Reticulation .................................................................................................... 53

6.2.10 Longburn Reticulation ......................................................................................................... 53

6.3 Wastewater Collection Asset Attributes .................................................................................... 53

6.3.1 Wastewater Collection Asset Condition .............................................................................. 55

6.3.2 Wastewater Collection Asset Capacity and Performance .................................................. 57

6.4 Wastewater Pump Station Assets ............................................................................................ 60

6.4.1 Wastewater Pump Station Asset Attributes ........................................................................ 60

6.4.2 Wastewater Pump Station Asset Condition ........................................................................ 63

6.4.3 Wastewater Pump Station Asset Capacity and Performance ............................................ 63

6.5 Wastewater Treatment Assets ................................................................................................. 64

6.5.1 Wastewater Treatment Asset Attributes ............................................................................. 64

6.5.2 Wastewater Treatment Asset Condition ............................................................................. 65

6.5.3 Wastewater Treatment Asset Capacity and Performance ................................................. 67

6.5.4 The Telemetry and SCADA Assets .................................................................................... 69

6.5.5 Description of Assets .......................................................................................................... 69

6.6 Activity Management ................................................................................................................ 70

6.6.1 Support Services ................................................................................................................ 70

6.6.2 Increases in Services (Operating Programmes) ................................................................. 71

6.6.3 Asset Systems Database – Infor Public Sector .................................................................. 72

6.6.4 Network Hydraulic Modelling .............................................................................................. 74

6.7 Water Services Assessment .................................................................................................... 75

6.8 Operation & Maintenance of Assets ......................................................................................... 75

6.8.1 Overview ............................................................................................................................. 75

6.8.2 Operation & Maintenance Strategies .................................................................................. 75

6.8.3 Operation & Maintenance Costs ......................................................................................... 76

6.8.4 Operation of Wastewater Assets ........................................................................................ 76

6.8.5 Maintenance of Wastewater Assets ................................................................................... 77

6.8.6 Operation & Maintenance Delivery ..................................................................................... 77

6.8.7 Delivery of Programme ....................................................................................................... 78

6.9 Renewal of Assets .................................................................................................................... 79

6.9.1 Overview ............................................................................................................................. 79

6.9.2 Renewal Strategies ............................................................................................................. 80

6.9.3 Long Term Renewal Profile ................................................................................................ 80

6.9.4 Renewal Programme .......................................................................................................... 81


6.10 Development of Assets ............................................................................................................ 86

6.10.1 Overview ............................................................................................................................. 86

6.10.2 Development Strategies ..................................................................................................... 86

6.10.3 Development Programme ................................................................................................... 87


6.10.5 Non Asset Programmes ...................................................................................................... 91

6.10.6 Disposal of Assets .............................................................................................................. 91

6.11 Key AMP Improvement Projects Relating to Asset Lifecycle Management ............................. 91

7 Risks & Resilience ........................................................................................................................ 93

7.1 Corporate Risk Management Framework ................................................................................ 93

7.1.1 Risk Management Policy ..................................................................................................... 93

7.1.2 Strategic Risks .................................................................................................................... 93

7.1.3 Operational Risks ................................................................................................................ 93

7.1.4 Project Risks........................................................................................................................ 96

7.1.5 Risk Management Hierarchy ............................................................................................... 96

7.1.6 Asset Criticality .................................................................................................................... 97

7.1.7 Resilience ............................................................................................................................ 97

7.1.8 Risk Management Process ................................................................................................. 98

7.2 Activity Risk Management ........................................................................................................ 99

7.2.1 Approach for the Activity ..................................................................................................... 99

7.2.2 Role of Activity as a Lifeline Utility ...................................................................................... 99

7.2.3 Critical Assets .................................................................................................................... 100

7.2.4 Resilience .......................................................................................................................... 101

7.2.5 Sources of Risk ................................................................................................................. 101

7.2.6 Reference Documents ....................................................................................................... 102

7.3 Key Risks to the Wastewater Activity ..................................................................................... 102

7.3.1 Operational Failure ............................................................................................................ 102

7.3.2 Asset Failure...................................................................................................................... 103

7.3.3 Project & Planning Risks ................................................................................................... 103

7.3.4 Natural Disasters ............................................................................................................... 103

7.3.5 Events & Incidents ............................................................................................................. 104

7.4 Resilience of Infrastructure to Natural Disaster ...................................................................... 104

7.4.1 Introduction ........................................................................................................................ 104

7.4.2 Seismic Hazard ................................................................................................................. 104

7.4.3 Flooding Hazard ................................................................................................................ 105

7.4.4 Volcanic Hazard ................................................................................................................ 105

7.4.5 Other Natural Hazards ...................................................................................................... 105

7.4.6 Interdependencies ............................................................................................................. 105

7.5 Risk Management Strategy .................................................................................................... 106

7.6 Risk Management Program .................................................................................................... 106

7.7 Civil Defence Preparedness ................................................................................................... 107

7.7.1 Emergency Events ............................................................................................................ 107

7.7.2 Emergency Response Plan ............................................................................................... 107

7.7.3 Business Continuity Plan ................................................................................................... 108

7.7.4 Recovery ........................................................................................................................... 109

7.7.5 Lifeline Utilities Coordination ............................................................................................. 109

7.7.6 Risks and Resilience Improvement Plan ........................................................................... 110

8 Sustainability ................................................................................................................................ 111

8.1 Eco City Strategy .................................................................................................................... 111

8.2 Climate Change ...................................................................................................................... 111

8.3 Approach Taken in This Plan .................................................................................................. 112

9 Financial Projections & Trends.................................................................................................. 113

9.1 Long Term Financial Forecast ............................................................................................... 113

9.1.1 Proposed Operation & Maintenance Expenditure ............................................................ 113

9.1.2 Proposed Renewal Expenditure ....................................................................................... 113

9.1.3 Proposed New Capital Expenditure .................................................................................. 114

9.1.4 Trends in Thirty Year Forecast ......................................................................................... 115

9.2 Asset Valuation ..................................................................................................................... 115

9.3 Confidence levels ................................................................................................................... 116

9.4 Reliability of financial forecasts .............................................................................................. 117

9.4.1 Maintenance and Renewal Forecasts .............................................................................. 117

9.4.2 Development Forecasts .................................................................................................... 117

9.4.3 Potential Effects of Uncertainty ........................................................................................ 117

9.5 Funding policy ........................................................................................................................ 118

9.5.1 Operation and maintenance ............................................................................................. 118

9.5.2 Capital renewal ................................................................................................................. 118

9.5.3 Capital development ......................................................................................................... 118

9.5.4 Development contributions ............................................................................................... 118

10 Assumptions ................................................................................................................................ 119

10.1 Asset Ownership and Provision of Service ............................................................................ 119

10.2 Population Growth .................................................................................................................. 119

10.3 Residential Growth ................................................................................................................. 119

10.4 Industrial Growth .................................................................................................................... 119

10.5 Retail Growth .......................................................................................................................... 120

10.6 Rural-Residential Growth ....................................................................................................... 120

10.7 Levels of Service .................................................................................................................... 120

10.8 Construction Costs ................................................................................................................. 120

10.9 Maintenance & Operational Costs ......................................................................................... 120

10.10 Inflation ................................................................................................................................... 121

10.11 Depreciation ........................................................................................................................... 121

10.12 Vested Assets ........................................................................................................................ 121

10.13 Service Potential .................................................................................................................... 121

10.14 Asset Lives ............................................................................................................................. 121

10.15 Natural Disasters .................................................................................................................... 121

10.16 Council Policy ......................................................................................................................... 122

10.17 Interest Rate ........................................................................................................................... 122

10.18 Treatment Plant Upgrade ....................................................................................................... 122

11 Continuous Improvement ........................................................................................................... 123

11.1 Overview ................................................................................................................................ 123

11.2 Programme Planning and Implementation ............................................................................. 123

11.3 Project Status ......................................................................................................................... 123

11.4 Development Works Planning ................................................................................................ 123

11.4.1 Residential Growth and Industrial Growth Planning (refer to Section 5) .......................... 123

11.4.2 Demand Projections (refer to AMP Section 5) .................................................................. 124

11.4.3 Risk and Resilience (refer to AMP Section 7) ................................................................... 124

11.4.4 Council Strategies (refer to AMP Section 3) ..................................................................... 124

11.5 Renewal Works Planning ........................................................................................................ 124

11.5.1 Condition Data ................................................................................................................... 124

11.6 Operations and Maintenance .................................................................................................. 124

11.6.1 Operations and Maintenance Strategy .............................................................................. 124

11.6.2 Internal Service Level Agreements ................................................................................... 124

11.6.3 Market Comparability Procedure ....................................................................................... 125

11.7 Asset Information .................................................................................................................... 125

11.7.1 Asset Management Plan Improvement ............................................................................. 125

11.8 Asset Management Resources ............................................................................................... 125

11.8.1 Loss of Key AM Knowledge .............................................................................................. 125

11.8.2 Skill Gaps .......................................................................................................................... 125

11.9 Levels of Service Review ........................................................................................................ 125

11.10 AMP Improvement Plan (2017) .............................................................................................. 126

Appendices Glossary Appendix A. Requirements of the LGA 2002 Appendix B. Technical Performance Measures Appendix C. Risk Analysis/ Framework & Register Appendix D. 30 Year Financial Forecasts Appendix E. Resource Consents Appendix F. Asset Grading Definitions Appendix G. Pump Station Asset Data Appendix H.

Data Management Appendix I. 6 Year Asset Renewal Programme Appendix J. Final Peer Review Report Appendix K.

Table of Figures Figure 1: Relationship between Council Planning Processes ................................................................. 2

Figure 2: AMP Structure ........................................................................................................................... 5

Figure 3: Schematic Layout of Wastewater System ................................................................................ 8

Figure 4: Map of Wastewater Collection Areas ........................................................................................ 9

Figure 5: Map showing location of proposed residential development .................................................. 38

Figure 6: Map of NEIZ Infrastructure Roll Out ....................................................................................... 39

Figure 7: Map of Existing Industrial Zone at Longburn .......................................................................... 40

Figure 8: Map of Spatial Extent of the Business Zones ......................................................................... 41

Figure 9: Average Daily Demand of Metered Properties ....................................................................... 43

Figure 10: Historical Metered Non-Domestic Water Demand ............................................................... 43

Figure 11: Breakdown of Average Daily Water Consumption for 2016/17............................................ 44

Figure 12: Wastewater Catchments ...................................................................................................... 50

Figure 13: Wastewater Supply Asset Component Groups .................................................................... 51

Figure 14: Wastewater Pipe Age ........................................................................................................... 54

Figure 15: Wastewater Pipe Material .................................................................................................... 54

Figure 16: Wastewater Pipe Diameters ................................................................................................. 55

Figure 17: Location of CCTV Surveys Completed ................................................................................ 56

Figure 18: Pipe Blockage and Breaks by Pipe Age ............................................................................... 57

Figure 19: Pipe Blockage and Breaks by Pipe Diameter ...................................................................... 58

Figure 20: Pipe Blockage & Breaks Long Term Trends ........................................................................ 58

Figure 21: Catchment Inflow & Infiltration.............................................................................................. 60

Figure 22: Location of Wastewater Pump Stations ............................................................................... 62

Figure 23: Photo of Wastewater PS in Grand Oaks Drive .................................................................... 63

Figure 24: Totara Road Wastewater Treatment Plant Schematic ......................................................... 65

Figure 25: Field Inspector Screen Shot .................................................................................................. 73

Figure 26: IPS Screen Shot ................................................................................................................... 73

Figure 27: Wastewater Treatment Operations & Maintenance Staff ..................................................... 79

Figure 28: Wastewater Pipes Profile Based on Expected Asset Life .................................................... 81

Figure 29: Risk Management Hierarchy ................................................................................................ 97

Figure 30: Risk Management Process (AS/NZS ISO 31000:2009) ...................................................... 98

Figure 31: Thirty Year Operation & Maintenance Expenditure Forecast ............................................ 113

Figure 32: Thirty Year Projected Renewals Expenditure .................................................................... 114

Figure 33: Thirty Year Projected New Capital Expenditure ................................................................. 115

Table of Tables Table 1: Wastewater Assets Quantity by Type ....................................................................................... 7

Table 2: Activity Linkages to City Goals ................................................................................................ 11

Table 3: Wastewater Activity contribution to City Goals ........................................................................ 15

Table 4: AMP Linkages to the Infrastructure Strategy ........................................................................... 16

Table 5: Matters Raised at Councilor LoS Workshop ........................................................................... 25

Table 6: LoS Actions from Strategy Plans ............................................................................................. 25

Table 7: Customer Level of Service, Performance Measures & Targets .............................................. 27

Table 8: Future Changes to LoS ........................................................................................................... 31

Table 9: Population Projection for Palmerston North ............................................................................ 34

Table 10: Household Projection for Palmerston North .......................................................................... 35

Table 11: Residential Development Type.............................................................................................. 35

Table 12: The staging and timing of residential greenfield areas .......................................................... 36

Table 13: Totara Road WWTP Project Flows & Loads .......................................................................... 44

Table 14: Replacement Value of Wastewater Assets ............................................................................ 51

Table 15: Collection System Assets ....................................................................................................... 55

Table 16: Wastewater Pump Station Condition & Performance Ratings ............................................... 61

Table 17: Wastewater Treatment Plant Asset Data ............................................................................... 66

Table 18: Activity Management Program – Five Year Forecast ............................................................ 71

Table 19: Operating Programmes – Forecast Expenditure ................................................................... 71

Table 20: IPS Data Accuracy & Completeness ..................................................................................... 74

Table 21: Operations & Maintenance Forecast Expenditure (Next Five Years) .................................... 76

Table 22: Operations & Maintenance Activity Delivery Expenditure – Five Year Forecast ................... 77

Table 23: Current Operation and Maintenance SLA Costs (2017/18) ................................................... 79

Table 24: Life Expectancy of Wastewater Assets .................................................................................. 80

Table 25: Renewals Programme Expenditure – Five Year Forecast ..................................................... 83

Table 26: Development Programme Expenditure .................................................................................. 87

Table 27: Operational Risks ................................................................................................................... 94

Table 28: Resilience Definitions ............................................................................................................. 98

Table 29: Population Based Criticality Grading ................................................................................... 100

Table 30: Criticality Grading for Wastewater Pipe Assets ................................................................... 100

Table 31: Criticality Grading for Wastewater Pump Station Assets ..................................................... 101

Table 32: Key Operational Risks & Mitigation Measures ..................................................................... 102

Table 33: Key Asset Failure Risks & Mitigation Measures .................................................................. 103

Table 34: Key Project & Planning Risks & Mitigation Measures .......................................................... 103

Table 35: Seismic Resilience ............................................................................................................... 104

Table 36: Utility Services that the Wastewater Activity Depends on for Continuity of Service ............ 106

Table 37: Risk Management Programme ............................................................................................ 106

Table 38: Relevant Eco City Strategy Priorities and Plans .................................................................. 111

Table 39: Asset Valuations 2017 ......................................................................................................... 116

Table 40: Confidence Grading System ................................................................................................ 116

Table 41: Confidence Rating Wastewater Assets ................................................................................ 117

Table 42: Palmerston North City Council 3 Year Asset Management Improvement Programme ....... 127

Executive Summary Asset Management Plan 2017 – Wastewater

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EXECUTIVE SUMMARY

Purpose of this Plan

The purpose of this plan is to demonstrate how the assets are being managed so as to deliver wastewater services to the community in a sustainable and cost effective way.

This plan details information about:

The strategic outcomes that Council is seeking to achieve related to wastewater infrastructure.

The level of service to be provided. The infrastructure that need to be

maintained, renewed and developed to meet the demands placed on it over the next 30 years.

How these services are to be provided. What funding is required to meet these

demands. The associated risks.

The AMP covers a period from 1 July 2018 to 30 June 2048 with a particular focus on work programmes over the next five years. It informs the Council’s 2018/28 10 Year Plan and 30 Year Infrastructure Strategy and contributes to meeting Council’s identified strategic outcomes.

Activity & Assets

The services that are provided to the community through the assets in this plan are as follows:

Wastewater collection provided throughout the urban environment including collection of wastewater from the outlying areas of Aokautere, Linton, Bunnythorpe, Ashhurst, and Longburn.

Gravity and pumped delivery of the wastewater to the Totara Road wastewater treatment plant.

Treatment at the Totara Road Treatment Plant prior to discharge of the treated effluent to the Manawatu River.

The assets that contribute to providing these services are:

Table A: Asset Component Summary

Asset Component Quantity

Pipelines 404 km

Manholes 5,565

Laterals 27,783

Pump Stations 34

Treatment Plants 1

Oxidations Ponds 2

Valves 35

These assets have a replacement value of $291M.

Asset Condition and Performance

Wastewater Collection Network

The overall condition of the collection network is considered to be good, although there is significant stormwater inflow and infiltration in older parts of the network contributing to high peak wet weather flows. There are also a number of pipe blockages occurring in service laterals and some smaller diameter sewers due to the impact of root intrusion.

The overall performance of the wastewater collection network is considered to be good based on the small number of overflows and pipe blockages that occur.

Wastewater Pump Stations

The majority of the pump station assets are in good to excellent condition. The larger pump stations have been upgraded to meet higher seismic performance levels. Some smaller pump stations are fitted with obsolete electrical and control equipment and are in need to upgrading, which is scheduled early in the next 10 year period.

Totara Wastewater Treatment Plant

The Totara Road plant has been maintained to a high standard with an ongoing maintenance program and timely replacement of mechanical


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and electrical equipment as necessary. Major upgrades to inlet screens, grit traps and pumping are either in progress or programmed to occur early in the next 10 year period.

The wastewater discharge consent requires a new consent to be applied for by June 2022. A Best Practicable Options study is currently underway to determine the most appropriate form of future treatment and disposal of wastewater for the City.

Strategic Environment

Asset management planning is undertaken within both an internal and external strategic environment.

The internal strategic environment is set by the Council’s desired outcomes underpinned by its Vision of ‘Small city benefits, big city ambition’. Council has developed a range of Strategy Plans for each of its 5 strategic goals:

Goal 1: An innovative and growing city. Goal 2: A creative and exciting city. Goal 3: A connected and safe community. Goal 4: An eco-city. Goal 5: A driven and enabling council.

Of particular importance to this AMP are the Infrastructure plan and the Three Waters plan developed under the City Development Strategy and the Eco-City Strategy respectively.

The Infrastructure Plan sets expectations that infrastructure for wastewater will be provided ahead of development demand and will be sufficient to meet on-going urban intensification and high rate growth targets. The Three Waters Plan focusses on managing the effects of growth and climate change on wastewater discharge volumes as well as meeting the higher consenting standards likely to be required through the consent renewal project.

The external strategic environment is also of relevance in that the performance of the wastewater network is governed by legislative obligations and dependent on the management of receiving water courses which fall under the control of the Horizons Regional Council.

The Building Act and Horizons One Plan set legislative and regulatory requirements and controls around development and the level of service from wastewater systems. Critical to the activity in the next 10 year period will be securing a new consent for the wastewater treatment plant. This will require a robust and comprehensive assessment of options and engagement with stakeholders prior to Council’s selection of the preferred option.

AMP Response to the Strategic Context

The approach taken in the AMP is to ensure the safe and reliable collection, treatment and disposal of wastewater to protect community health. Specific issues focussed on for the period 2018-21 and addressed in the plan are:

Reductions in stormwater infiltration and inflow to the wastewater network to provide better control of peak wet weather wastewater flows

Completion of the Best Practicable Options assessment to determine the preferred option for consenting of a new wastewater treatment and disposal solution to secure wastewater services for the city for the next 30 years

Manage flows and loads proactively through implementation of pressure sewer areas and active engagement with major trade waste consent holders

Staged expansion of the wastewater network to meet projected growth

The benefits of addressing these problems and the consequences of not addressing them are outlined in the AMP.

Levels of Service

This plan supports Council providing:

Wastewater collection and treatment systems which protect public health and provide residential, industrial and commercial properties in the City with safe and reliable disposal and treatment of wastewater.

Wastewater infrastructure which meets the expected growth requirements.


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Wastewater services which comply with regulatory and consenting requirements.

Selection of a preferred option for the treatment and disposal of wastewater ready ahead of the preparation and lodging of consents by June 2022

Management of the wastewater activity in a financially sustainable way

LoS measures for the above services are contained in Council’s 10 Year Plan and include a number of regulatory and DIA mandatory performance measures. Key performance indicators include environmental compliance for treatment performance and ensuring wastewater is contained in the network.

The AMP also sets out both customer and technical levels of service in the areas of network performance, wastewater overflows, odour events, as well as responsiveness, consent compliance, fault and complaint occurrence and planning.

Levels of service are expected to change in the following areas:

Higher treatment standards as part of new consenting requirements expected to be in place sometime after June 2022.

Higher levels of network and treatment reliability associated with greater proactive investment in inspection, condition assessment and maintenance.

Specific requirements for the use of low pressure sewer systems in selected new growth areas to limit flows and exclude stormwater

Improvements in per capita wastewater generation associated with a greater focus on water efficiency, inflow and infiltration reduction and trade waste improvement plans.

Higher trade waste standards as part of measures to ensure new consenting and compliance requirements are achieved.

Future Demand

The future demand for wastewater in Palmerston North will be driven by:

Residential and industrial growth in the city. Greater uptake of Low Pressure Sewer

and/or Vacuum Sewer Systems. Changes in Council policy with regard to

rural residential properties. Changes in water consumption and usage

patterns given that most water supplied for domestic, commercial, and industrial purposes is subsequently discharged into the wastewater system.

The extent of stormwater entry to the wastewater system (infiltration and inflow).

Climate change.

The investment in new wastewater reticulation and treatment capacity outlined in this AMP is based on following a specific Palmerston North high population growth scenario for years 1-10 that equates to 1.0% per annum growth and then a medium growth scenario for years 11-30 that gives an overall population growth of 0.6% p.a. over 30 years.

The main areas for residential growth are Whakarongo in the short term and City West in the longer term supported by other smaller developments. Industrial growth will be serviced mainly by the North East Industrial zone extension and land at Longburn.

The demand for services is to be met through a combination of managing existing assets, upgrading of existing assets, providing new assets and demand management.

Lifecycle Management

Policy and Planning

Expenditure on policy and planning is predicted to continue at significant levels with key priorities during the period including:

Completing the city wide wastewater network model to provide an essential planning tool to assess capacity constraints;

Completing policy and regulatory work to sup[port the implementation of pressure sewer areas within the city to better manage flows;


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Undertaking critical asset condition assessment including enhanced condition assessment for critical mechanical and electrical assets; and

Targeting stormwater infiltration and inflow to the wastewater network by way of a dedicated programme of work and proactive follow-up on fault identification.

The programme also includes provision for an enhanced annual programme of CCTV inspection and condition grading for a significant portion of the network with a focus on the catchments with high wet weather flows.

Operations and Maintenance Plan

The operations and maintenance strategy is intended to deliver the required levels of service, mitigate risk and minimise costs by implementing a balanced programme of planned, preventative and reactive works.

Operation and maintenance costs are expected to increase over the planning period due to increased costs associated with meeting higher wastewater treatment and disposal consent requirements. Some minor reductions in costs are anticipated due to increased reliability of equipment.

Renewal of Assets

Renewal or restoration of assets is required to ensure that the service potential of the asset is maintained and that the level of service can continue to be delivered. The renewal programme seeks to provide the optimum mix of treatment options and timing for minimising costs over the life of the asset. The renewal programme is based on:

Knowledge of historical renewal requirements.

Collected asset condition and age data, using a predictive deterioration relationship based on consideration of asset lives and historical rates of condition deterioration.

Actual asset condition assessment programme undertaken on key assets to determine remaining life cycles and prioritisation programme for replacements and maintenance.

Failure history and in some cases, predictive modelling.

Treatment selection and work prioritisation are determined from an economic analysis of options considering all asset life cycle costs.

Total renewal expenditure of $65.M is forecast for the next 30 years for the treatment plant and sewer network as shown in Figure B.

The difference between depreciation and forecast renewal expenditure is due to the relatively young age of some of the wastewater pipe network and the impact of the expected upgrade of the wastewater treatment plant which is expected to result in some assets being superseded.

Development of Assets

Asset development needs to meet demand forecasts and deliver the agreed level of service are identified from an assessment of risks, performance monitoring and demand analysis. All feasible options, including non-asset demand management options, are considered. Project selection and prioritisation is determined from an economic analysis of options considering all asset life cycle costs.

Capital development projects undertaken to meet level of service needs and growth are funded from borrowing and developer contributions respectively.

Expenditure of $128.0M is forecast for the next 30 years for treatment plant development and sewer network upgrades required to accommodate growth with the dominant investment of $110.0M associated with the WWTP Consent Renewal. The capital expenditure associated with the consent renewal will be the single largest expenditure by Council in the planning period.

Financial Summary

The following graphs show the projected operating and capital expenditure associated with the management and development of the assets as set out in the O&M, Renewals and Development Plans. Annual expenditure is


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shown annually for the first 10 years and then 5 yearly bands for years 11-30 of the plan. Forecasts are shown as present day costs.

Operation and Maintenance

Figure A depicts projected operation and maintenance expenditure for the 30 year period excluding interest and depreciation.

Figure A: Thirty Year Projected Operations and Maintenance

Renewals

Figure B depicts projected renewal expenditure for the 30 year plan period.

Figure B: 30 Year Projected Renewals Expenditure

Capital Development

The projected 30 year capital development expenditure profile is depicted in Figure C.

Figure C: 30 Year Projected New Capital Expenditure

Financial forecasts are based on generally good asset information although extrapolation of information has been used in some places. Projects in the first few years are more fully scoped than in later years.

Risk & Resilience

Critical assets are those assets which have the highest consequences in terms of disruption in service and financial, environmental and social cost should they fail. For the Wastewater Activity, the assets in this category are:

Large diameter wastewater pipes (criticality assessed as High);

Massey and Maxwell’s Line wastewater pump stations (criticality assessed High); and

Totara wastewater treatment plant. Assets with critical customers

Key risks identified for the activity as a whole are:

Odours from the system; Power failure; Network blockage or breaks; Pump station failure; Wastewater treatment plant failure; Network capacity failure due to lack of

planning; and Major earthquake hazard.

Mitigation measures to address these risks are covered in this plan.

Resilient infrastructure is able to deal with significant disruption and changing circumstances as a result of the occurrence of

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natural hazards, such as seismic and volcanic events. This AMP is focussed on continuity of wastewater services following a high consequence event.

The greatest threat to the functionality of the wastewater activity is a major seismic event, with the resilience of critical assets especially important for continuation of service delivery. These include the wastewater treatment plant, major pump stations and trunk mains.

Both technical and organisational aspects of resilience have been considered in this plan.

Data Management and

Reliability

The quality and completeness of the wastewater asset data is considered average given it is based on historical capture of asset data at the time of construction and some periodic condition information captured using CCTV. Significant additional CCTV inspection is proposed particularly of the critical large diameter network where there have been a number of unexpected failures. Additional targeted work to try to better manage stormwater inflow and infiltration to the wastewater network is also planned. Other improvements include:

Installation of permanent flow meters with auto-data capture to better monitor flows in the network

Upgrades to wastewater pump stations to provide real time flow measurement to identify leaky catchments with high inflow and infiltration

Implementation of real time flow measurement of all significant trade waste discharge consent holder to better manage their impact on the network

Detailed condition assessment of all major items of plant and equipment at the WWTP

to develop an optimised renewal programme

Continuous Improvement

Asset management processes and practices are continually being assessed and improved in order to provide more cost effective asset management. The priority improvement tasks for the next 3 years are as follows:

Capital renewal and development project planning – further development of processes to take into account a sustainable development approach

Review demand projections on an on-going basis consistent with Council’s Residential Growth Strategy

Continue to develop the wastewater network model and risk based approaches to help prioritise renewal programmes and better manage risks and costs in achieving the desired outcomes

Asset information – on-going development of asset systems and collection and analysis of data to meet all asset management needs.

Resource planning is undertaken to ensure the recruitment, retention and development of sufficient and suitably qualified staff.

Conclusion

This AMP sets out programmes for operating, maintaining, renewal and development of the Wastewater Activity over the next 30 years that will ensure the required level of service is delivered to the community, the service potential of the asset is maintained for future generations, and growth of the City is provided for.

Section 1 – Overview Asset Management Plan 2017 – Wastewater

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1 Overview

1.1 Purpose of this Plan

This AMP is the basis for the Wastewater activity planning. The objective of asset management is to;

“Deliver the required level of service to existing and future customers in the most cost-effective way.”

In this context the specific objectives for the AMP are:

To define the services to be provided, the target service standards that Council aims to achieve, and the measures used to monitor the performance of the Wastewater activity.

To translate Council’s Strategic Vision and Goals into activity strategies and action plans that aligns to National and Regional policies and strategies. The plan identifies forward works programmes based on strategic outcomes sought and financial forecasts required to meet agreed service levels and cater for growth.

To demonstrate responsible management of the Wastewater activity infrastructure to stakeholders, ensuring that public funds are optimally applied to deliver cost effective services to meet customer expectations.

To document current asset management practices used by PNCC based on clear evidence as part of a sustainable and optimised lifecycle management strategy for the Wastewater infrastructure, and identify actions planned to enhance management performance.

To comply with the requirements of relevant legislation.

The key outputs of this AMP are input into the 2018-28 10 Year Plan process, which will be the subject of a special public consultative procedure.

The intention of this AMP is to set out how Council manages Wastewater assets and services in a way that is appropriate for a readership including elected members of the Council, executive management, interest groups, and business partners associated with the management of the Wastewater activity, along with interested members of the community. It covers the services that are provided from ownership and management of the associated assets.

This AMP covers a period of 30 years commencing 1 July 2018. Operational, maintenance, and renewal programmes for the first 3 years are generally well defined, with reasonable certainty of being implemented to budget as planned. Beyond this period, work programmes are generally based on projected trends and demands, and there is less certainty with respect to scope and timing of the projects. All expenditure forecasts are based on unit costs as at 1 July 2018.

1.2 Relationship with Other Plans

AMPs are a key component of the Council planning process, linking with the following plans and documents:

10 Year Plan (10 Year Plan): A plan required by the Local Government Act (2002) to cover a period of at least 10 years and provide a long-term focus for the decisions and activities of the Council. This AMP contains key information about the Council’s activities, assets, levels of service and cost of providing services. This AMP provides key inputs to the 2018-28 10 Year Plan.


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Infrastructure Strategy: A local authority must, as part of its long-term plan, prepare and adopt an infrastructure strategy for a period of at least 30 consecutive financial years. The purpose of this strategy is to: identify significant infrastructure issues for the local authority over the period covered by the

strategy; and identify the principal options for managing those issues and the implications of those options.

Annual Budget: Provides the programmes and funding plan for each year of the 10 Year Plan, including reporting on variances.

District Plan: The District Plan gives effect to four land-use strategies through the City Planning Framework that covers residential, industrial, commercial and rural residential development. The strategies establish the best use of land and direct where private sector investment should occur based on several land use zones. AMPs give support to the strategies and link into the 10 Year Plan for funding of infrastructure.

Contracts and Service Level Agreements: The service levels, strategies and information requirements contained in AMPs are translated into contract specifications, internal service level agreements, and reporting requirements.

Bylaws, standards, and policies: These tools for asset creation and subsequent management are needed to support AM tactics.

Wastewater Services Assessment: This assessment, as required by Section 125 of the Local Government Act 2002, is for territorial authorities to assess the extent to which wastewater (and other water and sanitary services) collection and disposal within the district is being undertaken to adequate standards that meet the current and future community’s needs. This includes areas not currently serviced by Council infrastructure.

The Horizons Regional Council One Plan: A major focus of this plan is the quality of treated wastewater needed to ensure that the water quality of the Manawatū River is improved – particularly with regard to the discharge of nutrients during low flow periods in the river.

Figure 1 depicts the relationship between the various processes and levels of planning within the Council required to deliver on Council’s vision and goals.

Figure 1: Relationship between Council Planning Processes

TACTICAL PLANNING e.g. Asset Management Plans

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1.3 AMP review process

This AMP review has been a 12 month project undertaken by Council’s asset management (AM) team, led by the Special Projects Manager, covering all Palmerston North City Council (PNCC/Council) AMPs.

Linkages were established early in the process with other Council planning teams including the 2018-28 10 Year Plan team, strategic planning and corporate finance teams to ensure an integrated approach to consistency of information and assumptions across the organisation.

The stages of the review have been as follows:

Assessment of Council’s strategic direction as it has developed over the period February – August 2017 to determine the asset implications of delivering the community outcomes that the Council is seeking and developing programmes accordingly.

Level of service review – to determine what level of service the Council considered affordable and what changes are required. The Councillors were informed about current levels of service and workshopped the issues and options giving consideration to any changes in current levels of service (23 March 2017).

Strategic environment – assessment of growth and demand projections to determine future capacity requirements

Review of critical assets and key risks, assessment of critical asset resilience to natural hazards and interdependencies, review of risk management strategies, and updating of risk management programmes.

Preparation and review of AMP budget forecasts to inform the 10 Year Plan (July - Nov 2017). Internal Peer Review and finalisation of AMPs (December 17 – Jan 18). External peer review (February 2018). Formal reporting of AMPs to the Council.

Any variations between the respective AMPs and the 2018-28 10 Year Plan will be the subject of a report to Council following adoption of the 10 Year Plan in June 2018.

This AMP has been prepared as a team effort by officers dedicated to and trained in AM planning. This team has been supervised and the AMP internally reviewed by professional Council staff having over 10 years’ experience in preparing AMPs. An external peer review has been undertaken by AECOM Ltd.

1.4 Changes to AM since 2014

Asset management is a process of continuous improvement, contiguous with development of and changes to Council’s strategic environment and improved knowledge of asset condition and performance to achieve agreed levels of service.

Key changes to the AMP since 2014 are as follows:

Development of capital new and operational programmes to align with Council’s new Vision Small city benefits, Big city ambitions and associated goals and strategies and the outcomes that the Council is seeking to achieve. (Section 3)

Adjustments to the levels of service to be delivered to the community through level of service review and development of Council’s strategy plans. (Section 4)


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Revised schedule of development works for growth for both residential and industrial growth arising out of higher population growth projections - a high growth scenario for years 1-10 and a medium growth scenario for years 11-30. This requires infrastructure for a greater number of households over 30 years than previously planned. (Section 5)

Reassessment of demand for services as a result of higher population and household projections. (Section 5)

Updating of the risk and resilience section. (Section 7) Improvements to asset management processes, particularly the introduction of the Programme

Planning and Implementation process. This is to ensure that the programmes in this plan are supported by robust information.

1.5 Navigating the AMP

This AMP comprises a series of logical steps that sequentially and collectively build the framework for sustainable asset management for the activity it serves. The plan contains three main sections. It first describes what the plan is about and the activity it relates to. The second section is about the drivers that influence and set the direction for asset management. The third section describes out the level of service and strategic outcomes are achieved through managing and developing the assets.


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AMP at a Glance(Executive Summary)

Overview (Section 1.0)Purpose of AMP, relationship to other planning documents, AMP review processes &

navigation

The Activity (Section 2.0)Purpose, description & rational of activity, Custemers/Users, Key relationships for

management of activity, significant changes and negative effects associated with activity.

The Strategic Environment (Section 3.0)Strategic context (internal & external) to determine key outcomes sought.

Strategic assessment to identify problems and benefitrs within the overall strategic context & the outcomes desired.

Levels of Service (Section 4.0)The review process followed and the qualities of the service that Council intends to deliver to

the Community

Growth & Demand (Section 5.0)The growth and demand factors impacting on the capacity and levels of service provided by

the assets over 30 years

Assets & Lifecycle Management (Section 6.0)Plans detailing how the assets are to be managed, operated, maintained, renewed and

developed to provide the required level of service over the asset life.

Risk and Resilience (Section 7.0)Risks identified that may affect the ongoing delivery of services from Council’s infrastructure

and resilience to natural disaster

Sustainability (Section 8.0)Identification of key sustainability issues and linkage to Council’s strategies

Financial Projections (Section 9.0)Outlines the long-term (30yr) financial projections for operating, maintaining, renewing and

developing the assets. Asset valuation and reliability of estimates.

Assumptions (Section 10.0)Key assumptions used in developing asset lifecycle programmes and impact of variations from

these assumptions

Improvement Plan (Section 11.0)Initiatives to make improvements to asset management planning over the next 3 years and to

inform the next AMP review

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Section 2 – The Activity Asset Management Plan 2017 – Wastewater

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2 The Activity This section sets out the services provided by the Wastewater Activity including:

A description of the asset used to deliver the activity; The rationale for Council involvement and ownership of assets; The significant negative effects of the activity; and The significant changes in the activity since the last AMP.

2.1 Activity Description

The key function of the Wastewater Activity is to provide for the safe and reliable collection, treatment, and disposal of wastewater (sewage) from residential, industrial, and commercial properties. There are six separate public wastewater collection systems servicing different areas of Palmerston North City. All wastewater collected within the city boundary is treated at the Totara Road Wastewater Plant in Palmerston North and discharged to the Manawatū River.

The broad asset groups and their values as of June 20171 are shown in Table 1.

Table 1: Wastewater Assets Quantity by Type

Asset Component Quantity Replacement Value

Pipelines 418km 138,594,111

Manholes 5679 $30,312,864

Laterals 27,783 $68,948,126

Pump Stations 36 $6,037,242

Treatment Plants 1 $44,816,718

Oxidations Ponds 1 $1,368,890

Valves 109 $570,484

Total $290,648,435

The Wastewater activity comprises the collection of wastewater from private properties and residences, conveyance of the wastewater to a central treatment facility, either by gravity or if necessary by pumping, and treatment of the wastewater to remove harmful pollutants and pathogens before discharge to a receiving environment. A schematic layout of a typical wastewater system is shown in Figure 3 below.

1 Revaluation of Infrastructure Assets June 2017


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Figure 3: Schematic Layout of Wastewater System

The discharge of industrial effluents into the public wastewater system is regulated by the Trade Waste Bylaw 2015. The wastewater system is regulated by the Local Government Act 2002, Health Act 1956, and the Wastewater Bylaw 2017.

City Networks also provides advice to developers on the provision of wastewater reticulation to service new developments.

Although most of the City is urban in nature, there are adjoining rural areas where it is not usually practical to provide a reticulated wastewater service because of the inability to spread the cost of the infrastructure required (pipes, pumps etc.) across a sufficient number of properties. Reticulated wastewater systems may be provided when the land use in these areas changes and they are developed for urban housing.

The point of service for wastewater collection is generally the property boundary. The Council owns and maintains all wastewater pipelines up to and including the point of service. All wastewater drains and plumbing upstream of the point of service are owned by, and are the responsibility of, the property owner.

Sewagepipeline

Sewage treatment plant

Private serviceconnection

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Figure 4: Map of Wastewater Collection Areas


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2.1.1 Palmerston North Main Urban Area

The Palmerston North wastewater system services a population of approximately 73,662. This includes Ashhurst, Aokautere, Linton (including the Army Camp & Prison), Bunnythorpe, and Longburn. It comprises approximately 418 km of pipelines which operate mainly by gravity drainage to convey wastewater to the Totara Road wastewater treatment plant. There are 36 pumping stations in this system, which pump wastewater to higher elevations from where gravity drainage is not practical. Tertiary treated effluent is discharged to the Manawatū River in accordance with a Resource Consent issued by Horizons Regional Council.

2.1.2 Ashhurst

The Ashhurst wastewater system services a population of approximately 2,634. It comprises approximately 17 km of pipelines, which convey wastewater to the Ashhurst Oxidation Ponds. There are two pump stations in the Ashhurst system: one in Durham Street, and the other located next to the existing oxidation ponds. Wastewater from Ashhurst is partially treated in the existing oxidation ponds before it is pumped to Palmerston North by way of 9 km of 250 mm diameter rising main, where it discharges into the City’s main gravity system at Rosalie Terrace.

2.1.3 Aokautere

This system services a population of approximately 70 people. 600 metres of gravity pipelines convey wastewater to a pumping station in Peterson Road where it is pumped back up Aokautere Drive through 1360 m of 100 mm diameter rising main to where it discharges into the City’s main gravity system at Cashmere Drive.

2.1.4 Linton (Excluding Army Camp & Prison)

This system services 45 individual residential properties which are connected to the Linton Army camp, which is a privately managed system. Wastewater is conveyed to an oxidation pond owned and operated by the Ministry of Defence where it is partially treated before the effluent is pumped across the Manawatū River via a pipeline owned by the NZDF to the Totara Road Waste Water Treatment Plant (WWTP). Wastewater from Linton also includes the discharge from the Linton Army Camp and its associated residential housing area, Manawatū Prison, and New Zealand Pharmaceuticals.

2.1.5 Bunnythorpe

A separate reticulation system services the township of Bunnythorpe, which has a population of approximately 451. Wastewater from Bunnythorpe is now pumped to Palmerston North City for treatment. The Bunnythorpe wastewater system comprises of approximately 8.57 km of pipelines. There are 3 pump stations located within Bunnythorpe, with wastewater pumped to Palmerston North from the Kairanga-Bunnythorpe Road pump station.

2.1.6 Longburn

A separate reticulation system services the township of Longburn, which has a population of approximately 400 (including Longburn College Boarders). The Longburn wastewater system comprises of approximately 9.4 km of pipelines (including rising mains). Wastewater from Longburn is pumped to Palmerston North through 2 pump stations located in Reserve Road and Walkers Road via the 300 mm diameter rising main servicing the Works Road Industrial area.


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2.2 Activity Rationale

Adequate systems for the disposal of wastewater are a fundamental requirement for the health and general wellbeing of the community. In urban areas wastewater is most effectively disposed of by means of reticulated wastewater systems that allow the costs associated with maintaining high standards and efficient infrastructure to be spread over a wide population base, thereby keeping the costs to individual users for wastewater disposal within affordable levels. Sanitary facilities installed to good standards and connected to reticulated wastewater systems require minimal maintenance or intervention for their satisfactory on-going operation and represent a convenient and low risk means of wastewater disposal.

The importance to community wellbeing of effective public wastewater systems is recognised in the Health Act 1956, which requires Local Authorities to provide ‘sanitary works’, the definition of which includes wastewater works and includes all lands, buildings, pipes, and appliances used in connection with any such works, and provide any dwelling house with suitable appliances for the disposal of wastewater and sufficient sanitary conveniences.

The goals for the Wastewater Activity are as follows:

To ensure that all community sanitary wastes are satisfactorily collected, treated, and disposed of in order to protect the health and safety of the public, and to protect and enhance the quality of the natural environment.

To encourage the use of advanced technologies for providing higher quality, reliable, and cost effective treatment, disposal, and reuse options.

The existing wastewater system has been developed and built up over many years as a public system to serve the needs of the community in the collection, treatment and disposal of wastewater. The Local Government Act 2002 requires local government organisations which provide water services (which include wastewater services) to continue to provide these services and maintain their capability to do so.

Recent amendments to the Local Government Act have further clarified the purpose of local government, in particular:

“To meet the current and future needs of communities for good-quality local infrastructure, local public services and performance of regulatory functions in a way that is most cost-effective for households and businesses.”

The services provided by the water activity contribute to the goals adopted by Council for the City as summarised in Table 2.

Table 2: Activity Linkages to City Goals

Priority Activity Contribution

Goal 1 – An innovative and growing city

To ensure that wastewater infrastructure is in place to collect and treat wastewater in advance of new commercial, industrial and residential development.

Goal 2 – A creative and exciting city

Provide reticulated wastewater services which limit negative impacts on public recreational facilities. Effectively manage and mitigate wastewater overflows and provide early and appropriate advice to the community and residents to minimise health impacts.

Goal 3 – A connected and safe community

Ensure the wastewater network functions reliably and is able to contain, transport and treat wastewater with the minimum of risk to community health. Identify and effectively mitigate all dry weather wastewater overflows and limit wet weather overflows.


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Priority Activity Contribution

Goal 4 – An eco city

Reduce the environmental impact of wastewater on the Manawatu river by ensuring current treatment processes comply with resource consents and confirming the preferred option for wastewater treatment and disposal in time for preparation and lodgement of consents by June 2022. Target reductions in carbon emissions by more efficient treatment processes, energy efficient equipment and implementing food waste and organic waste to energy initiatives.

Goal 5 – A driven and enabling council

Adoption of digital transformation technology where appropriate to enable more efficient operation and provide better customer service.

The goal areas most relevant to the Wastewater activity are Goals 1 and 3. These are expanded on in Section 3, The Strategic Environment.

Customers of wastewater services are broken down as follows:

Residential customers Industrial customers Commercial customers

2.3 Key Relationships

PNCC has overall responsibility for public wastewater services in the City. This includes setting policy, service standards, ensuring the required outcomes are achieved as efficiently as possible within Council’s strategic direction, and quality assurance. In providing the wastewater service City Networks works with a number of key business partners including contractors, consulting engineers, regulators, and specialist service providers:

City Enterprises, a unit of the Council, is engaged by City Networks to provide treatment plant operation and reticulation operation, maintenance, and renewals services.

The Ministry of Health has statutory responsibility for public health issues in New Zealand including health related aspects of wastewater services.

Horizons Regional Council (the operating name of the Manawatū-Wanganui Regional Council) has an environmental, regulatory, and monitoring role under the Resource Management Act that includes the regulation of discharge of wastewater to land or receiving waters. Council currently holds consents for each wastewater treatment facility.

Water related issues are of special cultural significance to Maōri. Local iwi are formally represented by Rangitāne. Palmerston North City Council is committed to fostering the relationship with Rangitāne, and developing an active partnership into the future.

Palmerston North adjoins areas administered by Manawatū District, Horowhenua District, and Tararua District Councils. City Networks maintains relationships with wastewater staff of the other Councils through various professional organisations to facilitate the exchange of information, management practices, and to facilitate a joint approach to wastewater issues where this is beneficial.

Other stakeholders in the wastewater activity are: The Palmerston North community, including citizens, ratepayers, and individual users of the

services. Trade waste users. Rangitāne o Manawatū. Community groups. Visitors to Palmerston North.


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2.4 LGA Section 17A Review

Under section 17A of the Local Government Act Local Authorities are required to review the cost effectiveness of their arrangements for meeting the needs of their communities for good quality local infrastructure, public services and regulatory functions. This review requirement includes considering options for the governance, funding and delivery of infrastructure and services.

In June 2016 the Council decided to make the water service exempt from an s17A review prior to 7 August 2017. It decided that a review of this activity before this time was not an effective use of Council resources.

2.5 Significant Negative Effects of the Activity

Potential negative effects associated with the wastewater activity include:

Discharge of treated wastewater effluent from the WWTP to the Manawatū River adversely affecting river quality.

Overflows of untreated wastewater from the wastewater system to the Manawatū River adversely affecting river quality. These may result from: Overloading of the wastewater system during rainfall due to the entry of stormwater runoff

(infiltration and inflow); Structural failure of pipelines; Blockages of wastewater pipelines; or Malfunction of utility installations such as pumping stations or treatment plants.

Odours from wastewater infrastructure such as pumping stations, treatment facilities, and pipeline vents adversely affecting local residents.

The disposal of wastewater treatment by-products, such as bio-solids (stabilised solids extracted from the wastewater during the treatment process), adversely affecting the receiving environment.

All of these potential negative effects are managed as part of the day-to-day operation of the Wastewater Activity.

The quality of effluent discharged to the Manawatū River is regulated by the conditions in the resource consents for these discharges issued by Horizons Regional Council. The consent conditions ensure that negative effects associated with the discharge are managed to acceptable levels.

The Horizons Regional Council initiated a formal review of the discharge consent, with focus on the life supporting capacity of the river. This review was heard in front of four commissioners in 2014 and 2015, following submissions from both PNCC and Horizons Regional Council. The Consent Review Hearing was concluded without a decision. PNCC instead offered to apply for a new discharge Consent in 2022, some 6 years before the original date. In addition, a series of actions were agreed including

Undertake further investigations into the effects of the discharge on the Manawatū river Undertake a robust Best Practical Options review of treatment options prior to the application of

a new consent.

The entry of stormwater to the wastewater system during heavy rainfall can cause overloading of sections of the wastewater system and may lead to overflows. This situation is not confined to Palmerston North, with similar problems being experienced to varying degrees in most urban wastewater systems in New Zealand.


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The range of strategies adopted to overcome wet weather overloading of the wastewater system includes:

Programmes to reduce the entry of stormwater to the wastewater system in private properties (infiltration/inflow programmes).

Renewal of pipelines where there is excessive entry of stormwater and or groundwater through defects in the pipes.

Providing additional capacity in parts of the wastewater system.

There are no reported odour issues associated with the wastewater reticulation system however a small number of odour complaints are received regarding the operation of the WWTP on Totara Rd. Some of the complaints relate to composting activities at the Council composting operations, however in general the odour suppression system in place and careful management of the disposal of wastewater treatment by-products is effective.

2.6 Significant Changes to the Activity

Significant changes to the Wastewater Activity are anticipated to meet increased regulatory requirements from the Horizons Regional Council resource consent discharge conditions.

Both to address concerns around overflows from the Bunnythorpe treatment pond to the Mangaone Stream and to avoid incurring disposal charges from MDC, all Bunnythorpe wastewater flows are now pumped to the Palmerston North network as July 2016.

As outlined the most significant capital works investment will be associated with the upgrade of treatment and/or disposal to meet the requirement of a new consent when the current consent expires in 2022. A provision of some $110M has been made, however the exact level of funding will be determined by the preferred option to be selected by Council at the conclusion of the Best Practicable Options assessment currently underway.

Section 3 – Strategic Environment Asset Management Plan 2017 – Wastewater

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3 Strategic Environment This section sets out the strategic environment within which the wastewater activity is managed under the following areas of:

Internal Strategic Context Statutory and Regulatory Requirements AM Policy and Strategy

3.1 Internal Strategic Context

3.1.1 Council Vision, Goals & Strategic Direction

The Council Vision for Palmerston North is:

“Small city benefits, Big city ambition.”

Supported by 5 strategic goals:

Goal 1: An innovative and growing city. Goal 2: A creative and exciting city. Goal 3: A connected and safe community. Goal 4: An eco-city. Goal 5: A driven and enabling council.

To achieve the vision and goals, the Council has developed a number of strategies each with specific priorities and associated strategy plans (including actions that link to specific programmes). The Plans most relevant to this AMP are highlighted in Table 3.

Table 3: Wastewater Activity contribution to City Goals

City Goals City Strategies Priorities Strategy Plans

An innovative and growing city

Economic Development Strategy

Create and enable opportunities for employment and growth

Provide the right infrastructure at the right time to enable growth Support an ‘innovative economy’ to underpin growth into the future

Transform the economy to a low carbon economy

Economic Development International Relations Carbon Emissions reduction

City Development Strategy

Create and enable opportunities for employment and growth

Provide the right infrastructure at the right time to enable growth

District plan Housing and future

development Strategic partnerships Urban design Built heritage Infrastructure Strategic Transport Parking


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City Goals City Strategies Priorities Strategy Plans

An eco-city Eco City Strategy

Respect and enhance the mauri of the Manawatū River

Work with the community to reduce carbon emissions

Regenerate native biodiversity Invest in infrastructure that serves to protect,

enhance and preserve our environment Use our legislative powers and policies to ensure

that urban development is sustainable now and into the future

Educate the community, in particular, property owners, on the benefits of investing in sustainable building design and green buildings

Demonstrate leadership and best practice by developing and implementing an environmental sustainability plan for the Council

Biodiversity Three Waters Waste Energy Sustainable practices plan

The Council’s strategic and corporate goals represent the outcomes Council aims to achieve for the City consistent with its vision and in order to promote community well-being, both now and in the future.

Underpinning the city’s vision, goals, strategies, and plans are the following strategic themes that guide the way in which the outcomes and actions are delivered:

Smart city practices – use smart systems, processes and tools. Sustainable practices – embed sustainable design and behaviours. Iwi partnerships – work collaboratively with iwi partners. Strategic Partnerships – work collaboratively with key strategic partners.

3.1.2 Infrastructure Strategy

The Local Government Act 2002 Amendment Act 2014 introduced a requirement for Council to prepare and adopt, as part of its 10 Year Plan, an infrastructure strategy covering a 30 year planning period.

This AMP is an integral document in informing the Infrastructure Strategy. Table 4 describes the linkages between this AMP and the component parts of the Infrastructure Strategy.

Table 4: AMP Linkages to the Infrastructure Strategy

Infrastructure Strategy s.101B LGA 2002 Asset Management Plan

Paragraph No. Description Reference

2a & b Significant infrastructure issues & options Sections 4.0, 5.0, 6.0 & 9.0

3a Renewals and replacements Sections 6.0 & 9.0

3b Growth or decline Sections 5.0, 6.0 & 9.0

3c Changes to LOS Sections 4.0 and 6.0

3d Maintain or improve public health & environmental outcomes or mitigate adverse effects Sections 3.0, 4.0, 6.0, 7.0, 8.0 & 9.0

3e Resilience of infrastructure relating to natural hazards Sections 6.0, 7.0, 9.0 and 11.0

4a Estimates of capital and operating expenditure Section 9.0

4b Significant decisions about capital expenditure Sections 6.0 and 9.0

4c & d Assumptions & uncertainty Section 10.0


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3.2 External Strategic Context

3.2.1 Horizons Regional Council One Plan

This One Plan is about how the natural and physical resources of the region are managed and sets water quality targets for major river catchments, including the Manawatū River. New consents for discharges of treated wastewater will need to meet the objectives, policies and rules of the One Plan.

Rangitāne o Manawatū, as mana whenua, are explicitly recognised in the One Plan, as they have identified the reach of the Manawatū River from upstream of the Manawatū Gorge down to the Foxton Loop, including short reaches of the Pohangina at Ashhurst and the Oroua at Rangiotu, as having a high “density of cultural and historical sites of significance including wāhi tapu and taonga”. “These cultural sites… would be negatively and potentially permanently harmed by some activities and consequently are given a high level of protection” under Policy 6-28 which states:

“Policy 6-28: Activities in sites with a Value of…Sites of Significance – Cultural…

…In sites with a Schedule AB Value of…Sites of Significance - Cultural…activities in, on, under or over the beds of rivers and lakes must be managed in a manner which:

(a) avoids adverse effects on these Values in the first instance; or

(b) for infrastructure and other resources of regional and national importance, or activities that result in an environmental benefit, remedies or mitigates those effects where it is not practicable to avoid them”

3.3 Statutory and Regulatory Requirements

3.3.1 Key Legislation

The key legislation relating to the management of wastewater supply assets are listed below.

The statutory requirements provide Council with a minimum level of service standard and have been reflected in the levels of service shown in Section 4. Council is currently complying with all legislative requirements:

Local Government Act 2002 Amendment Act 2014, which defines the purpose of local government as enabling local decision-making and action by and on behalf of communities and to meet the current and future needs of communities for good-quality local public services and performance of regulatory functions in a way that is most cost effective for households and business.

Resource Management Act 1991, promotes the sustainable management of natural and physical resources. It also requires Councils to take into account the principles of the Treaty of Waitangi in exercising functions and powers under the Act relating to the use, development and protection of natural and physical resources.

National Policy Statement for Freshwater Management 2014, Amended 2017. Sets out the objectives and policies for freshwater management under the RMA. It gives specific direction to Local Authorities with respect to Tangata whnua roles and interests.

National Environmental Standard for Sources of Human Drinking Water is intended to reduce the risk of contaminating drinking water sources such as rivers and groundwater.


18

Health and Safety at Work Act 2016, which requires the provision of safe work places for all activities by the Person conducting a Business or Undertaking (PCBU) has the Primary Duty of Care and needs to take such precautions as is reasonably practicable for the health, safety and welfare of workers and any other people at risk from any work carried out. Key requirements for local authority staff and any contractors in addition to complying with the act is the maintenance of an audit trail to demonstrate compliance with the Act.

Building Act 2004, which sets minimum standards for buildings and facilities, and requires Councils to produce Project Information Memoranda (PIM’s) and building Warrants of Fitness.

Public Works Act 1981, which prescribes processes to enable the acquisition of land for the completion of construction works by Council.

Public Bodies Contracts Act 1959, which confers on a local authority similar powers to enter contracts as enjoyed by corporate bodies or natural persons.

Construction Contracts Act 2002 sets requirements for payment provisions for construction contracts and dispute resolution.

Local Government Official Information and Meetings Act 1987 sets requirements concerning disclosure of information.

