8.1.1 Overview of Key Demand Drivers Demand Management Plan Demand Management Strategies SUSTAINABILITY

Transcription

1 Asset Management Plan Part C Managing Our Assets Wastewater

2 CONTENTS PART C: MANAGING OUR ASSETS SUMMARY Activity Description OVERVIEW OF THE ASSETS Managing the Assets How the system works Contract Management Customer Service Requests Maintenance Decision-Making Process Selection Criteria for Asset Creation Projects Management of asset data, including system used The services we provide Management of the Activity Physical parameters Asset Capacity/Performance Asset Condition Activity Rationale Key Service Drivers Policies, Strategies and Bylaws Significant Negative Effects on the Activity Significant Changes for the Activity Strategic Goals Statutory Requirements National Statutory Requirements Regional Statutory Requirements District statutory requirements Council Vision for Wastewater Key Issues Resource Consents Consent Monitoring and Compliance LEVELS OF SERVICE Existing Level of Service (LoS) Changes to Levels of Service Levels of Service Previous Levels of Service, Performance Measures and Reporting Long Term Plan Targets Risks to Delivery of the Levels of Service ASSET MANAGEMENT PLAN ASSUMPTIONS Assumptions Confidence Levels IMPROVEMENT PLAN Improvements to Asset Management Planning Asset Management Review Improvement Plan Status / /2019 Improvement Plan Three Year Improvement Plan GAP Analysis FUTURE DEMAND Planning for Growth

3 8.1.1 Overview of Key Demand Drivers Demand Management Plan Demand Management Strategies SUSTAINABILITY Provision for effects of failure Business Continuity Plan RISK MANAGEMENT Risk Management Context Overview Risk Register ROUTINE MAINTENANCE PLAN Planned Maintenance Category Reactive Maintenance category RENEWAL/REPLACEMENT PLAN Planned renewals risk based approach Reactive renewals NEW WORKS PLAN Summary of Future Costs DISPOSAL PLAN FINANCIAL PROJECTIONS Financial Statements and Projections Operating Expenditure Renewals Works (Rehabilitation and Replacement) Capital Works (New Works) Valuation Forecasts GLOSSARY APPENDIX A COVEC GROWTH REPORT APPENDIX B 2010 WASTEWATER VALUATION REPORT APPENDIX C PROJECTS NEEDS STATEMENTS

4 Document and Version Control This is a controlled document. Copies are numbered and issued to specified individuals. Distribution List The following person(s) shall receive a copy of this document on release: Name Title Organisation Version Control Version Revision Date Details of Revision Name/Position Authorised Signature

5 Wastewater Activity SUMMARY PART C 3-1 PART C: MANAGING OUR ASSETS 3 SUMMARY 3.1 Activity Description Council's desire is that the Far North s coastal marine, river waters and lakes are healthy at all times, so that they support healthy marine and freshwater ecosystems, recreational use, fishing and shellfisheries. Sewage treatment plants, pumping stations and reticulation systems contribute by controlling the quality of effluent and minimising the risk of sewage overflows and spills. The wastewater infrastructure; comprising treatment plants, pumping stations and reticulation systems, contribute to that vision by providing the collection and treatment and safe disposal of wastewater. The sewerage activity is one of the core activities of Council as confirmed by statute in the Local Government Act Generally, the LGAQ requires continued operation of any sewerage system that Council operated at the time the LGA was passed and the continued operation of any new systems that Council constructs after that date. Council provides wastewater collection and treatment to eighteen separate communities within the District.