Civil Defence and Emergency Management Act 2002 provides for a coordinated approach to the planning and preparation for emergencies and for response and recovery in the event of an emergency.

Utilities Access Act 2010 requires utility operators and corridor managers to comply with a national code of practice that regulates access to transport corridors and provide for the making and administration of that code.

Health and Safety in Employment Act.

3.3.2 Local Bylaws The following Council By-laws are relevant to the management of Wastewater Activity assets: Palmerston North Trade Waste Bylaw 2015. Palmerston North Wastewater Bylaw 2017. Palmerston North Stormwater Bylaw 2015.

Regulations are in effect for controlling the quantity and composition of industrial wastewater flows to protect wastewater assets, wastewater treatment processes, and wastewater workers (Council staff and contractors). The Wastewater Bylaw is new for Palmerston North and was established to regulates and defines domestic wastewater, the point of supply, and covers matters relating to the acceptance of wastewater discharge, the process for applying for a new connection, working around buried services, and pressure sewer systems, as well as defining the wastewater service areas where connections are allowed.

3.3.3 Standards & Specifications

The standards and specifications for all works to wastewater assets reflect the best current technologies, national standards and legislative requirements. All wastewater assets are operated, maintained and built in accordance with:

PNCC Engineering Standards for Land Development. PNCC Policy for Road Openings and Reinstatement. New Zealand Building Code and Electrical Regulations. NZS 6101 'Classification of Hazardous Areas'.


19

CCTV - New Zealand Pipe Inspection Manual. Appropriate industry best practices, technologies and the most recent version of national standards

and legislative requirements. PNCC District Plan. Resource consents issued under the Resource management Act 1991. Horizons One Plan. Wastewater Bylaw 2017.

3.4 Asset Management Policy & Strategy

3.4.1 Asset Management Policy

AM Policy

Asset are managed so as to meet the asset management objectives set out below by applying the AM Strategy.

Objectives

To have a consistent approach across all asset classes within the Council. AMPs reflect the strategic direction of the Council (Including the financial strategy). To manage the assets in a sustainable manner in order to deliver the required level of service to the

present and future generations. Assets are managed cost effectively in accordance with sound risk management, environmental

management practice and statutory and regulatory requirements. That there is continual improvement of asset management practice in the organization. To have up to date AMPs that reflect a multidisciplinary approach across the organization to inform

the 10 Year Plan process. That asset management performance can be demonstrated to the Council and community. That AM Policy and Strategy is approved by Management Team and that AMPs are adopted by the

Council to inform the 10 Year Plan.

3.4.2 Asset Management Strategy

AM Strategy

This Infrastructure Strategy sets out the approach to organising and practicing infrastructure management so as to achieve the asset management objectives for the different Asset Management inputs as set out below.

Planning strategy

30 Year Infrastructure Strategy

A 30 year Infrastructure Strategy will be completed as part of the 10 Year Plan process and will reflect the Council’s vision and strategy and provide a combined view of the asset programmes that are required to achieve this. It will show a clear linkage between the strategies and the programmes required to achieve the strategies. The Strategy will reflect the decisions made by the Council through the 10Yr Plan process.


20

Asset Management Plans

AMPs will be reviewed at 3 yearly intervals to align with the 10 Year Plan planning process and cover a 30 year planning period. AMPs will reflect the strategic and financial direction of the Council and be integrated with other Council planning documents. Differences to AMP programmes and those approved in the 10 Year Plan will be reported to the Council together with the asset and service implications. There will be further development of the concept of maintaining the AMP as a ‘living document’ that more accurately reflects the current policies and decisions of the Council.

Levels of Service

A review of the Levels of Service (LoS) that is to be provided will be undertaken in conjunction with the AMP review to reflect any changes that Council may wish to make. The review will be informed by community satisfaction and submissions received over the previous 3 years and Council direction. Engagement with the community on options will be undertaken for specific significant projects as they arise in accordance with the Council’s Community Engagement Strategy. The review will inform the levels of service adopted by the Council.

Capital New Planning

Capital works planning will be based on a sound understanding of the need and timing for the asset based on demand forecasts and implementation of Council’s strategic and financial direction. Documentation will be provided for justification of each programme.

Programme estimating will incorporate full project costs to complete the asset, identify full life cycle costs, and risks associated with the programme. The need for works to accommodate growth will be reviewed on an annual basis to take into account any changes to the anticipated growth rates or other demand drivers.

Capital Renewal Planning

Renewal planning will be based on a sound understanding of the condition and performance of the asset and aim to maintain the current overall service potential of the asset. The renewal programme will also aim to smooth out where possible the financial impact from year to year.

Maintenance and Operational Planning

Maintenance and operational planning will be reviewed on an annual basis but with particular focus at the AMP review as to whether the most cost effective delivery mechanisms are in place. This will also take account of any Council direction arising out of the Local Government Act Section 17A reviews.

Service agreements with contractors will contain performance measures consistent with the AMP and Activity Key Performance Indicators (KPIs) to achieve alignment from the operational level to the 10 Year Plan KPIs.

Demand forecasts

Demand forecasts will take into account population, household and economic growth projections, social and demographic data, technological advances, and other relevant data.

Demand management

Demand management options will also be considered when planning to meet growth, and to ensure projects qualify for any external financial assistance.


21

Optimised decision making

ODM techniques will be used for decisions related to significant projects.

Risk & Resilience

Risk exposure will be managed through:

An annual review of the risk management plan and implementing risk mitigation measures where risk exposure is incompatible with corporate risk policy.

Undertaking performance and condition monitoring of critical assets.

Resilience of Council’s critical assets to natural hazards will be assessed and programmes prepared to mitigate risk to an acceptable level.

Information systems

Data collection programmes (condition, asset performance, registers, and service performance) will be closely aligned to the nature and scale of the assets and to tracking achievement of service targets.

AM system functionality will be progressively developed to meet the requirements of advanced AM planning.

Asset Revaluation

Asset revaluation will be undertaken in conjunction with City Corporate staff on a 3 yearly timeframe.

Continuous Improvement

An improvement programme will be included with each AMP review, setting out the areas of improvement required to practices, systems, processes and plans in the following 3 years with identified tasks and budgets. This will be part of the ongoing improvement programme in the City Networks Unit.

Organisational Capacity and Development

Adequate resources will be allocated to asset management to ensure that asset management practices can be undertaken to meet the requirement for robust AMPs and work programmes. AM capabilities will be developed to practice advanced asset management techniques.

Monitoring and reporting on level of service performance measures.

Those level of service measures that are adopted by the Council as KPIs will be reported through quarterly Annual Budget reports. Other LoS performance measures will be reported quarterly to the City Networks Executive Team (CNET).

Section 4 – Levels of Service Asset Management Plan 2017 – Wastewater

23

4 Levels of Service This section defines the level of service or the qualities of the service that the Council intends to deliver and the measures used to monitor this. The adopted levels of service are used to define the programmes to achieve the Council’s strategic goals and are based on user expectations and statutory requirements.

4.1 Introduction

A key objective of this AMP is to match the level of service provided by the asset with the expectations of the users of the service. This requires a clear understanding of user needs and preferences. The levels of service defined in this section will be used:

to inform users of the proposed type and level of service to be offered; as a focus for the AM strategies developed to deliver the required level of service; as a measure of the effectiveness of this AMP; to identify the costs and benefits of the services offered; and to enable users to assess the suitability, affordability, and equity of the services offered.

Levels of service for the Wastewater Activity are based on:

Strategic goals (see Section 3.1.1) - These provide guidelines for the scope of current and future services offered, the manner of service delivery, and the specific levels of service which the organisation seeks to achieve.

Statutory requirements/environmental standards (see Section 3.2.1) - Regulations, Acts, and Council Bylaws that impact on the way assets are managed (i.e. resource consents, building regulations, health and safety legislation). These requirements set the minimum level of service that must be provided.

Community engagement and feedback (see Section 4.2) - Information gained over the last 3 years on LoS from specific consultation, customer service requests, Annual Budget submissions, and community surveys.

The Department of Internal Affairs (DIA) mandatory measures were introduced in 2013 in order to establish a set of baseline data to enable performance to be measured comparatively between all Local Authorities in the country.

The adopted levels of service indicators and measures presented in Appendix C have been grouped into two categories:

Customer performance measures: These are measures of the overall activity, covering the aspects of service that are of most interest to the community and community satisfaction indicators. They include the government mandated non-financial performance measures to be included in the 2018-2028 10 Year Plan. Some of the customer performance measures presented in Section 4 are expected to be included for community consultation in the consultation document and publicly reported against in each Annual Report.

Technical performance measures: These are additional measures adopted to ensure that the customer performance measures are robustly achieved. They are used as a management tool and are measured and reported internally.


24

4.2 Community Input & Decision Making Process

The levels of service upon which this plan is based have been derived from an on-going process of community consultation and consideration of levels of service options by the Council over a significant period of time.

In 2005, an extensive level of service review was undertaken, which engaged with a broad cross-section of the community to understand how well existing services were meeting user needs, and what improvements were desired for the future. Specifically, the review set out to ascertain views on:

The current levels of service provided by the Council. The desired future levels of service. Aspects of the services by which the quality of the services can be assessed.

At that time, a greater user focus was introduced to the measures. This was reflected by having statements of the service provided to each of the key user groups and performance measures that reflected the user view of the LoS provided.

Subsequently LoS reviews have been undertaken for each AMP review, in which information about LoS received from the community through local, Communitrak surveys, service requests, and Annual Budget submissions, has been presented to the Council in order to inform any changes that it may wish to make to the LoS delivered to the community. Generally, only minor adjustments have been made since 2005.

For this AMP, LoS workshops were held with Councillors over 23-24 March 2017. Information about the current LoS together with community feedback was presented to the Councillors. Councillors were asked to:

Consider whether the current LoS was about right and what changes, if any, were required. Give direction on some specific LoS issues important to the activity.

Generally, the Councillors considered the LoS to be about right. However, the following LoS matters were raised during the workshop and are taken account of in this AMP, as indicated in Table 5.


25

Table 5: Matters Raised at Councilor LoS Workshop

Matters raised at Councilor LoS workshops 23/24 March 2017 How these are included in this AMP

Increased focus on behaviour change and promotion of sustainable outcomes across all three waters

Additional funding sought to support behaviour change initiatives as part of a three water new operating programme.

Impact of inflow and infiltration on the wastewater network Additional operational programme funding sought for a dedicated programme of work focusing on inflow and infiltration reduction.

Optimised pipeline renewal strategies Enhanced investment in CCTV inspection to determine asset condition and remaining useful life. Use of lining to improve wastewater main life at a significantly lower cost than complete replacement.

As part of the development of Council’s strategic direction a number of Strategy Plans were developed during July and August 2017 (see Section 3). Some of the actions set out in these Strategy Plans have level of service implications for this AMP. These are shown in Table 6.

Table 6: LoS Actions from Strategy Plans

LoS actions arising from Council Strategy Plans July – August 2017

How these are included in this AMP

Reduction of Rainfall induced infiltration Specific additional funding inflow and infiltration operational programme.

Increased investment in pipeline renewals Request for a staged increase in the renewals budget during the first three years of the AMP. Continue to increase the use of relining options to increase the total length of sewer relined per annum.

Reduce Overflow risks and frequency within Network

Specific renewal programmes targeting increased capacity in the network to limit the risk of overflows. Specific focus on looking to identify overflow locations within the network and establish monitoring if possible to measure frequency and volumes if they cannot be eliminated.

4.3 Communication of Levels of Service & Performance Measures Council’s adopted LoS and KPIs will be publicly communicated through the 2018-28 10 Year Plan consultation document.

4.4 Current and Future Levels of Service & Performance Measures

Council’s adopted LoS and KPIs will be publicly communicated through the 2018-28 10 Year Plan consultation document.

Users of wastewater services have been divided between domestic users, commercial users, and industrial users. The services provided for each are set out in Table 7 below.

4.4.1 Key Performance Indicators

Target levels of service for the wastewater activity are shown in Table 7. Performance measures identified as “new” are as a result of mandatory non-financial performance measures specified by the Secretary for Local Government in accordance with Section 261B of the Local Government Act 2002. The new mandatory measures are required to be incorporated in the Council’s 2018-2028 10 Year Plan, and therefore will be reported against in Council’s 2017/18 Annual Report.

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4.4.2 Future Changes to Levels of Service

The anticipated changes to the current levels of service over the next thirty years are:

Table 8: Future Changes to LoS

Future Changes to Current Level of Service and Impact on the Community and Costs

Proposed Changes Community Impact Cost Impact

Requirement for the use of pressure sewer systems in designated growth areas

Localised impact Low

Increased standard of WW treatment to meet new consent requirements

All users of public wastewater High

In the next twenty years, Council anticipates changes to the level of service in the following areas:

Changes to resource consent requirements will necessitate improvements to the wastewater treatment systems to improve the quality of the wastewater effluent discharge.

In renewing critical assets, consideration will be given to increasing capacity, or providing duplication of the assets, to improve security of the wastewater collection system.

Designation of specific growth areas within the city North East Industrial Area and City West Residential zone as pressure sewer areas both to limit additional wastewater flows, enable cost effective service provision and provide greater resilience in liquefaction prone areas i.e. City West.

These changes to levels of service have been allowed for in management of the wastewater assets. Capital development programmes to meet projected changes in levels of service are set out and discussed in Section 6.

4.4.3 Service Level Gaps

Generally, the expected level of service is being provided, however, there are a number of areas where the performance of the existing assets needs to be improved and the level of service extended:

Stormwater infiltration and inflow. (Prog 1401 - City Wide Infiltration and Inflow Investigations) Capacity constraints in trunk main network. (Prog 452 – Tremaine / Featherston Trunk Main

Upgrade and Prog 660 – Ferguson Street Trunk Main Upgrade)

Key initiatives proposed to mitigate the negative impacts of the above effects include:

Targeting wastewater pipe renewals in the catchments with the highest peak wet weather flows (Prog 54 – City Wide – Wastewater Pipe Renewal)

Implementing an operational programme to support active CCTV and smoke testing with property level enforcement of improvements to exclude stormwater from the network (Prog 1401 City Wide Infiltration and Inflow Investigations)

Implementation of networked pressure sewer systems in City West and North East Industrial Zone to limit flows, provide storage and exclude stormwater infiltration and inflow (Prog 210 – Urban Growth – Installation of Wastewater Systems for NEIZ and Prog 1055 – Urban Growth City West – Installation of Wastewater Systems)

Section 5 – Growth and Demand Asset Management Plan 2017 – Wastewater

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The AMP has been prepared on the basis of wastewater collection provision to the area broadly corresponding to the residential and commercial / industrial areas shown in the current District Plan, and service areas outlined in the Wastewater Bylaw 2016.

Generally, the expected level of service is being provided however, there are some areas where the performance of the existing assets will need to be improved to meet the current level of service.

Capital development programs to achieve this, including the associated cost estimates, are set out and discussed in Section 6.


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5 Growth and Demand This section sets out the factors impacting on the management and development of the assets to meet the requirements of growth and other demands place on the wastewater assets as follows:

Future demand drivers; Growth projections; Growth trends; Land-use strategies (residential, industrial, retail and rural-residential); Consumption and use patterns; Demand management strategies; and Climate change impacts on demand.

5.1 Future Demand Drivers

The future demand for reticulated wastewater services in Palmerston North will be driven by:

Residential and, industrial growth in the city. Changes in water consumption and usage patterns. Most water supplied for domestic, commercial,

and industrial purposes is subsequently discharged into the wastewater system. Greater uptake of Low Pressure Sewer particularly in the pressure sewer designated areas. Changes in Council policy with regard to rural residential properties. The extent of stormwater entry to the wastewater system (infiltration and inflow). Future demand for treatment of wastewater driven by technology changes. Regional Council One Plan Standards Climate change.

5.2 Growth Projections

Palmerston North is growing, and the Council has strong aspirations to accelerate growth and prosperity for the city. Council’s strategic priorities are set out in Council’s City Development Strategy, which drives the projects and programmes that the Council intends to implement.

For planning purposes, the Council has decided to assume high growth projections for years 1-10, and a medium growth projection for years 11-30. This is significantly greater than was assumed for the 2014 AMP, which was based on Statistics New Zealand medium growth projections adjusted for the local Palmerston North situation.

The high growth projections for the first ten years gives more weight to the average annual gain from net migration and assumes a general long-term upward trend in inward migration than is accounted for in the Statistics NZ projections. The projections being used by the Council for the first 10 years are similar to the Statistics NZ high growth projections.

5.2.1 Population Growth

The latest population projections for Palmerston North through to 2043 were published by Statistics NZ in December 2016. These suggest a declining rate of population growth over the projection period,


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with a population projection of 102,4005 in 2048 under the medium growth projection. However, because of the high recent rates of inward migration, Council is adopting a higher population projection than the Statistics NZ medium growth projections in the first 10 years. The projection for five year periods through to 2048 is depicted in Table 9.

Table 9: Population Projection for Palmerston North

Population projection for Palmerston North (September 2017)

Average annual change

Period ended Population count Number of people

Rate of change (%)

2013 83,500

2018 88,700 1,040 1.2%

2023 93,700 1,000 1.1%

2028 98,100 880 0.9%

2033 100,704 521 0.5%

2038 102,890 437 0.4%

2043 104,869 396 0.4%

2048 1 106,639 354 0.3%

10-year projection 2018 - 2028 940 1.0%

20-year projection 2018 - 2038 710 0.7%

30-year projection 2018 - 2048 598 0.6%

5.2.2 National Policy Statement – Urban Development Capacity

The National Policy Statement – Urban Development Capacity (NPS-UDC) requires that the Council has 3 years supply of land ready to be developed with existing infrastructure (short term). It must also have 10 years of land zoned with infrastructure in its 10 Year Plan (medium term) and 30 years of land identified for growth with identified infrastructure in its 30 year Infrastructure Strategy (long term).

It must also provide an additional margin of land and infrastructure over and above the projected demand of at least 20% in the short and medium term and 15% in the long term. For planning purposes, these additional margins have been added into the additional household numbers in Table 10. It is assumed that by adopting the high growth scenario for 2018-2028, the additional 20% capacity is provided for. The 20% margin has been added to the 2028-2038 period, and a 15% margin to the 2038-2048 period.

5.2.3 Household Growth

The most recent household projections were published by Statistics NZ in December 2015 and are to 2038. An update to these projections is due to be published in December 2017. Council estimates have been made for changes in the period 2038 and 2048. Projected average annual household growth is not expected to slow to the same extend as the population growth rate because the average size of households is expected to reduce, primarily due to the aging population and an increase in the number of single person households. The numbers of households shown in Table 10 also include the additional margin required for land development in the NPS-UDC, and allow the numbers to be reconciled with the capacity being planned for in growth areas.

5 Based on Statistics NZ 2016 population projection 2013-2043 with estimated projection between 2043 & 2048


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Table 10: Household Projection for Palmerston North

Households projection for Palmerston North (September 2017)

Average annual change

Period ended Households Number of households

Rate of change (%)

2013 31,500

2018 33,000 300 0.9%

2023 35,300 460 1.4%

2028 37,600 460 1.3%

2033 39,198 320 0.8%

2038 40,551 270 0.7%

2043 1 41,611 212 0.5%

2048 1 42,436 165 0.4%

10-year projection 2018 - 2028 460 1.3%

20-year projection 2018 - 2038 378 1.0%

30-year projection 2018 - 2048 315 0.8%

5.2.4 Residential Development Type

Housing preference trends have changed over time since Council began reporting on residential growth in 2004. In 2004 greenfield development made up 61% of development, infill was 27% and rural residential was 12%. Based on recent housing preference trends and experience of preferences during times of high growth distribution of dwelling types is based on the following. The table household numbers include the margin for the requirements of the NPS-UDC.

Table 11: Residential Development Type

Period Household per

annum Greenfield Infill Rural Total

2018 - 2028 460 55% 33% 12% 4,600

2028 - 2038 295 50% 38% 12% 2,950

2038 - 2048 222 50% 38% 12% 1,890

9,440

5.3 Residential Growth Strategy

The Residential Growth Strategy is outlined within the Council’s City Development Strategy.

Council’s main role is to make sure land and infrastructure are available to accommodate growth and provide market choice, while responding to changing demographics. The private sector provides new housing in Palmerston North. Council will work closely with developers to co-create new housing opportunities, such as the proposed Hokowhitu Residential Area at Centennial Drive.

The District Plan has been changed to provide more housing choices. Over the past 20 years, the main forms of housing development have been greenfield, infill subdivision, and lifestyle blocks. Greenfield housing typically occurs at the edge of the city on large sections, with recent development at Kelvin Grove and Aokautere, for example. Infill housing creates new smaller sections among


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existing housing, with recent development in Hokowhitu, and the central city and hospital areas. Lifestyle blocks provide a housing choice in rural areas, with recent development on the foothills of the Tararua Ranges and elevated land north-east of the city.

Other housing choices now allowed under the District Plan include multi-unit developments and minor dwellings. Multi-unit developments are encouraged close to the city and suburban centres, where there is ready pedestrian access to services and facilities. Minor dwellings are aimed at meeting the demand for small, good quality, and affordable rental accommodation.

The planning framework enables apartments in or near the city centre, including as part of a mixed-use development. Council will actively identify opportunities and reduce barriers to city centre living and brownfield development, including transitioning Roxburgh Crescent from industrial to residential.

The demand for infill housing is expected to continue. Lifestyle blocks are directed away from productive land and need to have their own infrastructure. Council wants land for new greenfield housing at Whakarongo brought to the market quickly. PNCC will work closely with landowners and promote Council-owned land at Whakarongo to help meet housing demand.

To release pressure and meet updated growth projections, land at City West identified for medium to long-term greenfield housing will need to be released earlier. The most suitable land for early release is the area bound by the Mangaone Stream, Te Wanaka Road, and Pioneer Highway (the Racecourse land), which will need to be rezoned. The interests of private developers at the outer edge of City West could affect the cost-effective and efficient provision of network infrastructure. Council needs to work with the major landowner in this area to better understand the infrastructure options and timing of the rezoning.

Substantial greenfield housing capacity remains at Aokautere, but plans for developing the remaining residential land are unclear. Council will develop a structure plan with the major landowners to guide future development. There is a need to connect the end of Pacific Drive with existing roads in the Turitea Valley. As well as the Hokowhitu Residential Area, Council will work with landowners at Napier Road and Flygers Line, where small greenfield additions can be made without the need for substantial new infrastructure. A revised plan is needed to develop affordable and first homes at Ashhurst, taking into account detailed flood investigations of land north-west of the village.

The growth areas identified with assumed timescale for greenfield development are shown in Table 12. This shows how the projected demands on greenfield development will be met in the short, medium, and long term. Table 12 also shows the number of lots expected to be provided in each area. The locations are shown spatially on Figure 5.

Table 12: The staging and timing of residential greenfield areas

Greenfield Development Areas

Location Lots Years 1-5 Years 6-10 Years 11-15 Years 16-20 Years 21-30

Zoned Land

Aokautere 759

Ashhurst 88

Kelvin Grove 264

Whakarongo 500

Short to Medium Term Rezoning

Hokowhitu 130

Flygers Line 150


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Greenfield Development Areas

Location Lots Years 1-5 Years 6-10 Years 11-15 Years 16-20 Years 21-30

Napier Road 50

Ashhurst Future 250

Racecourse 220

Aokautere Extensions 400

Pioneer City West 800

Medium to Long Term Rezoning

City West (less Racecourse & Pioneer City West)

1680

The location of these areas is shown on Figure 5.


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Figure 5: Map showing location of proposed residential development


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5.4 Industrial Growth Strategy

The strategy prioritises industrial growth:

In the short to medium term at the North East Industrial Zone (NEIZ), and the recently rezoned Extension Area for large floor plate transport, warehousing, and logistics activities.

Longburn is viewed as a suitable location for wet industry.

North East Industrial Zone

The NEIZ (86 ha) was rezoned in 2004. As at March 2017, 46 ha is developed or purchased for development and not available to the market. Since 2004 the annual uptake of land at the NEIZ is approximately 3.5 ha. It is anticipated that the annual uptake of land in the NEIZ will exceed 3.5 ha in the next 3 years.

NEIZ Extension Area

The 126 ha NEIZ Extension will be sufficient to meet the growth of large floor plate industrial activity over the next 20 to 30 years. Forecasting the market’s timing around sizable investment decisions for large format transport and logistics activity is problematic. Particularly when the nature of investment is lumpy and Council is seeking to forecast the investment profile over a 20 to 30 year time-period.

Infrastructure Roll-Out and Staging

For the purposes of infrastructure roll-out, Figure 6 shows the expected progress of development in the Extension Area. From Council’s perspective, it would be more cost effective to start providing infrastructure in the area shown in Stage 1. It is envisaged the land fronting the Roberts and Richardson’s Line corner / intersection will first to be developed.

Figure 6: Map of NEIZ Infrastructure Roll Out


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Longburn

Longburn remains the preferred option for the development of wet industry given its connection and proximity to the wastewater treatment plant. Council’s infrastructure funding priorities for industrial growth in the short to medium term remain at the NEIZ and Extension Area.

Figure 7 shows the extent of the existing industrial zone at Longburn, which comprises approximately 42 ha of which some 35 ha has yet to be developed or remediated to enable development to occur.

Longburn - Sub-Optimal Infrastructure and Pressure to Rezone Additional Industrial Land

Council is coming under pressure to rezone additional land in the Works Road area of Longburn. Part of the existing Works Road industrial area is serviced by private infrastructure that does not meet Council’s engineering standards and Council is unwilling to approve rezoning of additional industrial land that is reliant on sub-optimal private infrastructure.

Figure 7: Map of Existing Industrial Zone at Longburn

Braeburn Industrial Area

Plan Change 15F rezoned a 33 ha extension to the existing Longburn Dairy Manufacturing Site (LDMS) in 2016. The rezoned land is identified as the Braeburn Industrial Area (BIA).

The purpose of the BIA is to primarily provide for dairy related industrial activities to support the ongoing operational and growth needs of Fonterra’s existing LDMS. It is envisaged the BIA will remain in the single ownership of Fonterra and is not for the purpose of meeting the wider industrial land needs of the City.

5.5 Office and Retailing (Commercial) Land Use Strategy

The Council’s centres based strategy seeks to keep commercial activity centred in the core of the city and to avoid the dispersion of this activity to the periphery of the urban area – particularly in the city’s Industrial Zones. This strategy is given effect to through the District Plan hierarchy of business zones as follows:


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Inner Business Zone (IBZ). Outer Business Zone (OBZ). Fringe Business Zone (FBZ). Local Business Zone (LBZ).

The IBZ is the zone where planning for infrastructure is most critical. The IBZ seeks to provide a high amenity, connected, and pedestrian focused city centre that meets the business, social and cultural needs of the community. IBZ development looks to leverage of public investment and in most cases will utilise public on-street parking.

City Centre Streetscape Plan (CCSP) – Any planned works in the IBZ need to align with the outcomes sought by the CCSP. The Plan sets out the future design direction for the streets and spaces in the city centre. The CCSP is guided by a number of Council strategies, including the Urban Design Strategy, the City Centre Framework, and the Street Design Manual.

Importantly, the scope of the CCSP extends to streetscape upgrades including carriageway, parking, footpaths, hard and soft landscape, as well as Palmerston North's urban and inter-regional bus terminals. To achieve the outcomes sought by the CCSP any infrastructure project will need to be informed by a multi-disciplinary team working in collaboration.

OBZ development is more self-sufficient than IBZ development and is required to provide on-site parking. FBZ development is large format retailing and is also required to provide on-site parking. LBZ development provides local amenities and is expected to provide on-site parking.

All business development other than some LBZ development looks to leverage of existing infrastructure as it is effectively a form of brownfield development.

Figure 8: Map of Spatial Extent of the Business Zones

5.6 Rural Residential Strategy

The District Plan discourages lifestyle blocks and further fragmentation of productive farmland. This land is a scarce resource and represents a significant economic opportunity for future generations, as identified in the regional growth study. It is also a valuable resource for sustainable local food


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production. Substantial capacity for lifestyle blocks is provided on the foothills of the Tararua ranges to ensure they remain a legitimate housing choice in the City.

The provision of urban services, in particular reticulated services, is discouraged in rural areas. The provision of reticulated services in rural areas is an inefficient form of infrastructure investment. It also blurs the lines between rural and urban development and leads to confusion about future development opportunities. Many landowners see the provision of urban services as legitimising further intensification while others see it is undermining the specific rural amenity they sought out. Careful implementation of the new District Plan rural subdivision provisions is essential.

5.7 Other Demand / Consumption Projections / Patterns

5.7.1 Wastewater Collection Services Demand/Wastewater Production Trends

The demand for wastewater collection services is dependent upon the volumes of wastewater produced and the extent of the collection service.

5.7.2 Changes to Water Use Pattern

With the exception of water used for irrigation and unaccounted for water, most water supplied by the Palmerston North City water supply system is subsequently discharged into the wastewater reticulation. Changes in water consumption patterns are therefore likely to be reflected in corresponding changes in discharges to the wastewater system.

Domestic Water Demand

Domestic consumption trends are surveyed from a sample of metered properties that are manually read every two months.

Figure 9 shows the previous five years of demand in terms of average daily demand per property for 51 properties. Whilst this includes irrigation and consumptive water use and is a small sample set it still provides some indication of domestic demand trends. The survey set has recently been increased to some 94 properties in order to better represent domestic demand.

Figure 9 shows the range in water use for each property, including the median and 25th to 75th percentile band. The error bars indicate the properties with the minimum and maximum water demand. Increases in surveyed domestic consumption in the last two years correlate to periods of severe droughts. It appears that peoples’ behaviour responded to the drought in 2013/14 as water restrictions did not have to be instigated until very late in the drought.


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Figure 9: Average Daily Demand of Metered Properties

Also plotted in Figure 9 is the One Plan’s allocation for total domestic use, which equates to 753 L/property/day (derived from an allocation of 300 L/person/day and the average occupancy rate from the 2013 census). The current domestic water use is well within the allocation under the One Plan’s Regional Policy Statement.

Non-Domestic Water Consumption

The majority of significant non-domestic (industrial and commercial) water supply users are metered and charged per cubic metre of water used.

Figure 10: Historical Metered Non-Domestic Water Demand

0

500

1000

1500

2000

2500

3000

3500

40000

500

1000

1500

2000

2500

3000

3500

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2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Annual Rainfall

[mm

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/pro

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25%ile to 75%ile Median Annual Rainfall

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/04

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Metered Commercial & Industrial Customers City Council Parks & Facilities


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As shown in Figure 10, the amount of water used by these customers varies greatly from year to year and can partly be attributed to:

Seasonal variation for users that have significant irrigation needs; The economic climate, as seen in the drop around 2008; Several of the top customers moving to new premises; and Improvements in the way the City Council uses water in its parks and facilities.

It is difficult to predict the nature of these customers in the future. For this reason, it is assumed that the future makeup will be similar to the 2016/17 demand summarised in Figure 11 below. The designation of the North East Industrial Zone as a pressure sewer area is designed both to restrict the type of development which can occur but also match wastewater services to the low wastewater flows from the predominantly warehousing and logistics type businesses which have been developing in this area. The change will significantly reduce the wastewater design capacity which must be allowed and help to defer any requirement to upgrade the western trunk sewer which serves that area.

Figure 11: Breakdown of Average Daily Water Consumption for 2016/17

5.7.3 Projected Flows & Loads

Projections of flows and loads arriving at the Totara Road WWTP are summarised below. The projected flows and loads include contributions from the villages and the proposed NEIZ extension and will be reviewed once work on a pressure sewer network in the NEIZ has been designed.

Table 13: Totara Road WWTP Project Flows & Loads

Year Connected Population ADWF [m3/day] PWWF [m3/day] CBOD5 [kg/day] TSS [kg/day] TKN [kg/day]

Current 73,622 27,487 112,000 8,366 9,400 1,467

2014-2022 78,563 35,662 126,557 8,922 10,025 1,565

2022-2032 83,403 37,467 133,993 9,472 10,643 1,661

2032-2043 89,072 39,581 142,680 10,116 11,367 1,774

PN Residential14,936

Ashhurst1,157

Bunnythorpe169

Longburn113

Commercial / Industrial

4,990

Water Loss4,982

Average Daily Water Consumption for 2016/17 [m3/day]


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5.7.4 Wastewater from Private Systems

The two largest private sources of wastewater are from Massey University and the Linton Military Camp. Wastewater from both sites is treated at the Council’s Totara Road WWTP. Previously, an agreement was reached to accept a smaller volume of wastewater from an existing industrial development in Works Rd, Longburn, and to accept a limited volume of waste from the NZ Pharmaceutical’s site, via the Linton connection. Officers are involved in consultation and further assessment work to better define the future flows and loads from the Linton Military Camp, NZP and the Works Road Longburn Industrial Estate.

There is also increasing pressure to install low pressure (pumped) systems into rural residential subdivisions which then connect to Council reticulation. To date one rural subdivision was given approval to connect to Council services, namely the Kingsdale Park subdivision off the Pahiatua Track. Council’s district plan seeks to prohibit the expansion of reticulated water and wastewater services into the rural and rural residential zones. It is not expected that there will be any further servicing developments of this type approved in the future. While the flows from such systems are small and lower than from traditional gravity sewer systems, the cost of assets per property serviced is significantly higher than for the residential zone, resulting in an essential subsidy from existing properties to rural dwellings.

5.7.5 Wastewater from Other Sources

Septage tankers collect waste from septic tanks and other sources, and are only permitted to discharge to the wastewater system at the Totara Road WWTP via a specially constructed receiving facility. Volumes discharged are low and typically comprises 2-4m3/week although the discharges are concentrated with high solids and organics concentrations.

5.7.6 Stormwater Inflow & Infiltration

It is estimated from variations in flows through the Totara Road WWTP that stormwater makes up 20 – 45% of total annual wastewater volumes in Palmerston North, depending on the frequency and intensity of rainfall events. On-going investigations, including CCTV and property inspections, are occurring to attempt to better manage this issue although it is not expected that significant reductions in flows can be achieved. Current wastewater pipe renewal programmes are focused on areas with high inflow and infiltration. Additional funding has been sought to support a dedicated programme to fund a contract position dedicated to investigating and following up on both private property and public stormwater ingress.

In projecting future wastewater volumes, it has been assumed that the inflow and infiltration programmes currently underway will mean that inflow and infiltration will remain at current levels and not increase. Some further analysis of the possible reductions in levels of inflow and infiltration that might be achievable will be undertaken.

5.7.7 Regional Council One Plan Standards

Increased treatment standards and in river targets are expected to be reflected in high treatment standards for wastewater that is to be discharged to the environment and into water ways in particular. This will impact on the extent and capacity of new wastewater treatment systems to be constructed as a result of the new resource consents required at the Totara Rd Treatment Plant.


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Council will continue to work proactively with Horizons Regional Council to identify the best means of achieving improvements in wastewater quality outcomes, in a way which is both practical and cost effective.

5.7.8 National Policy Statement – Freshwater Management

Legislative change through the implementation of National Policy Statements will result in heightened expectation that Council achieves meaningful improvements in wastewater discharge quality.

5.7.9 Technology Changes

Technology changes, such as composting or waterless toilets, are frequently touted as a means of decreasing water consumption and wastewater discharges. However the uptake of these technologies is likely to be very low and health concerns also mitigate against their widespread adoption.

Low Pressure Sewer Systems (LPS) and potentially Vacuum Sewer Systems (VSS) have evolved and become a viable alternative for areas which are low lying, suffer from high groundwater levels and be susceptible to liquefaction in seismic events all factors which make conventional gravity sewer systems less attractive. A key advantage of the LPS systems is their provision of property level storage which provides flow buffer resulting in significantly lower wastewater peaks and the options to hold back flows when the receiving network is at or over capacity. LPS are also very effective at restricting stormwater and ground water infiltration given wastewater can only enter the house or property gravity network which is very limited in extent.

As part of work associated with considering alternatives for Wastewater BPO Project, a comprehensive review will be undertaken of all the technologies which might be adopted to reduce or limit future wastewater flows. The technologies and strategies will be evaluated using local information to determine the extent of any impact on flow under both voluntary and mandatory regimes.

Council’s Trade Waste Bylaw provides a regulatory mechanism for controlling the volume and strength of trade waste discharges. It allows for potentially large discharges to be controlled to reduce or avoid the impact of the discharge on the capacity of Council’s wastewater collection, treatment, and disposal assets. The Trade Waste Bylaw is seen as the preferred mechanism for controlling volumes in different parts of the wastewater network, and in particular, in respect of any new and existing wet industries.

5.8 Demand Management

In response to wet weather overloading of the wastewater system, City Networks has adopted a range of strategies, including:

Programmes to reduce the entry of stormwater to the wastewater system in private properties (infiltration/inflow programmes).

Renewal of pipelines where there is excessive entry of stormwater and / or groundwater through defects in the pipes.

Providing additional capacity in parts of the wastewater system. Proposing the designation of areas where LPS or VSS must be used.


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5.9 Sensitivity to Demand Changes

In projecting the future wastewater demand, it has been assumed that:

The discharge per head of population will reflect water usage patterns and will remain constant, or decrease slightly.

Average dry weather flow increases over the period by approximately 20% to 33,000 m3/day. Current inflow and infiltration levels will not increase. The proportion of major “wet” industries in the City will not increase.

5.10 Climate Change – Impact on Demand

The projected impacts of climate change are likely to become more noticeable towards the end of the planning period of this AMP, and have greatest relevance to water supply, wastewater, and stormwater assets.

The New Zealand Climate Change Office has released a report on the impacts of the changing climate in New Zealand which concludes:

Higher temperatures, more in the North Island than the South (but still likely to be less than the global average).

Rising sea levels. More frequent extreme weather events such as droughts (especially in the east of New Zealand)

and floods. A change in rainfall patterns – higher rainfall in the west and less in the east.

The Ministry for the Environment has predicted impacts of a moderate rate of climate change for the Manawatū-Wanganui region, including changes in average temperature, sea level rise, and rainfall patterns. In general, Manawatū-Wanganui, like much of the west coast of New Zealand, is likely to become warmer and wetter.

Climate scientists estimate that average temperatures in Manawatū-Wanganui could be up to 3°C warmer over the next 70-100 years. This compares to a temperature increase in New Zealand during the last century of about 0.7°C.

Current research and monitoring suggests that the main impacts of climate change on the wastewater activity will be an increase in the frequency and intensity of rainfall events and hence potential increases in inflow & infiltration. This will require Council to continue to adopt an aggressive approach to identifying and reducing I&I if wastewater flows are not to exceed existing network and pump station capacity.

Section 6 – Assets & Lifecycle Management Asset Management Plan 2017 – Wastewater

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6 Assets & Lifecycle Management This section provides the detail of the key asset components comprising the Wastewater Activity together with individual AM strategies and plans for the maintenance, renewal, and development of these assets.

6.1 Overview of Wastewater Network Assets

6.1.1 Description of Assets

Council owns and operates four distinct gravity wastewater networks from which, wastewater is pumped to the Palmerston North Network or the Totara Road Wastewater Treatment Plant. The networks include:

Palmerston North, including, Linton, and Aokautere; Ashhurst Bunnythorpe and Longburn.

The Palmerston North network collects wastewater from urban areas of the City and from the residential areas of Aokautere, and Linton (including the Army Camp and Manawatū Prison). The wastewater collection network is divided up into catchments which are largely based on the natural topography of the City. The layout of the City’s trunk mains and catchment areas is shown in Figure 12. In Palmerston North City, four trunk mains collect wastewater from individual properties through a reticulation network of pipes and manholes to deliver the wastewater in a general north-east to south-west direction to the Totara Road WWTP in the Awapuni area. A number of low lying areas require wastewater to be pumped into these trunk mains. There are 28 wastewater pump stations in the City wastewater collection network.

Council operates separate wastewater networks for Ashhurst, Longburn, and Bunnythorpe. The wastewater from Ashhurst is pumped to the Palmerston North City reticulation via a pump station located next to the existing oxidation ponds and a 9km rising main, to a discharge point in Rosalie Terrace. The Ashhurst system comprises a collection network, two pump stations, oxidation ponds where the wastewater is partially treated, and a 250 mm diameter rising main.

Longburn has a sewer network with 102 connections and two pump stations. The wastewater is pumped to Palmerston North City via a 300 mm diameter rising main. Bunnythorpe is also served by a separate gravity wastewater system including three pump stations. Since 2016 the wastewater has been pumped to Palmerston North for treatment via a 150 mm rising main in Railway Rd.


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Figure 12: Wastewater Catchments


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The broad asset groups and their replacement values as at 30 June 2014 are summarised in Table 14.

Table 14: Replacement Value of Wastewater Assets

Asset Component Quantity Replacement Value

Pipelines 418km 138,594,111

Manholes 5679 $30,312,864

Laterals 27,783 $68,948,126

Pump Stations 36 $6,037,242

Treatment Plants 1 $44,816,718

Oxidations Ponds 1 $1,368,890

Valves 109 $570,484

Total $290,648,435

6.1.2 Wastewater Supply Asset Components

Each wastewater scheme is made up of three different asset groups which link together to make a wastewater system as shown in Figure 13.

Figure 13: Wastewater Supply Asset Component Groups

6.2 The Wastewater Collection Assets

The wastewater collection system comprises:

Sewer laterals. Gravity sewer pipes. Manholes.


Pump Stations

Treatment Plant


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Pumped sewer pipes.

The wastewater collection network within Palmerston North is delineated into the following catchments:

6.2.1 The Western Trunk Sewer Main Catchment

The Western trunk sewer main, which was constructed over the period 1959 - 1975, drains the northern perimeter of the City, extending some 15 km from Kelvin Grove in the east to Maxwell’s Line in the west. Recent developments have involved extending this to the intersection of Railway Rd and Roberts Line to collect waste from the NEIZ area. Downstream of Tremaine Avenue, the system has been duplicated, with both lines delivering flow to the Maxwell’s Line Pumping Station. This pump station discharges through a rising main and gravity sewer along Maxwell’s Line, joining the other trunk sewer mains between Otira Place and the WWTP. The bulk of the pipework in this catchment is rubber ring jointed reinforced concrete pipe.

6.2.2 Featherston/Tremaine Trunk Catchment

This trunk sewer main serves the northern part of the main City area, generally between the railway line and Grey Street in the east, and extending as far south as Ferguson Street further west. It interconnects with the Ferguson Street trunk sewer main and the Western trunk sewer main between Rugby Street and the WWTP.

6.2.3 Ferguson Street Trunk Catchment

The Ferguson Street trunk sewer extends from the intersection of James Line and Rosalie Terrace, and receives flows from Ashhurst, the southern part of the City between the Featherston Street catchment to the north, and the Eastern trunk sewer main to the south. The original earthenware pipe was replaced after 1973 by a new 450-1200 mm concrete pipe, with the old pipeline left in some areas to act as a rider line interconnected with the new pipes.

6.2.4 Eastern Trunk Catchment

The Eastern trunk sewer main sewer was completed in 1968 and was designed to handle flows from Aokautere and Massey, and also to relieve the Ferguson Street trunk by taking flows from the south east of the City through pumping stations at College Street and Jickell Street. The trunk is served primarily by these pump stations, with a connection to the Massey pump station by a pipeline across the Manawatū River bridge.

6.2.5 Confluence of Trunks

In the south-western part of the City around Maxwell’s Line, the sewer trunk mains converge on the Totara Road WWTP. The Western trunk sewer main flows are delivered along a rising main in Maxwell’s Line, which gravitates past Racecourse Road and Otira Place, where the flows from the Tremaine/Featherston and Ferguson trunk sewer mains join the system. The College Street trunk and Eastern trunk sewer mains join the other trunks in Totara Road, from where wastewater is transported to the Treatment Plant through parallel 1350 mm and 900 mm pipelines.


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6.2.6 Aokautere Reticulation

A separate reticulation system services the Aokautere Village and is connected to the Palmerston North system at Cashmere Drive via a pump station in Peterson Rd and a 100mm diameter rising main.

6.2.7 Linton Reticulation

A separate reticulation system services the Linton area and is connected to the privately owned Linton Army Camp system. The Linton Army Oxidation Pond discharge to the Manawatū River was discontinued in 2006, and a direct pumped connection was made via a private pipeline to the Totara Road WWTP.

6.2.8 Ashhurst Reticulation

A separate reticulation system services the Ashhurst area. Wastewater from Ashhurst is pumped to Palmerston North City via a pump station installed next to the existing oxidation ponds and a 9km rising main discharging into the top end of the Ferguson trunk in Rosalie Terrace. The Ashhurst scheme was installed in the 1980’s, with most of the pipework being either reinforced concrete or PVC.

6.2.9 Bunnythorpe Reticulation

A separate reticulation system services the township of Bunnythorpe. Wastewater from Bunnythorpe is now pumped to Palmerston North for final treatment from the Kairanga-Bunnythorpe Rd pump station upgraded in 2016 to deliver larger flows direct to Palmerston North.

6.2.10 Longburn Reticulation

A separate reticulation system services the township of Longburn. Wastewater from Longburn is pumped to Palmerston North City through two pump stations located in Reserve Rd and Walkers Rd, via the 300mm diameter rising main servicing the Works Rd Industrial subdivision.

6.3 Wastewater Collection Asset Attributes

Data on the collection network is held in the INFOR database. There is reasonably good information about the main sewers and manholes. Data on laterals is incomplete, and the number of laterals is based on the number of properties rated for wastewater, excluding properties where the wastewater pipe is located on the property, and an estimated average lateral length of 9m and an assumed diameter of 100 mm.


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Figure 14 shows an age profile of the wastewater pipelines. It indicates that, although the first pipes in the network were installed in 1890, most of the network is relatively young, with 60% of the network installed after 1960.

Figure 14: Wastewater Pipe Age

Figure 15 shows that the network is predominantly constructed of reinforced concrete pipes (55%), with smaller lengths of earthenware (23%) and PVC (22%).

Figure 15: Wastewater Pipe Material

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Figure 16 indicates that the network largely consists of small diameter pipes, with 150mm diameter pipes making up 53% of the network.

Figure 16: Wastewater Pipe Diameters

6.3.1 Wastewater Collection Asset Condition

Table 15 summarises the wastewater collection system assets, including the condition and performance grading for each asset type. Condition grading confidence level descriptions are provided in Appendix G. Asset condition is graded on a scale of 1 to 5 (excellent to poor) based on guidelines from the International Infrastructure Management Manual. Details are provided in Appendix G.

Table 15: Collection System Assets

Component Quantity Description Condition Rating

Performance Rating

Public Laterals 242 km Typically 100 mm dia. pipes connecting properties to the public mains from the point of connection.

1 - 5 1 - 5

Gravity Sewer 418km Non pressure pipes sized between 150 to 1350 mm dia. 1 - 4 1 - 4

Manholes 5,679 Access points located at changes in direction or grade and intersections between public mains

1 - 4 1 – 4

Pumped Sewer 29.6km Pressure pipes supplied from associated Pump Stations 1 - 3 1 - 3

The overall condition of the collection network is considered to be good. This assessment has been based on:

The current low level of maintenance problems and premature failures. The relatively young age for the majority of the pipes. Good design and construction standards used to develop the wastewater network. Generally favourable ground conditions in the City. Results of CCTV inspections of a selection of the network.

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Additional condition assessments have been based on Closed Circuit TV (CCTV) surveys which provide specific condition data. Since 1988 CCTV inspections have been carried out on approximately 39% of the pipe network which are typically older earthenware or concrete pipes. Surveys were carried out to investigate specific network problems and for condition assessments. Figure 17 shows the areas surveyed as of 2013. CCTV inspections have shown that age of pipe alone is not a good indicator of pipe condition. Other factors influencing condition include:

Circumferential cracking in older earthenware pipes. Corrosion of concrete pipes particularly in the vicinity of major pump stations due to acid attack from

hydrogen sulphide gas exacerbated by turbulent flow conditions. These pipes are to be more closely monitored to enable timely replacement or rehabilitation.

Tree root intrusion – Several of the City's streets suffer significant blockage problems due to tree root entry of the sewer mains. This is also one of the main causes of sewer lateral failure within the road reserve. Many of the earthenware sewer mains laid by the Housing Corporation were located along the rear of the houses in private and these are particularly prone to tree roots intrusion in well planted sections.

Poor pipeline grades – Areas of the City that were built on previous swampy land have settled unevenly so that there are sections with uneven or very flat grades. While this affects sewer laterals more than sewer mains, Council has a proactive mains flushing programme in place to mitigate blockage risks in these sewers.

All CCTV records are catalogued in the INFOR Asset Management System and linked to the GIS. This allows pipelines with a CCTV record to be viewed spatially on any networked PNCC PC. The NEZTEK Data Exchange Utility enables CCTV condition grading information from contractors to be imported into the INFOR AMS. This improves the efficiency and effectiveness of asset planning.

Figure 17: Location of CCTV Surveys Completed


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6.3.2 Wastewater Collection Asset Capacity and Performance

The overall performance of the wastewater collection network is considered to be satisfactory. Performance assessments have been based on:

The number of pipe blockages. The number of sewer overflows. The volume of stormwater inflow and infiltration.

The following Figure 18 and Figure 19 depict the incidence of pipe blockage by age and diameter.

Figure 18: Pipe Blockage and Breaks by Pipe Age

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Figure 19: Pipe Blockage and Breaks by Pipe Diameter

Figure 20: Pipe Blockage & Breaks Long Term Trends

Blockages

Blockage records held since June 1996 show that the number of blockages per year had remained relatively constant before an up-swing over the period 2008 - 2014, which was primarily related to third party damage from the Ultra-Fast broadband program in the city. It can be assumed that the background level of breaks has remained fairly steady indicating the service potential of the system is being maintained.

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For 2016/17 the number of mains blockages was 19 per 100km of mains, which was below the number of blockage specified in the technical performance measures for levels of service. A target of 1 blockage per 1000 customers has been adopted in accordance with DIA requirements.

The causes of blockages are:

Uneven grade. Tree roots. Offset pipes. Structural collapse. Build-up of fat or gravel. Foreign objects. Third party damage

Overflows

Overflows can occur through a service defect such as pump failure or blockage, or through wet weather flows exceeding the capacity of the pipeline or pump stations. The City does not have a major overflow problem, and only during prolonged periods of heavy rainfall does the network become surcharged sufficiently to cause overflow at a number of known low spots around the City. Part of this problem is thought to be due to the entry of ponded stormwater to the wastewater network in a number of low lying areas in the city, which greatly increases the rate of inflow and infiltration into the wastewater system.

Areas with overflow problems include the low lying areas of the Tremaine/Featherston catchment, and the top end of the Western Trunk. Where practical, properties with known overflow problems have been fitted with reflux (non-return) valves to their connections to prevent backflow.

Stormwater Inflow & Infiltration

Extensive flow monitoring undertaken since 1997 has enabled the assessment of the performance of the various sewer sub-catchments in terms of stormwater inflow and infiltration (I&I) in the wastewater network. Figure 21 depicts the severity of I&I in the wastewater catchments as assessed in 2013. Red areas shown are those with the highest stormwater inflow and infiltration (GHD 2013).6 The R% is the percentage of rainfall volume in any rain event that is estimated as typically entering the wastewater network in each catchment and it is one of a number of indicators of the severity of I&I.

The catchments with the highest assessed I&I have also been the focus for the network renewal programme over the last few years.

6 GHD, NEIZ WW Capacity Assessment, 2013 – DM 1052063


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Figure 21: Catchment Inflow & Infiltration

6.4 Wastewater Pump Station Assets

6.4.1 Wastewater Pump Station Asset Attributes

There are 28 pump stations in Palmerston North: 2 in Longburn, 3 in Bunnythorpe, and 2 in Ashhurst, that lift wastewater from low lying areas into the gravity wastewater collection network. The major pumping stations in the city are Maxwell’s Line (pumping 25% of the City’s wastewater flow), Massey, College St, Jickell Street, and Ashhurst Ponds.

Table 16 summarises the wastewater pump station assets. Complete pump station asset information can be found in Appendix H.


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Table 16: Wastewater Pump Station Condition & Performance Ratings

Pump Station Capacity (l/S) No Pumps Year Built Year

Renewal Condition Performance

Rating Rating

Maxwells Line 758 4 1964 1985-2017 1 1 – 2

Admirals Place 10 2 1986 2006 1 – 2 1

Alderson Drive 25 2 2008 N/A 1 1

Aokautere 10 1 2011 N/A 1 1

Ashhurst Ponds 47 2 2014 N/A 1 1

Capri Place 35 2 1975 1986 2 – 3 1 – 3

Cashmere Drive 10 2 2000/08 2008 1 – 2 1 – 2

College St 59 2 1966 2004 2 – 3 1 – 3

Coutts Way 6 2 2016 N/A 1 1

Durham St (Ashhurst) 30 2 1984 1994/2011 1 – 2 1

Food Stuffs – Railway Rd 10 2 2008 2024 1 1

Freedom Drive 35 2 2016 New 1 1

Grand Oaks Dr 10 2 2008 N/A 1 1

Jickell St 100 3 1926 2008-2017 2 – 3 1 – 3

KB Road - Bunnythorpe 13 2 2016 New 1 1

Kensington Mews 18 2 1962 2011 2 1 – 2

Maple St - Bunnythorpe 5 2 1990 2018 Not Rated Not Rated

Massey 139 3 1965 1992-96 2 2

Newton Place 10 2 1986 2002 2 1 – 2

Racecourse Rd 26 2 1975 1994/2006 2 – 3 1 – 3

Railway Road - Bunnythorpe 22 2 1981 2009 Not Rated Not rated

Redwood Grove 20 2 1975 N/A 2 1 – 3

Reserve Rd - Longburn 22 2 1981 2018 2 2

Roy Street 4 2 1993 N/A 2 1 – 3

Ruamahanga Cres 10 2 1986 N/A 1 – 2 1 – 3

Ruapehu Dr 10 2 1999 N/A 1 1

Ryder Cheshire 28 2 1983 N/A 2 – 3 1 – 3

Shirriffs Rd 2.4 2 1994 2002 2 1 – 3

Sutton Place 10 2 1986 2008 1 - 1

Te Awe Awe St 18 2 1955 1990 1 – 3 1 – 3

Te Wanaka Rd 5.2 2 1994 2008 2 1

Tremaine Ave 53 2 1961 1988 2 – 3 1 – 3

Vogel St 4 2 1991 2015 2 – 4 2 – 4

Walkers Rd - Longburn 22 2 1981 2015 2 2

Wikiriwhi Crescent 18 2 1966 2012 1 – 2 1

Condition and performance grading confidence level descriptions are provided in Appendix G .

All pump stations are unmanned with automatic operation of the pumps being controlled by various level sensing devices and pump controllers. The installed pumps operate on an alternate cycle so that


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wear is equalised between the pumps. Pump operation is monitored using Abbey’s Powerlink telemetry system.

To cater for major power outages, standby generators have been installed at three of the biggest pump stations: Maxwell's Line, Jickell St, and Massey. All other pumping stations have a portable generator connection. The portable generators owned by Council are able to power at least one pump in the larger pump stations.

Figure 22: Location of Wastewater Pump Stations


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6.4.2 Wastewater Pump Station Asset Condition

Table 17 contains a summary of the condition for each of the pump station. Additional detail is included in Appendix H. It can be seen that the majority of the pump station assets are in good to excellent condition. The lower condition score pump stations (3 or 4) have been marked down on the basis of the condition of the electrical and control equipment rather than the civil (Concrete) structures.

Figure 23: Photo of Wastewater PS in Grand Oaks Drive

6.4.3 Wastewater Pump Station Asset Capacity and Performance

Pump Capacity

Pump stations are generally designed so that the installed pumping capacity is twice that required to meet wet weather flows. This allows for one pump, in the event of a main pump failure or removal of a pump for servicing, to meet the required level of service.

Studies undertaken in 2011 indicated there were two pump stations with insufficient capacity. These were Massey Pump Station and Maxwell's Line Pump Station. Maxwell’s Line requires all four pumps to run during a prolonged significant wet weather event. In some events, Maxwell's Line Pump Station had not been able to cope with the flows and overflows had occurred at the top end of the Western trunk sewer main. Although an overflow is a rare event, it showed that there was very little spare capacity in the system. Upgrade works were completed in 2013 and 2017 and all four of the existing pumps were replaced with pumps of larger capacity and greater efficiency.

Investigations at Massey pump station showed that all three pumps were operating at significantly less than their theoretical capacity. Further investigations revealed that the constraint was in the capacity of the rising main. The operating regime used at Massey pump station resulted in lower pipe velocities than those necessary to prevent settlement of solids. In addition, the existing pumps had high wear and lower than desirable efficiencies. The pumps at Massey pump station have now been replaced with new, high efficiency pumps, and the operating philosophy changed to ensure regular flushing flows are created to prevent settlement in the rising main.


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Wet Well Storage

In the event of complete pump failure (usually from power outage) all pump stations are designed with at least 4 hours storage at inflows of 4 x average dry weather flow. The exceptions to this are Massey pump station, which has approximately 2 hours storage at peak flows before overflow to the Turitea Stream occurs, and Jickell Street which also has only 2 hrs storage at 4 x average dry weather flow.

Studies had indicated that an additional storage volume of 355 m³ is required at the Massey pump station to meet the 4 hour design standard. Unfortunately, there is insufficient space available to construct additional storage. The lack of storage at Massey pump station is mitigated by the presence of a standby generator unit that ensures continuous operation of the pump station in the event of power failure. With respect to Jickell Street, there was again insufficient space available to construct the required storage. This has also been mitigated by the installation of a new standby generator for instances of power failure.

The performance of the pump stations is monitored by telemetry that enables total running hours and other performance indicators to be identified for each pump. This is tracked to detect any deterioration of pump performance. In the past three years there have been several overflows at the Reserve Rd Longburn pump station. In order to improve understanding of flows in the pump station catchments upgrades to provide flow measurement as well as more robust electrical control and telemetry are proposed for a number of stations across the network,

6.5 Wastewater Treatment Assets

6.5.1 Wastewater Treatment Asset Attributes

Palmerston North City – Totara Road Wastewater Treatment Plant

The original conventional primary treatment plant at Totara Road was officially opened on 22 June 1968. The secondary treatment facility (aerated lagoons) were designed and constructed during the early 1980’s, and commissioned in 1985. Tertiary treatment facilities were added in 2006-2008 and included UV irradiation treatment, and a dissolved phosphorus removal plant including clarifier and an associated sludge dewatering plant. To meet cultural objectives, the treated effluent passes through a constructed wetland pond and rock embankments before discharging into the Manawatū River.


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Figure 24: Totara Road Wastewater Treatment Plant Schematic

The sludge generated in the primary treatment plant is stabilised through two anaerobic digesters. The anaerobic digesters were upgraded in 2009/10 to enable increased organic loading and increased biogas production.

Ashhurst

Consists of a two stage oxidation pond system with mechanical aeration in the first pond, sited near the bank of the Manawatū River on farmland off the end of Hackett’s Road, and serves a population of approximately 2,634. The first stage pond has a capacity of 19,000 m3 and the second stage pond 7,100 m3. A 4 kW aerator was installed in 1997 to improve the quality of the effluent discharging to the river. Following expiry of the consent to discharge to the river in August 2013, a connection from the Ashhurst system to the city was constructed in June 2014. This comprised a pump station drawing from pond two and 8.6km of rising main discharging to the terminal manhole in Rosalie Terrace. A temporary consent (3 yr expiring in December 2018) in place for the operation of the ponds, subject to the outcome of further investigation in the extent of leakage from the ponds into the surrounding groundwater.

Monitoring of groundwater both upstream and downstream of the assumed zone of influence of ponds over the last 18 months has indicated little if any effect from the discharge. On the basis of the interim results Council is proposing to apply for a long term consent for the two pond system.

6.5.2 Wastewater Treatment Asset Condition

Palmerston North City – Totara Road Wastewater Treatment Plant

Since the WWTP was commissioned in 1968, the plant has been maintained to a high standard, with an ongoing maintenance programme and replacement and upgrade of mechanical and electrical equipment on an as required basis. Historically this has been funded from an annual allocation of funds with final project selection occurring at the start of the budget year. This is being replaced by a more robust 5 year renewals programme informed by condition assessment of all key mechanical and electrical assets. The renewal profile developed will then be used to inform the application for funding.


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Elements of the inlet works have previously been investigated to assess performance. The evaluation concluded that the inlet screens were under capacity and had poor performance. In addition, the capacity of the inlet lift pumps will be exceeded by 2022 and will require replacement. The final part of the study investigated the performance of the existing primary sedimentation tanks, and concluded that capacity would be increasingly exceeded as flows increase. The study recommended duplication of the sedimentation tanks in order to treat the projected future inlet flows and loads, and replacement of the pre aeration/grit removal system. The above investigations are set out in detail in the report “Totara Road WWTP Inlet Works and Primary Treatment Capacity, Capacity Review of Inlet Works and Primary Treatment” (Harrison Grierson, June 2014).7

To date the inlet screens and screen conveyor systems are in the process of being replaced, and a new odour control system has been installed. The new screens consist of 3 x 5mm band screens that run continuously and duplicate “nog wash” screen conveyors. The replacement of the pre aeration/grit removal system is also underway, and work on identifying suitable inlet pump replacements has started. The duplication of the primary sedimentation tanks is currently on hold pending the outcome of the upcoming Wastewater Best Practicable Options Assessment (BPO) review.

Previous inspections had revealed that the internal spaces of the floating lids on the two anaerobic digesters were in poor condition. As a result of this, both lids are being repaired, and corroded structural steel replaced over two successive years. Associated equipment is also being replaced, including gas pipework, valves, and pressure relief valves. The internal concrete surfaces are being coated with protective linings.

Ashhurst

The oxidation ponds are in good condition and require little attention, apart from routine maintenance on the mechanical aerator. Some deterioration of the wave band around the ponds has occurred and will require attention in the medium term but it is intended this will be addressed as part of the annual operating programme if required.

Table 17 summarises the wastewater treatment plant assets.

Table 17: Wastewater Treatment Plant Asset Data

Component Description & Purpose Grading

Condition Performance

Totara Road Wastewater Treatment Plant

Sluice Gate A hydraulically operated penstock gate controls the incoming flow automatically so as to limit flow to that which can be handled by the plant.

1 1

Screening Three 5mm band screens and two Nog Wash screen conveyors. Recycled wash water system to keep the screens clean.

1 1

Lift Pumps Four 75KW AC variable speed driven pumps lift all the flow to a suitable level for gravity flow though the treatment processes.

3 3

Pre Aeration and Grit Removal Tank

This tank is for the deposition of grit before the flow passes to the sedimentation tanks.

3 4

Sedimentation Tanks

Three sedimentation tanks allow the solids to sink to the bottom for sludge removal and fat and grease to accumulate on the surface from where it is skimmed off.

3 3

Sludge Digesters Two anaerobic sludge digesters stabilise the sludge for disposal to the sludge lagoons.

2 1

7 Harrison Grierson, Totara Road WWTP Inlet Works and Primary Treatment Capacity, Capacity Review of Inlet Works and Primary Treatment, June 2014 –

DM#1146931


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Component Description & Purpose Grading

Condition Performance

Sludge Lagoons For the accumulation of the digested sludge and further breakdown of the sludge - 3.2 hectares total area.

3-4 3

Aerated Lagoons Two lagoons covering a total area of 3.8 ha are connected in series provide for secondary treatment of the effluent.

2 3

Aerators The first pond utilises four 30 kW floating aerators and two 45 kW floating aerators and the second pond three 30 kW aerators all fitted with variable speed drives to assist with the oxidation process.

2 2

Monitoring SCADA via Wonderware Archestra and Abby Systems Powerlink telemetry.

1 1

Standby Generator(s)

A diesel powered standby 500 KVA generator commissioned in 2013 is installed to provide power for the main building including lift pumps in the event of power failure. A separate 300 KVA diesel powered generator has been installed to power the UV treatment plant and Phosphorus Removal Plant, the lagoon aerators are not supplied with standby power.

1 1

UV Plant Installed and commissioned in 2003 consists of two banks of LP UV lamps 112 kW.

1 1

Phosphorus Reduction Plant

A single 48m diameter clarifier has been installed in association with a sludge dewatering plant in 2007.

1 1

Wetland Pond Constructed in 2003 in conjunction with the UV plant by converting a sludge stabilisation pond.

1 2

Biogas Generator Commissioned in 2010 716 kW dual fuelled generator. 1 1

Digester Sludge Thickener

Andritz rotating drum sludge thickener commissioned in 2012 with associated automated poly batching plant and pumps.

1 1

Digested Sludge Thickener

Teknofaghi Mono Belt Thickener commissioned in 2016. 1 1

Clarifier Sludge Thickener

Westphaila Centrifuge. 1 1

Liquid Waste Reception facilities

Two 30,000L tanks and associated pumps for receiving additional liquid wastes before injection into the digesters commissioned in 2010.

1 1

Ashhurst

Oxidation ponds A two stage oxidation pond system using natural biological process to treat Ashhurst wastewater.

2 2 - 3

Aerator A mechanical device operated to assist aeration in the first pond. 2 2

Condition grading confidence level descriptions are provided in Appendix G.

6.5.3 Wastewater Treatment Asset Capacity and Performance

Palmerston North City – Totara Road Waste Water Treatment Plant

The wastewater treatment plant treats wastewater collected from a population of 73,662. The average dry weather flow is 27,487 m3/day. Flow can increase substantially after rain to as much as 120,000 m3/day due to stormwater inflow and infiltration into the collection system.

Work was undertaken in recent years to increase the capacity of the plant to provide for a population equivalent of 100,000 or 42,000 m3/day dry weather flow. This includes primary settlement tanks bypass channel construction, and improvements that allow for flows to pass directly to the aerated lagoons without primary treatment (1997 and 2005). Upgrades to inlet pumping capacity were completed in 2005 along with improved capacity for flow between the aerated lagoons. The new tertiary treatment works have been designed to meet capacity needs of 100,000 population equivalent.


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In recent years, the organic load to the plant has increased, particularly from a number of wet industries in Palmerston North and the Longburn Industrial Area. A further increase in flows has occurred following installation of pumped connections from the satellite towns of Ashhurst, Longburn, and Bunnythorpe. This led to the capacity assessment of the inlet works and primary treatment by Harrison Grierson (June 2014), as discussed in Section 6.5.2.

Primary Treatment Processes

With the projected increase in flows and loads, the capacity of the existing primary plant is constrained. The situation is likely to be exacerbated due to further growth in the future. Moreover, the plant and equipment in the primary treatment plant have been in service for more than 20 years in some cases, and the technology is out dated. As a result, performance had been compromised, with frequent break downs requiring high maintenance.

Some of the key issues were as below:

Inlet Screens – Capacity constrained at current flows, low solids capture rate, and odour issues. Lift Pumps – No redundancy in the system at current wet weather flows, insufficient capacity to

cater for the future flows, Worthington Simpson Pumps which are no longer manufactured. Grit Removal System – Insufficient capacity to cater for the future flows and odour issues. Primary Sedimentation Tanks – Capacity constrained at current flows and unsafe concrete

structure.

Based on a multi criteria analysis, the Harrison Grierson report recommended the following:

Upgrade screens with two 3m Rotary Screens of 1,200 L/s each; Increase pumping capacity with new pumps; and Modify the existing aerated grit chamber to accommodate a PISTA Grit Removal System of 2,468

L/s capacity for projected flows up to 2043, and upgrade PST with the addition of two channels to cater for flows up to 2043.

To date, the inlet screens and screen conveyor have been replaced with 3 x 5 mm band screens rather than 2 rotary screens as originally proposed, and with 2 “nog wash” screen conveyors. At the same time, permanent odour control has been installed. The replacement for the existing aeration/grit removal system has been ordered with installation expected during the summer of 2018/19.

Secondary Treatment Process

After investigations into the performance of the aerated lagoons regarding their performance, an additional two floating aerators were installed into pond one, and the existing aerators relocated. At the same time, additional dissolved oxygen (DO) monitors were installed. This has addressed the shortfall in aeration capacity in pond one and here is now a surplus of aeration capacity in pond two to cater for predicted domestic and commercial growth over the period prior to the upgrade the wastewater treatment plant.

For further details refer to the report “Palmerston North City Council, Totara Road WWTP Aeration, Design Report: Relocation of Aerators” – GHD Consultants, August 2014).8

8 GHD, Palmerston North City Council, Totara Road WWTP Aeration, Design Report: Relocation of Aerators, August 2014 – DM#1177716


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Consent Review

Following on from a non-compliance and abatement notice issued by Horizons Regional Council in 2011, a formal Consent Review of the treatment plant discharge was heard in front of four commissioners in November 2015. The formal Consent Review was withdrawn by Horizons Regional Council before a decision was recorded, after PNCC agreed to apply for a new discharge consent by 2022 rather than in 2028. The revised consent conditions include a requirement that PNCC undertaking a Best Practicable Options assessment of treatment options before applying for the new discharge consent. The revised consent also includes a number of mandated milestones the Council has to achieve and report on. The revised consent is located in Appendix C.

The discharge from Totara Road is covered by RC No.101829 and a copy of the consent is located in Appendix C.

Ashhurst

The Ashhurst ponds were upgraded in 1997, with the addition of a 4 kW aerator to satisfy previous discharge consent requirements. Following expiry of the discharge consent in 2013, a new pumped connection to the Palmerston North network was constructed and commissioned. A temporary three year consent (expiring December 2018) consents the current pond, to allow for intensive ground water monitoring to be undertaken to determine the effects of any leakage from the ponds to the surrounding soils and groundwater. Monitoring to date indicates minimal to no significant leakage to the surrounding soil and so Council proposes to apply for long term consent for the facility. Depending on the outcome of the consent, there is a possibility that the regional council may require the ponds to lining, however at the time of writing this AMP no allowance has been made to fund any works.

Bunnythorpe

Wastewater from Bunnythorpe is now pumped to Palmerston North for treatment. The oxidation pond and pump station that previously supported the pumping of wastewater to Feilding have or are in the process of being decommissioned.

Longburn

Wastewater from Longburn is pumped to Palmerston North for treatment via the 300 mm diameter rising main originating in the Works Rd industrial area.

6.5.4 The Telemetry and SCADA Assets

6.5.5 Description of Assets

In order to collate and store operational data, Council utilises a telemetry service to transmit monitoring data from various sites, typically pump stations throughout the City, to a central database. Council currently uses Abbey Telemetry System. Data is available in real time to operational and City Networks staff to monitor the operations of both the pump stations and the treatment plant. Historical data is also available to analyse trends and patterns.

Data from the sites is transmitted using radio communications. The data monitored includes operational status of the pumps, such as pump run hours, flow rates, well levels, etc. The telemetry system also transmits alarm paging messages to pump maintenance crews whenever it detects faults in pump operations, such as power failure, pump fault, high well level, etc, so that the fault can be


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attended to in a timely manner. Communication with the Telemetry Master Station is by Abbey Secure-Link software using laptops and broadband internet connections.

The Totara Road WWTP uses Wonderware Archestra as the (System Control and Data Acquisition) SCADA system. This monitors, controls, and optimises the various equipment and processes at the plant. The Archestra SCADA software was purchased and installed in 2017. This includes a Historian back-up server that is located at the Main Council Building. The Historian records all data collected from the WWTP, and is available for reporting purposes. The SCADA system also has its own independent alarm paging systems to notify treatment plant operators and supervisors of faults, etc. The Totara Road WWTP can be monitored and managed remotely, as the SCADA system can be accessed via the Council network.

A Disaster Resilience Study & Options Report was completed for PNCC water and waste telemetry system in 2017. The recommended improvements are:

Replacement of aging remote telemetry units. Additional Land Mobile Radio (LMR) Channel to reduce “traffic loading” from the increasing number

of telemetered sites. Setting up of Telemetry Disaster Recovery Master (DRM) at the Arena and the North Range Road

Repeater Site, supported by: High speed Ethernet via two microwave links between North Range Rd Repeater Site with

CAB & Arena. Resilience improvements to North Range Road Telemetry Repeater Site.

6.6 Activity Management

6.6.1 Support Services

Activity management has no direct effect on asset condition, but provides those functions required to support the maintenance, renewal, and development plans. These functions include:

System planning. System monitoring. Systems record management. Policy and strategy development. Effluent quality control. Bylaw development. Regulatory control of stormwater inflow. Resource consents. Public education programmes.

Internal staff resources are mainly utilised in carrying out the functions as outlined above. Specialist external resources are employed for CCTV inspection of pipelines, strategic wastewater flow monitoring, and more sophisticated technical investigations and legal advice. Trade waste investigation and administration is performed by the City Enterprises business unit of the Council.

The support services programme, planning, and policy expenditure forecast for the next five years to implement the strategies above is shown in Table 18.


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Table 18: Activity Management Program – Five Year Forecast

Activity 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

City Networks Labour and Overheads $614,525 $936,557 $938,953 $930,648 $930,672 $930,672

Consumables $500,000 $400,000 $400,000 $400,000 $400,000 $400,000

Electricity $364,850 $210,000 $210,000 $210,000 $210,000 $210,000

Insurance $186,180 $191,100 $191,100 $191,100 $191,100 $191,100

Consultancy $220,935 $163,000 $163,000 $163,000 $163,000 $153,000

Rates $76,577 $78,660 $78,810 $78,960 $79,110 $79,110

Miscellaneous $60,057 $61,000 $61,000 $61,000 $61,000 $61,000

Gas $75,000 $30,000 $30,000 $30,000 $30,000 $30,000

Legal $5,942 $5,000 $5,000 $5,000 $5,000 $5,000

Reactive Maintenance $5,214 $5,000 $5,000 $5,000 $5,000 $5,000

Plant Repairs and Maintenance - $10,000 $10,000 $10,000 $10,000 $10,000

Software Licenses $5,000 $5,000 $5,000 $5,000 $5,000 $5,000

Activity Management $2,114,280 $2,095,317 $2,097,863 $2,089,708 $2,089,882 $2,079,882

6.6.2 Increases in Services (Operating Programmes)

Programme 1319 – Totara Road Wastewater Treatment Plant – Consent Renewal Upgrade Options Analysis

This programme which is a multi-year programme continuing from 2017-18 is provided to fund the completion of the optioneering stage of identified the preferred option for an upgraded wastewater treatment and disposal facility. The Best Practicable Options Project (BPO) is scoped to assess all possible options for a future wastewater treatment facility, through effective consultation and engagement with the community and all stakeholders prior to Council confirming their preferred option by June 2021. This will enable an application for the necessary consents to be prepared for lodging by June 2022.

Programme 1401 – City Wide Infiltration and Inflow Investigations

This programme is to fund a focussed programme to identify and address major sources of stormwater infiltration and inflow from both private properties and public spaces to the wastewater network. It has been some time since Council focussed efforts in this area and wet weather flows in the network have increased significantly. The programme is intended to identify the scope and extent of what might be achieved in the run up to applying for new consents for the wastewater treatment plant. It is intended to fund investigation as well as follow-up in catchments with significant inflow and infiltration but also use behaviour change approaches to engage the community in helping to address the issue.

Table 19: Operating Programmes – Forecast Expenditure

Operating Programme 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

1319-Totara Road Wastewater Treatment Plant - Consent Renewal Upgrade Options Analysis $740,000 $740,000 $990,000 $990,000 $740,000 $740,000

1401-City Wide Infiltration & Inflow Investigations $200,000 $200,000 $200,000 $200,000 $200,000 $200,000

Total $940,000 $940,000 $1,190,000 $1,190,000 $940,000 $940,000


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6.6.3 Asset Systems Database – Infor Public Sector

Council uses an asset management system order to store, collate and analyse asset data. The current Council system is Infor Public Sector (IPS), a product which is supplied by INFOR Global Solutions. The Council has used IPS (formerly Hansen) since 1995. The current version deployed is IPS 8.4.0.

IPS is based on internet technology and is Web-browser-based. It can be customised by asset managers to best reflect AM processes and terminology.

The system is directly linked to the Council’s Geographic Information System (GIS) via the Geo Administrator, an INFOR Global Solutions developed interface. The interface allows new assets to be created in GIS and added to the IPS asset register with a single key stroke. Assets can be selected in GIS and viewed in the IPS window.

The link between IPS and GIS allows assets to be viewed in Geo City, an intranet viewer of Council’s spatial data, which is available to all staff. Council assets can also be viewed through the Geo-Guide on the Council’s public website. Local Contractors are able to use this service to locate Council assets prior to construction activities.

IPS comprises of a number of modules:

Asset Register. Work Orders. Inspections. Valuations. Images.

A Date Exchange Utility (DEU) allows pipe inspection data to be exported from IPS to contractors, and results imported back into IPS.

IPS allows asset managers to produce outputs using the Ad Hoc Reporting function. More complex reports are produced using Crystal Reports.

IPS records the following asset data:

Information: ID, Type, Description. Location: Address, Location Description, Area, Sub Area, District. Structural: Diameter, Material, Length, Manufacturer, Critical Rating. Associated: Install Year, Service Status, Ownership, Drawing No.

Asset data can be assigned a condition rating and a performance rating base on a grading of 1 to 5 (see Appendix G). The ratings, along with criticality ratings, can be used to analyse the asset data and provide renewal profiles and determine maintenance programmes.

Asset maintenance, both planned and reactive on assets, along with inspections, is recorded in IPS. Associated costs can also be recorded in the Work Orders module. Recent work has now provided a mobile platform for undertaking and recording asset maintenance, which utilises off the shelf tablets and proprietary software supplied by IPS.

Work Orders can be processed ‘Live’ in the field using the Infor Field Inspector.


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Figure 25: Field Inspector Screen Shot

Assets recorded in the Asset Management System (AMS) have been assigned a replacement value, which is used for insurance purposes, and will be used to estimate renewals programme costs when the condition, performance, and criticality ratings are complete.

Figure 26: IPS Screen Shot

Overall, the quality and extent of data held in IPS is considered to be good. Pipeline data is quite extensive, with the exception of wastewater laterals (service lines). Pump station and treatment plant


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component data records have been improved over the past three years and is now considered to be good.

Table 20 details the extent of the asset data currently held in IPS for the wastewater activity.

Table 20: IPS Data Accuracy & Completeness

Asset Type Sub- Type No of Assets Recorded Asset Register

Valuation Completeness Accuracy

Reticulation

Mains 6588 95% 95% 100%

Manholes 5679 95% 95% 100%

Service Lines 13276 50% 90% 100%

Valves 109 90% 95% 100%

Pump Stations Equipment 609 95% 95% 100%

Treatment Plant Equipment 827 90% 90% 100%

Oxidation Ponds Equipment 31 95% 95% 100%

6.6.4 Network Hydraulic Modelling

Council utilises a computer based hydraulic model to analyse the wastewater network. The model is used to assist in:

Analysis of the capacity of the system to accommodate additional wastewater connections, from a single connection to a multi lot sub-division.

Optimisation of the network to improve operational efficiency. Assessing the effects of inflow and infiltration on the wastewater network. Identifying opportunities to improve network layout prompted by the need for wastewater pipe

renewals. Identifying requirements for pipe upgrades to cater for population growth and new large

developments.

Council uses Mike Urban modelling software, provided by the Danish Hydraulic Institute (DHI). This is a strategic model of the entire Palmerston North Urban wastewater network, and had been calibrated for dry weather and wet weather flows using data collected from a city wide flow monitoring programme undertaken over a number of years. The system was previously limited to the trunk main network. More detailed sub-catchment models have been, although they are yet to be calibrated. The network model has utilised data from a series of flow monitors located at critical locations within the network.

An intensive period of flow monitoring for model calibration purposes was undertaken in 2015, with up to 9 temporary flow monitors installed throughout the network to collect flow data. External consultants were engaged to assist in the model development and calibration work over a period of two years. Additional work was completed to assist in calibrating the model, including surveys of missing manhole inverts and pipe diameters. PNCC now has a fully calibrated wastewater network model that will assist investigations into capacity constraints for current and future flows to inform network renewal and capital upgrade decisions.


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6.7 Water Services Assessment

Water Services Assessments, as required by section 125 of the Local Government, were last completed by Maunsells Ltd in 2005. Summaries of the assessments were included in the 2012-22 10 Year Plan.

In the case of wastewater services, the assessments identified that the wastewater services within Palmerston North are adequate to meet public health outcomes and mitigate environmental effects and have sufficient capacity to cater for current demands. The programmes and projects described in this AMP are consistent with the issues and risks previously identified in the 2005 Water Services Assessments. There are no significant variations to disclose.

6.8 Operation & Maintenance of Assets

6.8.1 Overview

The overall goal of operations and maintenance is to ensure that assets will operate as designed and continue to do so reliably when required. With wastewater assets this is particularly important give the public health and environmental impacts of assets which fail, as well as the significantly higher costs associated with undertaking emergency repair to assets that fail. In respect of treatment plant and pump station assets a low risk tolerance threshold is accepted with a focus on pro-active maintenance of all critical components. The provision of duty and stand-by equipment particularly for pumping and monitoring is key to provide an opportunity for repair without loss of service.

With network assets a low risk approach to trunk main assets is taken again because of the high consequence of failure. For less critical assets e.g. property laterals the optimum approach is a balance of both reactive and proactive maintenance. While low levels of reactive maintenance are normally the ideal, high levels indicate inadequate proactive maintenance or significant deferred renewal obligations, both of which are considered undesirable.

6.8.2 Operation & Maintenance Strategies

The pro-active maintenance programme for the treatment plant, pump station and network assets has been developed from operator and staff experience as well as manufacturers’ and supplier recommendations. It comprises a range of routine tasks involving cleaning and flushing of problem network assets to prevent blockage, coupled with regular inspection and cleaning of critical above ground assets such as aerators, motors, pumps and controllers as well as pump station mechanical and electrical assets. Further development of the scheduled maintenance is planned to ensure condition information required to inform renewal programmes is captured.

Critical to effective maintenance of the wastewater network is completion of regular CCTV inspections by CCTV and condition scoring to more robustly confirm the timing and urgency of renewal of the network. The expectation is that the older smaller diameter part of the network will exhibit the poorest condition.

Reactive maintenance includes a wide variety of work ranging from clearing of network blockages, repairs to broken and collapsed pipes, as well as pump, motor and electrical repairs in pump stations and at the treatment plant. A wide variety of mechanical and wearing components at the wastewater treatment plant can fail.


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6.8.3 Operation & Maintenance Costs

Wastewater activity operation and maintenance costs are grouped into three areas namely activity management, activity delivery and a range of special operating programmes with specific outcome objectives. Additional charges in the operation and maintenance area include interest and depreciation.

Table 21 depicts the current breakdown of operations and maintenance expenditure within these three areas for the first five years of the plan.

Table 21: Operations & Maintenance Forecast Expenditure (Next Five Years)

Wastewater Activity 2018/19 2019/20 2020/21 2021/22 2022/23

Activity Delivery $2,725,000 $2,799,000 $2,783,000 $2,827,000 $2,827,000

Activity Management $2,095,000 $2,098,000 $2,090,000 $2,090,000 $2,080.000

Operating Programmes $940,000 $940,000 $1,190,000 $1,190,000 $940,000

Total (excl interest and depreciation) $5,760,000 $5,837,000 $6,063,000 $6,107,000 $5,847,000

6.8.4 Operation of Wastewater Assets

The wastewater activity is primarily managed and operated to meet agreed levels of service as set out in section 4 by achieving the following:

Maintain the quality of the service to protect the health of the community. Ensure the service is accessible to the community within the service area. Ensure the service is reliable with minimal service disruptions. Ensure the activity is operated safely to minimise the risks to the public and operational staff. Operate to maximise the sustainability of the activity. Operate to minimise the overall cost of the activity. Other factors that directly influence the operation of the wastewater activity include:

Meeting the requirements specified in Council strategies and specific management plans. Compliance with Horizons Regional Council discharge consent permits. Compliance with national legislation with regard to health and safety and hazardous chemicals.

The day to day operation of the wastewater activity is carried out in accordance with a number of internal Service Level Agreements (SLA’s) covering the operation and maintenance of the treatment plant, wastewater pump stations, and collection network. All work undertaken on the treatment plant and wastewater network is done in accordance with PNCC’s Health & Safety Manual and the site specific Treatment Plant Health & Safety Manual. To ensure that levels of service and regulation requirements are met, Council carries out extensive monitoring of the wastewater network, pump stations, and treatment plant.

Council utilises data automatically collected from flow meters and equipment sensors at all critical wastewater assets, which enables operators to respond immediately to equipment failures or network issues. Council also monitors WWTP equipment and effluent data to ensure reliable on-going operation of the treatment plant. In addition to automated monitoring, operational staff also carry out manual monitoring in the form of visual inspections and manual recording of data.

In order to achieve regulatory compliance, Council is required to take regular samples of the wastewater effluent. Sample results are analysed by an accredited laboratory and are used as appropriate to alter operational settings for efficient operation of the treatment plant.


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Council has prepared Business Continuity Plans (BCP) that outlined response and management strategies when key assets or personnel are unavailable. Council is currently completing a review of the BCP plans and developing revised plans. These will set out specific actions required to cope with a 5 day event which impacts on Council and identifies how core services will continue to be provided. Council maintains a suitable level of preparedness for prompt and effective response to disruption events and civil emergencies through suitably trained staff and robust operating procedures.

6.8.5 Maintenance of Wastewater Assets

The wastewater assets maintenance strategy is intended to maintain the current level of service while minimising costs. Day-to day-maintenance activities are carried out to achieve the following:

Maintain operational functionality of the asset. Prevent premature deterioration of the asset.

Council’s maintenance strategy is broadly based on the criticality of the assets:

Assets rated as High Criticality are inspected frequently. A high level of preventative maintenance is carried out, and component renewals are triggered, based on the condition of the asset.

Assets rated as Medium or Low Criticality are inspected less frequently. Preventative maintenance and component renewals are predominantly scheduled on a time basis.

Assets rated as non-critical are rarely inspected and a “run to failure” approach is taken. Assets are repaired or replaced when required.

6.8.6 Operation & Maintenance Delivery

Delivery of the operation and maintenance services for the wastewater assets is carried out by City Enterprises, the operational unit of Council, under contract to City Networks (the asset owner) through a series of internal contracts (known as Service Level Agreements or SLAs). For the wastewater activity there are seven SLA’s in place which cover both operation and planned maintenance tasks and these are summarised in Table 22. These SLAs run annually and are occasionally supplemented by additional SLAs for specific operational or maintenance tasks. In addition to the internal agreements there are also a number of externally contracted organisations engaged to complete specialist maintenance activities including pump station electrical maintenance, maintenance of the biogas engine and calibration and maintenance of various meters, monitors and testing equipment.

In respect of the SLAs work is on-going to shift from lump sum agreements to measure and value agreements still with fixed prices for deliverables but with an enhanced focus on outcomes and outputs reported on monthly. The current level of expenditure on operation and maintenance delivery is outlined in Table 21.

Table 22: Operations & Maintenance Activity Delivery Expenditure – Five Year Forecast

Activity 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24

Service Level Agreements $2,400,000 $2,449,000 $2,433,000 $2,477,000 $2,477,000 $2,477,000

External Contracts $325,000 $350,000 $350,000 $350,000 $350,000 $350,000

Total $2,725,000 $2,799,000 $2,783,000 $2,827,000 $2,827,000 $2,827,000

Wastewater Collection Network Maintenance Programme

Work carried out under the wastewater network SLAs involves a mix of scheduled maintenance tasks including inspection and flushing as well as responding to faults that develop in the system including


78

blockages, breaks, overflows and odour incidents. Table 21 summarises the anticipated budget cost required over the next five years to ensure delivery of the defined levels of service.

Planned maintenance expenditure includes scheduled flushing, root kill, and inspections. To control the level of stormwater inflow and infiltration into the network, there is an ongoing programme of property drainage inspection in conjunction with smoke-testing of sewer mains. Unplanned maintenance includes clearing of blockages, reactive inspections and repairs to mains, laterals, and manholes. There has been a gradual increase in lateral repairs over the past 3 years, due to a combination of street tree damage and third party damage, primarily resulting from the fibre roll out in the city. The 30 year financial forecast for the collection network is shown in Appendix E.

Pump Stations Maintenance Programme

Work carried out under the pump station maintenance SLA mainly consists of regular inspections, including electrical inspections, well cleaning, and also includes the provision for a 24 hour call out service and receiving and logging of enquiries, complaints, and problems in line with City Networks levels of service requirements. The SLA requires immediate response to pollution overflows and pump station failure, 1 hour response time for high level alarms, and 24 hours for non-urgent complaints. Table 22 above shows anticipated operational costs over the next 5 years to ensure delivery of the defined levels of service. The work needs are consistent with the strategies defined above.

Treatment Facilities Maintenance Programme

Maintenance work at the Totara Road treatment plant includes checking, operation, and maintenance of plant and machinery, setting of gates and controls, sampling of effluent, cleaning, disposal of digested sludge, and operation of the phosphorus removal plant, sludge dewatering plant, sludge booster, liquid waste reception facilities, UV plant, wetland ponds, grounds, and building maintenance.

The oxidation ponds at Ashhurst generally require only weekly inspection. Additional expenses for Ashhurst pond include access track maintenance and running costs for the mechanical aerator.

Table 22 above details anticipated operational costs over the next 5 years to ensure delivery of the defined levels of service.

Biogas Generator Maintenance

The maintenance of the biogas generator located at the treatment plant is contracted out to the original supplier of the generator. The generator is remotely monitored from Australia and there is a local contractor who undertakes minor maintenance and inspections. Major maintenance is undertaken by specialised staff from Australia. PNCC treatment staff also monitor the performance of the generator on site and make the day to day decisions on running times and output.

6.8.7 Delivery of Programme

Operation and maintenance of the wastewater assets is carried out by City Enterprises; the operational unit of Council under specific service level agreements (SLAs). There are seven SLAs in place to cover annual operation and planned maintenance tasks for all the wastewater assets. Table 23 details the these SLAs and their value as agreed in the 2017-18 year. Additional SLAs may be required during the year for one off investigations and are provided for as part of forecast expenditure in Table 23. The SLAs are reviewed and agreed annually.


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Table 23: Current Operation and Maintenance SLA Costs (2017/18)

SLA Ref Description Annual SLA Value (2017-18)

5 Totara Road WWTP $1,233,000

6 Ashhurst Pond and Pump Station $29,000

8 Linton Pond Pump Station $3000

9 Wastewater Pump Stations $220,000

87 Wastewater Reticulation Maintenance $425,000

235 Minor Wastewater Reticulation Works $55,000

1109 Cogen No. 2 (Totara Road WWTP) $200,000

1909 Trade Waste Management $153,000

Total $2,318,000

To operate the wastewater activity City Enterprises employs 7.5 FTE (full time equivalent) staff to operate the pump station and treatment plant. This is supplemented by 6 FTE staff to carry out wastewater maintenance. The organisational structure of the City Enterprises team is shown in Figure 27.

Figure 27: Wastewater Treatment Operations & Maintenance Staff

Operations staff are contracted to provide wastewater services on a 24 hours a day, 365 days a year basis, including customer response (Request for Services), and an emergency response capability.

All City Enterprises staff receives an appropriate level of training, including specific Health & safety training and specialised equipment training. For the WWTP staff are trained to a minimum of NZQA level 4 in Wastewater Treatment Plants.

6.9 Renewal of Assets

6.9.1 Overview

Asset renewal is major work which restores, rehabilitates, replaces, or renews an existing asset to extend its economic life and/or restore its service potential. Work over and above restoring an asset to its original capacity is classed as development work.

Renewals may be carried out for two primary reasons:

Maintain the asset service potential – this may be either the quality of service or reliability of service.

Treatment Plant Manager (0.5 FTE)

Senior WWTP Technician

(1 FTE)

WWTP Operators (4 FTE)

Maintenance Fitter

(0.5 FTE)

Trade-waste Officer (1 FTE)

Treatment Plant Project Manager

(0.5 FTE)


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Minimise the whole life cycle cost of the asset.

The decision to renew an asset will be based on:

Criticality (consequence of failure); Condition (and therefore remaining useful life); Performance; and Value.

There are two options for a renewal project:

Rehabilitate or refurbish the asset; or Replace the asset like for like.

Renewal literature often refers to renewals options to upgrade/downgrade or alter the asset to meet other service requirements. For the purpose of this AMP, this is considered development work.

6.9.2 Renewal Strategies

Renewal decisions are made based on criticality, condition, and asset performance. Critical assets should not be allowed to fail, and programmes need to be organized to replace or renew critical asset prior to the expected failure date. Typically assets maintain performance for most of their lifecycle and deteriorate quickly towards the end of their useful life.

Renewal of assets must be carefully considered, as early replacement leaves unused value in the ground, while delayed replacement causes loss of service and costly repairs. Overall performance of the network is carefully monitored to identify areas where renewals are required. Renewals can also be brought forward or delayed in some cases to co-ordinate with the road renewals program.

A Wastewater Pipe Renewal Strategy has been developed to help determine the specific location and timing of pipe renewals moving forward. The strategy has formalised the I&I reduction focus discussed in this document. This document is reviewed annually and progress assessed against targets.

6.9.3 Long Term Renewal Profile

The expected lives used for calculating the replacement year is shown in Table 24.

Table 24: Life Expectancy of Wastewater Assets

Asset Type Expected Asset Life

Wastewater Assets

Wastewater Pipes Standard Manhole

100-175 150

Wastewater Pump Stations

Civil Structures Pipework Mechanical plant e.g. pumps Electrical Equipment

100 80

10-35 15 - 25


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Asset Type Expected Asset Life

Wastewater Treatment Plants

Buildings and civil works Electrical Mechanical Pipework Electronic equipment

100 30 30 50 15

These asset lives have been determined through standard asset lives as set out in the II manual Asset Valuation Guidelines and from our own inspection and condition records.

Figure 28 shows the 50 year renewal profile for the wastewater pipes based on the expected asset life. The renewal profile is based on age and expected asset life, which was reviewed by AECOM as part of the 30 June 2017 re-valuation. It does not currently account for actual asset condition and performance.

Figure 28: Wastewater Pipes Profile Based on Expected Asset Life

6.9.4 Renewal Programme

Council uses a combination of several methods to develop the renewals programme:

Forward projection of historical costs combined with broad estimates of asset depreciation. Predictive modelling based on age. ‘Bottom up’ or ‘unconstrained work bank’ approaches based on available condition information and

operator knowledge.

The current wastewater renewals programme comprises the following on-going renewals programmes:

Wastewater pipes. Wastewater pump stations. Wastewater Treatment Plant minor mechanical/electrical works.

$0

$1

$2

$3

$4

$5

2015

-16

2020

-21

2025

-26

2030

-31

2035

-36

2040

-41

2045

-46

2050

-51

2055

-56

2060

-61

Rep

lace

men

t Val

ue [$

M]

2014 Valuation Pipes Exceded Expected Life


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The value of these programmes has largely been based on historical cost in conjunction with age profiles. Major plant items are also included where known. At this point in time, the age of the pipeline asset has been used as an indicator of remaining useful life, but is otherwise not a significant factor in determining the renewals programme. The renewals programme will be substantially reviewed as a result of the current wastewater network modelling project. Further work will be undertaken to refine the renewal programme to take into account pipe criticality, vulnerability and resilience. These on-going programs are supplemented by specific renewals projects for larger trunk mains. A series of renewals projects have been identified based on asset condition and performance, and targeted investigations.

An on-going CCTV inspection contract has been awarded, in conjunction with a newly developed wastewater main inspection programme which is focused on the critical/larger pipelines in the network but also includes a selection of the smaller less critical pipes. The initial inspection programme is based on age, diameter and criticality. The outcome from these inspections will help define the renewal programme moving forward.

Figure 29: Definition of inspection groups by age, diameter & criticality

Table 25 summarises the proposed renewals program expenditure. Given the age of the Totara Road WWTP there are a significant numbers of plant renewals within the programme, given many of the structures on the site reach the end of their useful life in the coming AMP period. At this stage the renewal requirements for the WWTP will need to be confirmed as part of the planning and options assessment being completed under the wastewater BPO project.

Asset renewal issues relating to each asset group are discussed below.

Tabl

e 25

: R

enew

als

Prog

ram

me

Expe

nditu

re –

Fiv

e Ye

ar F

orec

ast

Prog

ram

me

2018

/19

2019

/20

2020

/21

2021

/22

2022

/23

2023

/24

Ris

k if

Def

erre

d

Colle

ctio

n Ne

twor

k

54-C

ity-w

ide

- Was

tew

ater

Pip

e R

enew

al

$1,6

00,0

0 $1

,800

,000

$2

,000

,000

$2

,000

,000

$2

,000

,000

$2

,000

,000

Fa

ilure

to m

eet l

evel

s of

ser

vice

. St

ruct

ural

failu

re.

65-C

ity-w

ide

- Was

tew

ater

Pum

p St

atio

n R

enew

al

$150

,000

$1

25,0

00

$137

,000

$8

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In the absence of comprehensive network condition assessment, the life cycle predictions were based on asset age and an average expected useful life of 120 years. This is no longer the case following a project undertaken to develop a forward renewal programme based on criticality, resilience, vulnerability and condition assessments amongst other factors. The renewal expenditure is forecast to rise to an average of $2.18 million per year over the next 5 years in order to maintain the service potential of the assets and to meet the higher levels of renewals that fall due during the period 2022 - 28. It is expected that a small percentage of pipes will come to the end of their useful life before their predicted life is reached, due to accelerated corrosion, unforeseen structural loading, or other causes. Likewise, some assets will last longer than their predicted life.

The renewal programme is detailed further in the Wastewater Pipe Renewal Strategy11 and has been refined as more condition assessment information became available from CCTV inspections. The risk associated with the deferral of the renewal works include:

Increased maintenance costs. Unacceptable incidence of wastewater surcharges and overflows during storm events.

To minimise the cost of asset ownership in line with the cost/affordability level of service, full life cycle costs and asset optimisation are considered when assessing options for renewal. The Wastewater Pipe Renewal Strategy recommends integrating pipeline renewal with I&I control efforts to optimise expenditure and minimise the risk. This is to be achieved by targeting renewal initially on older pipe networks in those catchments which have been identified as worst affected by I&I, and where the I&I reduction would provide system capacity most effectively. The targeted catchments are Tremaine Ferguson and College (refer Figure 21).

A study has also been undertaken to assess the impacts of the expanded NEIZ on the downstream network (GHD Consultants, June 2014).12 The recommendation of this study was that I&I reduction work should be undertaken in the Milson and Cloverlea catchments to assist in deferring capacity upgrades in the Western Trunk in order to accommodate additional flows from the NEIZ area. To date, no investigations have been undertaken in these catchments, but they will be included in future I&I works. Separately work to develop design guidance and a network design for a pressure sewer network to service the NEIZ has been commissioned in order to determine the actual flow capacity required. It is expected that the pressure sewer network will allow for deferral of the Western Trunk capacity upgrades.

Indications are that the existing level of service provided is generally satisfactory, and there are no significant assets past the optimum renewal point in their life cycle. Renewal of a pipeline may be brought forward from its predicted useful life if it is considered that this will significantly contribute to reduction in I&I problems. When a major road or underground services upgrade or renewal is planned, the condition and performance of the wastewater network in the affected vicinity is investigated to determine whether its renewal is justified to offset reduced rehabilitation costs. One example of reprioritisation was the advancing of sewer renewal work in The Square (Fitzherbert to Main Street West).

A five year plan of future network renewals has been included in the Wastewater Pipe Renewal Strategy, and this has been added to as further condition assessments have been undertaken. Condition assessment of recently CCTV inspected pipelines revealed that most pipelines are structurally sound. In many cases, the structural condition and performance grading of some pipes can

11 PNCC, Wastewater Pipe Renewal Strategy, July 2014 – DM 845504

12 GHD, North East Industrial Zone Extension, Wastewater Capacity Assessment, June 2014. DM 1147421


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be greatly improved by renewing or rehabilitating a small section of problematic pipeline, rather than a complete replacement from manhole to manhole. This can be a very cost effective way to extend the useful life of a pipeline, and is adopted as one of the renewal strategies where appropriate.

Renewal options include various pipe rehabilitation techniques or replacement with new pipe material, and the use of trenchless technology (pipe relining) where appropriate.

Pump Stations

Renewals have historically been forecast based on asset age, condition, and performance. For this AMP, site specific renewals out to 2048 have been forecast that include works such as major electrical equipment renewals, standby generators, and pumps. Based on the asset lives and historical trends, the long term pump station renewal expenditure averages $50,000 per annum with an increased rate of expenditure forecast in the first 3 years to address some legacy electrical and control system issues.

It is considered that there are currently no deferred pump station renewals. Indications are that the existing level of service provided is generally satisfactory, although additional flow monitoring is now a priority to better understand high inflow catchments and pump stations at risk of overflow in wet weather events. There are no significant assets past the optimum renewal point in their life cycle.

Treatment Facilities

Identified renewal needs are based on end of asset life predictions, condition, performance, and life cycle cost estimates, and have been included as separate programmes where known. The life cycle predictions are based on historical information including asset age, performance, and condition. An additional consideration in developing renewal programmes is asset criticality and the consequence of asset failure in terms of consent compliance and public health.

Based on known condition issues, assessed maximum asset lives and criticality assessments, a 5 year schedule of specific treatment plant has been developed, with budgets required varying between $60,000 and $130,000 depending on the scope of work required. This renewal profile drops away to $20,000 per annum based on the assumption that the majority of the treatment plant will be upgraded or replaced assuming the implementation of new consent requirements from 2023/24.

During the past 3 years a number of major plant items have been or are being renewed or replaced. These include renewal of both digester lids, replacement of the inlet screens and inlet gate, and refurbishment of the existing sedimentation tanks. Indications are that the existing level of service provided is being maintained and there are no significant assets past the optimum renewal point in their life cycle.


The programme will be delivered by either Council’s in-house resources, primarily for the wastewater pipe renewal programme, or by external contractors for more specialised works. The delivery method chosen will depend on the size and complexity of each individual programme. The Project Status reporting programme is used to track the progress of individual projects that make up the overall programme to ensure both the timeliness of delivery and costs. This system also enables delivery of reports to the monthly Works Programming meetings in which the progress of each project is reviewed.


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6.10 Development of Assets

6.10.1 Overview

Development includes the creation or acquisition of a new asset that did not previously exist, or works which upgrade or improve an existing asset beyond its existing capacity. Development work may be necessary for the following reasons:

Growth and increase in demand. Changes to Council policy and strategy. Changes to regulations and legislation. Changes to levels of service.

Development of assets may also include disposal of an existing asset that is no longer required.

6.10.2 Development Strategies

The development strategy is to provide for the progressive upgrading of assets to ensure future demand and changing service standards (i.e. resource consents) are achieved.

The selection criteria for the prioritising and programming of development projects will be based on a consideration of risk and benefits, affordability, ranking with other expenditure, existing asset performance with respect to levels of service, and life cycle costs and efficiency.

Proposed projects will be supported by an economic appraisal using cost/benefit analysis techniques which take into account:

Capital costs; Any change in net annual operating costs; Any change in annual maintenance requirements; and Any salvage value of existing assets or components.

All development projects require completion of a Programme Planning and Implementation Plan (PPI) to ensure that reasons for the project, options, costs and risks are considered. Significant projects will also require a Project Execution Plan (PXP) before proceeding.

The design option chosen shall:

Minimise the impact of urbanisation on water quality. Utilise the full capacity of existing infrastructure wherever practicable. Optimise life cycle costs for the assets created.

The risk, costs, and benefits of accepting new privately funded assets constructed in association with property development will be reviewed, and a decision regarding approval will be made on a case-by-case basis by Council staff. When satisfactorily completed in accordance with approvals given, Council will accept such assets into public ownership. Council will not contribute to the cost of such works unless there are exceptional levels of service or equity issues.


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When considering disposal options, all relevant costs of disposal will be considered. These may include:

Evaluation of options; Consultation/advertising; Obtaining resource consents; Professional services, including engineering, planning, legal, survey; Demolition/make safe costs; and Site clearing, decontamination, and beautification.

6.10.3 Development Programme

The capital development programme is the upgrade of existing infrastructure or new works that are needed to ensure that the wastewater activity can meet the future needs of the City. The need to upgrade or provide new assets may be due to the following drivers:

Increase the capacity of the assets due to growth in population of the City. This may be due to infill development or for a new sub-division or growth area.

Upgrade assets to meet new regulatory or legislative requirements. This could include areas such as health and safety regulations, changes to resource consent conditions, or changes to national legislation such as National Policy Statements.

Improvements to assets to meet changes in Council policy or strategies, and agreed changes to the level of service.

Development work to cater for population growth may be funded directly by the developer, or may be provided by Council in advance of the development work occurring and then funded through subsequent development contributions.

Development of the collection network over the past five years has largely been further extensions of the network into the current two urban growth areas of Kelvin Grove and towards Aokautere. The majority of these new assets were constructed by developers and then vested to the City Council as a result of new sub-divisional developments.

Other major development works completed recently include:

2007/08 – 475mm trunk main construction in Railway Rd between Setters line and Roberts Line to support industrial growth.

2013/14 – 450mm upgrade of Western trunk between Railway Rd and McGregor Street.

The above works were recommended in the 2001 Sewer Network Management Plan to provide the additional capacity to avoid sewage overflows in the vicinity during storm events.

The future development programme expenditure is summarised in Table 26 below.

Table 26: Development Programme Expenditure

Project Growth % LOS % Expenditure Timing

Collection Network – Reticulation

73 Wastewater Subdivision Contributions 100 - $50-100k pa On-going

210 Urban Growth - Installation of Wastewater Systems for New Industrial Areas - NEI extension area 100 -

$350k $350k

2018-20 2022-28


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Project Growth % LOS % Expenditure Timing

452Tremaine/Featherston - Wastewater Trunk Main Upgrade 20 80

$110K $300K

2028/29 2031/32

624 North East Industrial Zone - Downstream Wastewater Network Upgrade - McGregor Street to Rennie Avenue to Peters Avenue

100 - $1.0M $1.9M

2024/25 2028/29

660 Ferguson Street - Wastewater Trunk Main Upgrade 50 50 $670K 2025/26

1000 Urban Growth - Whakarongo - Installation of Wastewater Systems 100 -

$862K $267k

2018-19/20 2022/23

1043 Totara Road WWTP Inlet Main Duplication 100 - $450k 2018/19 to 2019/20

1055 Urban Growth - City West - Installation of Wastewater Systems 100 - $1.2M 2019/20 to

2023/24

1412-Urban Growth – Ashhurst WW Network Upgrade 100 - $260K 2019/20

Collection Network – Pump Stations

1000 Urban Growth Whakarongo – Installation of Wastewater Systems 100 - $1.1M 2018/19 to

2022/23

Wastewater Treatment

628 Consent Renewal Upgrade 20 80 $110M 2023/24 to 2026/27

1074 Earthquake Strengthening of Civil Structures - 100 $1.1M 2018/19 to 2019/20

1382 Totara Rd Emergency Bypass Upgrades - 100 $100k 2019/20

1383 Emergency Overflow Structure Totara Rd - 100 $150k 2020/21

Projects to Support Growth & Increase in Demand

The following projects are attributed directly to growth as a result of new residential and industrial/commercial developments. Note that wastewater infrastructure to service the proposed growth areas will not proceed until the necessary land use zonings are in place, and investor commitments to the developments have been confirmed.

Residential Rezoning

The Residential Growth Strategy provides for growth through rezoning of the Whakaongo area followed by City West. Typically, the developer will fund and build the wastewater network within its development. However, the Council will need to extend its trunk network to service these developments, which will involve downstream trunk network upgrades and dealing with options for the treatment of their wastewater (refer programmes 624, 452, 1000 and 1055).

Industrial Rezoning

Further provision has been made in this AMP for extension of the NEIZ. It assumes development of approximately 120 ha of land in the vicinity of the existing industrial site. Development of the required utility and road infrastructure is assumed to take place over years three to seven of this AM planning period. It has been assumed and that there will not be any major wet industries for the new zone (refer programmes 210 and 624).


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Pump Stations

Pump stations have been added to the system over the years, mainly to enable low lying areas of the City to be developed. The most recent additions have been the Coutts Way and Freedom Drive wastewater pump stations and these were fully funded by the developers.

It is assumed that most new pump stations will be associated with sub-divisional development, and funded at no cost to Council. There will only be costs to Council if the City wishes to extend the capacity of a developer funded pump station at the time of construction to allow for the needs of an extended area.

The exception to this is the proposed new pump station to be constructed on James Line, at the Napier Road intersection, to service the Whakarongo growth area. A proposed expenditure of $500,000 has been included in 2018/19 to enable construction.

Collection Network

The Wastewater Network Management Plan Review (2001) concluded that the lower sections of the Western, Tremaine, and Featherston Trunk Systems would require some capacity upgrades due to demand growth from developing upper catchment areas, such as Kelvin Grove and NEIZ. The timing of these upgrades has been modified in light of recent studies undertaken (GHD Consultants, June 201413), and in some cases, may even be able to be deferred. There are four separate lengths of trunk main identified for upgrade works as follows:

Western trunk duplication of the 450 mm diameter main from the McGregor Street confluence to Rennie Avenue (length estimated at 1,630 metres);

Western trunk duplication of the 525 mm diameter main downstream of Rennie Avenue to just beyond the end of Peters Avenue (length estimated at 3,290 metres);

Tremaine Ave and Featherston Street upgrade; and And the Ferguson trunk upgrade in 2026.

The Western trunk duplications can be deferred or possibly dropped altogether if the total flows out of the expanded NEIZ are limited to 20 m3/ha/day or less (GHD, June 2014). I&I reduction works in the Milson and Cloverlea catchments may also help defer upgrades. In addition it is proposed that the expanded NEIZ now be serviced through a pressure sewer system which would be expected to reduce flows from the zone further

Various servicing scenarios were modelled for the proposed City West zone (GHD, June 2014), and a low pressure sewer (LPS) system was recommended for this growth area.

The advantages of an LPS are twofold:

It reduces the level of demand placed on the trunk network by smoothing out the flows and lowering peak flows from the area; and

It is more resilient in high liquefaction zones, such as City West, as they avoid the need to lay wastewater pipes on grade. The PE pipe typically used in LPS systems is also better suited to resisting seismic movements.

The ownership model adopted for any LPS or Vacuum Pressure System (VPS) will need to be approved by Council prior to designation of the area as a pressure sewer area. The preferred approach will be for Council ownership of the on property pump station and connecting pressure connection so

13 GHD, North East Industrial Zone Extension, Wastewater Capacity Assessment, June 2014. DM 1147421


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as to ensure approved equipment and installation and cost effective maintenance (refer programmes 452, 660 and 1043).

Sub-Divisional Contributions

A nominal amount of $100,000 per annum is budgeted for contribution towards building extra infrastructure capacity when a sub-divisional development first takes place to allow for future capacity requirement of subsequent development. This cost will be recovered from future developers by way of development contributions (refer programme 73).

Totara Road WWTP Primary Treatment Duplication

This programme has now been deferred and will be addressed through the WWTP BPO process.

Projects to Support Changes to the Level of Service

Totara Road WWTP Treatment Process Upgrades

The assumption in this AMP is that significant new developments at the Totara Road WWTP will not occur until after new resource consents are granted most probably in 2023-24. The current consents are due to expire in 2028, but the Council has agreed to apply for new consents by June 2022.

It is anticipated that there will be higher environmental and water quality standards to be met, as well as higher expectations from the community when the new consents are applied for. It is inevitable that new treatment processes and upgrades of the treatment facilities will be required to meet those objectives. Resulting from the recent consent review undertaken by Horizons it was also agreed that a more extensive Best Practicable Options investigation would be undertaken with the outcome forming the basis of the new consent application.

Totara Road WWTP Sludge Disposal

Currently all sludge produced from the wastewater process is dewatered and then composted on the neighbouring Awapuni Resource Recovery Park. A sludge disposal options study was undertaken and this will guide the ultimate decision on new technologies that might be used to treat treatment plant sludge’s. It is proposed that the ultimate decision on sludge disposal will be part of the WWTP BPO exercise and subsequent consent renewal upgrade.

Seismic Strengthening to Wastewater Structures

(Refer programmes 630 and 1074).


The programme will be delivered by Council’s in-house staff, or external contractors for more specialised works. The delivery method chosen will depend on the size and complexity of each individual programme. The Project Status reporting programme will be used to track the progress of individual projects that make up the overall programmes to ensure both the timeliness of delivery and costs. This will deliver reports to the monthly Works Programming meetings in which the progress of each project is reviewed.


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6.10.5 Non Asset Programmes

Education initiatives were identified in the level of service workshops with councillors as a means of addressing a number of challenges in the wastewater network including:

blockages due to wet wipes opportunities to reduce nutrient loads e.g. phosphorus by engaging with trade waste dischargers

and reviewing opportunities at the residential scale introduction of a programme to receive hazardous household chemicals and divert them from

discharge to the sewer and stormwater network targeting inflow and infiltration reduction at the property level by establishing a dedicated I&I

reduction programme identifying commercial activities in the residential area that require pre-treatment e.g. grease traps

etc.

6.10.6 Disposal of Assets

Any assets that require disposal will be done so in the most advantageous way. For some assets, this will involve sell by public tender via Tender Link or other publications. For minor or broken/damaged assets, disposal may be by way of direct sale to metal recyclers or similar recycling facilities.

6.11 Key AMP Improvement Projects Relating to Asset Lifecycle Management

For the key AMP improvement projects relating to wastewater Asset Management and Lifecycle Management, refer to the following items in, Section 11 Continuous Improvement:

Item 1, Development works planning (demand/LoS): Document changes to AMP programmes that arise through 10 Year Plan and Annual Budget

process. Item 2, Asset information:

Update detailed asset component and condition information in AM system; Review AM system data quality process and develop data improvement plan: Review condition assessment programme; Review performance data needs; Analyse asset lives using available data; and Assess advanced AM system needs and implement suitable application for predictive modelling Update programme policies and information data.

Item 3, Renewal works planning: Continue to develop predictive modelling; and Develop processes to prioritize risk mitigation options (Section 2 of Improvement Plan).

Item 4, Operations and maintenance: Work on optimising operations and maintenance programmes; and Further develop processes to ensure competitive prices are obtained.

Item 9, Delivery of services: Improve internal service processes (SLA, Market Comparability &CWP).


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Section 7 – Risks & Resilience Asset Management Plan 2017 – Wastewater

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7 Risks & Resilience Infrastructure risk management is the process of identifying risks that may affect the ongoing delivery of services from infrastructure.

7.1 Corporate Risk Management Framework

A corporate risk management policy (MT 76, April 2011) has been established to enable risks to be managed in an effective and appropriate manner. From an asset management perspective, the policy helps prevent the Council taking risks that compromise its ability to provide and maintain key infrastructure and services. Progress with mitigation actions is monitored and reported to Council.

7.1.1 Risk Management Policy

The risk management policy covers strategic, operational, and project risks. It applies to all functions performed by the Council and to all staff employed in carrying out its functions.

Strategic risks are defined as those things that prevent the Council from implementing its strategies. They can be caused by misalignment between goals and strategies, or the Council simply not implementing its strategies.

Operational risks are inherent in the processes chosen to implement the Council’s strategies. The benefits of managing operational risks include meeting financial goals, maintaining quality, proactive and effective planning, and preparedness for emergencies.

Project risks are of a specific, normally short-term nature. The benefits of managing these risks include the avoidance of time and cost overruns

7.1.2 Strategic Risks

The key strategic risks to the Council achieving its desired outcomes have been identified as follows:

Poor City image and reputation. Lack of vibrancy in the CBD. Decline in the City economy and jobs. A low level of community trust and engagement with the Council. Council’s financial position is not sustainable.

These risks are mitigated through following the Council strategies set out in Section 3.1 and through quarterly reporting to the Council. Development and management of the Council’s infrastructure is part of this risk mitigation.

7.1.3 Operational Risks

Operational risks identified in the Risk Management Policy, relevant to this activity, are contained in Table 27.


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Table 27: Operational Risks

Operational Risk Corporate Mitigation Strategy Corporate Mitigation Action

Council's infrastructural assets are not managed in accordance with the adopted Asset Management Plans (AMPs) and/or granted Resource Consents

1. Manage infrastructural assets in accordance with AMPs as funded through the 10 Year/Annual Budget

1.1 Review AMPs three yearly, assessing assets over a 30 year period to increase certainty to condition assessments.

1.1.1 Seek continuous improvement of each AMP in terms of quality that matches “best practice” in NZ.

1.1.2 Incorporate consideration of city growth, climate change, urban design and environmental sustainability into each AMP.

1.2 Report to Council where necessary implications of difference in budgets between 10 Year Plan with AMPs, and determine revised asset management actions.

1.2.1 Ensure Infrastructure programmes aligned with the zoning for growth.

1.3 Implement infrastructural programmes (operations and maintenance, renewals and capital new).

1.3.1 Programmes associated with the Totara Road Wastewater Treatment Plant (WWTP) and closed Awapuni Landfill, in respect to their impact on the Manawatū River.

1.3.2 Programmes associated with cycle/pedestrian pathway, in respect to property negotiations and Community stakeholders engagement.

2. Ensure infrastructural asset programmes developed for the AMPs and then presented for consideration in the 10 Year /Annual Budget have adequate justification in terms of assessing options, feasibility, economic, social and environmental factors.

2.1 Develop programme justification for the AMPs to feed into the annual planning process

Council's infrastructural assets are not managed in accordance with the adopted Asset Management Plans (AMPs) and/or granted Resource Consents

3. Operate infrastructural asset activities in compliance with the granted Resource Consents

3.1 Maintain a database of all required Resource Consents

3.2 Monitor compliance against the database

3.3 Attend to Resource Consent renewals before expiry deadlines

4. Operate infrastructural asset activities in a manner that uses the AMP risk register .responses for specific risk situations as and when these may arise

4.1 Report quarterly on infrastructural asset activities against the appropriate AMP Risk Register items in terms of invoking any of the "controls", "treatment" and/or "management options".

Council does not deliver the capital (new and renewal) programmes within approved scope of works, planned timeframes and budget.

1. Set realistic capital revenue and expenditure budgets

1.1 Use City Networks Programme Planning and Implementation Template, identify and update (at least annually) the status of programmes in respect of scope, assumptions, and planning milestones, budget estimates and funding sources.

1.2 Within the City Networks Programme Planning and Implementation Template


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identify the external factors which must be addressed to advance the programme and establish appropriate milestone dates as to when these factors will be addressed.

1.3 Information in the Programme Summary of the Ozone Corporate Planning module is referenced against an up to date City Networks Programme Planning and Implementation Template.

1.4 Identify as potential “delayed flags” those capital programmes which have constraints beyond management’s control as part of the budget approval process

1.5 At the commencement of the financial year identify those capital programmes where there is confidence of delivery because contracts (& SLAs) are in place.

1.6 At the commencement of the financial year identify those capital programmes where planning is well advanced such that contracts (& SLAs) can be established in the 1st quarter of the financial year

2. Scrutinise all capital revenue and expenditure budgets exceeding $250k.

2.1 Signed off by the relevant General Manager

2.2 Review budget for reasonableness (all individual capital budgets)

3. Obtain Management Team approval on all capital projects that require a Project Execution Plan (PEP) before commencement of the project

3.1 Active management by General Manager

3.2 Report to Chief Executive of all non-compliance instances

4. Assess resources required to deliver the overall capital programmes

4.1 Use the Works Programming Forum both City Networks and City Enterprises identify the internal resources to be allocated to programmes and then determine any shortfall which requires the engagement of external consultant/contractor resources.

5. Manage projects against recognised good practice.

5.1 Deliver projects in accordance with City Networks Asset Management Good Practice Guidelines in relation to Project Management discipline.

5.2 Develop and regularly review Project Execution Plans (PEPs) for significant projects, with specific attention to any change circumstances which may impact on scope of works, timelines and/or budget requirements

6. Monitor progress in the delivery of capital programmes

6.1 Monitor progress through Works Programming Forum

6.2 Monitor progress of work through monthly financial reports, and the Project Status Reporting tool both actual year to date against the current financial budget and against the total project budget spanning more than one financial year.


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6.3 Identify programmes which cannot be delivered due to changed circumstances giving the reason why.

6.4 Utilise Council's approval of commencing up to 20% renewal works prior to the formal adoption of the new financial year budget

PNCC is not meeting its responsibilities for an emergency or a civil defence emergency event because it is unable to deliver the basic services.

1. Develop and maintain high level PNCC Business Continuity Plan(s) (BCP)

1.1 Prepare and maintain high level PNCC Business Continuity Plans (BCP)

Council's activity preparation in key areas does not align to the 10 Year Plan programmes approval and budget processes and vice versa.

2. Ensure integrated planning occurs across Council’s recreation assets

2.1 Concept and development plans are developed for Council’s recreation facilities and reserves aligned to the Active Recreation Strategy

2.2 10 Year Plan recreation programmes for the first 3 years are informed by soundly-based development plans

3. Implementation of the Street Design Manual

3.1 Programme of work is developed to implement the Street Design Manual

3.2 10 Year Plan levels of service align with changes promoted in the Street Design Manual

3.3 10 Year Plan Programmes advance implementation of the Street Design Manual and for the first 3 years are informed by soundly-based development plans

7.1.4 Project Risks

Project risks associated with significant individual projects (both operational and capital) are normally of a short term nature and are managed through specific project plans approved through the Corporate Management Team. They include acquisitions and investments.

7.1.5 Risk Management Hierarchy

Figure 29 demonstrates the risk management hierarchy from corporate risk management down to activity, project specific, and operational risk management. Risk is managed at these various levels within the Council’s risk management framework. The level of risks included at each layer is appropriate to that layer, but filters down where appropriate with increasing detail.


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Figure 29: Risk Management Hierarchy

Within all the levels of risk management discussed above, consideration is given to the management of both “everyday” risks and the low frequency high impact events such as natural disasters.

When existing assets are being renewed or new works constructed, the potential of those works to affect the resilience and readiness of all lifeline networks is considered. Contingency plans are prepared to ensure, through operational systems and temporary response structures, that appropriate response can be made.

7.1.6 Asset Criticality

Those assets where failure would likely result in a significant disruption in service and financial, environment, and social cost in terms of impact on organisational objectives are considered to be critical assets. The definitions used in this plan for critical assets, customers, and suppliers are as follows:

Critical assets are defined as those assets with the highest consequence of failure, but not necessarily a high probability of failure. In determining consequence of failure, both importance to the city and importance to the service provided are taken into account.

Critical customers are those relying on essential services provided by the Council (e.g. water supply to schools and hospitals).

Critical suppliers are those providing services required for the delivery of the Council’s essential services (e.g. energy supply, communication systems, etc).

The criteria used to assess criticality are set out in Section 7.2.3.

7.1.7 Resilience

The National Infrastructure Unit defines resilient infrastructure as infrastructure that is able to deal with significant disruption and changing circumstances. This may be due to natural hazards and shock events or events which evolve over time such as changing demographics. However, this plan is largely focused on being able to provide essential services following a high consequence event such as a natural disaster. Resilience of critical assets is particularly important for continuation of service delivery. Both technical and organisational aspects of resilience have been considered in this plan.

Operational Risk Management

Civil Defence Management

Activity Risk Management

Group Risk Management

Project Risk Management

Corporate Risk Management

Natural & Technologic

al Risks

Physical/ Asset

Failure Risk

Public Health &

Environmental Risks


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Table 28: Resilience Definitions

Dimension Attribute Definition

Technical Robustness / Resistance

The strength or the ability of elements, systems, and other units of analysis, to withstand a given level of stress or demand without suffering degradation or loss of function.

Redundancy The extent to which elements, systems, or other infrastructure units exist that are substitutable, i.e. capable of satisfying functional requirements in the event of disruption, degradation, or loss of functionality.

Reliability The extent to which the infrastructure components are inherently designed to operate under a range of conditions and hence mitigate damage or loss from an event.

Organisational Preparedness, Response and Recovery

The capacity to mobilise resources when conditions exist that threaten to disrupt some element or system to maintain service and enable a fast and effective response to and recovery from disruptive events.

7.1.8 Risk Management Process

This plan is based on AS/NZS ISO 31000:2009 as the basis of its approach to risk identification and management. The Standard defines risk as the “effect of uncertainty on objectives”. Effective management of risk is important to maintain the performance and functionality of the Wastewater Activity. Risk management is one of the factors used to determine optimum maintenance frequencies and the level and timing of asset renewals. The risk management process considers the following stages:

Risk management context – determining the framework within which Council-wide risks will be managed.

Risk identification – identifying the relevant risks. Risk analysis – scoring or rating each of the risks identified in a way that makes them comparable

across the organisation. Risk treatment – identify the actions to be taken. Monitor and review the risks to ensure mitigation is successful and identify new risks.

This process is summarised in Figure 30 below.

Figure 30: Risk Management Process (AS/NZS ISO 31000:2009)

Further details of the process followed and the risk management register are given in Appendix D.


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7.2 Activity Risk Management

7.2.1 Approach for the Activity

Risk assessments at the activity level focus on risks associated with management of the activity and the enabling infrastructure. Activity risk assessment considers risks identified at both the corporate and the operational level. Risk management planning has been used to identify the potential and actual business risks associated with the provision and management of the Council’s wastewater assets and services. The process has been applied to prioritise mitigation programmes.

The key risk categories adopted for assessing the consequences of identified risks for this activity are:

Legal; Environmental; Corporate Image; Service delivery; Financial; and Community Health and Safety.

A full list of the assessed risks facing this activity, including risks from natural events, is detailed in the Risk Register appendix. The Register also summarises the current mitigation measures and the proposed, or planned, changes to these.

7.2.2 Role of Activity as a Lifeline Utility

The Civil Defence and Emergency Management Act 2002 contains specific requirements in relation to Lifeline Utilities. The term “lifeline utility” is defined as an entity named or described in Part A of Schedule 1, or that carries on a business described in Part B of Schedule 1 of the Act.

The wastewater network is regarded as a lifeline utility. Section 60 of the Act states the duties of lifeline utilities:

“60. Duties of lifeline utilities

Every lifeline utility must—

(a) ensure that it is able to function to the fullest possible extent, even though this may be at a reduced level, during and after an emergency:

(b) make available to the Director in writing, on request, its plan for functioning during and after an emergency:

(c) participate in the development of the national civil defence emergency management strategy and civil defence emergency management plans:

(d) provide, free of charge, any technical advice to any Civil Defence Emergency Management Group or the Director that may be reasonably required by that Group or the Director:

(e) ensure that any information that is disclosed to the lifeline utility is used by the lifeline utility, or disclosed to another person, only for the purposes of this Act.”

The Act also has national and regional requirements, including the roles of Controllers, the establishment of Civil Defence Emergency Management (CDEM) Groups, and the preparation of CDEM Plans.


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7.2.3 Critical Assets

Overview

Critical assets are regarded as those assets which have the highest consequences should they fail. A simple approach has been taken in this plan, applying broad assumptions about the implications of failure, using a number of criteria to make an overall assessment of high, medium, or low criticality. The approach to proactively managing risks is given in section 7.5.

The criteria used for assessing criticality for the Wastewater Activity are as follows:

Numbers of people adversely affected; Significant business activity interrupted; Consequential cost of failure; Critical lifeline/disaster recovery asset; and Other.

Critical assets are defined as those that have a high consequence of failure. By identifying critical assets, it is possible to target inspections, maintenance, and renewals expenditure in the most critical areas.

Criticality is graded as High, Medium, Low, or Non-critical, and is broadly based on the number of people affected by the asset failure. Table 29 contains the population banding used for Palmerston North.

Table 29: Population Based Criticality Grading

Criticality Population Affected

High Above 8,000 persons

Medium Between 6,000 and 8,000 persons

Low Between 4,000 and 6,000 persons

Non Critical Up to 4,000 persons

Wastewater Pipes Criticality Grading

Typically, larger diameter pipes serve larger populations. Using assumptions around a pipe’s capacity, it is possible to broadly categorise criticality of wastewater pipes based on diameter. The criticality grading of wastewater pipes is shown in Table 30.

Table 30: Criticality Grading for Wastewater Pipe Assets

Pipe Diameter [mm] Equivalent Population Criticality

250 2,973 Non Critical

300 4,823 Low

315 5,490 Low

375 8,750 High

450 14,238 High

525 21,488 High

600 30,693 High


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Wastewater Pump Station Criticality Grading

In assessing criticality of pump stations, the sensitivity of the receiving environment to overflows is considered, as well as the population served.

Table 31 shows the criticality grading for the pump station that are categorised as Low criticality or above. Non-critical pump stations are not listed.

Table 31: Criticality Grading for Wastewater Pump Station Assets

Pump Station Capacity [L/s] Equivalent Population Served Criticality

College Street 59 5,098 Medium

Jickell Street 100 6,480 Medium

Massey 139 25,920 High

Maxwells Line 758 30,931 High

Tremaine Avenue 53 4,579 Medium

Ashhurst Pond 47 2,634 low

KB Road Bunnythorpe 13 451 Medium

Wastewater Treatment Critical Assets

Criticality of treatment plant assets is based on the consequence of failure of each component and its role as part of the treatment process overall.

Dependent Customers & Services

For details of customers or services that depend on the Wastewater Activity refer to “Report for Critical Assets - Vulnerability Review - Phase 1” (GHD, March 2011).14

7.2.4 Resilience

The approach taken in this plan is to assess the impact of particular natural hazards on the critical assets of the wastewater activity. This considers the current level and desired level of resilience. Section 7.4 summarises this assessment and Section 7.5 outlines the mitigation strategy adopted in this plan to reduce the risk. The interdependencies of other utility services are identified in Section 7.4.6.

Further work will be undertaken in the next 2-3 years to develop a more comprehensive approach, in which the level of criticality is matched against the desired level of resilience, together with the options available for achieving it. A programme for further work is included in the Improvement Plan.

7.2.5 Sources of Risk

The sources of risk affecting the activity are as follows:

Operational failures. Physical asset risks. Project & planning risks. Natural hazards. Events & Incidents. 14 GHD, Report for Critical Assets - Vulnerability Review - Phase 1, March 2011 (DM#995683)


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Risks arising from these sources are elaborated on in Section 7.3.

7.2.6 Reference Documents

Documents that have informed this plan include:

1994 Hazards Analysis. 2005 Risks & Responsibilities – Lifelines Project Report. 2009 Hazard Risk Assessment for the Manawatū-Wanganui Region. 2011 GHD Critical Assets Phase 1 Report – Three Waters. 2011 GNS Liquefaction Report. 2011 City Infrastructure and Civil Defence Preparedness. 2014 PNCC Engineering Standards Resilience Review. PNCC District Plan Section 22: Natural Hazards – Floods.

7.3 Key Risks to the Wastewater Activity

The five sources of risk impacting on the activity are considered to be operational failure, asset failure, natural disasters, events and incidents, and project and planning risks. The risk register in Appendix D sets out the identified risks arising from these sources. The key risks largely based on criticality are summarised in this section.

It should be noted that from these sources there may be consequences in the following areas:

Legal; Environmental; Corporate Image; Service delivery; Financial; and Community Health and Safety.

These have been considered in identifying the key risks for this activity.

7.3.1 Operational Failure

Operational failures are those events that may prevent service delivery as intended, such as contamination, vandalism, operator error, injury, crash, or contract management issues, but do not involve a physical breakdown of the asset. The operational failure that occurs may also have other consequences, as noted above.

The key operational risks and mitigation measures for this activity are summarised in Table 32.

Table 32: Key Operational Risks & Mitigation Measures

Key Operational Risks Likelihood Mitigation Measures

Odours from the system (WW21) High Odour control devices. Chemical treatment. Tighter Trade Waste Controls.

Power Failure (WW18) Medium Continuous monitoring via telemetry. Standby generators (permanent & mobile).


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7.3.2 Asset Failure

Asset failure can arise from deterioration in condition, leading to structural failure or loss of performance of the asset, which then impacts adversely on the service provided to the community.

The key risks relating to asset failure and mitigation measures have been identified in Table 33.

Table 33: Key Asset Failure Risks & Mitigation Measures

Key Asset Failure Risks Likelihood Mitigation Measures

Network blockage or breaks (WW17) High Ongoing condition assessments/investigations. Inflow & infiltration investigations. Programmed flushing. Public education regarding acceptable disposal practices.

Pump station failure (WW20) Medium Continuous monitoring through telemetry. Staff Training. Regular maintenance.

WWTP failure (WW19) Medium Continuous monitoring through telemetry. Staff training. Regular maintenance.

7.3.3 Project & Planning Risks

Project and planning risks occur when infrastructure is not provided in a timely way, or does not meet the needs of the community, as a result of inadequate project management and planning processes and resources.

The key risks and mitigation measures identified are summarised in Table 34.

Table 34: Key Project & Planning Risks & Mitigation Measures

Key Project & Planning Risks Likelihood Mitigation Measures

WW22 Network capacity failure due to lack of planning

Low Involvement with City Future Planning and Growth development.

7.3.4 Natural Disasters

The impact of natural disaster hazard events on the infrastructure of the Wastewater activity has been considered, with a particular focus on lifelines, critical assets, and interdependencies

The events considered are those used in the Lifelines Hazard Assessment:

Earthquake – an MM9 shaking intensity (return period 1000 years). Flood – equivalent to the 2004 Lower North Island flood event (return period of about a 100 years). Volcanic – an eruption of Mt Ruapehu with a 12 km high column.

There is further discussion in Section 7.4, which describes the hazards and assesses the resulting impacts on critical assets. The initial response will include those measures set out in the CDEM Group Plan and the Business Continuity Plan.


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7.3.5 Events & Incidents

Other events and incidents that could impact on the assets and the services will be managed largely through the measures and procedures set out in the Business Continuity Plan (refer Section 7.7.3).

7.4 Resilience of Infrastructure to Natural Disaster

7.4.1 Introduction

This section considers the impact of seismic, flooding, and volcanic events on critical assets, and the assessed level of resilience to such events. It has been informed by the reports and investigations listed in Section 7.2.6. The Lifelines Project Report 2005 found that the region as a whole is most at risk from seismic hazard – in particular liquefaction could cause significant damage in a severe earthquake.

7.4.2 Seismic Hazard

The wastewater system has between 3 and 6 hours of storage in the event of power failure before overflow occurs. Backup power for most small pump sites is via a mobile generator maintained by City Enterprises, which must be moved from site to site. Permanent backup power is provided at the Massey and Maxwell’s Line pump stations and the Totara Rd WWTP. In the event of pump station failure, overflows occur to water courses. Failure or overloading of the treatment plant will result in overflow to the Manawatū River and/or the Mangaone Stream. The WWTP has backup power generation.

Because most of the sewer network is a gravity system, sewage could, assuming laterals are not damaged, still be received from most customers and disposed of via overflows, even when most pump stations and/or the treatment plant are not operating. However, a functioning gravity pipe network is essential.

A reasonable volume of water is also needed to ‘flush’ a toilet and keep a sewer pipe working – consequently, either the piped water supply system needs to be operational, or residents need ready access to bulk water storage for filling buckets or other containers. By-pass pumping could assist a partially damaged pipe network, although the city has very few pumps suitable for this duty, and these pumps would need to come from further afield.

Approximately 80% of the pipe network is made of brittle materials (reinforced concrete or earthenware) that could be expected to result in fractures and joint pull-outs in a severe earthquake. In addition, in those areas subject to liquefaction, manholes and pumping stations could be displaced.

Table 35 provides a summary of the assessed resilience of the assets to a MM9 earthquake, with a return period of 1,000 years. Where the current level of resilience is less than desired, further work is to be undertaken over the next 2-3 years to determine options for future management and development of the asset.

Table 35: Seismic Resilience

Asset Criticality Current Level of Resilience

Desired Level of Resilience

Totara Road Wastewater Treatment Plant High Moderate Very high

Palmerston North main pump stations (Maxwell’s Line, Massey, Jickell St, College St, Linton Army, Ashhurst)

High Low to moderate Very high


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Asset Criticality Current Level of Resilience

Desired Level of Resilience

Palmerston North wastewater trunk mains High Moderate Very high

Manholes Varies Low to moderate Moderate to High

Reticulation Varies Low to moderate Varies

7.4.3 Flooding Hazard

The WWTP and many of the pump stations are located at near river level and may be subject to flooding. Although the city reach is currently protected against a 1:500 year flood, these assets may be at risk from localised intense rainfalls, or from flooding in excess of this. Flooding would increase flows into the local pump stations and the WWTP, and could lead to overflows within the wastewater network and the treatment plant. Excess flows at the WWTP would require bypassing of the inlet works with direct flow to the Manawatū River, or via the spillway from the aerated lagoons to the Mangaone Stream.

7.4.4 Volcanic Hazard

Volcanic ash is highly abrasive, mildly corrosive, and conductive. Freshly fallen volcanic ash may result in short-term physical and chemical change in water quality, increased wear on wastewater delivery and treatment systems, disruption of electrical power supplies, and high demand for water during clean up. Volcanic Ash may form un-pumpable masses in catchpits and sewer lines which may cause blockages, cause overflows, and damage pumping equipment.

Coarse ash is likely to block inlet screens, cause damage to moving parts and overload mechanical equipment. This ash will also increase the volume of raw sludge. Fine ash may not settle, and low density pumice will float.

Ash deposited directly into open ponds and clarifiers may reduce or halt the oxidation process. Ash is also highly acidic, which may affect bacteriological treatment processes, and fine ash may reduce the effectiveness of UV treatment.

Ash fall may also affect other critical infrastructure, such as electricity supply, water supply, and telecommunications, which compromise the functioning of the treatment plant.

7.4.5 Other Natural Hazards

There are also other natural hazards such as landslides, wind, or lightening that may impact the wastewater treatment. Sufficient assets redundancy will provide better resilience.

7.4.6 Interdependencies

Wastewater critical assets are not stand alone. To operate effectively, wastewater assets are dependent on a variety of other utilities / infrastructure providers. Other utilities also rely on the continued serviceability of the assets of this activity. To effectively manage risk, these interdependencies have been evaluated to identify where the highest levels of dependency exist and the implications of failure.

Table 36 identifies the utility services that this activity depends on, the level of dependence, and the mitigation measures in place.


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Table 36: Utility Services that the Wastewater Activity Depends on for Continuity of Service

Critical Assets

Utility Service the Asset is Dependent on

Implications of Failure of the Asset Depended on

Mitigation Measures

WWTP Power Sewerage overflows Standby power, Alarms

Pump Stations

Power Road Bridge (Fitzherbet Ave)

Sewerage overflows Availability of standby power, alarms

WWTP Water Supply Blocking of equipment Recycling of wastewater

7.5 Risk Management Strategy

The approach to managing the asset to provide for mitigation of risk and increasing the resilience of the assets and networks is as follows:

On-going management and development of the assets according to sound asset management practice. This includes having a good knowledge of the assets and planning appropriately for maintenance, renewal, and development.

Developing the assets to provide for future capacity requirements in a timely way to avoid any loss of service through overloading of the system.

Implementing programs for timely renewal of the assets, particularly critical assets, to reduce the risk of unexpected failure and loss of service.

Prioritising inspection, maintenance, and renewal work to those areas that carry the greatest risk for the Council.

Regular inspections of critical assets in particular large diameter trunk mains. On-going review and refinement of the risk register to provide greater understanding of those asset

components that carry higher risk. Investigating, over the next 2-3 years, options for increasing the resilience of the asset and

developing tools, such as risk based economic analysis, to assist sound decision making. This is to be part of the Improvement Plan.

Including specific programs for strengthening of structures where warranted or required to meet standards.

Incorporating greater resilience when renewing or building new assets through materials selection and application of higher design standards.

Maintaining a readiness for responding to disaster events through having an up to date Business Continuity Plan and participating in the CDEM arrangements.

7.6 Risk Management Program

The programmes that contribute in this plan to mitigate risk and to increase resilience are summarised in Table 37.

Table 37: Risk Management Programme

Programme Impact on Risk & Resilience Cost Year

Maintenance Operation programmes to undertake regular inspections of assets (SLA’s) $400k/yr Ongoing

Renewal Increased pipe renewal expenditure Various renewal programmes at WWTP

$1.65-2 M/yr Ongoing


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Programme Impact on Risk & Resilience Cost Year

Development Duplication of inlet main to WWTP Earthquake strengthening WWTP Seismic strengthening to WW Structures (PS)

$400k $1M

$200k

2017/18 2018/19

2015-2018

Investigation WWTP Investigations into seismic and liquefaction risks Yearly CCTV inspections of WW mains

$100,000 $55k/yr

2017/18 Ongoing

Readiness – BCP etc.

Asset management systems and emergency action plans to mitigate natural disaster risks.

Ongoing

7.7 Civil Defence Preparedness

7.7.1 Emergency Events

The Civil Defence and Emergency Management Act 2002 defines an emergency as a situation that:

is the result of any happening, whether natural or otherwise, including, without limitation, any explosion, earthquake, eruption, tsunami, land movement, flood, storm, tornado, cyclone, serious fire, leakage or spillage of any dangerous gas or substance, technological failure, infestation, plague, epidemic, failure of or disruption to an emergency service or a lifeline utility, or actual or imminent attack or warlike act;

causes or may cause loss of life or injury or illness or distress or in any way endangers the safety of the public or property in New Zealand or any part of New Zealand; or

cannot be dealt with by emergency services, or otherwise requires a significant and co-ordinated response under this Act.

7.7.2 Emergency Response Plan

The Act also requires the establishment of CDEM Groups based on Regional Council boundaries, working in partnership with emergency services, lifeline utilities, and others, to deliver CDEM at the local level. Each Group is required to prepare a plan to describe the Group’s CDEM arrangements that set, out among other things:

Hazards and risks to be managed by the Group. Civil defence emergency management necessary to manage the hazards and risks. Arrangements for declaring a state of emergency in the area. Arrangements for co-operation and co-ordination with other Groups.

The Manawatū-Wanganui Civil Defence Emergency Management Group Plan 2016-2021 covers the CDEM operational arrangements for the assets and services described in this AMP.

The four phases of disaster management outlined in the plan and their applicability to this activity are as follows:

Reduction

Identifying and analysing long-term risks to human life and property from natural or man-made hazards, and taking steps to eliminate these risks where practicable, and where not, reduce the magnitude of their impact and likelihood of their occurring.

For this activity this is achieved through two key initiatives:


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PNCC contribution to the Lifelines Advisory Group which aims to facilitate information exchange and collaboration between the various utility service providers in the region with respect to CDEM. This group is also responsible for maintaining and improving the Regional Lifelines Project Report ‘Risks and Responsibilities’.

Ensuring that the development of infrastructure development is in keeping with PNCC District Plan provisions which, in turn, have been informed by Horizons One Plan with respect to placement of critical infrastructure in areas prone to natural hazard events.

Readiness

Developing operational systems and capabilities before a disaster happens. These include self-help and response programmes for the general public, as well as specific programmes for emergency services.

A significant portion of the CDEM Group’s work is undertaken as readiness initiatives. The group provides co-ordinated planning to ensure an effective response to the affected communities, and for the co-ordination of responding agencies.

This activity provides inputs into these activities.

Response

This relates to response actions taken immediately before an emergency is declared and lasts until the normal systems can accommodate the recovery process. A fundamental principle for this phase is that agencies should respond to an emergency by activating their own plans and co-ordinating with the lead agency.

In the case of this activity, the Business Continuity Plan described in Section 7.7.3 would be activated.

Recovery

This relates to activities beginning after initial impact has been stabilised and extending until the community’s capacity for self-help has been restored. Recovery is a key part of the comprehensive approach to CDEM and, for this reason the Group has a comprehensive Recovery Plan. The impact of a major event can lead to long term recovery needs for the City. For the wastewater activity, this is discussed in Section 7.7.4.

Civil Defence Emergency Management Amendment Act 2016

The changes to the Civil Defence Emergency Management Act strengthen recovery planning. This amendment specifically requires CDEM Groups to amend their plans by 1 June 2018 to include strategic planning for recovery from the hazards and risks in their district. Work on this amendment is currently underway.

7.7.3 Business Continuity Plan

A Business Continuity Action Plan has been prepared for the Water & Waste Services to provide information and strategies, including co-ordination of people and resources, that will enable continued availability of business process and services and recovery from events that interrupt those services.

The Water and Waste Action Plan contains:

The Water & Waste Services call tree.


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Incident Management Team. Water & waste services continuity and recovery strategies:

Accessibility, Resources and Communication; and Wastewater Disposal.

Contact Lists for both internal and external contacts. Response Centre Details - Arena Manawatū.

7.7.4 Recovery

In the event of a major disruption of service, establishing at least a temporary supply to critical customers would be a priority.

Should the event have caused widespread disruption to the water network and recovery over a long term is required, then a recovery programme will need to be put in place. This programme will cover:

Priorities for work done on the asset; Consideration of changes in the way the assets could be configured and materials used if a

significant replacement programme was required; Potential funding needs/issues; and Relationships between the assets and other utilities assets – e.g. co-location in road corridors.

On-going work will be undertaken on these aspects.

7.7.5 Lifeline Utilities Coordination

Protocols and arrangements to facilitate communication and co-ordination with other utilities, in the event of a major event affecting multiple agencies, are set out in the CDEM Group Plan 2016-21. The following organisations are members of the Lifelines Advisory Group:

Horizons Regional Council Palmerston North City Council Ruapehu District Council Wanganui District Council Rangitikei District Council Manawatū District Council Tararua District Council Horowhenua District Council Transpower NZTA Spark NZ Vodafone 2 Degrees Inspire Net

Chorus Electra First Gas Kordia Scanpower Kiwi Rail PowerCo GasNet Palmerston North International Airport Mid Central DHB Teamtalk The Lines Company Foodstuffs


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7.7.6 Risks and Resilience Improvement Plan

Particular aspects that require further development.

Further assessment of risk and programmes to mitigate risk in the light of further investigation and better information about the impact of natural hazards.

Develop a more advanced approach to identifying critical assets that incorporates rating and other dimensions of criticality.

Further assessment of the current level of resilience. Develop a more comprehensive method of assessing resilience using risk based evaluation and

optimised decision making tools to assist decision making around the desired level of resilience. On-going review of the risk register.

Provision is made in the continuous improvement programme, Section 11, for further work on these aspects over the next three years.

Section 8 – Sustainability Asset Management Plan 2017 – Wastewater

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8 Sustainability This section sets out how the wastewater activity contributes through the management of its assets to the city having a sustainable future. The practise of asset management is itself based on sustainably delivering services to the community.

8.1 Eco City Strategy

The Eco City Strategy is one of the Council’s main strategies supporting its vision for the City and aims to contribute to the city developing and growing in a way that is sustainable.

This includes having a reduced ecological footprint through effective planning of infrastructure and the protection, maintenance and enhancement of the city’s natural and built environment. The Council is also working towards the city becoming a low carbon economy.

To achieve the desired outcomes the Council has set a number of priorities and developed Strategy Plans under the Eco City Strategy as shown in Table 38.

Table 38: Relevant Eco City Strategy Priorities and Plans

Eco City Strategy Priorities Eco City Strategy Plans

Respect and enhance the mauri of the Manawatu River Work with the community to reduce carbon emissions Regenerate native biodiversity Invest in infrastructure that serves to protect, enhance and preserve our environment Use our legislative powers and policies to ensure that urban development is sustainable now and into the future Educate the community, in particular, property owners, on the benefits of investing in sustainable building design and green buildings Demonstrate leadership and best practice by developing and implementing an environmental sustainability plan for the Council

Biodiversity Water Waste Energy Environmental education Carbon emissions reduction

In addition Sustainable Practices is one of the themes that is to be reflected in all of Council’s strategies and plans.

Key Sustainability Issues Key sustainability issues from these plans for the wastewater activity are as follows.

Minimising the impacts of the wastewater activity on the land and receiving water bodies Embedding energy efficiency and sustainability into all aspects of the wastewater operations by

utilising energy efficient motors when undertaking replacements or upgrades. Incorporating the concept of energy neutrality into future WWTP upgrades. Increasing energy generation at the WWTP through increased waste diversion to the digesters. Developing a sustainable solution for the disposal of sludge.

8.2 Climate Change

Overall, it is anticipated that climate change will have minimal impact on the sustainability of wastewater services. It is predicted that, as a result of climate change, the weather in the region will

Section 8 – Sustainability Asset Management Plan 2017 – Wastewater

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be warmer and wetter, with more intense rainfall. Depending on the success of the proposed I&I programme this may or may not have impact. This will be monitored over the term of the AMP.

8.3 Approach Taken in This Plan

Sustainability considerations are incorporated into the AMP through the following mechanisms:

The Discharge Consent Permits for Totara Road. Operational Plans for WWTP and Biogas Electricity Generation. Operational Plans for the Wastewater Treatment Plants and Pump Stations. The proposed Sludge Management Plan - application of bio-solids to land through composting or

other processes. Implementation of food waste and organic waste to energy initiatives by utilising surplus digester

capacity to treat organic waste to generate biogas which is then burned in the gas energy to generate electricity to run the wastewater treatment plant site

Participation in peak load shedding events by using standby generators during periods of peak electricity demand.

Section 9 – Financial Projections & Trends Asset Management Plan 2017 – Wastewater

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9 Financial Projections & Trends This section outlines the long-term financial requirements for operations, maintenance and capital renewal and development for the wastewater activity based on the long-term strategies and tactics described earlier in the AMP.

9.1 Long Term Financial Forecast

9.1.1 Proposed Operation & Maintenance Expenditure

Figure 31 shows the thirty year projected operating expenditure excluding interest and depreciation. The significant increase in operating programme expenditure occurring from 2026/27 onwards is based on the assumed significantly higher cost of a new wastewater treatment and disposal facility. The specific additional costs and their relative proportion will depend on the preferred solution approved by Council and consented through the RMA process. Additional costs are likely to be associated with energy, mechanical and electrical maintenance, staffing, chemical consumables and sludge treatment and disposal. Higher interest costs will also be incurred for the upgraded facility. The reason for the slight reduction in costs in 2024/25 and 2025/26 is the end of the Wastewater BPO Operational Programme 1319.

Figure 31: Thirty Year Operation & Maintenance Expenditure Forecast

9.1.2 Proposed Renewal Expenditure

Figure 32 depicts the thirty year projected renewals expenditure broken down into major asset groups. The majority of the renewal expenditure is associated with network and pump stations. The network renewal profile for the first 10 years reflects a clear programme of renewals based on condition and performance risk and an enhanced level of investment to address legacy condition issues in the network. Beyond 2032/33 the investment in network renewals drops back to an average provision of

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some $1.9 M per annum. It is expected that the investment in CCTV and optimised modelling will enable a more accurate prediction of network renewals to be developed.

While there is some significant investment in treatment plant renewals over the first 10 years of the AMP this is mostly associated with screening, grit removal and upgrading of inlet pumping. It is assumed that following the proposed upgrade of the treatment and disposal facility currently indicatively timed to occur in 2026/27 there will be no significant renewal investment in the plant for a period of time on the basis that much of the plant will be newly refurbished or upgraded. The spike in renewal investment in 2030-2032 is associated with renewal of the trunk sewer in Tremaine and Featherston as well as upgrades to SCADA and the biogas engine at the wastewater treatment plant.

Renewal investment approaches depreciation levels in the first few years of the plan, given the significant number of assets approaching end of life, however following the investment in the upgraded treatment and disposal facility, depreciation increases significantly. The higher rates of depreciation do not trigger additional renewals given the assets are assumed to be new or recently refurbished and at the early stage in their lifecycle.

.

Figure 32: Thirty Year Projected Renewals Expenditure

9.1.3 Proposed New Capital Expenditure

Figure shows the thirty year projected new capital expenditure, broken down into major asset groups. The capital expenditure profile is dominated by the assumed spending of in excess of $100M over the three years from 2023/24 to 2026/27 to fund the required upgrade in the treatment and disposal facility. The timing and profile of capital funding is indicative only as the preferred option has not yet been selected and the final scope of work is still subject to a consent process.

Apart from the treatment facility, the other capital expenditure is associated with investment in new network and pumping facilities to serve new residential and industrial growth areas. The timing and scale of new network investment is subject to review as the rate and nature of development changes. It is intended that by requiring the use of low pressure sewer systems in several growth areas that capital investment costs will be reduced compared to conventional gravity and network pumping systems.

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osed

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ewal

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endi

ture

[Mill

ions

]

Reticulation & Pumps Treatment 3 Yr Rolling Avg. Depreciation


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Figure 33: Thirty Year Projected New Capital Expenditure

A full breakdown of the thirty year projected costs is given in Appendix E.

9.1.4 Trends in Thirty Year Forecast

Significant trends for the thirty year forecast are:

Operation and Maintenance

Operation and maintenance costs are expected to increase from the major upgrade that will occur at the WWTP. This will be offset to a certain extent by efficiency gains from the new equipment, and anticipated reductions in wastewater flows from I&I.

Renewals and Rehabilitation

The renewal expenditure is higher for the first 15 years (2018/19 to 2031/32) due to renewals of some critical elements at the Totara Road WWTP, including inlet pumps and grit removal and continuing high levels of pipe renewals. Renewal expenditure then drops to a lower level in the second half of the plan. The total expenditure is $125.2M over the next 30 years.

Capital Expenditure

The capital expenditure profile is dominated by the assumed investment in an upgrade of the wastewater treatment and disposal system arising out of the consent renewal process. Expenditure is assumed to occur over the period 2023/24 to 2026/27. Other expenditure is largely associated with providing for growth. The total expenditure is $121.6M over the 30 year period.

9.2 Asset Valuation

Council Wastewater assets were re-valued as at 30 June 2017 in accordance with Financial Reporting Standard (FRS) 3 and the NZ Infrastructure Valuation Guidelines. The results of this valuation were

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independently audited. The updated valuations at 1 July 2017 are shown in Table 39. The detailed valuation and valuation methodology are contained in the City Networks Valuation Report.

Table 39: Asset Valuations 2017

Asset ORC ODRC Annual Depreciation

Pipelines $138,594,111.65 $72,567,464.80 $1,245,078.71

Manholes $30,312,864.00 $18,492,265.03 $252,559.50

Laterals $68,948,126.36 $29,636,242.96 $755,166.05

Valves $570,484.00 $517,129.23 $11,409.68

Pump Stations $6,037,240.00 $3,609,165.49 $145,166.54

Treatment Plant $44,816,718.34 $29,258,472.71 $795,428.63

Oxidation Ponds $1,368,890.00 $1,202,008.87 $5,574.05

Total $290,648,434.35 $155,282,749.08 $3,210,383.16

9.3 Confidence levels

The confidence in the asset data used as a basis for the financial forecasts has been assessed using the following grading system shown in Table 40, from the NZWWA NZ Guidelines for Infrastructure Asset Grading Standards, final draft, August 1998.

Table 40: Confidence Grading System

Confidence Grade

Description Processes Asset Data

5 Highly reliable/ Audited

Strictly formal process for collecting and analysing data. Process is documented and always followed by all staff. Process is recognised by industry as best method of assessment.

Very high level of data confidence. Data is believed to be 95 to 100% complete and ±5% accurate. Regular data audits verify high level of accuracy in data received.

4 Reliable/ Verified

Strong process to collect data. May not be fully documented but usually undertaken by most staff.

Good level of data confidence. Data is believed to be 80 to 95% complete and ±10 to 15% accurate. Some minor data extrapolation or assumptions has been applied. Occasional data audits verify reasonable level of confidence.

3 Less Reliable Process to collect data established. May not be fully documented but usually undertaken by most staff.

Average level of data confidence. Data is believed to be 50 to 80% complete and ±15 to 20% accurate. Some data extrapolation has been applied based on supported assumptions. Occasional data audits verify reasonable level of confidence.

2 Uncertain Semiformal process usually followed. Poor documentation. Process to collect data followed about half the time.

Not sure of data confidence, or data confidence is good for some data, but most of dataset is based on extrapolation of incomplete data set with unsupported assumptions.

1 Very uncertain

Ad hoc procedures to collect data. Minimal or no process documentation. Process followed occasionally.

Very low data confidence. Data based on very large unsupported assumptions, cursory inspection and analysis. Data may have been developed by extrapolation from small, unverified data sets.

0 No data No process exists to collect data. No data available.

Table 41 summaries the data confidence rating for the various asset groups. Wastewater asset data that is stored in IPS and GIS is routinely updated and generally has reliable physical characteristics for pipeline assets. The confidence level is ‘B’ overall.


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Table 41: Confidence Rating Wastewater Assets

Asset Asset Data Confidence

Condition Data Confidence

Performance Data Confidence

Demand/Growth Forecast Confidence

Pipelines 2 2 3 2

Manholes 2 2 3 2

Laterals 3 3 3 2

Valves 1 3 3 3

Pump Stations 1 2 2 3

Treatment Plant 1 2 2 2

Oxidation Ponds 1 2 2 2

9.4 Reliability of financial forecasts

9.4.1 Maintenance and Renewal Forecasts

These are considered reliable estimates, based on a known quantum and scope of work, and a good historical cost database. There is some increasing uncertainty of forecasts over the long term due to lack of knowledge about real price changes of individual components.

9.4.2 Development Forecasts

Years 1-3 - the scope and pricing of work is considered reliable.

Years 4-10 - increasing uncertainty around scope and detail of work, forecast estimates are considered conservative but are less reliable than years 1-3.

Years 11-20 - rough order costing based on estimated quantum of work, forecasts could change significantly with further investigation.

9.4.3 Potential Effects of Uncertainty

Generally expenditure forecasts are considered conservative. The longer term development budgets will be refined both in scope and costing as these programmes get closer to implementation. Those programmes that are for growth also form the basis for development contributions assessed over a period of thirty years. Periodic revision and adjustment to the schedule of works in the three year rolling programme counters any negative effect of uncertainty of the financial forecasts.

Overall, the continuation of the wastewater level of service to the community is not overly sensitive to changes in particular programmes.

Should the required level of funding not be available, there is a potential risk of deferred maintenance or renewal or development. This would not be noticeable immediately, but could build up over a period of time and result in not meeting agreed levels of service. This is mitigated through an extensive review and revision of asset management requirements that takes place on a three yearly cycle, enabling corrective action to be taken before a substantial backlog is built up.

Significant development projects that have a high level of uncertainty include:


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The timing of urban growth beyond the immediate area, of Whakarongo. This includes the later stages of programme 1055 – Urban Growth – Waste Water Supply for City West from 2024/25 onwards.

The timing of growth in the expanded NEIZ. The Totara Road WWTP Consent Renewal Upgrade.

9.5 Funding policy

The focus of this AMP is on identifying the optimum (lowest lifecycle) cost for wastewater assets necessary to produce the desired level of service. The different types of expenditure are funded as follows:

9.5.1 Operation and maintenance

Funded by trade waste fees and charges and targeted rates, depending on how the benefits of the activity are assessed - as a public or private benefit - or where costs can be attributed to an individual entity.

Trade waste charges are calculated on a flow and load proportional basis in accordance with the Council’s Trade Waste Bylaw.

Targeted rates for the wastewater activity are calculated as a fixed charge per separately used or inhabited part for residential properties, and for all other properties, a fixed charge per rating unit

9.5.2 Capital renewal

Funded from trade waste fees and charges, rates revenue collected to cover renewal costs and loan finance if necessary.

9.5.3 Capital development

Funded from subsidies and grants (where available), user contributions, reserves and, where necessary, from borrowing.

Subsidies and grants relate to Central Government funding contributions towards the cost of wastewater capital upgrades, and research into new innovations involving sustainable treatment of wastewater by-products (e.g. sludge). There is currently no Central Government funding available for wastewater capital renewal works.

9.5.4 Development contributions

Through the application of its Development Contributions Policy, the Council seeks to obtain contributions to fund the infrastructure that is required due to City growth. Programmes that are attributable to growth are shown in this AMP (See TABLE 25 Appendix E). Development contributions for wastewater are area specific.

Section 10 – Assumptions Asset Management Plan 2017 – Wastewater

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10 Assumptions This section sets out the key assumptions made in developing the asset lifecycle programmes and financial forecasts, and identifies the likelihood and impact of variations from these assumptions.

10.1 Asset Ownership and Provision of Service

Asset ownership and provision of service remains in Council ownership and management.

10.2 Population Growth

The following population projections are assumed:

10-year projection 2018 – 2028, 940 people per annum at 1.0%. 20 year projection 2018 – 2038, 710 people per annum at 0.7%. 30 year projection 2018 – 2048, 598 people per annum at 0.6%.

This is a hybrid growth scenario based on a specific Palmerston North high growth projection for years 1-10, and a Statistics New Zealand medium growth projection for years 11-30.

The AMP is formally reviewed every 3 years, and programmes will be adjusted on an annual basis through the Annual Budget for variances from that assumed. There is a low risk that planning for capital development projects for growth will not match actual needs.

10.3 Residential Growth

The development scenario for residential growth is based on meeting the needs of a growing population, and also includes the additional margins required by the National Policy Statement for Urban Development Capacity. An average household size of 2.5 is assumed.

A future housing preference of 50% for greenfield, 38% for infill and 12% for rural / residential is assumed.

The assumed development scenario is based on greenfield development being centred on Whakarongo, Aokautere, and Kelvin Grove, with a number of other smaller developments in the short to medium term, with City West and further Aoukautere development in the medium to longer term.

Any changes to this scenario will be worked through subsequent AMPs.

10.4 Industrial Growth

It is assumed that the NEIZ and the NEIZ Extension Area will be sufficient to meet the growth in large floor plate industrial activity over the next 20 to 30 Years.

Longburn is viewed as a suitable location for wet industry, although there are infrastructure constraints at the moment to its development due to its private ownership. It is assumed these will be resolved to fully realise its potential.


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Given that the nature of industrial investment can be lumpy, on-going review of industrial land uptake and needs will be required.

10.5 Retail Growth

A Centre’s based approach is assumed for managing retail and office activity throughout the city. This approach seeks to keep commercial activity centred in the core of the city and to avoid the dispersion of office and retail activity to the periphery of the urban area. This approach is given effect to through the District Plan hierarchy of business zones as follows:

Inner Business Zone (IBZ). Outer Business Zone (OBZ). Fringe Business Zone (FBZ). Local Business Zone (LBZ).

10.6 Rural-Residential Growth

It is assumed that the Council generally will not provide a water or wastewater service to rural-residential and rural properties within the City boundary.

It is assumed rural-residential subdivision will occur in locations which do not require the Council to fund substantial upgrades to the wastewater network in order to facilitate the subdivision.

10.7 Levels of Service

Generally a similar level of service to that currently delivered applies, but with minor adjustments as follows:

Increased education funding. Increased investigations into I&I. Increased wastewater pipe renewals to effect I&I reductions.

Further levels of service changes may occur during this period. Cost implications and updating to the AMP will be made at the time they occur.

10.8 Construction Costs

Financial forecasts are based on projected July 2018 construction costs.

It is likely that the price of some components will change relative to others. Budgets are reassessed each year during the Annual Budget process to mitigate this risk. BERL inflation factors applied to the 10 Year Plan also incorporate an element of price changes in different activity sectors.

10.9 Maintenance & Operational Costs

These are largely based on historical rates and assume similar contract rates throughout the planning period.


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Inflation factors will be applied at the 10 Year Plan level to reflect forecast price changes in different sectors.

10.10 Inflation

Financial projections are based on July 2018 estimated costs. No inflation factors have been applied.

BERL inflation factors will be applied to the programmes and budgets in the 10 Year Plan. Budgets for successive years of the Annual Budget are based on the corresponding year of the 10 Year Plan.

10.11 Depreciation

Average asset lives at a project level for new works have been used to calculate depreciation.

New works are a small percentage of total depreciation. Differences from actual due to averaging of lives are relatively minor.

10.12 Vested Assets

On average the same level of assets are gifted to the council as a result of subdivision as has occurred over the last 5 years

N.B. The rate of change of development will be taken account of in future revisions of the AMP and subsequent operations and maintenance, and depreciation taken into account.

10.13 Service Potential

Service potential of the asset is maintained by the renewal programme.

There is low risk that the service potential of the asset will not be maintained by implementation of the renewal programme, since this is based on reliable asset and condition information from the asset management system.

10.14 Asset Lives

Asset lives are accurately stated.

The risk that lives are inaccurate is low. Lives are based on generally accepted industry values modified by local knowledge. The asset database gives a good knowledge of asset condition, and an extensive field assessment has recently been undertaken.

10.15 Natural Disasters

There are no major natural disasters requiring additional funds.


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There is medium risk of a natural disaster occurring during this period, requiring additional funds to repair or reinstate assets. Some further provision for increasing the resilience of the assets has been built into this plan but there is still further work to be undertaken to determine the desired level of resilience and the further asset improvements to achieve this.

10.16 Council Policy

No significant change to Council policy that impacts on assets and services.

Any significant change will require a full review of the AMP and implications identified at the time.

10.17 Interest Rate

An interest rate of 5.7% p.a. is used for debt on new work.

10.18 Treatment Plant Upgrade

That no major expenditure is required for a higher level of wastewater discharge quality other than that already identified by the Council before any upgrade associated with the new consent to be applied for in 2022.

Section 11 – Continuous Improvement Asset Management Plan 2017 – Wastewater

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11 Continuous Improvement

11.1 Overview

The quality of Council’s AM practice has been enhanced over the past 20 years in line with the objective to match, but not lead, industry 'best practice' in New Zealand. This version of the AMP incorporates the following key improvements and changes undertaken over the last three years:

11.2 Programme Planning and Implementation

A Programme Planning and Implementation Template (PPI) was introduced in 2015 by the City Networks Unit as part of an initiative to improve the quality of information associated with Council infrastructural programmes, including the 30 year programmes in the AMPs

The PPI sheet is completed for every infrastructural programme and includes information about type, timing, and scope of programme, options considered, Council decisions, estimated costs, risks, assumptions and constraints, and approvals required for the programme to be implemented. These files also contain links to other relevant reports. The information is updated annually. As a result the information behind the programmes in this plan is more robust than previously.

11.3 Project Status

A system for monitoring the progress and expenditure of individual programmes through the financial year has been implemented during the last 3 years to aid better monitoring and management of programmes. This allows projects to be tracked against budget and forecasts, and to record the progress being made. An advantage of this is that the information is widely accessible, with a number of different reports available for different audiences.

11.4 Development Works Planning

11.4.1 Residential Growth and Industrial Growth Planning (refer to Section 5)

Council’s Residential Growth Strategy was adopted on 30 September 2010. In October 2011, Council authorised the preparation of a proposed District Plan change to give effect to the Residential Growth Strategy within the District Plan.

Development works included in the 2014 AMP to meet growth were based on the 2010 Residential Growth Strategy adjusted by a 2012 Addendum that identified the Whakarongo area as preceding City West for residential development.

A further modification of this strategy is now included in this plan to incorporate a higher projected growth forecast, and also takes into account the NPS-UDC requirements.


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11.4.2 Demand Projections (refer to AMP Section 5)

As a result of further analysis of migration trends, the Council has decided to assume high growth projections for years 1-10 and a medium growth projection for years 11-30. This is greater than the growth assumed for the 2014 AMP, which was based on Statistics New Zealand medium growth projections adjusted for the local Palmerston North situation.

11.4.3 Risk and Resilience (refer to AMP Section 7)

The risk and resilience assessment aligns with the new Local Government Act 2002 Amendment Act 2014 requirement for 30 year infrastructure strategies to identify and manage risks relating to natural hazards and to make appropriate financial provision for those risks. Since the 2014 AMP further work has been undertaken with a review of risks facing the assets, a review of Business Continuity plans, and of Lifelines interdependencies.

11.4.4 Council Strategies (refer to AMP Section 3)

As part of the 10 Year Planning process, the Council has reviewed its Vision, Goals, and Strategies to ensure it is achieving the outcomes it desires for the community. The infrastructure elements of the Strategy Plans associated with Council’s goals have been incorporated into these AMPs.

11.5 Renewal Works Planning

11.5.1 Condition Data

Asset age, condition, performance, and risk are the four main determinants of renewals planning. On-going condition and performance assessment of Council’s assets has taken place during the period. The data collected is fundamental to improved renewal programming. Predictive modelling is still in its early stages and provision has been included in this Improvement Plan for development of this aspect of asset management – see Task 2(g).

11.6 Operations and Maintenance

11.6.1 Operations and Maintenance Strategy

The operations and maintenance strategy and processes have been reviewed in conjunction with development of this Plan.

11.6.2 Internal Service Level Agreements

Internal service level agreements between the City Networks Unit and the City Enterprises Unit, the in-house service provider, have continued to be advanced to increase transparency and accountability between funding and service provision. This has been aided by establishing an SLA system looked after by a dedicated officer. This has been supported by a Collaborative Working Practices process between the two Units.


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11.6.3 Market Comparability Procedure

In conjunction with collaborative working practices, a market comparability procedure is built into the Service Level Agreement process. This is to ensure that the prices being accepted by City Networks reflect the market price. Some improvement has taken place over the past 3 years in this procedure but it still requires further improvement to get the full benefit of this approach. Further work is identified in this Improvement Plan (Task 9(b)).

11.7 Asset Information

11.7.1 Asset Management Plan Improvement

The AMP Policy and Strategy was reviewed in October 2016 and presented to PNCC Management Team in February 2017. This has been incorporated in the 2017 AMPs. A set of AMP guidelines and programme was prepared at the same time to assist the asset managers in the development of the 2017 AMPs. This identified the context and issues that needed to be addressed to enable the AMPs to be completed and aligned with development of the 2018-2028 10 Year Plan.

The programme included a Level of Service review, incorporation of Council Strategies into the AM planning process, development of capital (new and renewal) and operational programmes, and an independent peer review. AMP templates and guidelines were prepared to coordinate the AMP structure and content, and to improve consistency between different AMPs.

The AMP financials were constructed within Council’s corporate 10 Year Planning system to ensure consistency with the 2018 - 28 10 Year Plan projections.

11.8 Asset Management Resources

11.8.1 Loss of Key AM Knowledge

Key systems to preserve asset management knowledge are the Asset Management Systems and the Programme Planning and Implementation template system that keeps track of information connected with particular programmes. These have both been strengthened during this period.

11.8.2 Skill Gaps

Skill gaps are identified through regular performance development interviews of asset management officers. AM skills and knowledge development can be largely addressed through attendance of AM staff at NAMS training courses and other on line courses.

11.9 Levels of Service Review

A review of current levels of service and performance measures was work-shopped with the Council in March 2017. Feedback from the workshop was assessed by senior managers and has been factored into projects and programmes, included in this AMP. Further levels of service information came through from Councillors during the LGA s17A process, and also during the development of Council’s Strategy Plans.


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11.10 AMP Improvement Plan (2017)

The purpose of the Improvement Plan is to:

Identify and develop implementation of AMP processes. Identify, programme, and resource measures required to complete studies, or measures to confirm

planning assumptions, or to gather information required to improve the reliability / confidence of information used to develop the AMP.

Identify and prioritise ways to cost-effectively improve the quality of the AMP. Identify indicative time-scales, priorities, and human and financial resources required to achieve

AMP objectives.

The following improvement activities have been identified for action over the next 3 years after consideration of priorities identified by the asset management team. Many of these improvements are generic across all asset activities (i.e. water, property, roading, etc.) and will be implemented as coordinated projects across all areas.

Capital renewal and development project planning – further development of processes to take into account a sustainable development approach.

Review demand projections on an on-going basis consistent with Council’s Residential Growth Strategy.

Continue to develop predictive modelling and risk based approaches to help prioritise renewal programmes and better manage risks and costs in achieving the desired outcomes.

Update City-wide asset development plans as growth and actual development necessitates Periodically review risk assessments. Further develop appropriate mitigation strategies for Council’s critical assets in the event of a major

natural hazard, and programmes to improve resilience of critical assets from natural hazards. Operations and maintenance – on-going review of contracting and internal service agreement

strategies to achieve the best balance of risk transfer, cost, and performance. Asset information – on-going development of systems to meet all asset management needs, and

the integration of asset information activities within Council. Internal process improvements for Collaborative Working Practices, Service Procurement

processes, and Market Comparability assessments. Level of service – undertake stakeholder consultation on new, major issues, to update

understanding of community expectations and preferences. Review levels of service with Council every three years.

AM resource planning to ensure the recruitment, retention, and development of sufficient and suitably qualified staff.

Review AM strategy to take account of changes in Council direction and Government policy.

The indicative AM improvement programme is detailed in Table 42.

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127

Tabl

e 42

: Pa

lmer

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Nor

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Year

Ass

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prov

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2018

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2019

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2020

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prov

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Timeframe & Responsibility

Est($)

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tatio

n (P

PI)

info

rmat

ion

in c

onju

nctio

n w

ith A

P &

10 Y

ear P

lan

proc

ess.

3 weeks

Asset Managers

20,000

Dev

elop

use

r frie

ndly

dat

abas

e fo

r the

PP

I inf

orm

atio

n.

3 weeks

Asset Group / IT

20,000

3 R

enew

al

wor

ks

plan

ning

Und

erta

ke a

nnua

l ass

essm

ent o

f as

set c

ondi

tion,

age

, and

en

viro

nmen

tal f

acto

rs to

det

erm

ine

resi

dual

ass

et li

ves

(pre

dict

ive

mod

ellin

g).

Annual

Asset Managers

15,000

Com

pile

a re

new

al p

rogr

amm

e (a

ccou

ntin

g fo

r con

ditio

n an

d re

new

al

prof

ile d

epre

ciat

ion)

incl

udin

g co

nseq

uenc

es/ri

sks

of b

udge

t co

nstra

ints

.

4 weeks

Asset Managers

20,000

Sect

ion

11 –

Con

tinuo

us Im

prov

emen

t As

set M

anag

emen

t Pla

n 20

17 –

Was

tew

ater

130

Re

sour

ces

2017

/18

2018

/19

2019

/20

2020

/21

AM

Cat

egor

y Im

prov

emen

t Act

iviti

es


Est($)

J F

M

A

M

J J

A

S O

N

D

J F

M

A

M

J J

A

S O

N

D

J F

M

A

M

J J

A

S O

N

D

J

3 R

enew

al

wor

ks

plan

ning

Dev

elop

and

act

ion

proc

esse

s to

id

entif

y an

d pr

iorit

ise

risk

miti

gatio

n op

tions

(OD

M).

Prep

are

rene

wal

pr

ogra

mm

e.

3 weeks

Asset Managers

10,000

4 O

pera

tions

an

d m

aint

enan

ce

Doc

umen

t O&M

stra

tegy

and

O&M

pr

oces

ses

for o

ptim

isin

g pr

ogra

mm

es

(ben

efit/

cos

t app

roac

h).

1 week

Asset Managers

4,000

Rev

iew

pro

cess

es to

ens

ure

that

co

mpe

titiv

e pr

ices

are

obt

aine

d fo

r se

rvic

es d

eliv

ered

, and

that

ther

e is

th

e co

rrect

bal

ance

bet

wee

n ris

k tra

nsfe

r, pe

rform

ance

orie

ntat

ion

and

cost

s. (S

LA c

ompa

rabi

lity,

cor

e m

arke

t dat

a, s

ched

ules

of p

rices

.)

2 weeks

Asset Managers

8,000

Det

aile

d re

view

of r

esou

rce

inpu

ts to

op

erat

ion

and

mai

nten

ance

act

iviti

es.

3 weeks

Manager

20,000

5 As

set

man

agem

ent

impr

ovem

ent

Esta

blis

h an

Ass

et M

anag

emen

t C

oord

inat

ing

Gro

up to

driv

e im

prov

emen

t pla

n &

next

‘AM

P ov

er

the

next

3yr

s.

AMP Coordinator

3,000

Esta

blis

h an

nual

man

agem

ent r

evie

w

mee

tings

to c

onsi

der A

M p

erfo

rman

ce

AMP Coord/ Activity Manager

Sect

ion

11 –

Con

tinuo

us Im

prov

emen

t As

set M

anag

emen

t Pla

n 20

17 –

Was

tew

ater

131

Re

sour

ces

2017

/18

2018

/19

2019

/20

2020

/21

AM

Cat

egor

y Im

prov

emen

t Act

iviti

es


Est($)

J F

M

A

M

J J

A

S O

N

D

J F

M

A

M

J J

A

S O

N

D

J F

M

A

M

J J

A

S O

N

D

J

Dev

elop

ove

rall

AM s

trate

gy le

adin

g up

to n

ext A

M re

view

and

get

ado

pted

by

MT.

2 weeks

AMP Coordinator

8,000

5 As

set

man

agem

ent

impr

ovem

ent

Dev

elop

a p

roce

ss fo

r reg

ular

revi

ew

of ri

sk.

1 week

AMP Coordinator

5,000

Dev

elop

and

enh

ance

mea

sure

s fo

r re

silie

nce

of c

ritic

al a

sset

s to

nat

ural

ha

zard

s.

3 weeks

AMP Coordinator

5,000

Dev

elop

and

impl

emen

t pro

cess

to

ensu

re th

at th

ere

is b

ette

r int

egra

tion

betw

een

all A

MPs

.

1 week

AMP Coordinator

4,000

Dev

elop

KPI

s to

mon

itor p

rogr

ess

with

the

Impr

ovem

ent P

lan.

2 days

AMP Coordinator

1,000

6 As

set

man

agem

ent

staf

f re

sour

ces

Adop

t suc

cess

ion

plan

ning

pro

cess

to

min

imis

e ris

ks re

latin

g to

loss

of k

ey

staf

f kno

wle

dge.

1 week

Networks MT

4,000

Sect

ion

11 –

Con

tinuo

us Im

prov

emen

t As

set M

anag

emen

t Pla

n 20

17 –

Was

tew

ater

132

Re

sour

ces

2017

/18

2018

/19

2019

/20

2020

/21

AM

Cat

egor

y Im

prov

emen

t Act

iviti

es


Est($)

J F

M

A

M

J J

A

S O

N

D

J F

M

A

M

J J

A

S O

N

D

J F

M

A

M

J J

A

S O

N

D

J

Skill

gap

s in

AM

are

ass

esse

d an

d tra

inin

g pr

ogra

mm

es im

plem

ente

d to

cl

ose

any

iden

tifie

d ga

ps.

1 week

Roading Manager

12,000

6 As

set

man

agem

ent

staf

f re

sour

ces

Prom

ote

orga

nisa

tiona

l und

erst

andi

ng

of A

M p

ract

ices

and

out

com

es.

2 weeks

AMP Coordinator

10,000

7 Le

vel o

f se

rvic

e re

view

Rev

iew

LoS

stra

tegy

and

pro

gram

me.

2 weeks

AMP Coordinator

10,000

Und

erta

ke c

onsu

ltatio

n on

maj

or

issu

es, c

ase

by c

ase.

10 weeks

50,000

Und

erta

ke L

oS R

evie

w w

ith C

ounc

il.

AMP Coordinator /

Asset Managers

30,000

8 U

pdat

e AM

P AM

P M

atur

ity A

sses

smen

t and

id

entif

icat

ion

of k

ey fo

cus

area

s fo

r 20

21 P

lans

.

AMP Coordinator /

Asset Managers

12,000

Sect

ion

11 –

Con

tinuo

us Im

prov

emen

t As

set M

anag

emen

t Pla

n 20

17 –

Was

tew

ater

133

Re

sour

ces

2017

/18

2018

/19

2019

/20

2020

/21

AM

Cat

egor

y Im

prov

emen

t Act

iviti

es


Est($)

J F

M

A

M

J J

A

S O

N

D

J F

M

A

M

J J

A

S O

N

D

J F

M

A

M

J J

A

S O

N

D

J

Prep

are

AMP

usin

g ou

tput

s of

this

im

prov

emen

t pro

gram

me

and

inco

rpor

ate

furth

er re

com

men

datio

ns

from

the

2017

Pee

r Rev

iew

& A

udit

NZ

into

the

Plan

.

16 weeks

Asset Managers

30,000

8 U

pdat

e AM

P U

pdat

e AM

P pr

ogra

mm

e an

d fin

anci

als.

4 weeks

Asset Managers

16,000

Impr

ove

inte

rnal

pro

cess

es o

f CW

P.

SLA

syst

em a

nd M

arke

t C

ompa

rabi

lity

as re

quire

d.

Special Projects Manager

15,000


135

Appendix A – Glossary Asset Management Plan 2017 – Wastewater

137

Glossary Appendix A.


139

The following terms and acronyms (in brackets) are used in this Asset Management Plan.

Term / Acronym Definition

Activity An activity is the work undertaken on an asset or group of assets to achieve a desired outcome.

Advanced Asset Management (AAM)

Asset management practice that has evolved to a state that matches business needs. AAM employs predictive modelling, risk management and optimised renewal decision making techniques to establish asset lifecycle treatment options and related long term cashflow predictions. (See Core asset management).

Annual Budget The Annual Budget provides a statement of the direction of Council and ensures consistency and co-ordination in both making policies and decisions concerning the use of Council resources. It is a reference document for monitoring and measuring performance for the community as well as the Council itself.

Asset A physical component of a facility which has value, enables services to be provided and has an economic life of greater than 12 months.

Asset Management (AM)

The combination of management, financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most cost effective manner.

Asset Management System (AMS)

A system (usually computerised) for collecting analysing and reporting data on the utilisation, performance, lifecycle management and funding of existing assets.

Asset Management Plan (AMP)

A plan developed for the management of one or more infrastructure assets that combines multi-disciplinary management techniques (including technical and financial) over the lifecycle of the asset in the most cost effective manner to provide a specified level of service. A significant component of the plan is a long term cashflow projection for the activities.

Asset Management Strategy

A strategy for asset management covering, the development and implementation of plans and programmes for asset creation, operation, maintenance, renewal, disposal and performance monitoring to ensure that the desired levels of service and other operational objectives are achieved at optimum cost.

Asset Management Team

The team appointed by an organisation to review and monitor the corporate asset management improvement programme and ensure the development of integrated asset management systems and plans consistent with organisational goals and objectives.

Asset Register A record of asset information considered worthy of separate identification including inventory, historical, financial, condition, construction, technical and financial information about each.

Benefit Cost Ratio (B/C)

The sum of the present values of all benefits (including residual value, if any) over a specified period, or the life cycle of the asset or facility, divided by the sum of the present value of all costs.

Business Plan A plan produced by an organisation (or business units within it) which translate the objectives contained in an Annual Budget into detailed work plans for a particular, or range of, business activities. Activities may include marketing, development, operations, management, personnel, technology and financial planning

Capital Expenditure (CAPEX)

Expenditure used to create new assets or to increase the capacity of existing assets beyond their original design capacity or service potential. CAPEX increases the value of an asset.

Cash Flow The stream of costs and/or benefits over time resulting from a project investment or ownership of an asset.

Components Specific parts of an asset having independent physical or functional identity and having specific attributes such as different life expectancy, maintenance regimes, risk or criticality.

Condition Monitoring

Continuous or periodic inspection, assessment, measurement and interpretation of resulting data, to indicate the condition of a specific component so as to determine the need for some preventive or remedial action

Core Asset Management

Asset management which relies primarily on the use of an asset register, maintenance history, condition assessment, defined levels of service, and simple risk and benefit/ cost assessments in order to establish work priorities and long term cashflow predictions.

Critical Assets Assets for which the financial, business or service level consequences of failure are sufficiently severe to justify proactive inspection and rehabilitation. Critical assets have a lower threshold for action than non-critical assets.


140


Current Replacement Cost

The cost of replacing the service potential of an existing asset, by reference to some measure of capacity, with an appropriate modern equivalent asset.

Deferred Maintenance

The shortfall in rehabilitation work required to maintain the service potential of an asset.

Demand Management

The active intervention in the market to influence demand for services and assets with forecast consequences, usually to avoid or defer CAPEX expenditure. Demand management is based on the notion that as needs are satisfied expectations rise automatically and almost every action taken to satisfy demand will stimulate further demand.

Depreciated Replacement Cost (DRC)

The replacement cost of an existing asset after deducting an allowance for wear or consumption to reflect the remaining economic life of the existing asset.

Depreciation The wearing out, consumption or other loss of value of an asset whether arising from use, passing of time or obsolescence through technological and market changes. It is accounted for by the allocation of the historical cost (or revalued amount) of the asset less its residual value over its useful life.

Disposal Activities necessary to dispose of decommissioned assets.

Economic Life The period from the acquisition of the asset to the time when the asset, while physically able to provide a service, ceases to be the lowest cost alternative to satisfy a particular level of service. The economic life is at the maximum when equal to the physical life however obsolescence will often ensure that the economic life is less than the physical life.

Facility A complex comprising many assets (e.g. a hospital, water treatment plant, recreation complex, etc.) which represents a single management unit for financial, operational, maintenance or other purposes.

Geographic Information System (GIS)

Software which provides a means of spatially viewing, searching, manipulating, and analysing an electronic data-base.

I&I Infiltration and Inflow.

Infrastructure Assets

Stationary systems forming a network and serving whole communities, where the system as a whole is intended to be maintained indefinitely at a particular level of service potential by the continuing replacement and refurbishment of its components. The network may include normally Recognised ‘ordinary’ assets as components.

Level Of Service The defined service quality for a particular activity (i.e. roading) or service area (i.e. street-lighting) against which service performance may be measured. Service levels usually relate to quality, quantity, reliability, responsiveness, environmental acceptability and cost.

Life A measure of the anticipated life of an asset or component; such as time, number of cycles, distance intervals etc.

Life Cycle Life cycle has two meanings: The cycle of activities that an asset (or facility) goes through while it retains an identify as a particular asset i.e. from planning and design to decommissioning or disposal. The period of time between a selected date and the last year over which the criteria (e.g. costs) relating to a decision or alternative under study will be assessed.

Life Cycle Cost The total cost of an asset throughout its life including planning, design, construction, acquisition, operation, maintenance, rehabilitation and disposal costs.

Maintenance All actions necessary for retaining an asset as near as practicable to its original condition, but excluding rehabilitation or renewal.

Maintenance Plan Collated information, policies and procedures for the optimum maintenance of an asset, or group of assets.

Maintenance Standards

The standards set for the maintenance service, usually contained in preventive maintenance schedules, operation and maintenance manuals, codes of practice, estimating criteria, statutory regulations and mandatory requirements, in accordance with maintenance quality objectives.

Net Present Value (NPV)

The value of an asset to the organisation, derived from the continued use and subsequent disposal in present monetary values. It is the net amount of discounted total cash inflows arising from the continued use and subsequent disposal of the asset after deducting the value of the discounted total cash outflows.


141


Objective An objective is a general statement of intention relating to a specific output or activity. They are longer term aims and are not necessarily outcomes that managers can control.

Operation The active process of utilising an asset which will consume resources such as manpower, energy, chemicals and materials. Operation costs are part of an assets life cycle costs..

Optimised Renewal Decision Making (ORDM)

An optimisation process for considering and prioritising all options to rectify performance failures of assets. The process encompasses NPV analysis and risk assessment.

Performance Indicator (PI)

A qualitative or quantitative measure of a service or activity used to compare actual performance against a standard or other target. Performance indicators commonly relate to statutory limits, safety, responsiveness, cost, comfort, asset performance, reliability, efficiency, environmental protection and customer satisfaction.

Performance Monitoring

Continuous or periodic quantitative and qualitative assessments of the actual performance compared with specific objectives, targets or standards.

Pipeline Asset Management System

The computerised utilities asset management software system (IPS) supplied by Infor.

Planned Maintenance

Planned maintenance activities fall into 3 categories : Periodic - necessary to ensure the reliability or sustain the design life of an asset. Predictive - condition monitoring activities used to predict failure. Preventive - maintenance that can be initiated without routine or continuous checking (e.g. using information contained in maintenance manuals or manufacturers’ recommendations) and is not condition-based.

Rehabilitation Works to rebuild or replace parts or components of an asset, to restore it to a required functional condition and extend its life, which may incorporate some modification. Generally involves repairing the asset using available techniques and standards to deliver its original level of service (i.e. heavy patching of roads, slip-lining of sewer mains, etc.) without resorting to significant upgrading or replacement.

Renewal Works to upgrade, refurbish, rehabilitate or replace existing facilities with facilities of equivalent capacity or performance capability.

Renewal Accounting

A method of infrastructure asset accounting which recognises that infrastructure assets are maintained at an agreed service level through regular planned maintenance, rehabilitation and renewal programmes contained in an asset management plan. The system as a whole is maintained in perpetuity and therefore does not need to be depreciated. The relevant rehabilitation and renewal costs are treated as operational rather than capital expenditure and any loss in service potential is recognised as deferred maintenance.

Repair Action to restore an item to its previous condition after failure or damage.

Replacement The complete replacement of an asset that has reached the end of its life, so as to provide a similar, or agreed alternative, level of service.

Remaining Economic Life

The time remaining until an asset ceases to provide service level or economic usefulness.

Risk Cost The assessed annual cost or benefit relating to the consequence of an event. Risk cost equals the costs relating to the event multiplied by the probability of the event occurring.

Risk Management The application of a formal process to the range of possible values relating to key factors associated with a risk in order to determine the resultant ranges of outcomes and their probability of occurrence.

Routine Maintenance

Day to day operational activities to keep the asset operating (replacement of light bulbs, cleaning of drains, repairing leaks, etc.) and which form part of the annual operating budget, including preventative maintenance.

Service Potential The total future service capacity of an asset. It is normally determined by reference to the operating capacity and economic life of an asset.

Sewage Water or other liquid, including waste matter in solution or suspension, discharged from a premise.

Sewerage System of pipes, pump stations and pressure mains constructed to transport sewage from each premise to the point of sewage treatment or discharge.


142


Sewer Piped sewerage asset through which sewage conveyed. Public sewer; the section of sewer downstream of the point of discharge which is owned and maintained by Council. Private sewer / private drain (or lateral); the section of sewer between the customer’s premises and the point of discharge through which sewage is conveyed from the premises. This section of drain is owned and maintained by the customer.

Strategic Plan Strategic planning involves making decisions about the long term goals and strategies of an organisation. Strategic plans have a strong external focus, cover major portions of the organisation and identify major targets, actions and resource allocations relating to the long term survival, value and growth of the organisation.

Trade Waste Discharge is any liquid, with or without matter in suspension of solution, that is or may be discharged from trade premises in the course of any trade or industrial process or operation

Unplanned Maintenance

Corrective work required in the short term to restore an asset to working condition so it can continue to deliver the required service or to maintain its level of security and integrity.

Upgrading The replacement of an asset or addition/ replacement of an asset component which materially improves the original service potential of the asset.

Valuation Estimated asset value which may depend on the purpose for which the valuation is required, i.e. replacement value for determining maintenance levels or market value for life cycle costing.

Appendix B – Requirements of the LGA 2002 Asset Management Plan 2017 – Wastewater

143

Requirements of the LGA 2002 Appendix B.


145

Section 101B from the LGA 2002 Amendment Act 2014 and LGA Schedule 10 outline the information to be included in 10 Year Plans. Much of this information is provided through asset management plans.

LGA Section 101B Infrastructure Strategy

“101B Infrastructure strategy

(1) A local authority must, as part of its long-term plan, prepare and adopt an infrastructure strategy for a period of at least 30consecutive financial years.

(2) The purpose of the infrastructure strategy is to—

(a) identify significant infrastructure issues for the local authority over the period covered by the strategy; and

(b) identify the principal options for managing those issues and the implications of those options.

(3) The infrastructure strategy must outline how the local authority intends to manage its infrastructure assets, taking into account the need to—

(a) renew or replace existing assets; and

(b) respond to growth or decline in the demand for services reliant on those assets; and

(c) allow for planned increases or decreases in levels of service provided through those assets; and

(d) maintain or improve public health and environmental outcomes or mitigate adverse effects on them; and

(e) provide for the resilience of infrastructure assets by identifying and managing risks relating to natural hazards and by making appropriate financial provision for those risks.

(4) The infrastructure strategy must outline the most likely scenario for the management of the local authority’s infrastructure assets over the period of the strategy and, in that context, must—

(a) show indicative estimates of the projected capital and operating expenditure associated with the management of those assets—

(i) in each of the first 10 years covered by the strategy; and

(ii) in each subsequent period of 5 years covered by the strategy; and

(b) identify—

(i) the significant decisions about capital expenditure the local authority expects it will be required to make; and

(ii) when the local authority expects those decisions will be required; and


146

(iii) for each decision, the principal options the local authority expects to have to consider; and

(iv) the approximate scale or extent of the costs associated with each decision; and

(c) include the following assumptions on which the scenario is based:

(i) the assumptions of the local authority about the life cycle of significant infrastructure assets:

(ii) the assumptions of the local authority about growth or decline in the demand for relevant services:

(iii) the assumptions of the local authority about increases or decreases in relevant levels of service; and

(d) if assumptions referred to in paragraph (c) involve a high level of uncertainty,—

(i) identify the nature of that uncertainty; and

(ii) include an outline of the potential effects of that uncertainty.

(5) A local authority may meet the requirements of section 101A and this section by adopting a single financial and infrastructure strategy document as part of its long-term plan.

(6) In this section, infrastructure assets includes—

(a) existing or proposed assets to be used to provide services by or on behalf of the local authority in relation to the following groups of activities:

(i) water supply:

(ii) sewerage and the treatment and disposal of sewage:

(iii) stormwater drainage:

(iv) flood protection and control works:

(v) the provision of roads and footpaths; and

(b) any other assets that the local authority, in its discretion, wishes to include in the strategy.”


147

Extract from LGA Schedule 10

“Part 1

Information to be included in long-term plans

1 Community outcomes

A long-term plan must, to the extent determined appropriate by the local authority, describe the community outcomes for the local authority’s district or region.

2 Groups of activities

(1) A long-term plan must, in relation to each group of activities of the local authority,—

(a) identify the activities within the group of activities:

(b) identify the rationale for delivery of the group of activities (including the community outcomes to which the group of activities primarily contributes):

(c) outline any significant negative effects that any activity within the group of activities may have on the local community:

(d) include the information specified in clauses 4 and 5—

(i) in detail in relation to each of the first 3 financial years covered by the plan; and

(ii) in outline in relation to each of the subsequent financial years covered by the plan.

(2) In this schedule, each of the following activities is a group of activities:

(a) water supply:

(b) sewerage and the treatment and disposal of sewage:

(c) stormwater drainage:

(d) flood protection and control works:

(e) the provision of roads and footpaths.

(3) Despite subclause (2), a local authority may treat any other activities as a group of activities.

3 Capital expenditure for groups of activities

(1) A long-term plan must, in relation to each group of activities of the local authority and for each financial year covered by the plan, include a statement of the amount of capital expenditure that the authority has budgeted to—

(a) meet additional demand for an activity; and

(b) improve the level of service; and


148

(c) replace existing assets.

(2) For the purpose of this clause, capital expenditure budgeted for 2 or all of the purposes in subclause (1) may be treated as if it were made solely in relation to the primary purpose of the expenditure.

4 Statement of service provision

A long-term plan must, in relation to each group of activities of the local authority, include a statement of the intended levels of service provision that specifies—

(a) any performance measures specified in a rule made under section 261B for a group of activities described in clause 2(2); and

(b) the performance measures that the local authority considers will enable the public to assess the level of service for major aspects of groups of activities for which performance measures have not been specified under paragraph (a); and

(c) the performance target or targets set by the local authority for each performance measure; and

(d) any intended changes to the level of service that was provided in the year before the first year covered by the plan and the reasons for the changes; and

(e) the reason for any material change to the cost of a service.

5 Funding impact statement for groups of activities

(1) A long-term plan must, in relation to each year covered by the plan, include a funding impact statement in relation to each group of activities of the local authority.

(2) The funding impact statement must be in the prescribed form and must identify—

(a) the sources of funding to be used by the local authority; and

(b) the amount of funds expected to be produced from each source; and

(c) how the funds are to be applied.”

Appendix C – Technical Performance Measures Asset Management Plan 2017 – Wastewater

149

Technical Performance Measures Appendix C.

Appe

ndix

C –

Tec

hnic

al P

erfo

rman

ce M

easu

res

Asse

t Man

agem

ent P

lan

2017

– W

aste

wat

er

151

Tabl

e C1

: Cu

stom

er L

evel

of S

ervi

ce, P

erfo

rman

ce M

easu

res

& Ta

rget

s, &

Per

form

ance

Tar

gets

Key

Serv

ice

Crite

ria

Stak

ehol

ders

and

U

ser G

roup

s

Cus

tom

er L

evel

of

Serv

ice

Cus

tom

er P

erfo

rman

ce

Mea

sure

C

urre

nt

Perf

orm

ance

Pe

rfor

man

ce T

arge

ts

2018

/19

2019

/20

2020

/21

2021

- 28

Qua

lity

and

Hea

lth

All r

esid

ents

and

us

ers.

M

idC

entra

l Hea

lth

The

Cou

ncil

prov

ides

a

safe

(i.e

. no

risk

to p

ublic

he

alth

) was

tew

ater

co

llect

ion

serv

ice.

Res

iden

ts a

re s

atis

fied

with

the

qual

ity o

f C

ounc

il’s w

aste

wat

er

serv

ices

.

95%

95

%

95%

95

%

95%

Res

pons

iven

ess

All u

sers

Th

e C

ounc

il re

spon

ds to

re

ques

ts fo

r ser

vice

in

rela

tion

to o

verfl

ows,

bl

ocka

ges

and

faul

ts in

a

prom

pt a

nd e

ffici

ent w

ay

Med

ian

resp

onse

tim

e fo

r re

solu

tion

of o

verfl

ows

resu

lting

from

blo

ckag

es

or o

ther

faul

ts.

2.3h

rs

<8hr

(9

.5hr

tota

l) <8

hr

(9.5

hr to

tal)

<8hr

(9

.5hr

tota

l) <8

hr

(9.5

hr to

tal)

Acce

ssib

ility

Res

iden

tial a

nd

com

mer

cial

pro

perty

ow

ners

The

Cou

ncil

prov

ides

w

aste

wat

er s

ervi

ces

to

resi

dent

ial a

nd c

omm

erci

al

area

s of

the

City

Prop

ertie

s (w

ithin

the

was

tew

ater

ser

vice

s ar

ea)

are

able

to c

onne

ct to

the

was

tew

ater

ser

vice

.

100%

99

%

99%

99

%

99%

Sust

aina

bilit

y Al

l res

iden

ts.

Hor

izon

s R

egio

nal

Cou

ncil.

R

angi

tāne

M

anaw

atū

Riv

er

Lead

ers

Acco

rd

The

Cou

ncil

disp

oses

of

was

tew

ater

to

envi

ronm

enta

lly

acce

ptab

le s

tand

ards

Num

ber o

f aba

tem

ent

notic

es.

No

non-

com

plia

nce

notic

es re

ceiv

ed

0 0

0 0

Appe

ndix

C –

Tec

hnic

al P

erfo

rman

ce M

easu

res

Asse

t Man

agem

ent P

lan

2017

– W

aste

wat

er

152 Ke

y Se

rvic

e Cr

iteria

St

akeh

olde

rs a

nd

Use

r Gro

ups

C

usto

mer

Lev

el o

f Se

rvic

e C

usto

mer

Per

form

ance

M

easu

re

Cur

rent

Pe

rfor

man

ce

Perf

orm

ance

Tar

gets

2018

/19

2019

/20

2020

/21

2021

- 28

Rel

iabi

lity

All u

sers

Th

e C

ounc

il pr

ovid

es a

re

liabl

e w

aste

wat

er

colle

ctio

n se

rvic

e.

Odo

ur c

ompl

aint

s pe

r 1,

000

conn

ectio

ns p

er

year

.15

0.39

/100

0

(11

in to

tal)

1/10

00

(3 p

er y

ear)

1/10

00

(3 p

er y

ear)

1/10

00

(3 p

er y

ear)

1/10

00

(3 p

er y

ear)

Faul

t com

plai

nts

per 1

000

conn

ectio

ns p

er y

ear.

2.

6/10

00

(73

in to

tal)

3/

1000

(8

4 pe

r yea

r)

3/10

00

(84

per y

ear)

3/10

00

(84

per y

ear)

1/10

00

(84

per y

ear)

Bloc

kage

com

plai

nts

per

1,00

0 co

nnec

tions

per

ye

ar.

0.58

/100

0

(19

tota

l)

10

(280

per

ye

ar))

10

(280

per

ye

ar)

10

(280

per

ye

ar)

10

(280

per

yea

r)

Num

ber o

f com

plai

nts

abou

t the

Cou

ncil’s

re

spon

se to

issu

es w

ith

the

was

tew

ater

sys

tem

per

1,

000

conn

ectio

ns p

er

year

0.1/

1000

(3

in to

tal)

1/10

00

(28

per y

ear)

1 (2

8 pe

r yea

r) 1

(28

per y

ear)

1 (2

8 pe

r yea

r)

The

Cou

ncil

prov

ides

a

relia

ble

was

tew

ater

co

llect

ion

serv

ice.

The

num

ber o

f dry

w

eath

er w

aste

wat

er

over

flow

s fro

m th

e C

ounc

il’s s

ewer

age

syst

ems

per 1

,000

co

nnec

tions

per

yea

r. Err

or!

Book

mar

k no

t def

ined

.

1.1/

1000

38

due

to

loca

lised

blo

ckag

es

1 (3

0 pe

r yea

r) 1

(30

per y

ear)

1 (3

0 pe

r yea

r) 1

(30

per y

ear)

The

Cou

ncil

was

tew

ater

sy

stem

is d

esig

ned

to

adeq

uate

sta

ndar

ds a

nd is

op

erat

ed e

ffect

ivel

y

Med

ian

resp

onse

tim

e fo

r at

tend

ing

to o

verfl

ows

resu

lting

from

blo

ckag

es

or o

ther

faul

ts.

0.4h

rs

<1.5

hr

<1.5

hr

<1.5

hr

<1.5

hr

Sust

aina

bilit

y (C

ontin

ued)

Al

l res

iden

ts.

Hor

izon

s R

egio

nal

Cou

ncil.

R

angi

tāne

The

Cou

ncil

disp

oses

of

was

tew

ater

to

envi

ronm

enta

lly

acce

ptab

le s

tand

ards

Num

ber o

f inf

ringe

men

t no

tices

. 16

0

0 0

0 0

Num

ber o

f enf

orce

men

t or

ders

. 0

0

0 0

0

15 M

anda

tory

mea

sure

from

the

Dep

artm

ent o

f Int

erna

l Affa

irs

16 M

anda

tory

mea

sure

from

the

Dep

artm

ent o

f Int

erna

l Affa

irs

Appe

ndix

B –

Req

uire

men

ts o

f the

LG

A 20

02

Asse

t Man

agem

ent P

lan

2017

– W

aste

wat

er

153

Key

Serv

ice

Crite

ria

Stak

ehol

ders

and

U

ser G

roup

s

Cus

tom

er L

evel

of

Serv

ice

Cus

tom

er P

erfo

rman

ce

Mea

sure

C

urre

nt

Perf

orm

ance

Pe

rfor

man

ce T

arge

ts

2018

/19

2019

/20

2020

/21

2021

- 28

Man

awat

ū R

iver

Le

ader

s Ac

cord

N

umbe

r of c

onvi

ctio

ns

rece

ived

by

the

Cou

ncil

in

rela

tion

to re

sour

ce

cons

ents

.

0

0 0

0 0

A 30

-yea

r as

set

man

agem

ent p

lan

is in

pl

ace

for t

he w

aste

wat

er

activ

ity

A 30

yea

r ass

et

man

agem

ent p

lan

prep

ared

, pee

r re

view

ed a

nd

adop

ted

in

Sept

embe

r 201

8

AMP

in

plac

e (k

ey

proj

ects

fro

m A

MP

will

be

outli

ned)

AMP

in

plac

e (k

ey

proj

ects

fro

m A

MP

will

be

outli

ned)

AMP

revi

ewed

(k

ey p

roje

cts

from

AM

P w

ill be

ou

tline

d)

AMP

in p

lace

and

re

view

ed 3

-yea

rly

with

inde

pend

ent

peer

revi

ew (k

ey

proj

ects

from

AM

P w

ill be

out

lined

)

Fina

ncia

l M

anag

emen

t Al

l was

tew

ater

ra

tepa

yers

Th

e C

ounc

il m

anag

es it

s w

aste

wat

er a

ctiv

ity in

a

finan

cial

ly s

usta

inab

le w

ay

Was

tew

ater

rate

s ar

e le

ss

than

the

aver

age

of th

e na

tiona

l pee

r gro

up.

10

0%

100%

10

0%

100%

The

Cou

ncil

mai

ntai

ns

and

deve

lops

was

tew

ater

se

rvic

es to

mee

t cur

rent

an

d fu

ture

nee

ds

Was

tew

ater

Cap

ital

prog

ram

me

is p

rovi

ded

with

in b

udge

t.

Ac

hiev

ed

Achi

eved

Ac

hiev

ed

Achi

eved

The

Cou

ncil

man

ages

its

was

tew

ater

act

ivity

in a

fin

anci

ally

sus

tain

able

way

Was

tew

ater

Ope

ratio

nal

prog

ram

me

is p

rovi

ded

with

in b

udge

t

Ac

hiev

ed

Achi

eved

Ac

hiev

ed

Achi

eved

Appendix D – Risk Analysis/ Framework & Register Asset Management Plan 2017 – Wastewater

155

Risk Analysis/ Framework & Register Appendix D.


157

Risk Management Process

The adopted City Networks risk management process is consistent with Australian/New Zealand standard AS/NZ 4360 which defines risk assessment and management.

Risk Management Context

The key risk criteria adopted for City Networks for assessing the consequences of identified risks are:

Environmental and legal compliance. Safety & Health. Third Party Property Damage & Losses. Loss of Service- Extent/ duration. PNCC Business Costs Total Recovery. Corporate image.

Risk Analysis

The likelihood and impact ratings used to determine initial risk ratings are defined in Tables D1 and D2 respectively.

Table D1: Risk Probability Ratings

Code Descriptor Description (Probability)

A Almost Certain The event could occur in most circumstances, e.g. 90% + chance of occurring in the next 12 months (or in 9 out of every 10 years).

B Likely The event will probably occur in most circumstances, e.g. 70% chance of occurring in the next 12 months (or in 7 out of every 10 years).

C Moderate The event should occur at some time, e.g. 50% chance of occurring in the next 12 months (or in 5 out of every 10 years).

D Unlikely The event could occur at some time, e.g. 20-30% chance of occurring in the next 12 months (or in 2-3 out of every 10 years).

E Rare The event may occur only in exceptional circumstances, e.g. up to 10% chance of occurring in the next 12 months (or once in 10 years).

F Extremely Rare The event may occur only in extremely exceptional circumstances, e.g. up to 2% chance of occurring in the next 12 months (or once or less in 50 years).

Appe

ndix

D –

Ris

k An

alys

is/ F

ram

ewor

k &

Reg

iste

r As

set M

anag

emen

t Pla

n 20

17 –

Was

tew

ater

158

Tabl

e D2

: M

easu

res

of C

onse

quen

ces

of F

ailu

re

Area

of

Impa

ct

Fact

or

Extr

eme

Maj

or

Mod

erat

e M

inor

In

sign

ifica

nt

Lega

l Le

gal

Cou

ncil

sued

or f

ined

or

othe

rwis

e lia

ble

for m

ore

than

$2

0M.

Cou

ncil

sued

or f

ined

or

othe

rwis

e lia

ble

for $

5M -

$2

0M.

Cou

ncil

sued

or f

ined

or

othe

rwis

e lia

ble

for $

250K

-

$5M

.

Cou

ncil

sued

or f

ined

or

othe

rwis

e lia

ble

for u

p to

$2

50K.

Cou

ncil

pros

ecut

ed fo

r m

inor

offe

nce.

Cat

astro

phic

env

ironm

enta

l da

mag

e of

nat

iona

l im

porta

nce.

Pro

secu

tion.

Lo

ng te

rm s

tudy

. Im

pact

pe

rman

ent.

Serio

us e

nviro

nmen

tal

dam

age

of n

atio

nal

impo

rtanc

e. P

rose

cutio

n.

Long

term

stu

dy.

Impa

ct n

ot

fully

reve

rsib

le.

Serio

us e

nviro

nmen

tal

dam

age

of n

atio

nal

impo

rtanc

e. P

rose

cutio

n ex

pect

ed.

Impa

ct re

vers

ible

w

ithin

ten

year

s.

Serio

us e

nviro

nmen

tal

dam

age

of lo

cal i

mpo

rtanc

e.

Pros

ecut

ion

prob

able

. Im

pact

fu

lly re

vers

ible

with

in o

ne

year

.

Min

or lo

calis

ed

envi

ronm

enta

l dam

age.

Pr

osec

utio

n po

ssib

le.

Impa

ct fu

lly re

vers

ible

with

in

thre

e m

onth

s.

Cor

pora

te

Imag

e Po

litic

al

Appo

intm

ent o

f a

Com

mis

sion

er.

Dec

isio

n-m

akin

g pr

oces

s br

eaks

dow

n.

Cou

ncil

dela

ys d

ecis

ions

. Br

eakd

own

in th

e re

latio

nshi

p be

twee

n C

ounc

il an

d st

aff.

Imag

e

Nat

iona

l adv

erse

pol

itica

l co

mm

ent f

or o

ne m

onth

plu

s.

Reg

iona

l adv

erse

pol

itica

l co

mm

ent f

or s

ever

al d

ays.

Lo

cal a

dver

se p

oliti

cal

com

men

t for

one

wee

k.

Loca

l adv

erse

pol

itica

l co

mm

ent.

N

egat

ive

natio

nal m

ulti

med

ia

cove

rage

for o

ne m

onth

plu

s.

Neg

ativ

e na

tiona

l mul

ti m

edia

co

vera

ge fo

r sev

eral

day

s.

Neg

ativ

e na

tiona

l m

edia

co

vera

ge fo

r tw

o da

ys.

Neg

ativ

e na

tiona

l m

edia

co

vera

ge.

Neg

ativ

e in

tern

atio

nal m

ulti

med

ia c

over

age

for o

ne

mon

th p

lus.

Neg

ativ

e in

tern

atio

nal m

ulti

med

ia c

over

age.

Cou

ncillo

r/ M

anag

emen

t Ti

me

Unp

lann

ed c

olle

ctiv

e 30

day

s of

Cou

ncillo

rs’ o

r M

anag

emen

ts’ t

ime.

10-1

5 da

ys o

f Man

ager

s’

time.

U

p to

two

days

of M

anag

ers’

tim

e.

Serv

ice

Del

iver

y Se

rvic

e D

eliv

ery

Wat

er s

uppl

y an

d se

wag

e ou

t fo

r city

for s

ever

al d

ays

plus

. W

ater

sup

ply

and

sew

age

out

for t

wo

subu

rbs

for o

ne w

eek.

W

ater

sup

ply

and/

or s

ewag

e ou

t for

city

for o

ne d

ay.

Wat

er s

uppl

y an

d/or

sew

age

out f

or tw

o su

burb

s fo

r one

da

y.

W

ater

sup

ply

cont

amin

ated

.

Perm

anen

t los

s of

sol

id w

aste

fa

cilit

y.

Publ

ic a

men

ity c

lose

d fo

r one

m

onth

or m

ore.

Pu

blic

am

enity

clo

sed

for t

wo

wee

ks o

r mor

e.

Publ

ic a

men

ity c

lose

d fo

r one

w

eek

or m

ore.

Pu

blic

am

enity

clo

sed

for

less

than

one

wee

k.

Sy

stem

atic

cus

tom

er

com

plai

nts,

or c

ompl

aint

s re

latin

g to

mor

e th

an o

ne

occu

rrenc

e.

Isol

ated

cus

tom

er

com

plai

nts.

Appe

ndix

D –

Ris

k An

alys

is/ F

ram

ewor

k &

Reg

iste

r As

set M

anag

emen

t Pla

n 20

17 –

Was

tew

ater

159

Area

of

Impa

ct

Fact

or

Extr

eme

Maj

or

Mod

erat

e M

inor

In

sign

ifica

nt

Serv

ice

Del

iver

y Se

rvic

e D

eliv

ery

R

epea

ted

serv

ice

stan

dard

fa

ilure

or o

ne th

at a

ffect

s m

ultip

le p

eopl

e.

Isol

ated

ser

vice

sta

ndar

d fa

ilure

.

Fina

ncia

l –

PNC

C

Fina

ncia

l U

npla

nned

loss

or c

ost t

o re

inst

ate

of $

3.5M

or g

reat

er

Unp

lann

ed lo

ss o

r cos

t to

rein

stat

e be

twee

n $1

.75M

-$3

.5M

.

Unp

lann

ed lo

ss o

r cos

t to

rein

stat

e be

twee

n $1

.0M

-$1

.75M

.

Unp

lann

ed lo

ss o

r cos

t to

rein

stat

e be

twee

n $5

00K

-$1

.0M

.

Unp

lann

ed lo

ss o

r cos

t to

rein

stat

e le

ss th

an $

500K

.

Ong

oing

loss

of $

400K

pa.

O

ngoi

ng lo

ss $

200K

-$40

0K

pa.

Ong

oing

loss

$10

0K-2

00K

pa.

Fina

ncia

l –

Com

mun

ity

Fina

ncia

l C

atas

troph

ic c

onse

quen

tial

loss

in th

e co

mm

unity

(>

$20M

)

Maj

or c

onse

quen

tial l

oss

in

the

com

mun

ity ($

5M-$

20M

) Si

gnifi

cant

con

sequ

entia

l los

s in

the

com

mun

ity ($

1M-$

5M)

Som

e co

nseq

uent

ial l

oss

in

the

com

mun

ity ($

250K

-1M

) M

inim

al c

onse

quen

tial l

oss

in th

e co

mm

unity

(<$2

50K)

Com

mun

ity

Hea

lth a

nd

Safe

ty

Com

mun

ity

Pe

ople

in s

ever

al s

ubur

bs il

l th

roug

h co

ntam

inat

ed w

ater

or

sim

ilar.

Peop

le in

two-

thre

e su

burb

s ill

thro

ugh

cont

amin

ated

wat

er

or s

imila

r.

Peop

le in

one

sub

urb

ill th

roug

h co

ntam

inat

ed w

ater

or

sim

ilar.

Seve

ral p

eopl

e ill

thro

ugh

cont

amin

ated

wat

er o

r si

mila

r.

Mul

tiple

loss

of l

ife o

r city

-w

ide

epid

emic

. Lo

ss o

f life

or l

ong-

term

ho

spita

lisat

ion

requ

ired.

H

ospi

talis

atio

n re

quire

d.

Med

ical

trea

tmen

t req

uire

d.

D

issa

tisfa

ctio

n of

com

mun

ity

mea

sure

nee

ds to

be

incl

uded

?


160

Risk Evaluation:

The matrix of likelihood and consequence of failure ratings shown in Table D3 below is used to assess the level of risk, ranking events as low, moderate, significant or high risk.

Table D3: Risks Priority Rating Matrix

Likelihood Consequences

1 2 3 4 5

A H H C C C

B M H H C C

C L M H C C

D L L M H C

E L L M H H

F L L L M M

This allows all asset and corporate risks to be compared and ranked. The risk policy specifies the following broad treatment strategy for the levels of risk:

L = Low Risk: Manage by routine procedures.

M = Moderate Risk: Management responsibility must be specified.

H = High Risk: Risk & management strategy identified in AMP. Failure management plans available.

C = Critical Risk: Risk & management strategy identified in AMP, Failure management plan specifically addressing event in place.


161

Wastewater Risk Management Framework

Overview

This Wastewater activity specific risk management planning for Palmerston North City Council (PNCC) will provide the basis for future risk analysis and improvement planning.

This section covers the risk management implemented by PNCC and how it applies to current and future wastewater activities. In addition, an overview of risk management theory and practice is provided along with suggested improvements to current practices at the PNCC.

Risk management is a process used to identify the specific business risks, together with any possible risks associated with the provision and management of council’s wastewater services. This can be used to determine the direct and indirect costs associated with these risks, and form a priority-based action plan to address them.

The outcome of this evaluation is to be used to:

Emphasize the importance of continuing to provide Council’s wastewater services and manage inherent risks

Continually identify improvements required to Council wastewater services to avoid risk events, or minimise their impact or to realise identified opportunities.

A Risk is defined in AS/NZS ISO 31000:2009 – Risk management – Principles and guidelines, as:

“Effect of Uncertainty on Objectives”

Effect: Deviation from the expected – positive or negative.

Objectives: Can have different aspects (see Risk Types) and can apply at different levels (see Risk Hierarchy Levels).

Risks: Often characterized by reference to potential events and consequences, and is often expressed in terms of a combination of the consequences of an event and the associated likelihood.

Uncertainty: The state, even partial, of deficiency of information related to, understanding or knowledge of an event, its consequence, or likelihood.

Putting the Risks into Perspective

Council policy and operation cannot influence all the factors contributing to these risk events. However, PNCC has a responsibility to assess the risks faced by the wastewater activity in order to best manage the services with the resources available to avoid and mitigate the effects of any event.

In the following risk analysis, PNCC has highlighted a number of key risk areas across the activity including:

Moderate natural hazards Contract / SLA management Legislative noncompliance Network capacity failure


162

Network breaks or blockages Treatment plant failure

These are discussed in further detail in the Risk Registers and the overall Action Plan contained in this risk section.

Levels of Risk

The purpose of this risk plan is to identify the risks associated with the provision of wastewater services. This requires approaching the risks from many perspectives including financial, operational, reputational and public health and safety.

These risks are pertinent to both a higher, corporate level, and to a more detailed asset –specific level, but do not substitute for more specific risk analysis at those levels (see Figure D1 below).

The next step beyond this risk analysis is to develop more detailed risk plans where the criticality of specific assets is assessed and an action plan developed as appropriate.

Figure D1: Risk Hierarchy Levels

Risk Types

Risks events derive from, or impact in one or more of the following ways. These are identified against each risk in the risk register as risk types.

Operational

Risks affecting the efficient operation of wastewater system and its’ ability to function effectively.

Corporate Risk

Activity Risk

Asset Specific Risks

Highest level covering risks for the entire organisation

Considers risks from all perspectives affecting the management of the activity and its assets

Specific critical asset/service risks, project risks


163

Financial/Economic

Risks related to the financial management of PNCC and its’ ability to fund Council services now, and into the future

Risks resulting from an externally imposed economic environment.

Health and Safety

A risk event that adversely impacts on the health and safety of the community or Council staff.

Reputation / Image

Risks that affect the way Council and staff are perceived:

By the community By staff Nationwide and internationally By stakeholders By the media

Legislative

A risk event that results in PNCC either unknowingly or knowingly breaching statutes and regulations, or being exposed to liability.

Environmental

Potential or actual negative environmental or ecological impacts, regardless of whether these are reversible or irreversible in nature.

Current Situation

PNCC’s wastewater activity has not undertaken previous risk assessments on the service, but has carried out an asset level risk exercise for inclusion in the asset management plan.

Corporate Policy

PNCC is seeking to establish a corporate risk policy in place and a Risk and Assurance team, which will have an overview of all risk exposures within the organisation, including corporate, financial, customer, assets. Infrastructure Services staff will contribute regularly to the work of this group.

Each risk identified in this plan will be entered into the corporate risk register.

Risk Management Process

The following sections expand upon the risk management process as identified in the flowchart (Figure overleaf) and detail the key elements of the risk management process. The risk criteria and matrices have been established as the basis for risk evaluation developed in accordance with the AS/NZS ISO 31000:2009 international risk standard.


164

Identify Risks

All practically possible risks affecting the Council should be identified, entered into the risk register and risk types assigned. The register is used to record and summarise each risk and to outline current mitigation measures and potential future options for management of the risk.

Determine Likelihood and Consequence for Gross Risk Factor

Table and demonstrate the scales used to determine the likelihood and consequence levels, which are then input into the risk matrix to determine the effect of a risk event.

Assessment of the likelihood of occurrence and severity of consequences should be based on as much real data as possible, for example local knowledge or recorded events such as maintenance records, weather events etc. Some analysis may be required to verify the data.

The likelihood scales identify how likely, or often, a particular event is expected to occur and these are shown in Table D4 below. The descriptors are not mandatory, but are presented as a guide to assist ranking the probability of occurrence in line with the nature of each risk. For example, a risk such as a sewer overflow is considered to be ‘rare’ if it occurs once every ten years, whereas a tsunami occurring every ten years would be considered ‘frequent’.

Table D4: Likelihood of Occurrence

Risk - Likelihood of Occurrence

Likelihood Rating Descriptor

Almost Certain A The event could occur in most circumstances, e.g. 90% + chance of occurring in the next 12 months (or in 9 out of every 10 years).

Likely B The event will probably occur in most circumstances, e.g. 70% chance of occurring in the next 12 months (or in 7 out of every 10 years).

Moderate C The event should occur at some time, e.g. 50% chance of occurring in the next 12 months (or in 5 out of every 10 years).

Unlikely D The event could occur at some time, e.g. 20-30% chance of occurring in the next 12 months (or in 2-3 out of every 10 years).

Rare E The event may occur only in exceptional circumstances, e.g. up to 10% chance of occurring in the next 12 months (or once in 10 years).

Extremely Rare F The event may occur only in extremely exceptional circumstances, e.g. up to 2% chance of occurring in the next 12 months (or once or less in 50 years).


165

Figure D2: Risk Management Process

Identify Possible Risks

Determine likelihood and severity of consequence

Determine Gross Risk factor using a risk register/matrix

(likelihood x consequence)

Identify current processes & systems in place that effectively help to avoid or

minimise the chances & severity of each risk

Determine Net Risk factor using the risk register/matrix

(likelihood x consequence)

Brainstorm possible risk management options to further reduce risk level for

each risk

Prioritise risks based on size of Net Risk and criticality of service, process or asset

Form a practical and achievable Action Plan with priorities aligned with size of

each risk. Set Future Risk

Ensure mechanisms are in place to monitor, measure, report on and review

the Action Plan

New or Varied Risks

Review existing risks only

?

Obtain input from the best available information & perform

analysis as required

Approach from all possible applicable perspectives eg: Operational Financial/Economic Health & Safety

Gross Risk is based on “no measures in place” to prevent or minimise the likelihood or consequence i.e:“How bad would it be if we did nothing?”

Audits /investigations may be required to measure “effectiveness”

Net Risk = Gross Risk minus ‘measures in place’ to avoid or mitigate. This can also be called “Current Actual Risk”.

Use of available techniques to determine various options for risk treatment and cost benefit approach eg: Optimised decision making

Progress action, monitor and report, and repeat the cycle at regular intervals

Future Risk is the risk level expected once management actions are effectively implemented.

Reputation/Image Legislative Environmental

Appe

ndix

D –

Ris

k An

alys

is/ F

ram

ewor

k &

Reg

iste

r As

set M

anag

emen

t Pla

n 20

17 –

Was

tew

ater

166

Tabl

e D5

: Con

sequ

ence

Rat

ing

Area

of

Impa

ct

Fact

or

Extr

eme

Maj

or

Mod

erat

e M

inor

In

sign

ifica

nt

Lega

l Le

gal

Cou

ncil

sued

or f

ined

or

othe

rwis

e lia

ble

for m

ore

than

$2

0M.

Cou

ncil

sued

or f

ined

or

othe

rwis

e lia

ble

for $

5M -

$2

0M.

Cou

ncil

sued

or f

ined

or

othe

rwis

e lia

ble

for $

250K

-

$5M

.

Cou

ncil

sued

or f

ined

or

othe

rwis

e lia

ble

for u

p to

$2

50K.

Cou

ncil

pros

ecut

ed fo

r m

inor

offe

nce.

Cat

astro

phic

env

ironm

enta

l da

mag

e of

nat

iona

l im

porta

nce.

Pro

secu

tion.

Lo

ng te

rm s

tudy

. Im

pact

pe

rman

ent.

Serio

us e

nviro

nmen

tal

dam

age

of n

atio

nal

impo

rtanc

e. P

rose

cutio

n.

Long

term

stu

dy.

Impa

ct n

ot

fully

reve

rsib

le.

Serio

us e

nviro

nmen

tal

dam

age

of n

atio

nal

impo

rtanc

e. P

rose

cutio

n ex

pect

ed.

Impa

ct re

vers

ible

w

ithin

ten

year

s.

Serio

us e

nviro

nmen

tal

dam

age

of lo

cal i

mpo

rtanc

e.

Pros

ecut

ion

prob

able

. Im

pact

fu

lly re

vers

ible

with

in o

ne

year

.

Min

or lo

calis

ed

envi

ronm

enta

l dam

age.

Pr

osec

utio

n po

ssib

le.

Impa

ct fu

lly re

vers

ible

with

in

thre

e m

onth

s.

Cor

pora

te

Imag

e Po

litic

al

Appo

intm

ent o

f a

Com

mis

sion

er.

Dec

isio

n-m

akin

g pr

oces

s br

eaks

dow

n.

Cou

ncil

dela

ys d

ecis

ions

. Br

eakd

own

in th

e re

latio

nshi

p be

twee

n C

ounc

il an

d st

aff.

Imag

e

Nat

iona

l adv

erse

pol

itica

l co

mm

ent f

or o

ne m

onth

plu

s.

Reg

iona

l adv

erse

pol

itica

l co

mm

ent f

or s

ever

al d

ays.

Lo

cal a

dver

se p

oliti

cal

com

men

t for

one

wee

k.

Loca

l adv

erse

pol

itica

l co

mm

ent.

N

egat

ive

natio

nal m

ulti

med

ia

cove

rage

for o

ne m

onth

plu

s.

Neg

ativ

e na

tiona

l mul

ti m

edia

co

vera

ge fo

r sev

eral

day

s.

Neg

ativ

e na

tiona

l m

edia

co

vera

ge fo

r tw

o da

ys.

Neg

ativ

e na

tiona

l m

edia

co

vera

ge.

Neg

ativ

e in

tern

atio

nal m

ulti

med

ia c

over

age

for o

ne

mon

th p

lus.

Neg

ativ

e in

tern

atio

nal m

ulti

med

ia c

over

age.

Cou

ncillo

r/ M

anag

emen

t Ti

me

Unp

lann

ed c

olle

ctiv

e 30

day

s of

Cou

ncillo

rs’ o

r M

anag

emen

ts’ t

ime.

10-1

5 da

ys o

f Man

ager

s’

time.

U

p to

two

days

of M

anag

ers’

tim

e.

Serv

ice

Del

iver

y Se

rvic

e D

eliv

ery

Wat

er s

uppl

y an

d se

wag

e ou

t fo

r city

for s

ever

al d

ays

plus

. W

ater

sup

ply

and

sew

age

out

for t

wo

subu

rbs

for o

ne w

eek.

W

ater

sup

ply

and/

or s

ewag

e ou

t for

city

for o

ne d

ay.

Wat

er s

uppl

y an

d/or

sew

age

out f

or tw

o su

burb

s fo

r one

da

y.

W

ater

sup

ply

cont

amin

ated

.

Perm

anen

t los

s of

sol

id w

aste

fa

cilit

y.

Publ

ic a

men

ity c

lose

d fo

r one

m

onth

or m

ore.

Pu

blic

am

enity

clo

sed

for t

wo

wee

ks o

r mor

e.

Publ

ic a

men

ity c

lose

d fo

r one

w

eek

or m

ore.

Pu

blic

am

enity

clo

sed

for

less

than

one

wee

k.

Appe

ndix

D –

Ris

k An

alys

is/ F

ram

ewor

k &

Reg

iste

r As

set M

anag

emen

t Pla

n 20

17 –

Was

tew

ater

167

Area

of

Impa

ct

Fact

or

Extr

eme

Maj

or

Mod

erat

e M

inor

In

sign

ifica

nt

Sy

stem

atic

cus

tom

er

com

plai

nts,

or c

ompl

aint

s re

latin

g to

mor

e th

an o

ne

occu

rrenc

e.

Isol

ated

cus

tom

er

com

plai

nts.

Serv

ice

Del

iver

y Se

rvic

e D

eliv

ery

R

epea

ted

serv

ice

stan

dard

fa

ilure

or o

ne th

at a

ffect

s m

ultip

le p

eopl

e.

Isol

ated

ser

vice

sta

ndar

d fa

ilure

.

Fina

ncia

l –

PNC

C

Fina

ncia

l U

npla

nned

loss

or c

ost t

o re

inst

ate

of $

3.5M

or g

reat

er

Unp

lann

ed lo

ss o

r cos

t to

rein

stat

e be

twee

n $1

.75M

-$3

.5M

.

Unp

lann

ed lo

ss o

r cos

t to

rein

stat

e be

twee

n $1

.0M

-$1

.75M

.

Unp

lann

ed lo

ss o

r cos

t to

rein

stat

e be

twee

n $5

00K-

$1.0

M.

Unp

lann

ed lo

ss o

r cos

t to

rein

stat

e le

ss th

an $

500K

.

Ong

oing

loss

of $

400K

pa.

O

ngoi

ng lo

ss $

200K

-$40

0K

pa.

Ong

oing

loss

$10

0K-2

00K

pa.

Fina

ncia

l –

Com

mun

ity

Fina

ncia

l C

atas

troph

ic c

onse

quen

tial

loss

in th

e co

mm

unity

(>

$20M

)

Maj

or c

onse

quen

tial l

oss

in

the

com

mun

ity ($

5M-$

20M

) Si

gnifi

cant

con

sequ

entia

l los

s in

the

com

mun

ity ($

1M-$

5M)

Som

e co

nseq

uent

ial l

oss

in

the

com

mun

ity ($

250K

-1M

) M

inim

al c

onse

quen

tial l

oss

in th

e co

mm

unity

(<$2

50K)

Com

mun

ity

Hea

lth a

nd

Safe

ty

Com

mun

ity

Pe

ople

in s

ever

al s

ubur

bs il

l th

roug

h co

ntam

inat

ed w

ater

or

sim

ilar.

Peop

le in

two-

thre

e su

burb

s ill

thro

ugh

cont

amin

ated

wat

er

or s

imila

r.

Peop

le in

one

sub

urb

ill th

roug

h co

ntam

inat

ed w

ater

or

sim

ilar.

Seve

ral p

eopl

e ill

thro

ugh

cont

amin

ated

wat

er o

r si

mila

r.

Mul

tiple

loss

of l

ife o

r city

-w

ide

epid

emic

. Lo

ss o

f life

or l

ong-

term

ho

spita

lisat

ion

requ

ired.

H

ospi

talis

atio

n re

quire

d.

Med

ical

trea

tmen

t req

uire

d.

D

issa

tisfa

ctio

n of

com

mun

ity

mea

sure

nee

ds to

be

incl

uded

?


168

After the likelihood and consequence factors have been determined, the level of risk is calculated by multiplying the Likelihood of Occurrence (Table) and Consequence Rating (Table) together.

Risk = the likelihood of an event occurring X the consequence of such an event.

The final outcome is a risk rating. The risk rating enables definition between those risks that are significant and those that are of a lesser nature. Having established the comparative risk level applicable to individual risks, it is possible to rank those risks. Five risk categories have been used: Critical, High, Moderate, Low and Insignificant (see Tables 3 & 4).

Once the impact has been ranked according to the relative risk level it poses, it is then possible to target the treatment of the risk exposure, by beginning with the highest risks and identifying the potential mitigation measures.

Risk Matrix

Likelihood Consequences

Insignificant Minor Moderate Major Extreme

A M M H C C

B L M H H C

C L M M H C

D I L M M H

E I L L M M

F I I L L M

Comparative Levels of Risk

Risk Level Definition Action

I Insignificant Risk Examine where un-needed action can be reduced.

L Low Risk Managed by routine procedures.

M Medium Risk Management responsibility must be specified and risk controls reviewed.

H High Risk Risk and management strategy identified in AMP – Failure management plans available.

C Critical Risk Risk and management strategy identified in AMP – Failure management plan specifically addressing event in place.

Initially, the gross risk needs to be calculated, so likelihood and consequences need to be considered as if there were no measures in place to prevent or mitigate the risk occurrence. Essentially gross risk is an exercise to determine “What is the worst that could happen?” Once the gross risk is determined it is possible to investigate the current systems and processes to identify the net risk and then formulate an action plan to further reduce the likelihood or consequences of identified risks occurring.

Identify Current Systems & Processes, and their Effectiveness

Identifying current systems and processes are identified, and as far as resources allow, their effectiveness measured. It is often practical to identify these processes and systems initially, and rank the effectiveness conservatively until the audits and actual practice prove otherwise. Audits can be identified as part of the improvement process.


169

Effectiveness of existing systems and processes is expressed in the following categories:

Rating Descriptor

Excellent Fulfils requirements thoroughly, very robust and positive measurable effects

Good Fulfils requirements, robust and measurable, room for improvement

Fair Barely fulfils requirements, effects hard to measure (or haven’t been audited or measured), improvement required

Poor Not fulfilling requirements, little measurement or effect on overall risk

Very poor Totally ineffective in avoiding or mitigating associated risk events

Determine Net Risk

The net risk is the actual risk that exists considering the effective measures implemented. The measures in place reduce either, or both, the consequence and the likelihood of a risk occurrence. The revised factors are input into the same risk matrix to obtain the Net Risk Factor.

Risk Action Plan

The Risk Action Plan is compiled from the Risk Register and highlights the most significant risks faced as determined in the risk register. The main risks are listed in order of severity (primarily gross risk, and secondarily net risk) as assigned in consultation with key Council officers.

Actions that are required to achieve the desired improvements are indicated along with how progress on these actions will be monitored and reported. Where applicable, action tasks will detail timeframes for achievement, and responsibility for these actions.

A priority order of issues to be addressed is obtained by sorting first the gross risk levels and then the net risk levels, and identification of the biggest gaps and opportunities for improvement.

Gaps between gross and net risk indicate the importance of effective current practices to prevent gross risk events. Accordingly, improvement actions should focus on the things that will further assure Council that current practices remain effective.

Gaps between net risk and an acceptable future risk require improvement actions that will reduce current risk levels.

The most suitable risk reduction actions must be determined by considering options and resources available to the Council. Costs and benefits of these actions should be analysed to determine those actions yielding the greatest benefit (risk reduction) for the least cost. The best available techniques should be utilised to analyse the options e.g. optimised decision-making (ODM).

Higher

Risk

Gross Risk Future RiskNet Risk

Lower

RiskActions required to provide assurance

that current practices remain effective

Actions required to reach acceptable risk

levels in future

Current practices and strategies Risk treatments to be applied


170

Application of ODM applies a ‘value chain’ to the proposed actions rather than just working from the highest risk down regardless of cost. For example:

A high risk may have to remain due to the prohibitive costs associated with avoidance or mitigation

A medium risk event could be easily and cost-effectively avoided within resources available

The options for mitigating risks considered to reduce the cause, probability or impact of failure, are typically:

Rating Descriptor

Accept Risk Accept the Risk, fund and resource any risk impacts.

Strategic Change Implement strategic planning, organisational improvements.

Operational Change Implement technical improvements, procedural changes.

Risk Transfer Outsourcing, Improving contract terms, increased insurance.

Link to Improvement Plans

Actions identified in this Risk Management analysis should be directly linked to actions identified in appropriate improvement plans where they exist e.g. Asset Management Improvement Plan, where resources should be identified, approval of resources noted, and a defined method provided for revisiting and reviewing progress against each action item. Where an equivalent action item is not listed in the Improvement Plan, it should be added.

In all cases, the appropriate risk reference number should be noted in the Improvement Plan, and the Improvement number should be noted in the Risk Action Plan.

Monitor, Measure, Report, Review Plan and Actions

Management options listed in the risk tables have been refined into actions for each risk listed. These are the actions that are required to cost-effectively reduce the net risk by increasing PNCC’s ability to minimise the chances of the risk event occurring, or minimising the consequences should it occur.

Actions should, where possible, align with the overall management objectives of Council, not simply aimed at the minimisation of risk. If possible, proposed actions should align with other initiatives to:

Reduce capital investment costs. Reduce operating and maintenance costs. Reduce business risk exposure (BRE). Increase effective asset life / value. Increase level of service.

The resulting action plan for risk treatment needs to be practical and achievable such that the necessary resources and time frames are realistically met. The actions also need to be able to be monitored and measured.

The monitoring/reporting column of the Risk Action Table specifies:

Responsibility: Nominated person responsible for ensuring the risks are managed and that improvements are carried out in accordance with the programme;

Timeframe: Achievable target date to be monitored and reported against; and


171

Method and Frequency of Monitoring: This entire Action Table will be monitored by the Risk Management Steering Committee, but there will be certain actions that are being monitored and reported in other forums. These forums are to be specified and the frequency with which these actions will be reviewed.

The actions listed will be reported, monitored and reviewed regularly at the Risk Management Steering Group and various Group forums.

As necessary, this group will need to revise timeframes, responsibility, and even the appropriateness of continuing with the proposed action, or adding new actions.

As actions are complete, the net risk should reduce in most cases. The risk tables will need to be reviewed against these and updated to reflect these improvements.

Review Risks

Most of the time, the risks identified will remain the same and reviews will occur in the context of these risks. However, it will be important to recognise when a new risk arises, or an existing risk changes in nature. In the latter case, the gross risk also needs to be re-evaluated.

Appendix E – 30 Year Financial Forecasts Asset Management Plan 2017 – Wastewater

173

30 Year Financial Forecasts Appendix E.

175

Tabl

e E1

: Th

irty

Year

Ope

ratin

g Bu

dget

OPE

RA

TIN

G E

XPEN

DIT

UR

E ['0

00s]

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9 20

29/3

0 20

30/3

1 20

31/3

2 20

32/3

3

Act

ivity

Del

iver

y $2

,725

$2

,799

$2

,783

$2

,827

$2

,827

$2

,827

$2

,827

$2

,827

$4

,827

$6

,842

$6

,842

$6

,842

$6

,842

$6

,842

$6

,842

Serv

ice

Leve

l Agr

eem

ents

$2

,400

$2

,449

$2

,433

$2

,477

$2

,477

$2

,477

$2

,477

$2

,477

$4

,477

$6

,492

$6

,492

$6

,492

$6

,492

$6

,492

$6

,492

Exte

rnal

Con

tract

s $3

25

$350

$3

50

$350

$3

50

$350

$3

50

$350

$3

50

$350

$3

50

$350

$3

50

$350

$3

50

Act

ivity

Man

agem

ent

$2,0

95

$2,0

98

$2,0

90

$2,0

90

$2,0

80

$2,0

80

$2,0

80

$2,0

80

$2,0

80

$2,0

80

$2,0

80

$2,0

80

$2,0

80

$2,1

00

$2,1

00

City

Net

wor

ks L

abou

r and

Ove

rhea

ds

$937

$9

39

$931

$9

31

$931

$9

31

$931

$9

31

$931

$9

31

$931

$9

31

$931

$9

31

$931

Con

sum

able

s $4

00

$400

$4

00

$400

$4

00

$400

$4

00

$400

$4

00

$400

$4

00

$400

$4

00

$400

$4

00

Elec

trici

ty

$210

$2

10

$210

$2

10

$210

$2

10

$210

$2

10

$210

$2

10

$210

$2

10

$210

$2

10

$210

Insu

ranc

e $1

91

$191

$1

91

$191

$1

91

$191

$1

91

$191

$1

91

$191

$1

91

$191

$1

91

$191

$1

91

Con

sulta

ncy

$163

$1

63

$163

$1

63

$153

$1

53

$153

$1

53

$153

$1

53

$153

$1

53

$153

$1

73

$173

Rat

es

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

Mis

cella

neou

s $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1

Gas

$3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0

Lega

l $5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

Rea

ctiv

e M

aint

enan

ce

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

Plan

t Rep

airs

and

Mai

nten

ance

$1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0

Softw

are

Lice

nses

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

Ope

ratin

g Pr

ogra

mm

es

$940

$9

40

$1,1

90

$1,1

90

$940

$9

40

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

1319

-Tot

ara

Roa

d W

aste

wat

er T

reat

men

t Pla

nt -

Con

sent

Ren

ewal

Upg

rade

Opt

ions

Ana

lysi

s $7

40

$740

$9

90

$990

$7

40

$740

-

- -

- -

- -

- -

1401

-City

Wid

e In

filtra

tion

& In

flow

Inve

stig

atio

ns

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

Inte

rest

$6

99

$756

$7

70

$713

$6

66

$1,1

86

$2,8

05

$4,6

50

$5,8

25

$6,0

82

$5,8

19

$5,5

30

$5,1

75

$4,8

17

$4,4

38

Dep

reci

atio

n $4

,145

$4

,183

$4

,221

$4

,230

$4

,239

$4

,253

$4

,262

$5

,494

$6

,100

$6

,500

$6

,507

$6

,523

$6

,523

$6

,523

$6

,523

TOTA

L EX

PEN

DIT

UR

E $1

0,60

4 $1

0,77

6 $1

1,05

4 $1

1,05

1 $1

0,75

2 $1

1,28

6 $1

2,17

4 $1

5,25

1 $1

9,03

1 $2

1,70

3 $2

1,44

8 $2

1,17

5 $2

0,82

0 $2

0,48

2 $2

0,10

4

176

OPE

RA

TIN

G E

XPEN

DIT

UR

E ['0

00s]

20

33/3

4 20

34/3

5 20

35/3

6 20

36/3

7 20

37/3

8 20

38/3

9 20

39/4

0 20

40/4

1 20

41/4

2 20

42/4

3 20

43/4

4 20

44/4

5 20

45/4

6 20

46/4

7 20

47/4

8

Act

ivity

Del

iver

y $6

,842

$6

,842

$6

,842

$6

,842

$6

,842

$6

,842

$6

,842

$6

,842

$6

,842

$6

,842

$6

,842

$6

,842

$6

,837

$6

,837

$6

,837

Serv

ice

Leve

l Agr

eem

ents

$6

,492

$6

,492

$6

,492

$6

,492

$6

,492

$6

,492

$6

,492

$6

,492

$6

,492

$6

,492

$6

,492

$6

,492

$6

,487

$6

,487

$6

,487

Exte

rnal

Con

tract

s $3

50

$350

$3

50

$350

$3

50

$350

$3

50

$350

$3

50

$350

$3

50

$350

$3

50

$350

$3

50

Act

ivity

Man

agem

ent

$2,1

00

$2,0

98

$2,0

98

$2,0

98

$2,0

96

$2,0

96

$2,0

96

$2,0

96

$2,0

96

$2,0

96

$2,0

96

$2,0

96

$2,0

96

$2,0

96

$2,1

00

City

Net

wor

ks L

abou

r and

Ove

rhea

ds

$931

$9

29

$929

$9

29

$927

$9

27

$927

$9

27

$927

$9

27

$927

$9

27

$927

$9

27

$931

Con

sum

able

s $4

00

$400

$4

00

$400

$4

00

$400

$4

00

$400

$4

00

$400

$4

00

$400

$4

00

$400

$4

00

Elec

trici

ty

$210

$2

10

$210

$2

10

$210

$2

10

$210

$2

10

$210

$2

10

$210

$2

10

$210

$2

10

$210

Insu

ranc

e $1

91

$191

$1

91

$191

$1

91

$191

$1

91

$191

$1

91

$191

$1

91

$191

$1

91

$191

$1

91

Con

sulta

ncy

$173

$1

73

$173

$1

73

$173

$1

73

$173

$1

73

$173

$1

73

$173

$1

73

$173

$1

73

$173

Rat

es

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

$79

Mis

cella

neou

s $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1 $6

1

Gas

$3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0

Lega

l $5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

Rea

ctiv

e M

aint

enan

ce

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

Plan

t Rep

airs

and

Mai

nten

ance

$1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0 $1

0

Softw

are

Lice

nses

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

$5

Ope

ratin

g Pr

ogra

mm

es

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

1319

-Tot

ara

Roa

d W

aste

wat

er T

reat

men

t Pla

nt -

Con

sent

Ren

ewal

Upg

rade

Opt

ions

Ana

lysi

s -

- -

- -

- -

- -

- -

- -

- -

1401

-City

Wid

e In

filtra

tion

& In

flow

Inve

stig

atio

ns

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

$2

00

$200

Inte

rest

$4

,038

$3

,614

$3

,163

$2

,705

$2

,232

$1

,752

$1

,288

$8

06

$292

-$

241

-$76

1 -$

1,16

7 -$

1,39

4 -$

1,48

9 -$

1,48

5

Dep

reci

atio

n $6

,527

$6

,527

$6

,527

$6

,527

$6

,527

$6

,527

$6

,527

$6

,527

$6

,527

$6

,527

$6

,527

$6

,520

$6

,520

$6

,536

$6

,536

TOTA

L EX

PEN

DIT

UR

E $1

9,70

6 $1

9,28

0 $1

8,83

0 $1

8,37

2 $1

7,89

6 $1

7,41

7 $1

6,95

3 $1

6,47

1 $1

5,95

6 $1

5,42

4 $1

4,90

4 $1

4,49

1 $1

4,25

9 $1

4,18

0 $1

4,18

8

177

Tabl

e E2

: Th

irty

Year

Ren

ewal

Bud

get

REN

EWA

L EX

PEN

DIT

UR

E ['0

00s]

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9 20

29/3

0 20

30/3

1 20

31/3

2 20

32/3

3

Was

tew

ater

Col

lect

ion

$1,7

50

$2,4

25

$2,3

07

$2,2

55

$2,0

57

$2,2

90

$2,2

90

$2,0

37

$2,0

55

$2,2

85

$2,0

85

$1,8

35

$2,2

85

$2,9

85

$1,8

55

54-C

ity-w

ide

- Was

tew

ater

Pip

e R

enew

al

$1,6

00

$1,8

00

$2,0

00

$2,0

00

$2,0

00

$2,0

00

$2,0

00

$2,0

00

$2,0

00

$2,0

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

65-C

ity-w

ide

- Was

tew

ater

Pum

p St

atio

n R

enew

al

$150

$1

25

$137

$8

5 $5

7 $4

0 $4

0 $3

7 $5

5 $3

5 $3

5 $3

5 $3

5 $3

5 $5

5

647-

Trem

aine

/Fea

ther

ston

- W

aste

wat

er T

runk

Mai

n U

pgra

de

(Ren

ewal

Com

pone

nt)

- -

- -

- -

- -

- -

- -

$450

$1

,150

-

1351

-Eas

tern

Tru

nk M

ain

- H

okow

hitu

Cam

pus

Ren

ewal

-

$250

-

- -

- -

- -

- -

- -

- -

1378

-Ben

nett

Stre

et 5

25 T

runk

mai

n R

enew

al

- -

$170

$1

70

- -

$250

-

- $2

50

- -

- -

-

1379

-Max

wel

l's L

ine

825

Was

tew

ater

Tru

nk M

ain

Ren

ewal

-

$250

-

- -

$250

-

- -

- $2

50

- -

- -

Trea

tmen

t and

Dis

posa

l $1

,943

$6

0 $1

00

$830

$5

0 $3

50

$20

$20

$20

$20

$20

$20

$520

$9

5 $2

0

179-

Tota

ra R

oad

Was

tew

ater

Tr

eatm

ent P

lant

- M

inor

Equ

ipm

ent

Ren

ewal

s $1

30

$60

$100

$5

0 $5

0 $5

0 $2

0 $2

0 $2

0 $2

0 $2

0 $2

0 $2

0 $2

0 $2

0

1050

-Tot

ara

Roa

d W

aste

wat

er

Trea

tmen

t Pla

nt -

Rep

lace

men

t of

PLC

s an

d SC

ADA

-

- -

- -

- -

- -

- -

- $1

50

$75

-

1059

-Tot

ara

Roa

d W

aste

wat

er

Trea

tmen

t Pla

nt -

Rep

lace

men

t of

Grit

Rem

oval

Sys

tem

s $4

95

- -

- -

- -

- -

- -

- -

- -

1067

-Tot

ara

Roa

d W

aste

wat

er

Trea

tmen

t Pla

nt -

Rep

lace

men

t of

Secu

rity

Fenc

e an

d G

ate

$250

-

- -

- -

- -

- -

- -

- -

-

1068

-Tot

ara

Roa

d W

aste

wat

er

Trea

tmen

t Pla

nt -

Rep

lace

men

t of

Inle

t Pum

ps

$918

-

- $7

80

- -

- -

- -

- -

- -

-

1380

-Tot

ara

Rd

WW

TP -

Biog

as

Gen

erat

or M

ajor

Ove

rhau

ls

$150

-

- -

- $3

00

- -

- -

- -

$350

-

-

TOTA

L R

ENEW

AL

EXPE

ND

ITU

RE

$3,6

93

$2,4

85

$2,4

07

$3,0

85

$2,1

07

$2,6

40

$2,3

10

$2,0

57

$2,0

75

$2,3

05

$2,1

05

$1,8

55

$2,8

05

$3,0

80

$1,8

75

178

REN

EWA

L EX

PEN

DIT

UR

E ['0

00s]

20

33/3

4 20

34/3

5 20

35/3

6 20

36/3

7 20

37/3

8 20

38/3

9 20

39/4

0 20

40/4

1 20

41/4

2 20

42/4

3 20

43/4

4 20

44/4

5 20

45/4

6 20

46/4

7 20

47/4

8

Was

tew

ater

Col

lect

ion

$1,8

35

$1,8

35

$1,8

35

$1,8

35

$1,8

35

$1,8

55

$1,8

35

$1,8

35

$1,8

35

$1,8

35

$1,8

35

$1,8

35

$1,8

35

$1,8

35

$1,8

35

54-C

ity-w

ide

- Was

tew

ater

Pip

e R

enew

al

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

$1,8

00

65-C

ity-w

ide

- Was

tew

ater

Pum

p St

atio

n R

enew

al

$35

$35

$35

$35

$35

$55

$35

$35

$35

$35

$35

$35

$35

$35

$35

647-

Trem

aine

/Fea

ther

ston

- W

aste

wat

er T

runk

Mai

n U

pgra

de

(Ren

ewal

Com

pone

nt)

- -

- -

- -

- -

- -

- -

- -

-

1351

-Eas

tern

Tru

nk M

ain

- H

okow

hitu

Cam

pus

Ren

ewal

-

- -

- -

- -

- -

- -

- -

- -

1378

-Ben

nett

Stre

et 5

25 T

runk

mai

n R

enew

al

- -

- -

- -

- -

- -

- -

- -

-

1379

-Max

wel

l's L

ine

825

Was

tew

ater

Tru

nk M

ain

Ren

ewal

-

- -

- -

- -

- -

- -

- -

- -

Trea

tmen

t and

Dis

posa

l $2

0 $2

0 $2

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

5 $3

5 $3

5

179-

Tota

ra R

oad

Was

tew

ater

Tr

eatm

ent P

lant

- M

inor

Equ

ipm

ent

Ren

ewal

s $2

0 $2

0 $2

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

0 $3

5 $3

5 $3

5

1050

-Tot

ara

Roa

d W

aste

wat

er

Trea

tmen

t Pla

nt -

Rep

lace

men

t of

PLC

s an

d SC

ADA

-

- -

- -

- -

- -

- -

- -

- -

1059

-Tot

ara

Roa

d W

aste

wat

er

Trea

tmen

t Pla

nt -

Rep

lace

men

t of

Grit

Rem

oval

Sys

tem

s -

- -

- -

- -

- -

- -

- -

- -

1067

-Tot

ara

Roa

d W

aste

wat

er

Trea

tmen

t Pla

nt -

Rep

lace

men

t of

Secu

rity

Fenc

e an

d G

ate

- -

- -

- -

- -

- -

- -

- -

-

1068

-Tot

ara

Roa

d W

aste

wat

er

Trea

tmen

t Pla

nt -

Rep

lace

men

t of

Inle

t Pum

ps

- -

- -

- -

- -

- -

- -

- -

-

1380

-Tot

ara

Rd

WW

TP -

Biog

as

Gen

erat

or M

ajor

Ove

rhau

ls

- -

- -

- -

- -

- -

- -

- -

-

TOTA

L R

ENEW

AL

EXPE

ND

ITU

RE

$1,8

55

$1,8

55

$1,8

55

$1,8

65

$1,8

65

$1,8

85

$1,8

65

$1,8

65

$1,8

65

$1,8

65

$1,8

65

$1,8

65

$1,8

70

$1,8

70

$1,8

70

179

Tabl

e E3

: Th

irty

Year

Cap

ital N

ew B

udge

t

CAP

ITA

L N

EW E

XPEN

DIT

UR

E ['0

00s]

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9 20

29/3

0 20

30/3

1 20

31/3

2 20

32/3

3

Was

tew

ater

Col

lect

ion

73-C

ity-w

ide

- Was

tew

ater

Sub

divi

sion

C

ontri

butio

ns

$100

$1

00

$100

$1

00

$100

$1

00

$100

$5

0 $5

0 $5

0 $5

0 $5

0 $5

0 $5

0 $5

0

210-

Urb

an G

row

th -

Inst

alla

tion

of W

aste

wat

er

Sys

tem

s fo

r New

Indu

stria

l Are

as -

NE

IZ

exte

nsio

n ar

ea

$125

$2

25

- -

$125

-

- -

- $2

25

- -

- -

-

452-

Trem

aine

/Fea

ther

ston

- W

aste

wat

er T

runk

M

ain

Upg

rade

(Gro

wth

Com

pone

nt)

- -

- -

- -

- -

- -

$110

-

- $3

00

-

624-

Urb

an G

row

th -

Nor

th E

ast I

ndus

trial

Zon

e -

Dow

nstre

am W

aste

wat

er N

etw

ork

Upg

rade

- M

cGre

gor S

treet

to R

enni

e Av

enue

to P

eter

s Av

enue

-

- -

- -

- $1

,000

-

- -

$1,9

24

- -

- -

660-

Ferg

uson

Stre

et -

Was

tew

ater

Tru

nk M

ain

Upg

rade

-

- -

- -

- -

$670

-

- -

- -

- -

1000

-Urb

an G

row

th -

Wha

karo

ngo

- Ins

talla

tion

of

Was

tew

ater

Sys

tem

s $5

00

$362

-

- $2

67

- -

- -

- -

- -

$30

-

1043

-Tot

ara

Roa

d W

aste

wat

er T

reat

men

t Pla

nt -

Inle

t Mai

n D

uplic

atio

n $5

0 $4

00

- -

- -

- -

- -

- -

- -

-

1055

-Urb

an G

row

th -

City

Wes

t - In

stal

latio

n of

W

aste

wat

er S

yste

ms

$50

- $3

15

- $5

50

$282

-

- -

- -

- -

- -

1307

-C/fw

d - U

rban

Gro

wth

- W

haka

rong

o -

Inst

alla

tion

of W

aste

wat

er S

yste

ms

$300

-

- -

- -

- -

- -

- -

- -

-

1412

-Urb

an G

row

th -

Ashh

urst

- W

aste

wat

er -

Nor

th S

t Net

wor

k U

pgra

de

- $2

60

- -

- -

- -

- -

- -

- -

-

Was

tew

ater

Col

lect

ion

Sub-

Tota

l $1

,125

$1

,347

$4

15

$100

$1

,042

$3

82

$1,1

00

$720

$5

0 $2

75

$2,0

84

$50

$50

$380

$5

0

180

CAP

ITA

L N

EW E

XPEN

DIT

UR

E ['0

00s]

20

18/1

9 20

19/2

0 20

20/2

1 20

21/2

2 20

22/2

3 20

23/2

4 20

24/2

5 20

25/2

6 20

26/2

7 20

27/2

8 20

28/2

9 20

29/3

0 20

30/3

1 20

31/3

2 20

32/3

3

Was

tew

ater

Tre

atm

ent &

Dis

posa

l

572-

Tota

ra R

oad

Was

tew

ater

Tre

atm

ent P

lant

- R

epla

cem

ent o

f Grit

Rem

oval

Sys

tem

s (G

row

th)

$120

-

- -

- -

- -

- -

- -

- -

-

628-

Tota

ra R

oad

Was

tew

ater

Tre

atm

ent P

lant

- C

onse

nt R

enew

al U

pgra

de

- -

- -

- $2

0,00

0 $4

0,00

0 $3

0,00

0 $2

0,00

0 -

- -

- -

-

1074

-Tot

ara

Roa

d W

aste

wat

er T

reat

men

t Pla

nt -

Earth

quak

e St

reng

then

ing

of C

ivil

Stru

ctur

es

$100

$1

,000

-

- -

- -

- -

- -

- -

- -

1381

-Tot

ara

Rd

WW

TP -

Biog

as G

ener

ator

Ex

haus

t Hea

t Rec

over

y $1

75

- -

- -

- -

- -

- -

- -

- -

1382

-Tot

ara

Rd

WW

TP -

Emer

genc

y B

ypas

s U

pgra

des

- $1

00

- -

- -

- -

- -

- -

- -

-

1383

-Tot

ara

Rd

WW

TP -

Emer

genc

y O

verfl

ow

Stru

ctur

e To

tara

Rd

- -

$150

-

- -

- -

- -

- -

- -

-

Was

tew

ater

Tre

atm

ent &

Dis

posa

l Sub

-Tot

al

$395

$1

,100

$1

50

- -

$20,

000

$40,

000

$30,

000

$20,

000

- -

- -

- -

TOTA

L C

APIT

AL N

EW E

XPEN

DIT

UR

E $1

,520

$2

,447

$5

65

$100

$1

,042

$2

0,38

2 $4

1,10

0 $3

0,72

0 $2

0,05

0 $2

75

$2,0

84

$50

$50

$380

$5

0

181

CAP

ITA

L N

EW E

XPEN

DIT

UR

E ['0

00s]

20

33/3

4 20

34/3

5 20

35/3

6 20

36/3

7 20

37/3

8 20

38/3

9 20

39/4

0 20

40/4

1 20

41/4

2 20

42/4

3 20

43/4

4 20

44/4

5 20

45/4

6 20

46/4

7 20

47/4

8

Was

tew

ater

Col

lect

ion

73-C

ity-w

ide

- Was

tew

ater

Sub

divi

sion

C

ontri

butio

ns

$50

$50

$75

$75

$75

$75

$75

$75

$75

$75

$75

$75

$0

$0

$0

210-

Urb

an G

row

th -

Inst

alla

tion

of W

aste

wat

er

Sys

tem

s fo

r New

Indu

stria

l Are

as -

NE

IZ

exte

nsio

n ar

ea

- -

- -

- -

- -

- -

- -

- -

-

452-

Trem

aine

/Fea

ther

ston

- W

aste

wat

er T

runk

M

ain

Upg

rade

(Gro

wth

Com

pone

nt)

- -

- -

- -

- -

- -

- -

- -

-

624-

Urb

an G

row

th -

Nor

th E

ast I

ndus

trial

Zon

e -

Dow

nstre

am W

aste

wat

er N

etw

ork

Upg

rade

- M

cGre

gor S

treet

to R

enni

e Av

enue

to P

eter

s Av

enue

-

- -

- -

- -

- -

- -

- -

- -

660-

Ferg

uson

Stre

et -

Was

tew

ater

Tru

nk M

ain

Upg

rade

-

- -

- -

- -

- -

- -

- -

- -

1000

-Urb

an G

row

th -

Wha

karo

ngo

- Ins

talla

tion

of

Was

tew

ater

Sys

tem

s -

- -

- -

- -

- -

- -

- -

- -

1043

-Tot

ara

Roa

d W

aste

wat

er T

reat

men

t Pla

nt -

Inle

t Mai

n D

uplic

atio

n -

- -

- -

- -

- -

- -

- -

- -

1055

-Urb

an G

row

th -

City

Wes

t - In

stal

latio

n of

W

aste

wat

er S

yste

ms

- -

- -

- -

- -

- -

- -

- -

-

1307

-C/fw

d - U

rban

Gro

wth

- W

haka

rong

o -

Inst

alla

tion

of W

aste

wat

er S

yste

ms

- -

- -

- -

- -

- -

- -

- -

-

1412

-Urb

an G

row

th -

Ashh

urst

- W

aste

wat

er -

Nor

th S

t Net

wor

k U

pgra

de

- -

- -

- -

- -

- -

- -

- -

-

Was

tew

ater

Col

lect

ion

Sub-

Tota

l $5

0 $5

0 $7

5 $7

5 $7

5 $7

5 $7

5 $7

5 $7

5 $7

5 $7

5 $7

5 $0

$0

$0

182

CAP

ITA

L N

EW E

XPEN

DIT

UR

E ['0

00s]

20

33/3

4 20

34/3

5 20

35/3

6 20

36/3

7 20

37/3

8 20

38/3

9 20

39/4

0 20

40/4

1 20

41/4

2 20

42/4

3 20

43/4

4 20

44/4

5 20

45/4

6 20

46/4

7 20

47/4

8

Was

tew

ater

Tre

atm

ent &

Dis

posa

l

572-

Tota

ra R

oad

Was

tew

ater

Tre

atm

ent P

lant

- R

epla

cem

ent o

f Grit

Rem

oval

Sys

tem

s (G

row

th)

- -

- -

- -

- -

- -

- -

- -

-

628-

Tota

ra R

oad

Was

tew

ater

Tre

atm

ent P

lant

- C

onse

nt R

enew

al U

pgra

de

- -

- -

- -

- -

- -

- -

- -

-

1074

-Tot

ara

Roa

d W

aste

wat

er T

reat

men

t Pla

nt -

Earth

quak

e St

reng

then

ing

of C

ivil

Stru

ctur

es

- -

- -

- -

- -

- -

- -

- -

-

1381

-Tot

ara

Rd

WW

TP -

Biog

as G

ener

ator

Ex

haus

t Hea

t Rec

over

y -

- -

- -

- -

- -

- -

- -

- -

1382

-Tot

ara

Rd

WW

TP -

Emer

genc

y B

ypas

s U

pgra

des

- -

- -

- -

- -

- -

- -

- -

-

1383

-Tot

ara

Rd

WW

TP -

Emer

genc

y O

verfl

ow

Stru

ctur

e To

tara

Rd

- -

- -

- -

- -

- -

- -

- -

-

Was

tew

ater

Tre

atm

ent &

Dis

posa

l Sub

-Tot

al

- -

- -

- -

- -

- -

- -

- -

-

TOTA

L C

APIT

AL N

EW E

XPEN

DIT

UR

E $5

0 $5

0 $7

5 $7

5 $7

5 $7

5 $7

5 $7

5 $7

5 $7

5 $7

5 $7

5 $0

$0

$0

Appendix F – Resource Consents Asset Management Plan 2017 – Wastewater

183

Resource Consents Appendix F.


185

Table F1: Wastewater Resource Consents

Asset Consent No.

Date Granted

Expiry Date

Term [Yrs]

Term Left [Yrs]

Type Consent Subtype Description

Totara Rd WWTP

101829 16 May 03 16 May 28 25 13.7 Discharge

Permit Discharge to Water

To discharge treated wastewater from the Totara Road WWTP via an outfall structure into the Manawatū River.


Permit Discharge to Land

To discharge digested sewage sludge into and onto land at the sludge lagoons located at the Totara Road WWTP.



To discharge treated wastewater to land part of the wetland pond system at the Totara Road WWTP.


Permit Discharge to Water

Emergency discharge into the Mangaone stream. To discharge secondary treated wastewater from the Totara Road WWTP aeration ponds via a grassed channel into the Mangaone Stream.

101833 16 May 03 16 May 38 35 23.7 Land Use

Consent Misc.

To excavate and disturb the bed of the Manawatū river and adjacent bank to construct use and maintain an effluent discharge structure within the riverbed and adjacent bank and the associated temporary diversion of the flow of the Manawatū River.

101841 16 May 03 16 May 38 35 23.7 Water

Permit Divert

To excavate and disturb the bed of the Manawatū river and adjacent bank to construct use and maintain an effluent discharge structure within the riverbed and adjacent bank and the associated temporary diversion of the flow of the Manawatū River.


186

Asset Consent No.

Date Granted

Expiry Date

Term [Yrs]

Term Left [Yrs]

Type Consent Subtype Description

Wastewater Pipe Under Mangaone Stream

104334 14 Dec 07 14 Dec 42 35 28.3 Land Use

Consent Misc.

To disturb the bed of the Mangaone stream to place a sewage pipeline beneath the bed of the Mangaone Stream (expired 14 June 2008) and to use and maintain this pipeline (ongoing)

Longburn Oxidation Ponds 104773 5 Feb 09 31 May

10 1 Current Under s124

Discharge Permit

Discharge to Water

To discharge 250 m3/day of treated sewage effluent from the Longburn oxidation pond to the Manawatū river

Longburn Oxidation Ponds 105246 Application

Lodged

To be withdrawn as Longburn is now connected to Palmerston North wastewater network

Discharge Permit

Discharge to Water

To discharge 250 m3/day of treated sewage effluent from the Longburn oxidation pond to the Manawatū River.

Totara Rd WWTP Water Bore

105443 29 Oct 10 1 Jul 33 23 18.8 Water

Permit Groundwater Take

To take 150 cubic metres per day of water from well number 335025 for the purpose of process water and washwater at the Totara Road WWTP.

Ashhurst Oxidation Ponds

107056 &

107057

Application Lodged TBA TBA TBA Discharge


Discharge into land for the purpose of storing human effluent and associated discharge to air.

Appendix G – Asset Grading Definitions Asset Management Plan 2017 – Wastewater

187

Asset Grading Definitions Appendix G.


189

Table G1: Condition Grading of Rising Mains

Condition Grade General Meaning

1 Excellent Modern pipe material designed to current standards with no pipe wall or joint failures and no evidence of internal or external degradation.

2 Good As grade 1 but not designed to current standards in respect of pressure ratings, design specification, jointing or corrosion protection. Deterioration causing minimal influence on performance.

3 Moderate Rising mains which are generally sound, although with a few pipewall or joint failures or evidence of some external or internal degradation. Some deterioration beginning to reflect in performance.

4 Poor Rising mains with a significant level of pipe wall or joint failures or evidence of significant external or internal degradation causing, or likely to cause a marked deterioration in performance in the medium term. Some asset replacement or rehabilitation needed within the medium term.

5 Very Poor Unsound rising mains with extensive pipe wall or joint failures, or significant external or internal degradation, which has failed or about to fail in the near future, causing unacceptable performance. No life expectancy, requiring urgent replacement or rehabilitation.

Table G2: Performance Grading of Rising Mains

Performance Grade General Meaning

1 Excellent Smooth bored mains not subject to degradation with sound factory applied linings; no measurable deterioration in pipe bore; no performance problems.

2 Good As grade 1 but with loose deposits that are noticeable under abnormal flow conditions or slight deterioration of internal bore which gives a rough surface but with no significant reduction in cross sectional area; occasional flushing and / or desilting required.

3 Moderate Some problems with loose deposits or deterioration of linings leading to occasional blockages. History of occasional pipe blockage with tuberculation causing up to 20% blockage by encrustation. Regular flushing or air scouring required.

4 Poor Frequent problems causing blockage on more than one occasion under normal operating conditions during the previous 12 months or mains with tuberculation causing up to 20% to 40% blockage by encrustation. Frequent flushing or air scouring required.

5 Very Poor Severe problems causing regular blockage and pumping performance cannot be assured; or tuberculation causing greater than 40% blockage by encrustation. Very frequent flushing or air scouring required.

Table G3: Condition Grading of Sewers


CCTV Grading

Peak Mean Avg.

1 Excellent Modern pipe material designed to current standards with no structural defects and no evidence of internal or external degradation.

2 Good As grade 1 but not designed to current standards in respect of manufacturer’s specification, jointing or corrosion protection. Some deterioration causing minimal influence on performance (e.g. circumferential cracking or minor joint defects).

<10 <0.3 <0.4

3 Moderate 10+ 0.3+ 0.4+


190


CCTV Grading

Peak Mean Avg. Drains which are generally sound, although with some defects (e.g. deformation 0% to 5% and cracked or fractured; or longitudinal/ multiple cracking; or occasional fractures; or external pipewall degradation) over not more than 25% of the length. Some deterioration beginning to reflect in performance.

4 Poor Drains with a significant level of defects (for example, deformation 5% to 10% and cracked, fractured, broken, serious loss of level and/ or external pipewall degradation) over not more than 50% of the length causing, or likely to cause a marked deterioration in performance in the medium term. Some asset replacement or rehabilitation needed within the medium term.

<60 <1.5 <2.0

5 Very Poor Unsound drains with a high level of defects (e.g. deformation >10% and cracked and fractured or broken, already collapsed or extensive areas of missing fabric), or uneven grade for over 50% of length causing unacceptable performance. No life expectancy, requiring urgent replacement or rehabilitation.

>60 >1.5 >2.0

Table G4: Performance Grading of Sewers

Performance Grade General Meaning

1 Excellent Sewers designed to acceptable standards with adequate self-cleansing velocity; no problems with deposition; no performance problems.

2 Good As grade 1 but with some slimming or minor deposition causing minor loss of hydraulic capacity but not affecting performance.

3 Moderate Sewers with slimming and deposition requiring occasional cleaning or minor backfalls are causing a reduction in pipe capacity or inadequate design capacity and surcharging of the sewer at high flows, although no surface flooding during design storm.

4 Poor Sewers with significant slimming and deposition requiring regular cleaning or backfalls causing a marked reduction in pipe capacity, risk or blockage or inadequate design capacity causing frequent flooding to gardens and roads or occasional flooding to properties or restricted toilet use during design storm.

5 Fail Sewer with a high level of slimming and deposition requiring a high frequency of cleaning or maintenance or backfalls causing a serious reduction in pipe capacity or serious inadequate design capacity, risk of blockages or hydraulic restrictions causing regular flooding to gardens and highways or frequent flooding to properties or restricted toilet use during design storm.

Table G5: Condition Grading of Manholes & Cleaning Eyes


1 Excellent Sound modern structure well maintained with no problems with the manhole structure, cover and frame, step irons, invert, benching or pipe entries into manholes.

2 Good As for grade 1, but showing minor deterioration and wear and tear. Some indications of structural problems. Some surface damage to the structure but no corrosion staining, cracking or loss of stability.

3 Moderate Functionally sound structure but showing some signs of wear and tear. Some minor cracking, staining or signs of tree root penetration.

4 Poor Structure functioning but with problems due to significant infiltration, loss of stability or deformation. Manhole cover or frame showing signs of corrosion causing difficulties for man entry. Step irons showing signs of corrosion.

5 Very Poor


191

Serious structural problems having a detrimental effect on the performance of the manhole structure.

Table G6: Performance Grading of Manholes & Cleaning Eyes


1 Excellent No problems with the manhole structure, cover and frame, step irons, invert, benching or pipe entries into manholes. Fully compliant with safety regulations. No infiltration.

2 Good Some indications of structural problems with no effect on the functional performance of the manhole.

3 Moderate Problems exhibited under high flows that affect the functional performance of the manhole..

4 Poor Significant problems with either man entry or the functional performance of the manhole such as lack of benching.

5 Very Poor Significant infiltration causing increased surcharging within the network. ` Non- compliant safety aspects such as corroded or broken step irons resulting in unsafe man entry. No benching in the invert with significant damage affecting the flow.

Table G7: Condition Grading of Pumping Stations & Treatment Plant Structures


1 Excellent Sound structure designed to current standards, well maintained.

2 Good As grade 1 but not designed to current standards or showing minor wear and tear and minor deterioration of surfaces; some spalling but with no corrosion staining; needs to be inspected in the medium term. Deterioration causing minimal influence on performance.

3 Moderate Functionally sound structure, but appearance affected by minor cracking, staining, and vegetation of minor leakage. Some deterioration beginning to be reflected in performance.

4 Poor Structure functioning but with problems due to significant cracking, spalling, cracking, loss of stability, deformation or corrosion likely to cause a marked deterioration of performance in the medium term. Some asset replacement or rehabilitation needed within the medium term.

5 Very Poor Structure has serious problems and has failed or about to fail in the near future, causing unacceptable performance. No life expectancy, requiring urgent replacement or rehabilitation.

Table G8: Performance Grading of Pumping Stations & Treatment Plant Structures


1 Excellent Meets all design and statutory requirements at all times and in all demand conditions. For example, capacity exceeds maximum design demand or flow, adequate standby plant facilities design demand or flow, adequate standby plant facilities, emergency sewage overflow provided. No known flooding or surcharging upstream as a result of pump station constraints..

2 Good As for grade 1, but with some minor shortcomings in non-critical aspects or under extreme demand or climatic conditions. For example capacity equals maximum design demand or flow, adequate standby plant facilities. No known flooding or surcharging upstream as a result of pump station constraints.

3 Moderate Asset generally meeting design requirements with occasional failures in performance criteria under normal conditions. For example capacity less than maximum demand or flow, adequate standby facilities, some known flooding upstream as a result of pump station constraints, occasional operation of storm overflow, or a few reported complaints of noise or smells, or shortcomings in design (pipework, sump, electrics, etc.).


192


4 Poor Asset with frequent failures in performance criteria under normal conditions. For example capacity significantly less than maximum design demand or flow, standby plant facilities not fully adequate, regular known flooding upstream as a result of pump station constraints, frequent operation f storm overflow, or regular reported complaints of noise or smells, or shortcomings in design (pipework, sump, electrics, etc.).

5 Very Poor Asset substantially unable to meet performance criteria with very frequent failures against defined standards. For example capacity significantly less than maximum design demand or flow, standby plant facilities not adequate, frequent known flooding upstream as a result of pump station constraints, frequent operation of storm overflow, or regular reported complaints of noise smells, or shortcomings in design (pipework, sump, electrics, etc.).

Table G8: Condition Grading of Electrical & Mechanical Plant


1 Excellent Sound plant designed to current standards, all operable and well maintained.

2 Good As for grade 1, but not designed to current standards or showing wear and tear. E.g. minor oil leaks, gland wear although protective coatings intact and efficiency undiminished; requires major overhaul within the medium term. Deterioration causing minimal influence on performance.

3 Moderate Functionally sound plant and components, acceptable but showing some signs of wear and tear with minor failures and some diminished efficiency. For example, bearing and gland wear and corrosion of metal parts becoming more evident. Deterioration beginning to be reflected in performance and a higher level of maintenance.

4 Poor Plant and components function but require a high level of maintenance to remain operational. likely to cause a marked deterioration in performance in the medium term. Some asset replacement or rehabilitation needed within the medium term.

5 Very Poor Plant and component effective life exceeded and excessive maintenance costs incurred. High risk of breakdown with a serious impact on performance. No life expectancy, requiring urgent replacement of rehabilitation.

Appendix H – Pump Station Asset Data Asset Management Plan 2017 – Wastewater

193

Pump Station Asset Data Appendix H.

As

set M

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n 20

17 –

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1

Appendix I – Data Management Asset Management Plan 2017 – Wastewater

199

Data Management Appendix I.


201

Data and Information Management

Asset Management Planning depends on drawing on many sources of data and information to formulate plans that quantify the programmes that are required to maintain the asset and provide the required level of service into the future. This section describes the main sources of information that contribute to the different aspects of asset management planning, setting out the source of that information, what it is used for , the quality of information required and how the data is maintained and kept up to date.

The confidence and reliability of the data that lies behind the AM programmes is indicated in Table K1.

Table I1: High Level Overview of Confidence and Reliability of Data

Asset Management Processes

Source of Data & Information

Use of Information Quality Required for AMPs

Maintenance and Updating of Data & Information

Demand Forecasting

Growth projections – population and household growth projections

The City Future planning unit provides advice about population and household growth based on NZ Statistics Information, other professional advice and analysis of past Council data.

Information is used to formulate a planning scenario for the development of residential and industrial areas. The identification of development of infrastructure is based on spatial projections of both the location and rate of growth provided by Council planners, followed by modelling to determine the additional demand for wastewater services due to that demand. This enables confirmation of downstream network capacity and identification of any network or pumping upgrades.

Broad based information only is required that allows a credible 30yr plan to be drawn up and supports the development contribution calculations. Actual development can also be determined by the market at the time.

The growth projections and planning scenario are revised every 3 years based on the most up to date information from NZ Statistics.

Levels of Service

Customer service data (for past 1-3 yrs)

K-Base customer service request system

Used to inform Council’s LOS decision (identifies areas where LOS is not being met or particular service issues are arising. Key source of information on network performance and for identification of problem areas. Also used to monitor and manage the performance of the service provider and check their compliance with key KPIs in their SLAs

Sufficient resolution to identify the main service issues and trends. Generally the last years information adequate

On-going data being received


202





Submissions made to various Council processes

Used to inform Council’s LOS decision and as a check that particular service areas have been identified. Used to inform campaigns to improve understanding of the wastewater system, how it operates and its limitations.U.

Part of ongoing Council process

Communitrak Survey undertaken periodically

Used to inform Councillors about trends in customer satisfaction with services being delivered. Assists with Councillor LOS decision

Reputable survey Survey undertaken every 3 years

Performance measurement (KPIs)

Used to monitor the delivery of the agreed level of service

Asset Knowledge

Asset age and physical attributes

Asset Information System (Infor Public Sector)

This is core data that is the basis for building up accurate O&M, Renewal and Development Plans. It is also the basis for valuation of the asset.

It is essential to good AM to know what assets need to be maintained and renewed. Accurate information with regard to the physical attributes is important. A reliable date of construction (at least to within 5 years) is desirable

The AIS is continually being updated by the Asset Systems Officer as new information comes to light and as new assets are being built (As built plans). A dedication officer maintains the system. Checks on integrity & accuracy of info.

Asset condition Information collected from CCTV surveys and physical inspections of all critical assets and a cross-section of non-critical assets.

Used to identify faults and performance issues in critical assets for immediate resolution. Used to develop specific life estimates and projections of the renewal profile for non-critical assets

Sufficient overall resolution of condition to reliably inform a 5 level grading system. Needs to be added to on a continuous basis.

Physical inspection of critical assets to be undertaken on regular cycle e.g. 5 years. CCTV inspection of remaining network scheduled so that the entire network is inspected every 10 to 15 years.

Asset performance

Information from monitoring, customer complaints and scheduled inspections is captured in Asset Management System

Inform further investigation and fault finding to identify defects or performance issues. Where performance is related to capacity use to inform detailed catchment modelling to identify any capacity improvements

Needs to accurately identify the current situation

Data needs to be continuous captured and recorded against the asset to provide an up to date record of issues


203





Analysis of asset information

From information collected & input into the AMS etc

Modelling of both current situation and future condition allowing for full development and the influence of climate change. Asset information enables robust determination of capital improvements which will deliver sustainable and durable long term improvements in service. Predictive modelling to determine asset renewal profiles under different risk scenarios.

Up to date Data needs to be logging and recorded continuously. Key to this is providing mobile solutions which allow field staff to update asset data and record issues directly they are identified. It is intended to give customers and contractors the ability to report on errors in the asset data and so assist the improvement process. Analysis can be undertaken periodically ahead of key planning milestones e.g. LTP

Service Delivery

Procurement of work so as to provide service through operation and maintenance of the assets

Previous information about the cost and scope of work done or assets built. Information about Internal service delivery stored in SLA system. Data about market prices and comparability of internal service delivery to be migrated to database in Benchmark.

Data is used to prepare engineer’s estimates prior to seeking either internal or external prices. Data is critical for determining the market comparability of internal service delivery and whether external contract procurement is justified. Costs data is also used to value new assets and confirm asset valuations on an annual basis.

Up to date with latest prices and costs captured as soon as possible after work is completed

Needs to be kept up to date given that the costs for constructing new infrastructure change rapidly in response to a range of external factors

Programme Planning

Data about programmes – objectives, scope, timing, cost and risk, previous investigation.

Programme Planning and Implementation Database (currently in Excel spreadsheets).

Used to inform asset programmes for the asset management plan.

The database is based on a comprehensive template covering programme information.

The PPI database for each programme in the AMP is updated annually by the asset manager for each activity.


204





Specific strategy reports including network renewal strategy.

Identifies specific constraints and servicing challenges and sets out options for investment to mitigate effects. The data is critical to providing options for consideration by Council in respect of different levels of investment to meet different levels of service. Outlines consequences of not proceeding with investment as well as benefits.

High level but with clear detail of assumptions used

Regular updating required at a frequency necessary to inform key planning and funding decision making – e.g. 3 yearly to align with the LTP.

Specific consultants reports:

Wastewater I&I - GHD

Flow Capacity Assessment – H&G

Sewer Renewal Strategy - ProjectMax

Used to identify work programmes required to meet the AMP objectives Assisted with confirming capacity parameters for renewal and major capital upgrade programme at the WWTP. Also provided basis for development of renewal programme for the LTP and 30 year programme.

Snapshot of current and future requirements.

Council’s 10YP Used to inform changes adopted by the Council to previous AMP programmes

High level estimates which are sufficient to deliver the programme of work given the risk profiles for each programme or activity.

Through Council’s annual budget and 10YP process & system

Financial Planning

Long term financial forecasts

30 year Infrastructure Plan

Used to inform Council of future funding profiles, borrowing obligations and renewal funding issues.

High level estimates with significant contingency based on optimised profiling of renewals and realistic assessment of new capital requirements.

Three year updates ahead of Council’s 10YP process

Reliability and Confidence in Programmes

The expenditure and programmes in this AMP Plan are based on the data sources described in Appendix I. Confidence that programme information is reliable depends on the accuracy of the input data sources upon which that programme is based.

The following is an assessment of the overall confidence in the various data streams that input into programmes, including the demand drivers, growth projections, the condition and performance data and the estimating data used for the financial forecasts. Further work on this aspect is planned over the next 3 years with a data improvement plan project being included in the Improvement Plan.


205

Definition of Data Confidence Rating Table I2: Confidence Grading Description

Confidence Grade

Description Processes Asset Data

5 Highly reliable/ Audited

Strictly formal process for collecting and analysing data. Process is documented and always followed by all staff. Process is recognised by industry as best method of assessment.

Very high level of data confidence. Data is believed to be 95 to 100% complete and ±5% accurate. Regular data audits verify high level of accuracy in data received.

4 Reliable/ Verified Strong process to collect data. May not be fully documented but usually undertaken by most staff.

Good level of data confidence. Data is believed to be 80 to 95% complete and ±10 to 15% accurate. Some minor data extrapolation or assumptions has been applied. Occasional data audits verify reasonable level of confidence.

3 Less Reliable Process to collect data established. May not be fully documented but usually undertaken by most staff.

Average level of data confidence. Data is believed to be 50 to 80% complete and ±15 to 20% accurate. Some data extrapolation has been applied based on supported assumptions. Occasional data audits verify reasonable level of confidence.

2 Uncertain Semiformal process usually followed. Poor documentation. Process to collect data followed about half the time.

Not sure of data confidence, or data confidence is good for some data, but most of dataset is based on extrapolation of incomplete data set with unsupported assumptions.

1 Very uncertain Ad hoc procedures to collect data. Minimal or no process documentation. Process followed occasionally.

Very low data confidence. Data based on very large unsupported assumptions, cursory inspection and analysis. Data may have been developed by extrapolation from small, unverified data sets.

0 No data No process exists to collect data. No data available.


206

Assessment of Confidence in Key data Inputs to AMP Table K3: Confidence Grading Description

Data Confidence Assessment

Comment

Demand drivers

4 Demand drivers in respect of wastewater services include:

Changes associated with new consents targeting improvements in effects in the Manawatu River

Changes to the pattern and intensity of rainfall across the city impacting on the frequency and severity of wet weather flows due to stormwater infiltration and inflow

Higher expectations in the community that negative effects from wastewater should be mitigated including avoidance of overflows, removal of 100% of heavy metals, emerging contaminants and non-organic compounds e.g. micro-plastics

Expectations that there should be no impediment to growth from either residential or industrial such that the wastewater system should be able to accommodate all future growth in flows and loads

Growth projections

4 The growth projections are neither predictions nor forecasts. They are built on assumptions about future changes in population based on demographic trends and patterns and other factors. Variations in the economic cycle mean that it is inevitable that the actual rate of growth will be above or below the projected rate at different times in the economic cycle. Projections are reassessed every 3 years in the light of the information available at that time at which point the programmes based on the projections will be reassessed.

Asset useful lives

2 The current useful lives for wastewater assets are based on the asset lives detailed in the IIMI guidelines. For some asset types where condition assessments indicate the lives differ from the mean, these have been reduced or increased. It is clear that there are some pipeline assets which require immediate renewal, not because they have failed but because they let unacceptable quantities of stormwater. This reduced life assessment is not reflected in the asset register.

Asset values 4 Asset values are based on the latest information for renewal and capital construction costs for work undertaken in the last two years by Council. Where no work has been done estimates for work undertaken by local Councils within the region have been used.

Condition of asset

3 Asset condition assumptions are based on the results of historical CCTV inspections for a portion of the network. These inspections are somewhat dated and of average quality. Work is now underway to significantly increase the investment in inspection and condition scoring to develop a more robust assessment of condition.

Performance of Network

3 The development of an integrated model of the sewer network has highlighted system capacity constraints under wet weather conditions. The modelling has confirmed the anecdotal evidence of capacity constraints in some parts of the network during wet weather events. While dry weather performance is good, during wet weather events the key large pumping stations, trunk sewers and WWTP inlet works are all operating at or close to capacity. Further refinement of the model will improve confidence around understanding of the network performance.

Operational forecasts

3 Forecasts of operational costs are uncertain due in large measure to the unknown impact of the pending upgrade to the wastewater treatment and disposal facility. There is also uncertainty around the cost of addressing a growing number of lateral and mains blockages. There is evidence of significant legacy issues associated with the laying of flat sewers or poorly constructed sewers which is contributing to maintenance costs.

Renewal forecasts

2 While additional funding has been requested for next 7 years of the AMP to address legacy renewals, much of this is to renew earthen ware pipes in catchments with significant stormwater infiltration and inflow. Given the limited extent of recent CCTV inspection data there is limited confidence in the renewal forecasts. It is expected that with more condition information, additional investment in renewals may be required to address legacy condition issues within the older parts of the network.


207

Data Confidence Assessment

Comment

Development forecasts

3 Current planning forecasts are considered robust and potentially overestimate the demand and the rate of uptake for both residential and commercial property particularly in greenfield areas. The key uncertainty is in the impact of infill growth on wastewater flows in the existing network. Without effective control of stormwater infiltration and inflow there is the possibility of significant capacity constraints during wet weather events. The implementation of low pressure sewer systems is designed to help mitigate this.

Reliability of Financial Forecasts

Information for programmes in this plan are derived from the information that is input into the Programme Planning and Implementation database. This database provides for the estimating accuracy to be made of each programme together with the estimating rates on which the estimate is based. The types of estimates with their definition are as follows:

Ballpark

This is an order of magnitude estimate made in the early stages of a project based on high level comparative information

Rough Order

This applies in the early stages of feasibility using a top down approach but with better breakdown of the major components of work.

Preliminary

Work is reasonably well defined with more detailed knowledge of quantities and scope of work. Based on historic rates for construction

Firm – Engineers Estimate

This is based on detailed design specification and drawings. Costing is based on market rate information.

In this plan an assessment is made of the reliability of the financial forecasts based on the reliability of physical asset data, asset condition data, asset performance data and growth projections in Section 9.

Appendix J – 6 Year Asset Renewal Programme Asset Management Plan 2017 – Wastewater

209

6 Year Asset Renewal Programme Appendix J.

Appendix J – 6 Year Asset Renewal Programme Asset Management Plan 2017 – Wastewater

211

Table J1: Programme and Renewal Project List

Programme and Renewal Project List 2018/19 [$] 2019/20 [$] 2020/21 [$] 2021/22 [$] 2022/23 [$] 2023/24 [$]

1059-Totara Road Wastewater Treatment

Plant - Replacement of Grit Removal Systems

$494,764

Grit System $494,764


Plant - Replacement of Security Fence and

Gate

$250,000

Security Fence and Gate $250,000


Plant - Replacement of Inlet Pumps

$918,000 - - $780,000

Upgrade two lift pumps $918,000 $780,000

1351-Eastern Trunk Main - Hokowhitu

Campus Renewal

$250,000

Hokowhitu Campus $250,000

1378-Bennett Street 525 Trunkmain Renewal $170,000 $170,000

Bennett Street 525 Trunk Main Renewal $170,000 $170,000

1379-Maxwell's Line 825 Wastewater Trunk

Main Renewal

$250,000 - - - $250,000

Maxwell's Line 825 Wastewater Trunk Main

Renewal

$250,000 $250,000

1380-Totara Rd WWTP - Biogas Generator

Major Overhauls

$150,000 - - - - $300,000

E50 12,000 hr service of Engine $150,000

E60 24,000 hr service of Engine $300,000


Plant - Minor Equipment Renewals

$130,000 $60,000 $100,000 $50,000 $50,000 $50,000

Cross collector gear box 1 $5,000

Digester heat exchange 2 $70,000

Cross collector gear box $10,000

Digester Sludge circulation pump 1 $15,000

Air compressor main building $15,000

Digester Sludge circulation pump 2 $15,000

Hot water cylinder $5,000

Gallery water pipelines $25,000


212


Main air supply fan $15,000

DO probes in second oxidation pond $15,000

1200mm outlet mag flow meter $50,000

Potable water booster set $40,000

Wave bands $10,000

Minor and Reactive Works $50,000 $50,000 $50,000

54-City-wide - Wastewater Pipe Renewal $1,600,000 $1,800,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000

Minor and Reactive Works $55,587 $38,948 $188,850 $42,576 $266,158 $58,442

Renewal Dia - Street

600mm -Moray Pl $50,376

750mm -Rugby St $89,645

600mm -Nottingham Ave $194,904

600mm -Alexander St $2,824

600mm -Totara Rd $3,046

600mm -Marriner St $212,745

750mm -Alexander St $196,724

750mm -College St $115,721

600mm -Maxwells Line $299,952

750mm -Glen Pl $69,643

600mm -Botanical Rd $65,285


450mm -Shamrock St $54,599


450mm -Ferguson St $24,809

375mm -Featherston St $42,942

450mm -Kaimanawa St $27,959

375mm -Hobson Pl $45,190

450mm -Mihaere Dr $129,106

375mm -Clausen St $231,194

450mm -Pitt St $43,805




450mm -Vogel St $44,891

300mm -Cuba St $31,055



213


375mm -Wood St $205,242

300mm -Crewe Cres $202,862

300mm -Centennial Dr $218,420


300mm -Burns Ave $50,753

375mm -Pioneer Hwy $122,141

300mm -Churchill Ave $134,160

375mm -Tremaine Ave $541,505

225mm -Browning Pl $12,801

225mm -Balmoral Dr $66,209

300mm -Stirling Cres $82,545

225mm -Albert St $311,836

300mm -Te Awe Awe St $147,116

300mm -Fitzherbert Ave $251,787

300mm -The Square $112,060


300mm -Tremaine Ave $401,008

250mm -North St $261,604

300mm -Wood St $52,175

300mm -Mcgiffert St $31,680

300mm -Woodstock Pl $38,290

300mm -Main St $152,863

225mm -Alton Pl $31,087

225mm -Bryant St $59,747

225mm -Cuba St $215,310

225mm -Joseph St $125,967

225mm -Fitzroy St $44,340

225mm -Church St $64,520

225mm -Grey St $445,906


225mm -Guy Ave $87,897

225mm -Crewe Cres $26,742

225mm -Hardie St $83,799

225mm -Cleland St $44,054

225mm -Heretaunga St $4,675

225mm -Centennial Dr $14,269

225mm -Ihaka St $146,169


214


225mm -Cook St $196,065

225mm -Jickell St $128,767

225mm -Shamrock St $34,612

225mm -Main St $518,335

225mm-Matipo St $88,557

225mm -St Johns Ave $111,926

225mm -Pahiatua St $303,036

225mm -Roy St $177,079

225mm -Parkland Cres $85,414

225mm -Snelson St $27,967

225mm -Princess St $125,069

225mm -Ruahine St $105,902

225mm -Rangitikei St $143,744

225mm -Rongopai St $80,154

225mm -Rata St $139,762

65-City-wide - Wastewater Pump Station

Renewal

$150,000 $125,000 $137,000 $85,000 $56,500 $40,000

Minor and Reactive Works $1,000 $11,500 $28,500 $56,500 $40,000

New antena pole and 3rd repeater plus 10

individual RTU's

$90,000

Capri Pl WW PS Pumps $9,000

Jickel ST WW PS Pump Controls $25,000

Te Wanaka Rd WW PS Electrical Incl.

Telemetry

$15,000

Roy St WW PS Electrical $10,000

RTUs $65,000 $53,500

Ruamahanga Cr WW PS Pumps $13,500

Tremaine Ave WW PS Electrical $20,000

Capri Pl WW PS Electrical $15,000

Maple St WW PS $17,500

Maxwells Ln WW PS Electrical $66,000

Racecourse Rd Electrical $16,500

Massey Pump Controls $40,000

Appendix K – Final Peer Review Report Asset Management Plan 2017 – Wastewater

215

Final Peer Review Report Appendix K.Peer review comments to be added here

16-Apr-2018 Prepared for – Palmerston North City Council – Co No.: N/A

PNCC Asset Management Review

Palmerston North City Council

16-Apr-2018

Asset Management Review - 2017 AMP's

AECOM




Quality Information

Document Asset Management Review - 2017 AMP's

Ref

60544471

p:\605x\60544471\8. issued docs\8.1 reports\pncc 2017 amp review final.docx

Date 16-Apr-2018

Prepared by Stephen Garlick

Reviewed by Ian Martin

Revision History

Rev Revision Date Details

Authorised

Name/Position Signature

Draft A 21-Mar-2018 For Comment Ian Martin Regional Manager, Wellington

Final 16-Apr-2018 Final Issue Ian Martin Regional Manager, Wellington

AECOM




Appendix F

Wastewater AMP

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

Ap

pen

dix

F

Waste

wa

ter

AM

P

PN

CC

AM

Ass

ess

me

nts

20

18

AM

P

20

17

Wa

ste

wa

ter

AM

P

Ass

ess

me

nt

Ite

m 1

A

lig

nm

en

t

Sco

re

2-3

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

Th

e p

urp

ose

of

org

an

isa

tio

ns

is t

o a

chie

ve o

rga

nis

ati

on

al

ob

ject

ive

s.

In t

he

ca

se o

f lo

cal a

uth

ori

tie

s th

ese

are

ge

ne

rally

exp

ress

ed

as

Co

mm

un

ity

Ou

tco

me

s (r

eq

uir

ed

by

an

d L

GA

20

02

)

an

d in

so

me

ca

ses

sep

ara

te o

rga

nis

ati

on

al o

bje

ctiv

es

sitt

ing

be

low

the

Co

mm

un

ity

Ou

tco

me

s.

It is

imp

ort

an

t th

at

the

ma

na

ge

me

nt

of

ass

et

ba

sed

loca

l au

tho

rity

act

ivit

ies

(as

set

ou

t in

AM

Ps)

is c

lea

rly

alig

ne

d w

ith

an

d

con

trib

ute

s to

th

e a

chie

vem

en

t o

f o

rga

nis

ati

on

al o

bje

ctiv

es.

AM

Ps

sho

uld

als

o r

efl

ect

th

e o

rga

nis

ati

on

’s a

sse

t m

an

ag

em

en

t

po

licy

an

d s

tra

teg

y (i

f th

ere

th

e o

rga

nis

ati

on

ha

s th

ese

) a

nd

wit

h

the

In

fra

stru

ctu

re S

tra

teg

y.

Ro

ad

ing

AM

Ps

(an

d in

pa

rtic

ula

r a

ny

wo

rks

tha

t re

ceiv

e

go

vern

me

nt

sub

sid

y) s

ho

uld

be

co

nsi

ste

nt

wit

h a

nd

su

pp

ort

th

e

Go

vern

me

nt

Po

licy

Sta

tem

en

t o

n L

an

d T

ran

spo

rt a

nd

th

e t

hre

e

stra

teg

ic p

rio

riti

es

form

ing

pa

rt o

f th

e N

ati

on

al P

olic

y St

ate

me

nt

Ta

ble

3 s

ets

ou

t h

ow

th

e W

ast

ew

ate

r A

ctiv

ity

con

trib

ute

s to

th

e f

ollo

win

g 2

(o

f 5

) C

ity

Go

als

·

An

inn

ova

tive

an

d g

row

ing

cit

y

·

An

eco

-cit

y.

It is

un

de

rsto

od

th

at

the

5 C

ity

Go

als

sta

ted

in

th

e A

MP

are

th

e p

rop

ose

d P

alm

ers

ton

No

rth

Cit

y C

om

mu

nit

y O

utc

om

es

for

the

20

18

-20

28

LTP

.

Th

e c

on

trib

uti

on

of

the

Wa

ste

wa

ter

Act

ivit

y to

Cit

y G

oa

ls i

s e

xpre

sse

d i

n T

ab

le 3

as

Pri

ori

tie

s.

Th

ese

re

ad

mo

re li

ke

str

ate

gie

s th

an

sta

tem

en

ts o

f h

ow

th

e W

ast

ew

ate

r A

ctiv

ity

con

trib

ute

s to

Cit

y G

oa

ls e

.g.

“Re

ge

ne

rate

na

tive

bio

div

ers

ity”

sou

nd

s m

ore

lik

e a

str

ate

gy

tha

n

a c

on

trib

uti

on

of

the

Wa

ste

wa

ter

Act

ivit

y co

ntr

ibu

tes

to C

ity

Go

als

.

AM

Ps

are

fo

un

de

d o

n t

he

se

rvic

es

to b

e p

rovi

de

d a

nd

th

e s

tan

da

rds

to b

e a

chie

ved

in

th

e p

rov

isio

n o

f th

ese

se

rvic

es

(Le

vels

of

Serv

ice

).

Th

ese

Le

vels

of

Se

rvic

e s

ho

uld

th

ere

fore

be

cle

arl

y a

lign

ed

wit

h a

nd

co

ntr

ibu

te t

o t

he

ach

ieve

me

nt

of

the

Co

mm

un

ity

Ou

tco

me

s. T

his

is a

n

issu

e A

ud

it N

Z h

ave

ra

ise

d i

n a

ud

its

of

oth

er

org

an

isa

tio

ns.

Th

e L

eve

ls o

f Se

rvic

e f

or

the

Wa

ste

wa

ter

Act

ivit

y se

t o

ut

in T

ab

le 7

co

ver:

·

Qu

alit

y a

nd

He

alt

h

·

Re

liab

ility

·

Re

spo

nsi

ven

ess

·

Acc

ess

ibili

ty

·

Sust

ain

ab

ilit

y

·

Fin

an

cia

l M

an

ag

em

en

t.

Ho

w t

he

se S

erv

ice

Cri

teri

a a

lign

wit

h a

nd

co

ntr

ibu

te t

o C

ity

Go

als

co

uld

be

mo

re e

xplic

it.

De

tail

s o

f th

is a

lig

nm

en

t a

re p

rob

ab

ly b

est

ap

pe

nd

ed

.

Th

e a

sse

t m

an

ag

em

en

t p

roce

ss a

nd

alig

nm

en

t b

etw

ee

n t

he

pri

nci

pa

l ele

me

nts

of

ass

et

ma

na

ge

me

nt

can

be

illu

stra

ted

by

the

fo

llow

ing

dia

gra

m.

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-2

Clo

sin

g t

he

loo

p o

n t

he

ass

et

ma

na

ge

me

nt

pro

cess

invo

lve

s m

ea

suri

ng

pe

rfo

rma

nce

re

lati

ve t

o w

ha

t w

e s

et

ou

t to

ach

ieve

an

d u

sin

g t

his

pe

rfo

rma

nce

(p

erf

orm

an

ce g

ap

s) a

s a

ba

sis

for

con

tin

ua

l im

pro

vem

en

t. 2

01

6/2

01

7 p

erf

orm

an

ce i

s sh

ow

n r

ela

tive

to

pe

rfo

rma

nce

ta

rge

ts

in t

he

le

vels

of

serv

ice

/ke

y p

erf

orm

an

ce in

dic

ato

rs T

ab

le 7

in S

ect

ion

4.4

.1 o

f th

e A

MP

.

It is

no

ted

th

at

the

on

ly K

PI

wh

ere

th

e t

arg

et

leve

l of

pe

rfo

rma

nce

wa

s n

ot

fully

ach

ieve

d w

as:

·

Th

e n

um

be

r o

f d

ry w

ea

the

r w

ast

ew

ate

r o

ve

rflo

ws

fro

m t

he

Co

un

cil’

s se

we

rag

e s

yst

em

s p

er

1,0

00

co

nn

ect

ion

s p

er

ye

ar.

Sect

ion

4.4

.3 c

ove

rs S

erv

ice

Le

vel

Ga

ps.

It

wo

uld

be

exp

ect

ed

th

at

this

fa

ilu

re t

o a

chie

ve t

he

ta

rge

t le

vel o

f p

erf

orm

an

ce w

ou

ld b

e

refl

ect

ed

in

th

e a

na

lysi

s o

f se

rvic

e le

vel g

ap

s w

hic

h i

n t

urn

fe

ed

in

to c

ap

ita

l pro

gra

mm

es.

In

ste

ad

se

rvic

e le

ve

l ga

ps

dis

cuss

ed

in

se

ctio

n

4.4

.3 r

ela

te t

o:

·

Sto

rmw

ate

r in

filt

rati

on

an

d i

nfl

ow

.

·

Ca

pa

city

co

nst

rain

ts in

tru

nk

ma

in n

etw

ork

It is

dif

ficu

lt t

o id

en

tify

th

e s

erv

ice

leve

ls in

Ta

ble

7 t

ha

t th

ese

Se

rvic

e L

eve

l Ga

ps

rela

te t

o.

Sect

ion

3.4

of

the

AM

P s

ets

ou

t th

e A

sse

t M

an

ag

em

en

t P

olic

y a

nd

Str

ate

gy

for

Pa

lme

rsto

n N

ort

h C

ity

Co

un

cil.

T

he

Wa

ste

wa

ter

AM

P

refl

ect

s th

is P

olic

y a

nd

Str

ate

gy.

Ide

ally

, th

e f

ina

nci

als

in t

he

AM

P w

ou

ld b

e p

rese

nte

d in

a w

ay

such

th

at

pri

nci

pa

l bo

tto

m li

ne

s ca

n b

e r

ea

dily

re

con

cile

d w

ith

th

e f

ina

nci

al

sta

tem

en

ts i

n t

he

Co

un

cil L

on

g T

erm

Pla

n.

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-3

Th

is is

imp

ort

an

t a

s A

ud

it N

Z h

av

e t

he

ve

ry r

ea

son

ab

le e

xpe

cta

tio

n t

ha

t th

e A

MP

s w

ill c

lea

rly

pro

vid

e t

he

ba

sis

an

d j

ust

ific

ati

on

fo

r th

e

fin

an

cia

l sta

tem

en

ts in

th

e L

TP

.

Th

e f

ollo

win

g e

xpe

nd

itu

re f

ore

cast

s a

re t

ak

en

fro

m t

he

20

17

Wa

ste

wa

ter

AM

P –

Lif

ecy

cle

Pro

gra

mm

es

Th

ese

are

th

en

su

mm

ari

sed

in

th

e F

ina

nci

al F

ore

cast

s in

Ap

pe

nd

ix E

.

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-4

Th

ere

ap

pe

ars

to

be

a m

ism

atc

h b

etw

ee

n t

he

fin

an

cia

ls s

et

ou

t in

th

e li

fecy

cle

pro

gra

mm

es

an

d t

he

fin

an

cia

ls i

n A

pp

en

dix

E.

Fo

r e

xam

ple

the

bu

dg

ete

d r

en

ew

al e

xpe

nd

itu

re f

or

20

18

/20

19

in T

ab

le 2

3 i

s $

3,6

93

,00

0 w

he

rea

s in

Ta

ble

E2

, b

ud

ge

ted

re

ne

wa

l exp

en

dit

ure

fo

r

20

18

/20

19

is $

2,1

27

,00

0.

Fo

r 2

01

9/2

02

0,

the

fig

ure

s in

th

e t

wo

ta

ble

s a

re $

2,4

85

,00

0 a

nd

$1

,59

5,0

00

re

spe

ctiv

ely

. I

n t

he

20

15

/20

25

LT

P

the

re

ne

wa

l fig

ure

s a

re $

3,7

89

,00

0 f

or

20

18

/20

19

an

d $

1,8

18

,00

0 f

or

20

19

/20

20

.

Th

e d

raft

20

18

/20

28

LT

P is

no

t cu

rre

ntl

y a

vaila

ble

. T

he

re a

pp

ea

red

to

be

a s

urp

risi

ng

leve

l of

vari

an

ce b

etw

ee

n t

he

fin

an

cia

ls in

th

e 2

01

7

AM

P a

nd

th

ose

in t

he

20

15

/20

25

LT

P,

eve

n a

llow

ing

fo

r th

e f

act

th

at

the

20

15

/20

25

LT

P is

in t

he

pro

cess

of

be

ing

su

pe

rse

de

d.

. I

t h

as

be

en

ass

um

ed

th

at

such

dis

cre

pa

nci

es

do

no

t a

pp

ea

r w

he

n c

om

pa

rin

g w

ith

th

e 2

01

8/2

02

8 d

raft

LT

P.

It is

ext

rem

ely

imp

ort

an

t th

at

the

re is

a c

lea

r li

ne

of

sig

ht

fro

m t

he

bu

dg

et

fig

ure

s in

th

e L

TP

ba

ck t

o t

he

co

nso

lida

ted

fin

an

cia

l pro

ject

ion

s

in t

he

AM

P a

nd

fro

m t

he

re b

ack

to

th

e b

ud

ge

ts in

ea

ch o

f th

e li

fecy

cle

pro

gra

mm

es.

Au

dit

Ne

w Z

ea

lan

d h

ave

th

e v

ery

re

aso

na

ble

exp

ect

ati

on

th

at

the

AM

P w

ill b

e t

he

so

urc

es

of

fin

an

cia

l fo

reca

sts

in t

he

LT

P a

nd

th

at

this

ca

n b

e r

ea

dily

ve

rifi

ed

by

com

pa

rin

g b

oth

do

cum

en

ts.

In

ab

ility

to

de

mo

nst

rate

th

is c

lea

r li

ne

of

sig

ht

will

un

de

rmin

e t

he

cre

dib

ilit

y o

f b

oth

th

e A

MP

an

d o

f th

e L

TP

.

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

1

. Sh

ow

mo

re c

lea

rly

the

ali

gn

me

nt

be

twe

en

th

e L

eve

ls o

f Se

rvic

es

set

ou

t in

Se

ctio

n 4

of

the

AM

P,

the

Act

ivit

y C

on

trib

uti

on

to

Cit

y G

oa

ls

an

d t

he

refo

re t

he

Cit

y G

oa

ls.

Th

e d

iag

ram

be

low

pro

vid

es

on

e e

xam

ple

of

ho

w t

his

alig

nm

en

t m

igh

t b

e d

em

on

stra

ted

.

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-5

2.

Imp

rove

th

e a

lig

nm

en

t b

etw

ee

n s

erv

ice

ga

ps

ari

sin

g f

rom

th

e c

om

pa

riso

n o

f 2

01

6/2

01

7 p

erf

orm

an

ce w

ith

th

e c

urr

en

t ta

rge

t in

Ta

ble

7 in

th

e A

MP

, th

e d

iscu

ssio

n o

f se

rvic

e le

vel g

ap

s in

Se

ctio

n 4

.4.3

an

d t

he

ca

pit

al d

eve

lop

me

nt

pro

gra

mm

e r

eco

gn

isin

g t

ha

t cu

rre

nt

an

d e

xpe

cte

d s

erv

ice

ga

ps

are

th

e d

rive

r fo

r n

ew

ca

pit

al i

nv

est

me

nt.

3.

En

sure

th

ere

is a

cle

ar

lin

e o

f si

gh

t fr

om

th

e F

ina

nci

al P

roje

ctio

ns

on

th

e L

TP

ba

ck t

o t

he

co

nso

lida

ted

fin

an

cia

l p

roje

ctio

ns

in t

he

AM

P

an

d f

rom

th

ere

ba

ck t

o t

he

bu

dg

ets

in e

ach

of

the

life

cycl

e p

rog

ram

me

s

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3 -

Fu

lly

me

ets

re

qu

ire

me

nts

4

- E

xce

ed

s re

qu

ire

me

nts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-6

Ass

ess

me

nt

Ite

m 2

S

erv

ice

sta

tem

en

ts a

nd

Le

ve

ls o

f S

erv

ice

Sco

re

3

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

AM

Ps

sho

uld

be

fo

un

de

d o

n a

sta

tem

en

t o

f w

ha

t th

e p

lan

s a

re

inte

nd

ed

to

ach

ieve

. T

his

is

ge

ne

rally

a s

tate

me

nt

of

the

se

rvic

es

to b

e p

rovi

de

d t

hro

ug

h t

he

pla

n,

the

sta

nd

ard

s to

be

ach

ieve

d a

nd

the

lev

el o

f p

erf

orm

an

ce t

ha

t is

ta

rge

ted

. T

his

sh

ou

ld i

nco

rpo

rate

the

ma

nd

ato

ry p

erf

orm

an

ce m

ea

sure

s re

qu

ire

d u

nd

er

the

No

n-

Fin

an

cia

l Pe

rfo

rma

nce

Me

asu

res

Ru

les

20

13

. R

oa

din

g A

MP

s sh

ou

ld

inco

rpo

rate

On

e N

etw

ork

Ro

ad

Cla

ssif

ica

tio

n p

erf

orm

an

ce

me

asu

res

as

ap

pro

pri

ate

.

Th

e j

ust

ific

ati

on

fo

r th

e t

arg

et

lev

els

of

serv

ice

sh

ou

ld b

e p

rovi

de

d.

Ide

ally

th

is w

ou

ld i

ncl

ud

e c

on

sid

era

tio

n o

f b

en

efi

ts a

nd

co

sts

of

dif

fere

nt

leve

ls o

f se

rvic

e.

Serv

ice

sta

tem

en

ts r

ep

rese

nt

the

ob

ject

ive

s th

at

the

AM

P a

ims

to

ach

ieve

. I

t is

imp

ort

an

t th

at

the

se o

bje

ctiv

es

are

cle

arl

y a

lig

ne

d

wit

h o

rga

nis

ati

on

al o

bje

ctiv

es

(ali

gn

me

nt

sho

uld

be

de

mo

nst

rate

d

in t

he

AM

P).

Ide

ally

th

e A

MP

wo

uld

pro

vid

e a

cle

ar

sta

tem

en

t o

f th

e s

erv

ice

s th

at

will

be

pro

vid

ed

to

ea

ch o

f th

e m

ain

cu

sto

me

r se

gm

en

ts.

Th

is,

tog

eth

er

wit

h s

tan

da

rds

to w

hic

h t

he

se s

erv

ice

s w

ill b

e p

rovi

de

d f

orm

th

e f

ou

nd

ati

on

of

the

AM

P.

Sect

ion

2.2

of

the

AM

P p

rovi

de

s th

e f

ollo

win

g s

eg

me

nta

tio

n o

f cu

sto

me

rs:

“Cu

sto

me

rs o

f w

ast

ew

ate

r se

rvic

es

are

bro

ke

n d

ow

n a

s fo

llo

ws:

·

Re

sid

en

tia

l cu

sto

me

rs

·

Ind

ust

ria

l cu

sto

me

rs

·

Co

mm

erc

ial

cust

om

ers

”.

Ide

ally

an

y cu

sto

me

r re

ad

ing

th

e A

MP

sh

ou

ld b

e a

ble

to

re

ad

ily id

en

tify

th

e c

ust

om

er

seg

me

nt

(or

seg

me

nts

) w

ith

in w

hic

h t

he

y fi

t a

nd

th

e

ass

oci

ate

d s

erv

ice

s th

ey

can

exp

ect

to

re

ceiv

e f

rom

th

e C

ou

nci

l. T

his

is t

ypic

ally

pre

sen

ted

as

follo

ws.

Th

e A

MP

do

es

no

t a

pp

ea

r to

ide

nti

fy t

he

po

int

of

serv

ice

fo

r w

ast

ew

ate

r se

rvic

es

pro

vid

ed

by

the

Co

un

cil.

(D

iffe

ren

t cu

sto

me

rs s

ho

uld

be

ab

le t

o c

lea

rly

un

de

rsta

nd

th

e p

oin

t o

f d

em

arc

ati

on

be

twe

en

th

e C

ou

nci

l re

spo

nsi

bil

itie

s a

nd

th

eir

re

spo

nsi

bili

tie

s)

Th

e C

ust

om

er

Leve

ls o

f Se

rvic

e f

or

Wa

ste

wa

ter

set

ou

t in

Ta

ble

7 o

f th

e A

MP

co

ver

the

fo

llow

ing

se

rvic

e d

ime

nsi

on

s:

·

Qu

alit

y a

nd

He

alt

h

·

Re

liab

ility

·

Re

spo

nsi

ven

ess

·

Acc

ess

ibili

ty

·

Sust

ain

ab

ilit

y

·

Fin

an

cia

l M

an

ag

em

en

t.

Th

ere

is a

go

od

ra

ng

e o

f C

ust

om

er

Pe

rfo

rma

nce

Me

asu

res

for

the

se s

erv

ice

dim

en

sio

ns.

Te

chn

ica

l Le

vels

of

Serv

ice

are

ap

pe

nd

ed

in

Ta

ble

C1

alt

ho

ug

h t

he

se a

pp

ea

r to

be

th

e s

am

e a

s th

e C

ust

om

er

Leve

ls o

f S

erv

ice

.

Ta

ble

s 5

an

d C

1 i

nco

rpo

rate

th

e L

oca

l Go

vern

me

nt

Ma

nd

ato

ry P

erf

orm

an

ce M

ea

sure

s se

t o

ut

in t

he

No

n-F

ina

nci

al P

erf

orm

an

ce M

ea

sure

s

Ru

les

20

13

.

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-7

Wh

ere

th

ere

is

a s

ign

ific

an

t va

ria

tio

n b

etw

ee

n a

ctu

al a

nd

ta

rge

t le

vel o

f p

erf

orm

an

ce s

om

e f

orm

of

com

me

nta

ry s

ho

uld

be

pro

vid

ed

as

this

ma

y in

dic

ate

a n

ee

d f

or

som

e f

orm

of

inte

rve

nti

on

.

For

exa

mp

le t

he

nu

mb

er

of

blo

cka

ge

co

mp

lain

ts is

ap

pro

xim

ate

ly 1

6 t

ime

s lo

we

r

tha

n t

he

ta

rge

t w

hic

h is

go

od

bu

t w

hic

h b

eg

s th

e q

ue

stio

n “

Is t

he

ta

rge

t to

o h

igh

?”

A

co

mm

en

tary

on

un

usu

al l

oo

kin

g r

esu

lts

wo

uld

ad

dre

ss p

ote

nti

al q

ue

stio

ns

Pe

rfo

rma

nce

ta

rge

ts f

or

ea

ch L

OS

are

sta

ted

fo

r a

10

ye

ar

ho

rizo

n.

It

is u

ncl

ea

r h

ow

th

ese

pe

rfo

rma

nce

ta

rge

ts w

ere

se

t a

nd

wh

eth

er

an

y

an

aly

sis

of

the

be

ne

fits

an

d c

ost

s o

f d

iffe

ren

t p

erf

orm

an

ce t

arg

ets

ha

s b

ee

n c

arr

ied

ou

t. A

nti

cip

ate

d c

ha

ng

es

in t

arg

et

leve

ls o

f se

rvic

e a

re

sta

ted

an

d t

he

re i

s a

dis

cuss

ion

of

serv

ice

ga

ps.

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

4

. Id

en

tify

th

e c

ust

om

er

seg

me

nts

fo

r w

ast

ew

ate

r se

rvic

es

the

ass

oci

ate

d s

erv

ice

s th

ese

se

gm

en

ts c

an

exp

ect

to

re

ceiv

e f

rom

th

e

Co

un

cil.

5.

De

fin

e t

he

“p

oin

t o

f se

rvic

e”

for

wa

ste

wa

ter

serv

ice

s

6.

Pro

vid

e a

co

mm

en

tary

wh

ere

th

ere

is a

sig

nif

ica

nt

vari

an

ce b

etw

ee

n A

ctu

al P

erf

orm

an

ce a

chie

ved

an

d t

he

Pe

rfo

rma

nce

Ta

rge

ts

7.

Pro

vid

e a

co

mm

en

tary

on

ho

w t

he

ta

rge

t le

vels

of

serv

ice

we

re s

et.

Id

ea

lly t

his

wo

uld

in

clu

de

co

nsi

de

rati

on

of

cost

imp

lica

tio

ns

of

dif

fere

nt

leve

ls o

f se

rvic

e a

lth

ou

gh

a f

ull

be

ne

fit/

cost

an

aly

sis

of

dif

fere

nt

leve

ls o

f se

rvic

e m

ay

no

t b

e j

ust

ifie

d.

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3

- F

ull

y m

ee

ts r

eq

uir

em

en

ts

4 -

Ex

cee

ds

req

uir

em

en

ts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs i

t in

a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-8

Ass

ess

me

nt

Ite

m 3

F

utu

re d

em

an

d

S

core

3

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

AM

Ps

are

str

ate

gic

do

cum

en

ts w

hic

h t

ake

a lo

ng

te

rm v

iew

. I

t is

imp

ort

an

t to

ide

nti

fy t

he

pri

nci

pa

l ch

an

ge

s w

hic

h a

re l

ike

ly t

o

imp

act

on

th

e p

lan

ove

r th

e t

erm

of

the

pla

n a

nd

ta

ke a

cco

un

t o

f

the

se c

ha

ng

es

in t

he

pla

n.

Th

is i

nvo

lve

s id

en

tify

ing

th

e p

rin

cip

al

dri

vers

of

cha

ng

e,

ass

ess

ing

ho

w t

he

se d

rive

rs a

re l

ike

ly t

o c

ha

ng

e

ove

r th

e t

erm

of

the

pla

n a

nd

th

e o

vera

ll im

pa

ct o

n t

he

pla

n.

Th

e A

MP

ide

nti

fie

s 8

pri

nci

pa

l d

rive

rs o

f d

em

an

d.

·

Re

sid

en

tia

l an

d,

ind

ust

ria

l gro

wth

in t

he

cit

y.

·

Ch

an

ge

s in

wa

ter

con

sum

pti

on

an

d u

sag

e p

att

ern

s. M

ost

wa

ter

sup

pli

ed

fo

r d

om

est

ic,

com

me

rcia

l, a

nd

ind

ust

ria

l pu

rpo

ses

is

sub

seq

ue

ntl

y d

isch

arg

ed

into

th

e w

ast

ew

ate

r sy

ste

m.

·

Gre

ate

r u

pta

ke

of

Low

Pre

ssu

re S

ew

er

pa

rtic

ula

rly

in t

he

pre

ssu

re s

ew

er

de

sig

na

ted

are

as.

·

Ch

an

ge

s in

Co

un

cil p

olic

y w

ith

re

ga

rd t

o r

ura

l re

sid

en

tia

l pro

pe

rtie

s.

·

Th

e e

xte

nt

of

sto

rmw

ate

r e

ntr

y to

th

e w

ast

ew

ate

r sy

ste

m (

infi

ltra

tio

n a

nd

in

flo

w).

·

Futu

re d

em

an

d f

or

tre

atm

en

t o

f w

ast

ew

ate

r d

rive

n b

y te

chn

olo

gy

ch

an

ge

s.

·

Re

gio

na

l Co

un

cil O

ne

Pla

n S

tan

da

rds

·

Clim

ate

ch

an

ge

.

Th

ere

is a

dis

cuss

ion

ab

ou

t h

ow

ea

ch o

f th

ese

fa

cto

rs is

exp

ect

ed

to

ch

an

ge

ove

r ti

me

. T

he

wa

y th

e d

iscu

ssio

n a

bo

ut

the

se f

act

ors

is

pre

sen

ted

co

uld

be

imp

rove

d t

o m

irro

r m

ore

clo

sely

th

e 5

dri

vers

of

de

ma

nd

as

ind

ica

ted

be

low

.

Th

ese

dri

vers

of

de

ma

nd

fe

ed

in

to a

de

ma

nd

pro

ject

ion

in

Ta

ble

13

co

veri

ng

a 3

0 y

ea

r h

ori

zon

. A

s w

ell

as

sho

win

g p

roje

cte

d f

low

s th

is

als

o p

roje

cts

the

dif

fere

nt

loa

din

gs

(BO

D,

SS e

tc.)

in t

he

wa

ste

wa

ter

tha

t im

pa

ct o

n t

rea

tme

nt

pro

cess

es.

Th

ere

is m

eri

t in

se

gm

en

tin

g t

he

de

ma

nd

pro

ject

ion

by

the

dri

vers

of

de

ma

nd

an

d s

ho

win

g t

his

gra

ph

ica

lly.

Th

is h

igh

ligh

ts w

ha

t is

pri

ma

rily

dri

vin

g f

utu

re d

em

an

d a

nd

th

e a

rea

s w

he

re e

ffo

rts

sho

uld

be

fo

cuss

ed

to

re

du

ce d

em

an

d.

Ide

ally

th

ere

wo

uld

be

an

in

dic

ati

on

giv

en

of

con

fid

en

ce i

n t

he

de

ma

nd

pro

ject

ion

. T

his

co

uld

be

do

ne

by

pro

vid

ing

hig

h,

me

diu

m a

nd

low

pro

ject

ion

s o

f d

em

an

d.

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

8

. P

rovi

de

an

ind

ica

tio

n o

f th

e le

ve

l o

f co

nfi

de

nce

in d

em

an

d p

roje

ctio

ns

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3

- F

ull

y m

ee

ts r

eq

uir

em

en

ts

4 -

Ex

cee

ds

req

uir

em

en

ts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-9

Ass

ess

me

nt

Ite

m 4

R

isk

Sco

re

2-3

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

AM

Ps

set

ou

t h

ow

org

an

isa

tio

ns

inte

nd

to

wo

rk t

o a

chie

ve a

ctiv

ity

spe

cifi

c a

sse

t m

an

ag

em

en

t o

bje

ctiv

es.

It

is im

po

rta

nt

to a

lso

ide

nti

fy r

isk

s to

th

e a

chie

vem

en

t o

f th

ese

ob

ject

ive

s, e

nsu

re

tra

nsp

are

ncy

of

the

se r

isk

s a

nd

ma

na

ge

th

ese

ris

ks w

ith

in t

he

ris

k

ap

pe

tite

of

the

org

an

isa

tio

n.

Ris

k sh

ou

ld b

e a

n i

np

ut

to d

eci

sio

n

ma

kin

g.

Th

ere

is c

om

pre

he

nsi

ve c

ove

rag

e o

f ri

sk in

th

e A

pp

en

dix

D o

f th

e A

MP

wit

h a

su

mm

ary

of

the

ap

pro

ach

se

t o

ut

in S

ect

ion

7.

Ris

ks

are

ma

na

ge

d i

n a

cco

rda

nce

wit

h a

Co

rpo

rate

Ris

k M

an

ag

em

en

t P

olic

y w

hic

h s

up

po

rts

a c

on

sist

en

t a

pp

roa

ch t

o r

isk

ma

na

ge

me

nt

acr

oss

th

e

org

an

isa

tio

n.

Th

is p

olic

y co

vers

str

ate

gic

, o

pe

rati

on

al a

nd

pro

ject

ris

ks.

Th

ere

is a

se

pa

rate

se

ctio

n (

7.2

) o

n A

ctiv

ity

Ris

k M

an

ag

em

en

t.

In S

ect

ion

7.2

.1,

it is

sta

ted

th

at

the

co

nse

qu

en

ce o

f ri

sk is

eva

lua

ted

in t

erm

s o

f:

·

Leg

al

·

En

viro

nm

en

tal

·

Co

rpo

rate

Im

ag

e

·

Serv

ice

de

live

ry

·

Fin

an

cia

l

·

Co

mm

un

ity

He

alt

h a

nd

Sa

fety

.

Ta

ble

D2

se

ts o

ut

Me

asu

res

of

Co

nse

qu

en

ces

of

Fail

ure

. I

t is

no

tice

d t

ha

t in

th

is t

ab

le “

En

viro

nm

en

tal”

is n

ot

ide

nti

fie

d a

s a

n a

rea

of

imp

act

wit

h e

nvi

ron

me

nta

l d

am

ag

e b

ein

g i

ncl

ud

ed

in

th

e “

Leg

al”

ca

teg

ory

. I

t is

su

gg

est

ed

th

at

pa

rtic

ula

rly

for

an

act

ivit

y su

ch a

s

wa

ste

wa

ter

wh

ich

ca

n h

ave

sig

nif

ica

nt

en

viro

nm

en

tal e

ffe

cts,

“E

nvi

ron

me

nta

l” s

ho

uld

be

a s

ep

ara

te c

on

seq

ue

nce

ca

teg

ory

.

It is

no

ted

th

at

Ta

ble

D5

: C

on

seq

ue

nce

Ra

tin

g a

pp

ea

rs t

o r

ep

ea

t T

ab

le D

2:

Me

asu

res

of

Co

nse

qu

en

ce o

f Fa

ilure

an

d t

ha

t th

ere

ap

pe

ar

to

be

tw

o d

iffe

ren

t ri

sk m

atr

ice

s sh

ow

n a

s fo

llow

s.

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

0

Ob

vio

usl

y d

up

lica

tio

n i

s u

nd

esi

rab

le c

on

sist

en

cy is

ess

en

tia

l.

Alt

ho

ug

h r

efe

ren

ce i

s m

ad

e i

n t

he

AM

P t

o a

ris

k re

gis

ter

in A

pp

en

dix

D,

the

re d

id n

ot

ap

pe

ar

to b

e a

n A

ctiv

ity

Ris

k R

eg

iste

r in

th

e A

MP

.

Fig

ure

D2

se

ts o

ut

a r

isk

ma

na

ge

me

nt

pro

cess

wh

ich

incl

ud

es

the

id

en

tifi

cati

on

of

risk

.

Ris

ks

are

un

cert

ain

fu

ture

eve

nts

th

at

cou

ld i

mp

act

on

an

org

an

isa

tio

n’s

ab

ilit

y t

o a

chie

ve it

s o

bje

ctiv

es.

Th

e A

S/N

ZS

ISO

31

00

0:2

00

9

Sta

nd

ard

de

fin

es

risk

as

the

“e

ffe

ct o

f u

nce

rta

inty

on

ob

ject

ive

s”.

R

isks

sh

ou

ld t

he

refo

re b

e id

en

tifi

ed

in t

erm

s o

f o

bje

ctiv

es

(Im

pa

ct o

n

ob

ject

ive

s is

wh

at

ma

ke

s a

ris

k a

ris

k).

It

is s

ug

ge

ste

d t

ha

t th

is p

roce

ss d

iag

ram

sh

ou

ld a

lso

incl

ud

e r

efe

ren

ce t

o o

bje

ctiv

es

in t

he

ris

k

ide

nti

fica

tio

n p

ha

se.

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

9

. In

clu

de

a r

eg

iste

r o

f A

ctiv

ity

Ris

ks

in t

he

AM

P

10

. A

dd

co

nsi

de

rati

on

of

ob

ject

ive

s to

Fig

ure

D2

- r

isk

ma

na

ge

me

nt

pro

cess

re

cog

nis

ing

th

at

it is

im

pa

ct o

n o

bje

ctiv

es

wh

ich

ma

kes

a r

isk

a r

isk.

11

. E

nsu

re a

co

nsi

ste

nt

ap

pro

ach

is

ad

op

ted

to

th

e a

sse

ssm

en

t o

f ri

sks

(sin

gle

ris

k m

atr

ix)

an

d d

ele

te o

ne

of

the

ris

k co

nse

qu

en

ce t

ab

les.

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3 -

Fu

lly

me

ets

re

qu

ire

me

nts

4

- E

xce

ed

s re

qu

ire

me

nts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

1

Ass

ess

me

nt

Ite

m 5

C

riti

cal

ass

ets

Sco

re

2-3

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

Cri

tica

l ass

ets

are

th

ose

wit

h a

hig

h c

on

seq

ue

nce

of

failu

re.

It is

imp

ort

an

t th

at

crit

ica

l ass

ets

are

id

en

tifi

ed

usi

ng

a d

efi

ne

d a

nd

con

sist

en

t m

eth

od

olo

gy

an

d t

ha

t a

pp

rop

ria

te in

terv

en

tio

ns

are

pu

t

in p

lace

(su

ch a

s co

nd

itio

n m

on

ito

rin

g,

rep

lace

me

nt

be

fore

fa

ilure

,

con

tin

ge

ncy

pla

nn

ing

, a

ctio

ns

to r

ed

uce

cri

tica

lity)

to

min

imis

e t

he

risk

of

failu

re o

f cr

itic

al a

sse

ts.

Ass

et

Cri

tica

lity

is s

um

ma

rise

d in

7.1

.6 -

Se

ctio

n 7

– R

isk

s a

nd

Re

sili

en

ce a

nd

co

vere

d in

mo

re d

eta

il in

7.2

.3.

In

7.2

.3,

crit

ica

l ass

ets

are

ide

nti

fie

d “

as

tho

se a

sse

ts w

hic

h h

ave

th

e h

igh

est

co

nse

qu

en

ces

sho

uld

th

ey f

ail

”.

Sect

ion

7.2

.3 s

tate

s th

at

“Cri

teri

a f

or

ass

ess

ing

cri

tica

lity

are

:

·

Nu

mb

ers

of

pe

op

le a

dve

rse

ly a

ffe

cte

d;

·

Sig

nif

ica

nt

bu

sin

ess

act

ivit

y i

nte

rru

pte

d;

·

Co

nse

qu

en

tia

l co

st o

f fa

ilu

re;

an

d

·

Cri

tica

l li

feli

ne

/dis

ast

er

reco

very

ass

et”

.

·

Oth

er

Th

e c

riti

calit

y o

f p

um

p s

tati

on

s is

ass

ess

ed

in

te

rms

of

the

se

nsi

tivi

ty o

f th

e r

ece

ivin

g e

nvi

ron

me

nt

to o

verf

low

s is

co

nsi

de

red

, a

s w

ell

as

the

po

pu

lati

on

se

rve

d.

Cri

tica

lity

of

tre

atm

en

t p

lan

t a

sse

ts is

ba

sed

on

th

e c

on

seq

ue

nce

of

failu

re o

f e

ach

co

mp

on

en

t a

nd

its

ro

le a

s p

art

of

the

tre

atm

en

t

pro

cess

ove

rall.

Ris

k a

nd

cri

tica

lity

are

lin

ked

. W

he

rea

s ri

sk i

s a

co

mb

ina

tio

n o

f co

nse

qu

en

ce a

nd

pro

ba

bil

ity,

cri

tica

lity

is a

bo

ut

con

seq

ue

nce

on

ly.

Co

nse

qu

en

ce o

f a

ctiv

ity

risk

is

ass

ess

ed

in

th

e A

MP

in t

erm

s o

f th

e f

ollo

win

g:

·

Leg

al

·

En

viro

nm

en

tal

·

Co

rpo

rate

Im

ag

e

·

Serv

ice

de

live

ry

·

Fin

an

cia

l

·

Co

mm

un

ity

He

alt

h a

nd

Sa

fety

In t

he

in

tere

sts

of

con

sist

en

cy,

the

sa

me

cri

teri

a s

ho

uld

be

use

d t

o a

sse

ss c

riti

calit

y. F

or

exa

mp

le s

ho

uld

an

ass

et

wh

ose

fa

ilu

re w

ou

ld b

e

like

ly t

o le

ad

to

se

vere

en

viro

nm

en

tal d

am

ag

e,

na

tio

na

l h

ea

dli

ne

s a

nd

pro

secu

tio

n o

f th

e C

ou

nci

l be

co

nsi

de

red

a c

riti

cal a

sse

t? I

t

pro

ba

bly

sh

ou

ld.

Als

o a

sse

ts s

erv

ing

cri

tica

l cu

sto

me

rs s

uch

as

ho

spit

als

do

no

t a

pp

ea

r to

ha

ve b

ee

n id

en

tifi

ed

as

crit

ica

l b

y th

e c

urr

en

t

pro

cess

.

Se

ctio

n 6

.8.2

se

ts o

ut

ho

w t

he

Co

un

cil’

s m

ain

ten

an

ce s

tra

teg

y i

s li

nk

ed

to

ass

et

crit

ica

lity

wit

h d

iffe

ren

t in

spe

ctio

n a

nd

ma

inte

na

nce

reg

ime

s fo

r

·

Hig

hly

cri

tica

l ass

ets

·

Me

diu

m a

nd

Lo

w c

riti

calit

y a

sse

ts

·

No

n c

riti

cal a

sse

ts.

Cri

tica

lity

is a

lso

ta

ken

in

to a

cco

un

t in

ma

kin

g r

en

ew

al d

eci

sio

ns.

Ta

ken

ove

rall,

cri

tica

lity

is w

ell

do

ne

in t

he

Wa

ste

wa

ter

AM

P.

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

2

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

1

2.

En

sure

ali

gn

me

nt

an

d c

on

sist

en

cy b

etw

ee

n a

sse

ssm

en

ts o

f cr

itic

ali

ty a

nd

ass

ess

me

nts

of

risk

by

ass

ess

ing

co

nse

qu

en

ce o

n t

he

sa

me

ba

sis

for

bo

th r

isk

an

d c

riti

calit

y.

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3 -

Fu

lly

me

ets

re

qu

ire

me

nts

4

- E

xce

ed

s re

qu

ire

me

nts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

3

Ass

ess

me

nt

Ite

m 6

Ju

stif

ica

tio

n f

or

ma

inte

na

nce

pro

gra

mm

es

S

core

2

-3

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

Ma

inte

na

nce

pro

gra

mm

es

are

re

lie

d u

po

n a

s a

so

urc

e o

f in

pu

ts t

o

the

Co

un

cil’

s lo

ng

te

rm f

ina

nci

al

pla

nn

ing

an

d t

he

Co

un

cil

Lon

g

Te

rm P

lan

. T

he

y sh

ou

ld p

rovi

de

co

nfi

de

nce

th

at

an

ap

pro

pri

ate

leve

l of

ma

inte

na

nce

is b

ein

g c

arr

ied

ou

t a

nd

th

at

the

ab

ility

to

ach

ieve

se

rvic

e o

bje

ctiv

es

an

d t

he

se

rvic

e c

ap

ab

ility

of

the

ass

ets

is

no

t b

ein

g c

om

pro

mis

ed

.

Ma

inte

na

nce

pro

gra

mm

es

sho

uld

be

su

bje

ct t

o s

yst

em

ati

c d

eci

sio

n-

ma

kin

g p

roce

sse

s to

op

tim

ise

th

ese

pro

gra

mm

es

Ro

ad

ing

AM

Ps

sho

uld

in

corp

ora

te t

he

NZ

TA

Bu

sin

ess

Ca

se

Ap

pro

ach

to

en

suri

ng

ap

pro

pri

ate

an

d c

ost

eff

ect

ive

ma

inte

na

nce

pro

gra

mm

es.

Th

ere

sh

ou

ld b

e a

cle

ar

lin

e o

f si

gh

t fr

om

th

e m

ain

ten

an

ce

pro

gra

mm

es

in t

he

AM

P t

o t

he

fin

an

cia

l pro

gra

mm

es

in t

he

LT

P.

Th

e r

ea

son

s a

nd

co

nse

qu

en

ces

of

an

y in

con

sist

en

cie

s b

etw

ee

n t

he

AM

P a

nd

th

e L

TP

sh

ou

ld b

e s

tate

d

Op

era

tio

n &

Ma

inte

na

nce

of

Ass

ets

is s

et

ou

t in

Se

ctio

n 6

.8.

Th

e p

urp

ose

of

ass

et

op

era

tio

n a

nd

ma

inte

na

nce

is

cle

arl

y se

t o

ut.

Th

ere

are

de

fin

ed

ma

inte

na

nce

str

ate

gie

s b

ase

d o

n t

he

cri

tica

lity

of

ass

ets

.

It i

s im

po

rta

nt

tha

t u

tili

tie

s a

re o

pe

rate

d c

orr

ect

ly i

n a

cco

rda

nce

wit

h t

he

de

sig

ne

r’s

inte

nti

on

s. O

pe

rati

on

an

d m

ain

ten

an

ce o

f ke

y

wa

ste

wa

ter

uti

liti

es

sho

uld

be

ca

rrie

d o

ut

in a

cco

rda

nce

wit

h d

efi

ne

d p

roce

du

res

wh

ich

are

do

cum

en

ted

in o

pe

rati

on

s m

an

ua

ls.

It

is

un

cle

ar

wh

eth

er

the

re a

re o

pe

rati

on

s m

an

ua

ls f

or

wa

ste

wa

ter

uti

liti

es.

O

pe

rati

on

s m

an

ua

ls a

lso

pro

vid

e a

ba

sis

for

au

dit

s to

be

ca

rrie

d

ou

t to

en

sure

uti

litie

s a

re b

ein

g o

pe

rate

d a

nd

ma

inta

ine

d c

orr

ect

ly.

Ta

ble

20

pro

vid

es

a 5

ye

ar

fore

cast

of

op

era

tio

ns

an

d m

ain

ten

an

ce c

ost

s.

Th

is a

pp

ea

rs t

o b

e a

t va

ria

nce

wit

h t

he

30

ye

ar

op

era

tio

na

l b

ud

ge

t se

t o

ut

in T

ab

le E

1

Ide

ally

th

e A

MP

wo

uld

pro

vid

e a

dd

itio

na

l co

mm

en

tary

on

th

e b

asi

s o

f th

e j

ust

ific

ati

on

fo

r th

e e

xpe

nd

itu

re f

ore

cast

s in

Ta

ble

21

. T

he

Op

era

tio

n &

Ma

inte

na

nce

of

Ass

ets

se

ctio

n o

f th

e A

MP

sh

ou

ld e

xpla

in “

this

is

wh

at

we

ne

ed

to

do

(a

nd

wh

y)

an

d t

he

se a

re t

he

co

sts

ari

sin

g f

rom

th

at”

.

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

4

Such

a c

om

me

nta

ry m

igh

t b

e a

lon

g t

he

fo

llo

win

g g

en

era

l lin

es:

“Th

e b

ud

ge

t h

as

be

en

de

rive

d f

rom

his

tori

c co

sts

tha

t h

ave

be

en

est

ab

lish

ed

as

be

ing

su

ffic

ien

t to

ca

rry

ou

t th

e m

ain

ten

an

ce a

nd

op

era

tio

n p

rog

ram

me

an

d w

hic

h h

ave

be

en

am

en

de

d a

s n

ece

ssa

ry t

o a

llo

w f

or

cha

ng

es

in m

an

ag

em

en

t a

ctiv

itie

s a

nd

pra

ctic

es.

Th

e

fore

cast

fo

r e

xpe

nd

itu

re i

s b

ase

d o

n a

ssu

mp

tio

ns

tha

t:

·

Th

e o

ve

rall

co

nd

itio

n o

f th

e n

etw

ork

wil

l n

ot

cha

ng

e s

ign

ific

an

tly o

ve

r th

e n

ext

15

ye

ars

(se

e r

en

ew

al

stra

teg

ies)

.

·

Ext

en

sio

ns

of

the

wa

ste

wa

ter

syst

em

wil

l re

pre

sen

t o

nly

a s

ma

ll p

rop

ort

ion

of

the

en

tire

sy

ste

m (

see

de

ma

nd

pro

ject

ion

s).

·

Th

e l

eve

l o

f m

ain

ten

an

ce r

eq

uir

ed

wil

l n

ot

incr

ea

se (

an

d m

ay d

ecr

ea

se),

re

fle

ctin

g a

n i

ncr

ea

se i

n t

he

ove

rall

co

nd

itio

n o

f th

e

wa

ste

wa

ter

ne

two

rk a

s a

re

sult

of

the

ass

et

ren

ew

al p

rog

ram

me

.

·

Th

ere

wil

l b

e a

sig

nif

ica

nt

incr

ea

se i

n t

he

pri

ce o

f th

e o

pe

rati

on

an

d m

ain

ten

an

ce c

on

tra

ct w

he

n i

t is

co

mp

eti

tive

ly r

e-t

en

de

red

.

(th

is r

efl

ect

s o

ur

ass

ess

me

nt

of

the

ma

rke

t fo

r th

is t

yp

e o

f w

ork

)”.

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

1

3.

En

sure

th

e c

orr

ect

ma

inte

na

nce

an

d o

pe

rati

on

of

all

sig

nif

ica

nt

wa

ste

wa

ter

uti

litie

s is

do

cum

en

ted

in o

pe

rati

on

s m

an

ua

ls

14

. E

nsu

re t

he

re is

a c

lea

r li

ne

of

sig

ht

fro

m t

he

fin

an

cia

l fo

reca

sts

in t

he

op

era

tio

ns

an

d m

ain

ten

an

ce p

rog

ram

me

to

th

e c

on

soli

da

ted

fin

an

cia

l pro

ject

ion

s in

Ap

pe

nd

ix E

to

th

e f

ina

nci

als

in

th

e p

ub

lish

ed

LT

P.

15

. P

rovi

de

ad

dit

ion

al c

om

me

nta

ry j

ust

ifyi

ng

th

e b

ud

ge

ts a

risi

ng

fro

m t

he

ma

inte

na

nce

an

d o

pe

rati

on

s p

rog

ram

me

s.

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3 -

Fu

lly

me

ets

re

qu

ire

me

nts

4

- E

xce

ed

s re

qu

ire

me

nts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

5

Ass

ess

me

nt

Ite

m 7

Ju

stif

ica

tio

n f

or

ass

et

ren

ew

al

pro

gra

mm

e

S

core

3

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

Ass

et

Re

ne

wa

l Pro

gra

mm

es

are

re

lied

up

on

as

a s

ou

rce

of

inp

uts

to

the

Co

un

cil’

s lo

ng

te

rm f

ina

nci

al

pla

nn

ing

an

d t

he

Co

un

cil

Lon

g

Te

rm P

lan

. T

he

y sh

ou

ld p

rovi

de

co

nfi

de

nce

th

at

an

op

tim

um

le

vel

of

ass

et

ren

ew

al i

s b

ein

g c

arr

ied

ou

t w

hic

h w

ill m

ain

tain

an

acc

ep

tab

le l

eve

l of

serv

ice

ca

pa

bil

ity

of

the

ass

et

syst

em

s, w

hile

ma

xim

isin

g t

he

va

lue

to

be

ob

tain

ed

fro

m in

vest

me

nt

in t

he

ass

ets

,

an

d t

ha

t a

sse

t re

ne

wa

l p

rog

ram

me

s a

re c

ost

eff

ect

ive

.

Re

ne

wa

l pro

gra

mm

es

sho

uld

be

su

bje

ct t

o s

yste

ma

tic

de

cisi

on

-

ma

kin

g p

roce

sse

s (O

DM

) to

op

tim

ise

th

ese

pro

gra

mm

es.

Ro

ad

ing

AM

Ps

sho

uld

in

corp

ora

te t

he

NZ

TA

Bu

sin

ess

Ca

se

Ap

pro

ach

to

en

suri

ng

ap

pro

pri

ate

an

d c

ost

eff

ect

ive

ass

et

ren

ew

al

pro

gra

mm

e.

Th

ere

sh

ou

ld b

e a

cle

ar

lin

e o

f si

gh

t fr

om

th

e a

sse

t re

ne

wa

l

pro

gra

mm

es

in t

he

AM

P t

o t

he

fin

an

cia

l pro

gra

mm

es

in t

he

LT

P.

Th

e r

ea

son

s a

nd

co

nse

qu

en

ces

of

an

y in

con

sist

en

cie

s b

etw

ee

n t

he

AM

P a

nd

th

e L

TP

sh

ou

ld b

e s

tate

d

Th

e r

en

ew

al o

f a

sse

ts is

co

vere

d i

n 6

.9.

Th

e r

en

ew

al p

rog

ram

me

s is

de

term

ine

d f

rom

co

nsi

de

rati

on

of

crit

ica

lity,

co

nd

itio

n,

an

d a

sse

t

pe

rfo

rma

nce

.

Th

ere

is a

ve

ry g

oo

d a

pp

roa

ch t

o p

rio

riti

sin

g a

sse

t re

ne

wa

ls s

et

ou

t in

Fig

ure

29

ba

sed

on

ag

e,

dia

me

ter

an

d c

riti

calit

y.

Fig

ure

28

se

ts o

ut

the

re

ma

inin

g l

ife

pro

file

of

the

wa

ste

wa

ter

pip

e n

etw

ork

. T

his

ap

pe

ars

to

ind

ica

te t

ha

t a

n a

vera

ge

lon

g t

erm

exp

en

dit

ure

on

re

ne

wa

ls o

f th

e o

rde

r o

f a

bo

ut

$1

.5m

an

nu

ally

sh

ou

ld b

e s

uff

icie

nt

to s

ust

ain

th

a n

etw

ork

.

Ta

ble

23

se

ts o

ut

a 5

ye

ar

fore

cast

of

wa

ste

wa

ter

ren

ew

als

.

Th

is a

pp

ea

rs t

o b

e a

t va

ria

nce

wit

h t

he

30

ye

ar

ren

ew

als

bu

dg

et

set

ou

t in

Ta

ble

E2

Fig

ure

32

se

ts o

ut

a 3

0 y

ea

r re

ne

wa

l pro

ject

ion

fo

r th

e p

rin

cip

al a

sse

t g

rou

ps

an

d c

om

pa

res

this

wit

h d

ep

reci

ati

on

. T

his

ap

pe

ars

to

sh

ow

a

clo

ser

reco

nci

liati

on

wit

h T

ab

le 2

3 t

ha

n w

ith

Ta

ble

E2

.

As

wo

uld

be

exp

ect

ed

pro

po

sed

exp

en

dit

ure

on

re

ne

wa

ls is

sig

nif

ica

ntl

y a

t va

ria

nce

wit

h d

ep

reci

ati

on

. W

hile

th

is s

imp

ly r

efl

ect

s th

e

con

dit

ion

an

d r

em

ain

ing

life

pro

file

s o

f th

e a

sse

ts,

som

e a

dd

itio

na

l co

mm

en

tary

ab

ou

t th

is v

ari

an

ce i

s d

esi

rab

le t

o d

isp

el

pe

rce

pti

on

s th

at

an

insu

ffic

ien

t le

vel o

f re

ne

wa

ls i

s p

rop

ose

d.

Th

is i

s a

n is

sue

th

at

ha

s b

ee

n r

ais

ed

by

Au

dit

Ne

w Z

ea

lan

d in

au

dit

s o

f o

the

r te

rrit

ori

al

au

tho

riti

es

an

d s

ho

uld

be

ad

dre

sse

d p

roa

ctiv

ely

in t

he

AM

P

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

1

6.

Pro

vid

e a

dd

itio

na

l co

mm

en

tary

on

th

e v

ari

an

ce b

etw

ee

n d

ep

reci

ati

on

an

d t

he

ass

et

ren

ew

al p

roje

ctio

n t

o p

rovi

de

ass

ura

nce

th

at

an

ap

pro

pri

ate

leve

l of

ren

ew

als

is

pla

nn

ed

wh

ich

will

ma

inta

in t

he

ove

rall

serv

ice

ca

pa

bil

ity

of

the

wa

ste

wa

ter

infr

ast

ruct

ure

.

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3

- F

ull

y m

ee

ts r

eq

uir

em

en

ts

4 -

Ex

cee

ds

req

uir

em

en

ts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

6

Ass

ess

me

nt

Ite

m 8

Ju

stif

ica

tio

n f

or

ass

et

de

ve

lop

me

nt

pro

gra

mm

e

S

core

2

-3

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

Ass

et

De

velo

pm

en

t P

rog

ram

me

s a

re r

eli

ed

up

on

as

a s

ou

rce

of

inp

uts

to

th

e C

ou

nci

l’s

lon

g t

erm

fin

an

cia

l p

lan

nin

g a

nd

th

e C

ou

nci

l

Lon

g T

erm

Pla

n.

Ass

et

De

velo

pm

en

t P

rog

ram

me

s cl

ose

cu

rre

nt

an

d

pro

ject

ed

se

rvic

e g

ap

s.

Th

ey

sho

uld

pro

vid

e c

on

fid

en

ce t

ha

t a

n

acc

ep

tab

le l

eve

l of

serv

ice

ca

pa

bil

ity

will

be

ma

inta

ine

d i

nto

th

e

futu

re.

Ass

et

de

velo

pm

en

t p

rog

ram

me

s sh

ou

ld b

e s

ub

ject

to

sys

tem

ati

c

de

cisi

on

-ma

kin

g p

roce

sse

s (O

DM

) to

op

tim

ise

th

ese

pro

gra

mm

es.

Alt

ho

ug

h t

he

ra

te o

f cl

osi

ng

se

rvic

e g

ap

s is

a p

olit

ica

l de

cisi

on

an

d i

s

sub

ject

to

co

mp

eti

ng

de

ma

nd

s fo

r C

ou

nci

l fu

nd

ing

, it

sh

ou

ld b

e

no

ted

in t

he

pla

ns.

Ro

ad

ing

AM

Ps

sho

uld

in

corp

ora

te t

he

NZ

TA

Bu

sin

ess

Ca

se

Ap

pro

ach

to

en

suri

ng

ap

pro

pri

ate

an

d c

ost

eff

ect

ive

ass

et

de

velo

pm

en

t p

rog

ram

me

.

Th

ere

sh

ou

ld b

e a

cle

ar

lin

e o

f si

gh

t fr

om

th

e a

sse

t d

ev

elo

pm

en

t

pro

gra

mm

es

in t

he

AM

P t

o t

he

fin

an

cia

l pro

gra

mm

es

in t

he

LT

P.

Th

e r

ea

son

s a

nd

co

nse

qu

en

ces

of

an

y in

con

sist

en

cie

s b

etw

ee

n t

he

AM

P a

nd

th

e L

TP

sh

ou

ld b

e s

tate

d

All

ass

et

de

velo

pm

en

t p

rop

osa

ls s

ho

uld

be

cle

arl

y lin

ke

d t

o a

cu

rre

nt

or

an

tici

pa

ted

se

rvic

e g

ap

. T

his

ma

y b

e a

cu

sto

me

r o

r te

chn

ica

l

serv

ice

ga

p a

nd

sh

ou

ld id

ea

lly r

ela

te t

o a

se

rvic

e s

tan

da

rd t

ha

t is

de

fin

ed

in t

he

AM

P.

Th

e r

ea

son

fo

r th

is is

th

at

the

pu

rpo

se o

f a

sse

t d

eve

lop

me

nt

is t

o i

ncr

ea

se s

erv

ice

ca

pa

bili

ty.

Th

ere

wo

uld

be

no

ne

ed

to

in

cre

ase

se

rvic

e

cap

ab

ility

if t

he

re w

as

no

t (o

r n

ot

exp

ect

ed

to

be

) a

se

rvic

e g

ap

. I

f le

vels

of

serv

ice

are

lin

ked

ba

ck t

o C

om

mu

nit

y O

utc

om

es/

Co

un

cil

Ob

ject

ive

s th

en

by

link

ing

de

velo

pm

en

t p

rop

osa

ls t

o s

erv

ice

ga

ps

it f

ollo

ws

tha

t th

ese

pro

po

sals

wil

l, if

ad

op

ted

co

ntr

ibu

te t

o t

he

ach

ieve

me

nt

of

Co

mm

un

ity

Ou

tco

me

s, w

hic

h is

th

e i

nte

nt

of

the

LG

A 2

00

2.

Th

ere

is a

dis

cuss

ion

on

se

rvic

e g

ap

s in

Se

ctio

n 4

.4.3

of

the

AM

P.

Se

rvic

e g

ap

s a

pp

ea

r to

re

late

to

·

Infi

ltra

tio

n/i

nfl

ow

·

Tru

nk

ma

in c

ap

aci

ty c

on

stra

ints

.

Som

e d

eve

lop

me

nt

pro

ject

s in

6.1

0.3

– D

eve

lop

me

nt

Pro

gra

mm

e r

efl

ect

tru

nk

ma

in c

ap

aci

ty c

on

stra

ints

. T

he

se

rvic

e g

ap

s to

wh

ich

oth

er

pro

ject

s re

late

is u

ncl

ea

r.

Th

e d

eve

lop

me

nt

stra

teg

y d

esc

rib

ed

in

6.1

0.2

is t

o p

rovi

de

fo

r th

e p

rog

ress

ive

up

gra

din

g o

f a

sse

ts t

o e

nsu

re f

utu

re d

em

an

d a

nd

ch

an

gin

g

serv

ice

sta

nd

ard

s a

re a

chie

ved

.

An

eco

no

mic

ap

pra

isa

l of

pro

po

sed

pro

ject

s is

re

qu

ire

d u

sin

g c

ost

/be

ne

fit

an

aly

sis

tech

niq

ue

s w

hic

h t

ake

into

acc

ou

nt:

·

Ca

pit

al c

ost

s

·

An

y ch

an

ge

in n

et

an

nu

al o

pe

rati

ng

co

sts

·

An

y ch

an

ge

in a

nn

ua

l ma

inte

na

nce

re

qu

ire

me

nts

·

An

y sa

lva

ge

va

lue

of

exi

stin

g a

sse

ts o

r co

mp

on

en

ts.

A P

roje

ct E

xecu

tio

n P

lan

fo

r is

re

qu

ire

d f

or

pri

or

ap

pro

val b

y th

e m

an

ag

em

en

t te

am

.

Sch

ed

ule

10

of

the

LG

A 2

00

2 r

eq

uir

es

cap

ita

l de

velo

pm

en

t e

xpe

nd

itu

re t

o b

e i

de

nti

fie

d a

s b

ein

g r

eq

uir

ed

to

se

rvic

e g

ap

s a

risi

ng

fro

m a

ne

ed

to

:

·

me

et

ad

dit

ion

al d

em

an

d f

or

an

act

ivit

y (g

row

th)

·

imp

rove

th

e l

eve

l of

serv

ice

.

Th

e D

eve

lop

me

nt

Pro

gra

mm

e B

ud

ge

t in

ta

ble

24

sh

ow

s th

e p

rop

ose

d l

eve

ls o

f e

xpe

nd

itu

re i

n e

ach

ca

teg

ory

.

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

1

7.

Pro

vid

e a

cle

are

r li

nk

be

twe

en

th

e p

rop

ose

d d

eve

lop

me

nt

pro

gra

mm

e a

nd

cu

rre

nt

an

d p

roje

cte

d g

ap

s b

etw

ee

n t

arg

et

LOS

sho

wn

in

Sect

ion

4 o

f th

e A

MP

an

d c

urr

en

t se

rvic

e c

ap

ab

ilit

y.

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3 -

Fu

lly

me

ets

re

qu

ire

me

nts

4

- E

xce

ed

s re

qu

ire

me

nts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

7

Ass

ess

me

nt

Ite

m 9

D

ata

Sco

re

2

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

Da

ta s

up

po

rts

fact

ba

sed

de

cisi

on

ma

kin

g,

key

ass

et

ma

na

ge

me

nt

pro

cess

es

an

d p

erf

orm

an

ce m

ea

sure

me

nt.

It

is im

po

rta

nt

tha

t

org

an

isa

tio

ns

ide

nti

fy t

he

da

ta t

he

y re

qu

ire

fo

r th

ese

pu

rpo

ses,

th

e

qu

alit

y o

f d

ata

th

ey

req

uir

e,

wh

ere

th

ey

will

ob

tain

th

e d

ata

, a

nd

ho

w t

he

y w

ill m

an

ag

e a

nd

re

trie

ve

th

e d

ata

as

req

uir

ed

.

Th

ey

sho

uld

als

o id

en

tify

th

e q

ua

lity

of

exi

stin

g d

ata

re

lati

ve t

o w

ha

t is

req

uir

ed

an

d p

ut

in p

lace

a p

rog

ram

me

to

imp

rove

da

ta (

wh

ere

da

ta q

ua

lity

ga

ps

exi

st).

Th

is i

ncl

ud

es

da

ta o

n t

he

ass

ets

, th

eir

con

dit

ion

an

d p

erf

orm

an

ce a

s w

ell

as

oth

er

da

ta n

ee

de

d t

o s

up

po

rt

bu

sin

ess

pro

cess

es

an

d d

eci

sio

n m

aki

ng

.

Th

e q

ua

lity

of

ass

et

ma

na

ge

me

nt

can

on

ly e

ver

be

as

go

od

as

the

qu

alit

y o

f th

e u

nd

erl

yin

g d

ata

.

Da

ta s

up

po

rts

the

en

tire

ass

et

ma

na

ge

me

nt

pro

cess

.

Ide

ally

th

ere

wo

uld

be

an

ass

ess

me

nt

ma

de

of

the

da

ta r

eq

uir

ed

to

su

pp

ort

ke

y a

sse

t m

an

ag

em

en

t a

nd

de

cisi

on

ma

kin

g p

roce

sse

s

(in

clu

din

g m

on

ito

rin

g o

f p

erf

orm

an

ce),

to

ge

the

r w

ith

th

e r

eq

uir

ed

qu

alit

y o

f th

is d

ata

, d

ata

so

urc

es

an

d d

ata

co

llect

ion

me

cha

nis

ms

an

d

arr

an

ge

me

nts

fo

r d

ata

ma

na

ge

me

nt,

re

trie

val

an

d a

na

lysi

s.

An

aly

sis

of

ga

ps

be

twe

en

th

e d

esi

red

an

d c

urr

en

t st

ate

of

ea

ch d

ata

ite

m

wo

uld

th

en

fo

rm b

asi

s o

f d

ata

imp

rove

me

nt

pro

gra

mm

e.

A s

um

ma

ry o

f th

is a

sse

ssm

en

t w

ou

ld b

e i

ncl

ud

ed

in t

he

AM

P.

Sect

ion

9.3

se

ts o

ut

an

ass

ess

me

nt

of

con

fid

en

ce in

ass

et

da

ta u

sed

as

a b

asi

s fo

r th

e f

ina

nci

al f

ore

cast

s. T

his

in

dic

ate

s a

re

lati

ve

ly h

igh

leve

l of

con

fid

en

ce i

n t

his

da

ta (

B-

relia

ble

ove

rall)

.

It is

als

o n

ote

d t

ha

t th

ere

do

es

no

t a

pp

ea

r to

be

an

ass

ess

me

nt

of

con

fid

en

ce in

un

it r

ate

da

ta w

hic

h a

lso

fe

ed

s in

to c

on

fid

en

ce in

th

e

cap

ita

l pro

gra

mm

es.

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

1

8.

Ad

d a

su

bse

ctio

n o

r a

pp

en

dix

on

da

ta m

an

ag

em

en

t w

hic

h i

de

nti

fie

s th

e d

ata

re

qu

ire

d t

o s

up

po

rt k

ey

ass

et

ma

na

ge

me

nt

an

d

de

cisi

on

ma

kin

g p

roce

sse

s, r

eq

uir

ed

da

ta q

ua

lity,

da

ta s

ou

rce

s, d

ata

co

llect

ion

me

cha

nis

ms,

da

ta m

an

ag

em

en

t a

rra

ng

em

en

ts a

nd

wh

ich

inco

rpo

rate

s a

da

ta i

mp

rove

me

nt

pla

n (

if n

ece

ssa

ry)

to c

lose

an

y g

ap

s b

etw

ee

n c

urr

en

t a

nd

ta

rge

t d

ata

ava

ilab

ility

an

d q

ua

lity

.

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3

- F

ull

y m

ee

ts r

eq

uir

em

en

ts

4 -

Ex

cee

ds

req

uir

em

en

ts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

8

Ass

ess

me

nt

Ite

m 1

0

Co

nfi

de

nce

in

pro

gra

mm

es

S

core

2

-3

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

Pro

gra

mm

es

fro

m A

MP

s a

re in

ten

de

d t

o s

up

po

rt t

he

su

sta

ina

ble

lon

g t

erm

pro

visi

on

of

serv

ice

s.

Th

ese

pro

gra

mm

es

are

re

lied

up

on

as

a s

ou

rce

of

inp

uts

to

th

e C

ou

nci

l’s

lon

g t

erm

fin

an

cia

l p

lan

nin

g

an

d t

he

Co

un

cil L

on

g T

erm

Pla

n.

It

is t

he

refo

re im

po

rta

nt

tha

t a

ny

issu

es

wit

h c

on

fid

en

ce i

n t

he

se p

rog

ram

me

s a

re k

no

wn

an

d

dis

clo

sed

.

Th

is t

ypic

ally

in

volv

es

ide

nti

fyin

g t

he

inp

uts

to

th

e p

rog

ram

me

s a

nd

ma

kin

g a

n a

sse

ssm

en

t o

f th

e a

ccu

racy

of

the

se i

np

uts

as

a b

asi

s fo

r

est

ima

tin

g c

on

fid

en

ce in

th

e p

rog

ram

me

s. T

he

ass

ess

me

nt

sho

uld

be

do

cum

en

ted

.

Sect

ion

9.4

se

ts o

ut

an

ass

ess

me

nt

of

the

Re

liab

ility

of

Fin

an

cia

l Fo

reca

sts.

It

wo

uld

be

exp

ect

ed

th

at

Sect

ion

9.4

wo

uld

be

de

rive

d f

rom

Sect

ion

9.3

– C

on

fid

en

ce L

eve

ls.

T

he

lin

kag

e b

etw

ee

n S

ect

ion

9.4

an

d S

ect

ion

9.3

is u

ncl

ea

r fr

om

th

e A

MP

.

It is

als

o n

ote

d t

ha

t th

ere

do

es

no

t a

pp

ea

r to

be

an

ass

ess

me

nt

of

con

fid

en

ce in

un

it r

ate

da

ta w

hic

h w

ou

ld a

lso

aff

ect

co

nfi

de

nce

in

th

e

cap

ita

l pro

gra

mm

es.

Id

ea

lly t

he

re w

ou

ld a

lso

be

an

ass

ess

me

nt

of

con

fid

en

ce o

f o

the

r ke

y p

roje

ctio

ns

in t

he

AM

P s

uch

as

the

de

ma

nd

pro

ject

ion

.

In S

ect

ion

9.4

“R

eli

ab

ilit

y o

f F

ina

nci

al

Fo

reca

sts”

ass

ess

me

nts

are

ma

de

of

the

re

lia

bil

ity

of

Ma

inte

na

nce

an

d R

en

ew

al F

ore

cast

s a

nd

of

De

velo

pm

en

t Fo

reca

sts.

T

he

co

ncl

usi

on

s a

re t

ha

t sh

ort

to

me

diu

m t

erm

fo

reca

sts

are

ge

ne

rally

co

nsi

de

red

“re

lia

ble

” w

ith

un

cert

ain

ty

incr

ea

sin

g o

ver

the

lon

ge

r te

rm.

It is

un

cle

ar

ho

w t

he

ass

ess

me

nts

of

con

fid

en

ce le

vels

in d

ata

in 9

.3 f

ee

d in

to t

he

ass

ess

me

nts

of

con

fid

en

ce in

fo

reca

sts

in 9

.4 o

r w

ha

t

leve

l of

an

aly

sis

ha

s b

ee

n c

arr

ied

ou

t to

re

ach

th

e c

on

clu

sio

ns

in S

ect

ion

9.4

. T

he

re n

ee

ds

to b

e a

n a

ud

it t

rail

be

hin

d t

he

se a

sse

ssm

en

ts o

f

relia

bil

ity.

It is

use

ful t

o t

rack

act

ua

l va

ria

tio

ns

fro

m p

rog

ram

me

s o

ver

tim

e a

s a

“re

ali

ty c

he

ck”

on

ass

ess

me

nts

of

con

fid

en

ce in

th

e p

rog

ram

me

s.

If

for

exa

mp

le t

he

pro

gra

mm

es

are

co

nsi

ste

ntl

y co

min

g in

wit

hin

+/-

10

% o

f p

lan

th

en

th

is w

ou

ld c

on

firm

th

at

an

ass

ess

me

nt

of

“re

lia

ble

” is

rea

son

ab

le.

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

1

9.

Imp

rove

th

e li

nka

ge

be

twe

en

ass

ess

me

nts

of

con

fid

en

ce i

n d

ata

an

d a

sse

ssm

en

ts o

f re

liab

ilit

y in

pro

gra

mm

es

an

d p

rovi

de

ap

pro

pri

ate

an

aly

sis

to j

ust

ify

the

ass

ess

me

nts

of

con

fid

en

ce i

n p

roje

ctio

ns

an

d p

rog

ram

me

s. (

the

act

ua

l an

aly

sis

cou

ld b

e a

pp

en

de

d

or

he

ld o

uts

ide

th

e p

lan

)

20

. T

rack

his

tori

c va

ria

tio

ns

be

twe

en

pro

gra

mm

es

an

d “

act

ua

ls”

to p

rovi

de

a “

rea

lity

ch

eck

” o

n a

sse

ssm

en

ts o

f co

nfi

de

nce

in

th

e

pro

gra

mm

es

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3 -

Fu

lly

me

ets

re

qu

ire

me

nts

4

- E

xce

ed

s re

qu

ire

me

nts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-1

9

Ass

ess

me

nt

Ite

m 1

1

Pe

rfo

rma

nce

Me

asu

rem

en

t

Sco

re

2

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

AM

Ps

set

ou

t h

ow

org

an

isa

tio

ns

will

wo

rk t

o a

chie

ve t

he

ir a

ctiv

ity

spe

cifi

c a

sse

t m

an

ag

em

en

t o

bje

ctiv

es.

It

is

imp

ort

an

t to

“cl

ose

th

e

loo

p”

an

d m

ea

sure

pe

rfo

rma

nce

re

lati

ve

to

th

ese

ob

ject

ive

s. T

his

incl

ud

es

pe

rfo

rma

nce

re

lati

ve t

o m

an

da

tory

pe

rfo

rma

nce

me

asu

res

req

uir

ed

un

de

r th

e N

on

-Fin

an

cia

l P

erf

orm

an

ce M

ea

sure

s R

ule

s

20

13

Mo

nit

ori

ng

pe

rfo

rma

nce

re

lati

ve t

o o

bje

ctiv

es

he

lps

ide

nti

fy a

rea

s

wh

ere

imp

rove

me

nts

ma

y b

e r

eq

uir

ed

an

d a

rea

s w

he

re

org

an

isa

tio

ns

ma

y b

e o

verp

erf

orm

ing

. T

he

re m

ay

be

sco

pe

fo

r co

st

savi

ng

s in

su

ch a

rea

s.

Mo

nit

ori

ng

pe

rfo

rma

nce

he

lps

org

an

isa

tio

ns

com

pa

re t

he

ir p

erf

orm

an

ce w

ith

th

at

of

com

pa

rab

le o

rga

nis

ati

on

s

By

mo

nit

ori

ng

pe

rfo

rma

nce

ove

r ti

me

org

an

isa

tio

ns

are

ab

le t

o

ide

nti

fy t

ren

ds

wh

ich

ma

y in

dic

ate

a n

ee

d f

or

inte

rve

nti

on

.

Cu

rre

nt

(20

16

/20

17

) p

erf

orm

an

ce (

wh

ere

ava

ilab

le)

is m

on

ito

red

fo

r e

ach

of

the

Cu

sto

me

r Le

vels

of

Serv

ice

in T

ab

le 7

(Se

ctio

n 4

Le

ve

ls o

f

Serv

ice

) a

nd

in A

pp

en

dix

C.

Te

chn

ica

l Pe

rfo

rma

nce

Me

asu

res.

P

erf

orm

an

ce t

arg

ets

are

pro

vid

ed

fo

r e

ach

of

the

ye

ars

20

18

/19

to

20

20

/21

an

d f

or

the

pe

rio

d 2

02

1 t

o 2

02

8.

Cu

rre

nt

pe

rfo

rma

nce

pro

vid

es

a s

na

psh

ot

in t

ime

of

pe

rfo

rma

nce

an

d a

pa

ss/f

ail

ind

ica

tio

n o

f w

he

the

r ta

rge

ts a

re b

ein

g a

chie

ve

d (

an

d b

y

ho

w m

uch

). T

his

is o

f lim

ite

d v

alu

e a

s it

do

es

no

t p

rovi

de

an

in

dic

ati

on

of

pe

rfo

rma

nce

tre

nd

s –

wh

eth

er

it i

s im

pro

vin

g,

sta

yin

g c

on

sta

nt

or

de

clin

ing

, e

xpe

cte

d f

utu

re p

erf

orm

an

ce,

or

ho

w p

erf

orm

an

ce c

om

pa

res

wit

h t

ha

t o

f co

mp

ara

ble

org

an

isa

tio

ns.

Ide

ally

, p

erf

orm

an

ce r

esu

lts

wo

uld

be

pre

sen

ted

in g

rap

hic

al f

orm

wh

ich

sh

ow

s h

isto

ric

pe

rfo

rma

nce

tre

nd

s, c

urr

en

t p

erf

orm

an

ce,

exp

ect

ed

fu

ture

pe

rfo

rma

nce

, p

erf

orm

an

ce t

arg

ets

an

d h

ow

th

ese

are

ch

an

gin

g o

ver

tim

e a

nd

an

in

du

stry

be

nch

ma

rk (

wh

ere

ava

ilab

le).

Pre

sen

tin

g p

erf

orm

an

ce r

esu

lts

in t

his

fo

rm e

na

ble

s m

an

ag

ers

to

qu

ickl

y m

ake

in

form

ed

de

cisi

on

s a

bo

ut

the

ne

ed

fo

r in

terv

en

tio

n a

nd

an

tici

pa

te i

ssu

es

tha

t m

ay

be

de

ve

lop

ing

.

Th

e in

dic

ati

ve

gra

ph

s b

elo

w s

ho

w h

ow

pe

rfo

rma

nce

re

sult

s a

re t

ypic

ally

pre

sen

ted

in

th

is w

ay.

O

nce

sys

tem

s a

re s

etu

p,

rep

ort

ing

pe

rfo

rma

nce

in t

his

wa

y is

no

t o

ne

rou

s.

Ide

ally

th

ere

wo

uld

be

a s

ep

ara

te p

erf

orm

an

ce s

ect

ion

in

th

e A

MP

pre

sen

tin

g p

erf

orm

an

ce in

th

is w

ay.

T

his

will

he

lp r

ea

de

rs m

ake

info

rme

d j

ud

ge

me

nts

ab

ou

t h

ow

th

e a

ctiv

ity

is p

erf

orm

ing

.

As

ind

ica

ted

in

Ass

ess

me

nt

Ite

m 2

, w

he

re t

he

re is

a s

ign

ific

an

t va

ria

tio

n b

etw

ee

n a

ctu

al a

nd

ta

rge

t le

vel o

f p

erf

orm

an

ce o

r if

a

pe

rfo

rma

nce

ta

rge

t h

as

no

t b

ee

n a

chie

ved

th

ere

sh

ou

ld b

e s

om

e f

orm

of

com

me

nta

ry p

rovi

de

d a

s th

is m

ay

ind

ica

te a

ne

ed

fo

r so

me

fo

rm

of

inte

rve

nti

on

.

Re

sult

s w

he

re a

co

mm

en

t o

n t

he

pe

rfo

rma

nce

ach

ieve

d m

ay

be

ap

pro

pri

ate

are

in

dic

ate

d in

th

e t

ab

le b

elo

w:

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-2

0

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

2

1.

Pre

sen

t p

erf

orm

an

ce r

ela

tive

to

cu

sto

me

r LO

S in

in g

rap

hic

al f

orm

in t

he

AM

P w

hic

h s

ho

ws

his

tori

c p

erf

orm

an

ce t

ren

ds,

cu

rre

nt

pe

rfo

rma

nce

, e

xpe

cte

d f

utu

re p

erf

orm

an

ce,

pe

rfo

rma

nce

ta

rge

ts a

nd

ho

w t

he

se a

re c

ha

ng

ing

ove

r ti

me

an

d a

n in

du

stry

be

nch

ma

rk

(wh

ere

ava

ilab

le).

22

. C

on

sid

er

ad

din

g a

se

pa

rate

se

ctio

n o

n p

erf

orm

an

ce t

o t

he

AM

P s

ett

ing

ou

t p

erf

orm

an

ce a

s su

gg

est

ed

in O

FI 2

1 a

bo

ve

23

. P

rovi

de

a c

om

me

nta

ry w

he

n a

pe

rfo

rma

nce

ta

rge

t is

no

t a

chie

ve

d o

r w

he

n t

he

re i

s a

sig

nif

ica

nt

vari

an

ce b

etw

ee

n t

arg

et

an

d a

ctu

al

pe

rfo

rma

nce

.

0 -

In

no

cen

t 1

- A

wa

re

2 -

De

ve

lop

ing

3

- F

ull

y m

ee

ts r

eq

uir

em

en

ts

4 -

Ex

cee

ds

req

uir

em

en

ts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ull

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-2

1

Ass

ess

me

nt

Ite

m 1

2

Su

sta

ina

ble

Fu

nd

ing

Sco

re

1-2

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

Lon

g t

erm

exp

en

dit

ure

pro

ject

ion

s a

re a

fu

nd

am

en

tal p

art

of

AM

Ps.

Th

ese

sh

ou

ld b

e m

atc

he

d b

y a

pro

ject

ion

of

the

leve

l of

fun

din

g

tha

t is

re

qu

ire

d t

o s

ust

ain

th

e a

ctiv

ity

ove

r th

e lo

ng

te

rm.

Th

is i

s

ne

ed

ed

to

“cl

ose

th

e l

oo

p”.

Lo

ng

te

rm f

un

din

g p

roje

ctio

ns

sho

uld

incl

ud

e f

un

din

g t

o c

ove

r o

pe

rati

ng

co

sts,

ass

et

rep

lace

me

nt

(if

de

pre

cia

tio

n f

un

din

g is

use

d f

or

this

pu

rpo

se i

t sh

ou

ld b

e s

uff

icie

nt

to c

ove

r lo

ng

te

rm a

sse

t re

ne

wa

ls),

inte

rest

on

de

bt

tha

t w

ill b

e

ne

ed

ed

to

bri

dg

e p

eri

od

s w

he

n a

ccu

mu

late

d e

xpe

nd

itu

re e

xce

ed

s

acc

um

ula

ted

de

pre

cia

tio

n a

nd

fu

nd

ing

to

se

rvic

e d

eb

t a

sso

cia

ted

wit

h a

dd

itio

na

l ass

ets

. T

he

se f

un

din

g p

roje

ctio

ns

in t

he

AM

Ps

sho

uld

be

pre

pa

red

in

co

nsu

lta

tio

n w

ith

th

e f

ina

nce

ma

na

ge

r.

Th

ese

fu

nd

ing

pro

ject

ion

s sh

ou

ld b

e u

pd

ate

d r

eg

ula

rly

to

ta

ke

acc

ou

nt

of

infl

ati

on

an

d b

e b

ase

d o

n r

ea

listi

c a

sse

t va

lua

tio

ns.

It s

ho

uld

be

po

ssib

le t

o r

eco

nci

le t

he

lon

g t

erm

su

sta

ina

ble

fu

nd

ing

pro

ject

ion

s in

th

e A

MP

s w

ith

fu

nd

ing

pro

vid

ed

th

rou

gh

th

e L

TP

an

d

exp

lan

ati

on

s sh

ou

ld b

e p

rovi

de

d f

or

an

y si

gn

ific

an

t va

ria

nce

s

be

twe

en

th

e t

wo

.

Sect

ion

9.5

of

the

AM

P c

ove

rs t

he

Fu

nd

ing

Po

licy.

T

his

se

ctio

n s

ets

ou

t th

e b

asi

s o

f fu

nd

ing

fo

r th

e d

iffe

ren

t ca

teg

ori

es

of

exp

en

dit

ure

:

·

Op

era

tio

n &

Ma

inte

na

nce

·

Ca

pit

al R

en

ew

al

·

Ca

pit

al D

eve

lop

me

nt

It a

lso

su

mm

ari

ses

the

Co

un

cil’

s a

pp

roa

ch t

o d

eve

lop

me

nt

con

trib

uti

on

s.

Ass

et

ma

na

ge

me

nt

is in

ten

de

d t

o s

up

po

rt t

he

su

sta

ina

ble

lon

g t

erm

pro

visi

on

of

serv

ice

s. T

he

re is

no

ind

ica

tio

n g

ive

n i

n t

he

pla

n o

f

wh

eth

er

the

pro

po

sed

le

vel o

f fu

nd

ing

in t

he

AM

P is

su

ffic

ien

t to

su

sta

in t

he

act

ivit

y o

ver

the

lon

g t

erm

, w

he

the

r it

su

pp

ort

s th

e p

rin

cip

le

of

inte

rge

ne

rati

on

al

eq

uit

y a

nd

if s

ign

ific

an

t ch

an

ge

s in

fu

nd

ing

lev

els

(e

xclu

din

g a

dju

stm

en

ts f

or

infl

ati

on

) w

ill b

e r

eq

uir

ed

in

th

e f

utu

re.

Th

e f

ina

nci

al f

ore

cast

s in

Ap

pe

nd

ix E

se

t o

ut

lon

g t

erm

(3

0 y

ea

r) o

pe

rati

ng

an

d c

ap

ita

l exp

en

dit

ure

pro

ject

ion

s.

Th

ey

do

no

t g

ive

an

y

ind

ica

tio

n o

f th

e f

un

din

g t

ha

t w

ill b

e a

pp

lied

to

th

e A

ctiv

ity

(Ap

art

fro

m a

re

lati

vely

sm

all

am

ou

nt

of

op

era

tio

na

l re

ven

ue

sh

ow

n in

Ta

ble

E1

) o

r w

he

the

r th

e lo

ng

te

rm b

ud

ge

t fo

r th

e A

ctiv

ity

is b

ala

nce

d.

Ide

ally

th

e c

ove

rag

e in

th

e p

lan

of

fun

din

g s

ho

uld

go

be

yon

d t

he

fu

nd

ing

po

licy,

it s

ho

uld

sh

ow

th

e l

on

g t

erm

lev

els

of

fun

din

g t

ha

t w

ill b

e

ne

cess

ary

to

su

sta

in t

he

act

ivit

y o

ver

the

lon

g t

erm

. T

his

will

he

lp h

igh

ligh

t p

oss

ible

fu

ture

fu

nd

ing

pro

ble

ms

(su

ch a

s a

bru

pt

cha

ng

es

in

the

lev

el o

f fu

nd

ing

th

at

will

be

re

qu

ire

d a

nd

in

dic

ate

wh

eth

er

the

Act

ivit

y a

s d

esc

rib

ed

in

th

e A

MP

is

sust

ain

ab

le o

ver

the

lo

ng

te

rm.

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

2

4.

Co

nsi

de

r a

dd

ing

lon

g t

erm

fu

nd

ing

pro

ject

ion

s to

th

e p

lan

sh

ow

ing

th

e l

eve

ls o

f fu

nd

ing

th

at

are

exp

ect

ed

to

be

ne

cess

ary

to

su

sta

in

the

act

ivit

y.

0 -

In

no

cen

t 1

- A

wa

re

2

- D

ev

elo

pin

g

3 -

Fu

lly

me

ets

re

qu

ire

me

nts

4

- E

xce

ed

s re

qu

ire

me

nts

Th

e A

MP

do

es

no

t d

em

on

stra

te a

ny

aw

are

ne

ss o

f th

is r

eq

uir

em

en

t

Th

e A

MP

do

es

no

t cu

rre

ntl

y a

dd

ress

this

re

qu

ire

me

nt

(or

cove

rs it

in a

min

ima

l wa

y) b

ut

de

mo

nst

rate

s a

n

inte

nt

to p

rog

ress

it

Th

e A

MP

pa

rtly

co

mp

lie

s w

ith

go

od

ind

ust

ry p

ract

ice

an

d d

em

on

stra

tes

an

inte

nt

to a

chie

ve f

ul l

co

mp

lian

ce w

ith

go

od

ind

ust

ry p

ract

ice

Th

e A

MP

co

mp

lies

wit

h g

oo

d in

du

stry

pra

ctic

e

Th

e A

MP

exc

ee

ds

com

plia

nce

wit

h g

oo

d

ind

ust

ry p

ract

ice

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-2

2

Ass

ess

me

nt

Ite

m 1

3

Re

ad

ab

ilit

y

Wh

y i

s th

is i

mp

ort

an

t?

O

ur

Fin

din

gs

AM

Ps

po

ten

tia

lly h

av

e a

wid

e r

an

ge

of

au

die

nce

s

·

Ass

et

Ma

na

ge

rs –

AM

Ps

sho

uld

act

ive

ly g

uid

e a

sse

t m

an

ag

ers

in t

he

ma

na

ge

me

nt

of

ass

et

ba

sed

se

rvic

es

·

Sen

ior

ma

na

ge

me

nt

– A

MP

s sh

ou

ld b

e r

ea

dily

co

mp

reh

en

sib

le

to s

en

ior

ma

na

ge

me

nt

an

d p

rovi

de

se

nio

r m

an

ag

em

en

t w

ith

a

hig

h l

eve

l u

nd

ers

tan

din

g o

f w

ha

t th

e a

ctiv

ity

invo

lve

s, w

ha

t it

is t

ryin

g t

o a

chie

ve,

an

y si

gn

ific

an

t is

sue

s a

nd

ris

ks

the

act

ivit

y

is f

aci

ng

, h

ow

it is

ma

na

ge

d a

nd

co

sts

of

the

act

ivit

y.

·

Ele

cte

d m

em

be

rs -

– A

MP

s sh

ou

ld b

e r

ea

son

ab

ly

com

pre

he

nsi

ble

to

ele

cte

d m

em

be

rs,

an

d p

rovi

de

ele

cte

d

me

mb

ers

wit

h a

hig

h le

ve

l un

de

rsta

nd

ing

of

wh

at

the

act

ivit

y

invo

lve

s, w

ha

t it

is t

ryin

g t

o a

chie

ve a

nd

wh

y, a

ny

sig

nif

ica

nt

issu

es

an

d r

isk

s th

e a

ctiv

ity

is f

aci

ng

, a

nd

co

sts

of

the

act

ivit

y.

It s

ho

uld

pro

vid

e e

lect

ed

me

mb

ers

wit

h c

on

fid

en

ce t

ha

t th

e

act

ivit

y is

be

ing

we

ll m

an

ag

ed

·

Inte

rest

ed

me

mb

ers

of

the

co

mm

un

ity

- –

AM

Ps

sho

uld

be

rea

son

ab

ly c

om

pre

he

nsi

ble

to

inte

rest

ed

me

mb

ers

of

the

com

mu

nit

y, a

nd

pro

vid

e e

lect

ed

me

mb

ers

wit

h a

hig

h le

ve

l

un

de

rsta

nd

ing

of

wh

at

the

act

ivit

y in

volv

es,

wh

at

it is

try

ing

to

ach

ieve

an

d w

hy,

an

y si

gn

ific

an

t is

sue

s a

nd

ris

ks

the

act

ivit

y is

faci

ng

, a

nd

co

sts

of

the

act

ivit

y.

·

Au

dit

Ne

w Z

ea

lan

d -

– A

MP

s sh

ou

ld p

rovi

de

Au

dit

Ne

w Z

ea

lan

d

wit

h c

on

fid

en

ce t

ha

t th

e a

ctiv

ity

is b

ein

g m

an

ag

ed

ap

pro

pri

ate

ly

It is

th

ere

fore

imp

ort

an

t th

at

AM

Ps

are

re

ad

ab

le a

nd

re

ad

ily

com

pre

he

nsi

ble

It is

sta

ted

in S

ect

ion

1.1

“P

urp

ose

of

this

Pla

n”

tha

t th

e A

MP

is

inte

nd

ed

to

be

“a

pp

rop

ria

te f

or

a r

ea

de

rsh

ip i

ncl

ud

ing

ele

cte

d m

em

be

rs o

f

the

Co

un

cil,

exe

cuti

ve

ma

na

ge

me

nt,

in

tere

st g

rou

ps,

an

d b

usi

ne

ss p

art

ne

rs a

sso

cia

ted

wit

h t

he

ma

na

ge

me

nt

of

the

Wa

ste

wa

ter

act

ivit

y,

alo

ng

wit

h i

nte

rest

ed

me

mb

ers

of

the

co

mm

un

ity.”

AM

Ps

pro

vid

e a

n o

pp

ort

un

ity

for

ass

et

ma

na

ge

rs t

o d

em

on

stra

te t

he

qu

alit

y o

f th

eir

ma

na

ge

me

nt

of

ass

et

ba

sed

se

rvic

es.

Th

ey

sho

uld

pro

vid

e c

on

fid

en

ce t

o in

tere

ste

d p

art

ies

tha

t th

e a

ctiv

ity

cove

red

by

the

AM

P is

be

ing

we

ll m

an

ag

ed

. F

or

mo

st a

ud

ien

ces

this

ne

cess

ita

tes

a r

ea

son

ab

ly c

on

cise

do

cum

en

t.

Th

e W

ast

ew

ate

r A

MP

co

nta

ins

the

info

rma

tio

n t

ha

t w

ou

ld b

e r

eq

uir

ed

by

a d

ive

rse

re

ad

ers

hip

an

d c

on

veys

th

is i

nfo

rma

tio

n in

a lo

gic

al

an

d c

om

pre

he

nsi

ble

ma

nn

er.

It

ha

s co

nti

nu

ally

de

ve

lop

ed

an

d e

volv

ed

ove

r a

nu

mb

er

of

yea

rs.

M

ovi

ng

fo

rwa

rd t

he

re i

s so

me

de

tail

in

the

pla

n w

hic

h c

ou

ld b

e a

pp

en

de

d a

s p

art

of

the

pro

cess

of

on

go

ing

ev

olu

tio

n o

f th

e A

MP

.

O

pp

ort

un

itie

s fo

r Im

pro

ve

me

nt

2

5.

Co

nsi

de

r tr

an

sfe

rrin

g s

om

e o

f th

e m

ore

de

tail

ed

in

form

ati

on

in t

he

AM

P t

o a

pp

en

dic

es

as

pa

rt o

f a

pro

cess

of

evo

luti

on

to

wa

rds

a

hig

he

r le

vel d

ocu

me

nt

(No

te:

no

sco

re is

ass

ign

ed

to

th

is it

em

)

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-2

3

Ge

ne

ral

Ob

serv

ati

on

s

Th

is is

fu

nd

am

en

tally

a g

oo

d A

MP

. I

t is

log

ica

lly s

tru

ctu

red

an

d c

ove

rs a

ll e

lem

en

ts t

ha

t w

ou

ld b

e e

xpe

cte

d in

an

AM

P f

or

an

act

ivit

y su

ch a

s a

co

mm

un

ity

wa

ste

wa

ter

serv

ice

.

Th

e A

MP

de

mo

nst

rate

s o

ng

oin

g d

eve

lop

me

nt

an

d im

pro

vem

en

t o

ver

the

ye

ars

.

It w

as

ple

asi

ng

to

se

e in

Se

ctio

n 2

.2 “

Act

ivit

y R

ati

on

ale

” th

at

the

fu

nd

am

en

tal r

ea

son

PN

CC

pro

vid

es

a w

ast

ew

ate

r n

etw

ork

is t

o s

up

po

rt t

he

he

alt

h a

nd

we

llbe

ing

of

the

com

mu

nit

y a

nd

th

at

leg

isla

tive

re

qu

ire

me

nts

are

on

ly a

n u

nd

erl

yin

g r

ea

son

PN

CC

ma

y w

ish

to

ch

eck

co

mp

lian

ce o

f th

eir

ass

et

ma

na

ge

me

nt

po

licy

(Se

ctio

n 3

.4.1

) a

nd

str

ate

gy

(Se

ctio

n 3

.4.2

) w

ith

th

e r

eq

uir

em

en

ts o

f th

e I

SO 5

50

01

Ass

et

Ma

na

ge

me

nt

Sta

nd

ard

. I

t is

like

ly t

he

re w

ill b

e a

n in

cre

asi

ng

exp

ect

ati

on

th

at

org

an

isa

tio

ns’

ass

et

ma

na

ge

me

nt

pra

ctic

es

are

ge

ne

rall

y c

om

pli

an

t w

ith

th

is S

tan

da

rd (

bu

t p

rob

ab

ly n

ot

of

form

al c

ert

ific

ati

on

to

th

e S

tan

da

rd).

Th

ere

wo

uld

be

me

rit

in in

clu

din

g a

“M

an

ag

em

en

t R

evi

ew

” p

roce

ss a

s p

art

of

Sect

ion

11

“C

on

tin

uo

us

imp

rove

me

nt”

. M

an

ag

em

en

t R

evi

ew

Me

eti

ng

s, t

ypic

ally

he

ld a

t in

terv

als

of

3-6

mo

nth

s, c

on

sid

er

the

pe

rfo

rma

nce

of

the

act

ivit

y, s

ign

ific

an

t is

sue

s th

at

ha

ve a

rise

n,

cust

om

er

fee

db

ack

, a

nd

an

y o

the

r m

att

ers

th

at

are

re

leva

nt

to im

pro

vin

g t

he

ma

na

ge

me

nt

of

the

act

ivit

y.

Th

ey

pro

vid

e a

n o

pp

ort

un

ity

to p

eri

od

ica

lly “

tak

e s

tock

” o

f h

ow

th

ing

s a

re g

oin

g a

nd

ta

ke a

pp

rop

ria

te a

ctio

n a

s m

ay

be

ap

pro

pri

ate

.

Wit

h t

he

pa

ssin

g o

f th

e H

ea

lth

an

d S

afe

ty a

t W

ork

Act

20

15

th

e A

MP

ma

y b

e a

litt

le li

gh

t o

n id

en

tify

ing

an

d m

an

ag

ing

He

alt

h a

nd

Sa

fety

ris

ks a

sso

cia

ted

wit

h t

he

wa

ste

wa

ter

infr

ast

ruct

ure

(a

pa

rt f

rom

illn

ess

ari

sin

g f

rom

co

nta

ct w

ith

wa

ste

wa

ter)

. P

NC

C a

nd

ind

ivid

ua

ls w

ith

in t

he

Co

un

cil m

ay

be

exp

ose

d t

o li

ab

ility

in t

he

eve

nt

of

ha

rm t

o p

ers

on

s

occ

urr

ing

wh

ich

is a

sso

cia

ted

wit

h t

he

wa

ste

wa

ter

infr

ast

ruct

ure

un

less

PN

CC

ha

s id

en

tifi

ed

ris

ks a

sso

cia

ted

wit

h t

ha

t in

fra

stru

ctu

re a

nd

elim

ina

ted

or

min

imis

ed

th

ose

ris

ks s

o

far

as

is r

ea

son

ab

ly p

ract

ica

ble

..

Th

e A

MP

sh

ou

ld id

ea

lly in

clu

de

a p

roje

ctio

n o

f fu

ture

ass

et

valu

es

tha

t w

ill r

esu

lt f

rom

imp

lem

en

tati

on

of

the

pro

gra

mm

es

in t

he

AM

P.

Au

dit

NZ

ha

ve r

ais

ed

th

is in

au

dit

s

els

ew

he

re.

A p

roje

ctio

n o

f fu

ture

ass

et

valu

es

wh

ich

sh

ow

s a

de

clin

ing

tre

nd

in t

he

ove

rall

valu

e o

f th

e n

etw

ork

ma

y (b

ut

will

no

t n

ece

ssa

rily

) in

dic

ate

th

at

the

re is

an

issu

e

bu

ildin

g w

ith

de

ferr

ed

re

ne

wa

ls.

A d

ecl

inin

g v

alu

ati

on

ove

r ti

me

wo

uld

th

ere

fore

ne

ed

to

be

exp

lain

ed

.

Th

e L

GA

20

02

re

qu

ire

s a

ny

sig

nif

ica

nt

ne

ga

tive

eff

ect

s th

at

ma

y b

e a

sso

cia

ted

wit

h a

n a

ctiv

ity

to b

e id

en

tifi

ed

. S

ect

ion

2.5

co

vers

“S

ign

ific

an

t N

eg

ati

ve E

ffe

cts

of

the

Act

ivit

y”

Th

is s

ect

ion

se

ts o

ut

po

ten

tia

l ne

ga

tive

eff

ect

s w

he

rea

s it

is o

nly

ne

cess

ari

ly t

o s

tate

act

ua

l eff

ect

s o

r e

ffe

cts

tha

t a

re l

ike

ly t

o o

ccu

r a

nd

on

ly if

th

ese

are

co

nsi

de

red

sig

nif

ica

nt.

Th

e p

roce

ss t

ha

t ca

n b

e f

ollo

we

d t

o id

en

tify

sig

nif

ica

nt

ne

ga

tive

eff

ect

s is

to

fir

stly

de

fin

e t

he

cri

teri

a b

y w

hic

h s

ign

ific

an

ce w

ill b

e d

ete

rmin

ed

. T

his

is n

orm

ally

th

e s

oci

al

cult

ura

l eco

no

mic

an

d e

nvi

ron

me

nta

l we

llbe

ing

of

the

co

mm

un

ity

(th

is w

as

pre

vio

usl

y sp

eci

fie

d in

th

e L

GA

20

02

bu

t h

as

sin

ce b

ee

n r

em

ove

d).

Po

ssib

le n

eg

ati

ve e

ffe

cts

ari

sin

g

fro

m t

he

wa

ste

wa

ter

act

ivit

y a

re t

he

n a

sse

sse

d (

wit

h c

urr

en

t co

ntr

ols

in p

lace

) re

lati

ve t

o t

he

cri

teri

a t

o d

ete

rmin

e w

hic

h n

eg

ati

ve e

ffe

cts

are

sig

nif

ica

nt.

On

ly n

eg

ati

ve e

ffe

cts

wh

ich

ha

ve b

ee

n id

en

tifi

ed

as

sig

nif

ica

nt

fro

m a

pro

cess

su

ch a

s th

is s

ho

uld

be

re

po

rte

d in

th

e p

lan

. T

he

pro

cess

itse

lf s

ho

uld

be

ap

pe

nd

ed

. A

n e

xam

ple

of

an

ass

ess

me

nt

of

ne

ga

tive

eff

ect

s is

se

t o

ut

be

low

. T

his

is o

nly

on

e o

f a

nu

mb

er

of

po

ssib

le a

pp

roa

che

s.

AE

CO

M

PN

CC

Asset

Man

agem

ent R

evie

w

Asset

Ma

nag

em

en

t R

evie

w -

201

7 A

MP

's

16-A

pr-

20

18

P

rep

are

d f

or

– P

alm

ers

ton N

ort

h C

ity C

oun

cil

– C

o N

o.: N

/A

F-2

4

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