6 Wastewater Activity OVERVIEW OF THE ASSETS PART C OVERVIEW OF THE ASSETS 4.1 Managing the Assets How the system works Far North District Council owns and operates the wastewater infrastructure assets. These are organised into seventeen systems that deliver wastewater collection, treatment and disposal services for domestic, commercial and industrial needs to properties within the serviced communities, see Figure 1. The summary of the wastewater supply assets is given in Table 3. Figure 1: Communities served by Wastewater Services Contract Management Operation and maintenance of the assets is contracted out to Transfield Services Ltd under an alliance partnership arrangement, which is structured on a cost reimbursable contract incentivised by assessment based on key performance indicators. The majority of major works associated with the construction of new assets, or the upgrading of existing assets, are competitively tendered to ensure value is achieved Customer Service Requests Council uses the Pathway Customer Service Request system for its Request for Service (RFS) and correspondence processes. RFS relating to operational matters are passed directly to the Council's Alliance partner to action. Written correspondence is scanned, logged and ed directly to the officer responsible for a response. The objective of the correspondence RFS System is to track correspondence requiring a written response. The overall focus of the RFS system is to ensure our customers receive a high quality response in a timely manner Versus Research Limited Communitrak Survey The latest available data is from the 2011 Communitrak Survey. Whilst the survey can provide Council with robust statistically valid data, because it has not been undertaken since the 2011/12 year, it currently does not provide recent information. The results in Figure 2 show the overall satisfaction rating for wastewater was 87%. The survey questions were developed to gain an understanding of levels of satisfaction around a number of core wastewater related areas. Further results will be updated following the 2015 survey.

7 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-3 Figure 2: Overall Wastewater Satisfaction Results Condition and Capacity Monitoring Condition Limited information relating to the condition of underground assets is available; however assessments are carried out when assets fail. If a number of reactive repairs have been required on a particular pipeline or valve, they are programmed for replacement. A full condition assessment of above ground assets was last undertaken in Council is currently undertaking an asset data cleansing exercise which will include condition assessment during Condition monitoring information is held, where available, on our AssetFindA asset management system. Capacity Hydraulic models are available for twelve of the seventeen wastewater catchments. The hydraulic models were built and calibrated between 2005 and These models are regularly updated to take into account development within the catchment. A review of the models found significant weaknesses around how pump stations are calibrated. Process capacity has been assessed for each of the wastewater treatment plants based on design flows and actual demand. Reticulation capacity has not been comprehensively assessed in any of the catchments, but can be reviewed on a case by case basis as the need arises Maintenance Decision-Making Process Maintenance of the assets is carried out by the Council s alliance partner and has historically been based on a reactive basis. Over the last two years, MEX, (maintenance expert), software has been installed to better manage the maintenance programme. Proactive maintenance is now being carried out on identified critical assets. AssetFindA is being developed to allow Council to retain the maintenance information Selection Criteria for Asset Creation Projects Investment in new assets is based on: Regulatory requirements, i.e. resource consent compliance Demand

8 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-4 Maintaining levels of service Projects for the creation of assets are ranked on a business risk basis prior to inclusion in our long term plan Management of asset data, including system used The table below sets out Council s IT applications used by the Water and Wastewater group in the management of the assets. Table 1: IT Systems Function Word, excel, , project, access, PowerPoint Financial accounting, reporting and purchase orders Geographical Information Systems Asset Management System Maintenance Scheduling Product Microsoft Office Suite Finance One V11 MapInfo AssetFindA MEX Complaints, Request for Service Pathway V3.02 Demand management InfoWorks CS

9 Wastewater Activity OVERVIEW OF THE ASSETS PART C The services we provide Council operates the wastewater systems to provide our customers with an uninterrupted service, without any spills, and complies with all discharge resource consents. However, the service may occasionally be interrupted to carry out planned maintenance or repairs on broken pipes. Council aims: to return to normal supply within four hours for all interruptions to operate the wastewater asset to minimise further disruption to our customers in a number of ways: o For planned works, give customers at least three day s notice of an interruption; o For our maintenance contractors to carry spares of the commonly used pipe sizes and materials and are able to get on site with the correct equipment within minutes of receiving notification of a pipe break Management of the Activity The assets are operated and maintained by the Councils Alliance Partner, Transfield Services Ltd (TSL), under a contract. TSL carry out the day to day operation and maintenance of the assets through an Alliance Management team. The Alliance Management Team is responsible for setting the overall objectives, targets, risk, emergency planning etc Asset Maintenance Roles and Responsibilities The key roles and responsibilities are listed in Table 2 below: Table 2: Alliance Operations Team Roles FNDC Role Responsibility Role Responsibility Operations Manager Management of Alliance operations and maintenance contract, renewals and minor capital upgrades. Contractor payment authorisation and performance management. Business Manager Division Project Manager Operation Maintenance Manager TSL Direct management of contractor s personnel and establishment. Ensure financial targets and performance levels are achieved. Line management of projects team delivering renewals and minor capital programs to agreed financial targets and timescales. Line management of operations and maintenance team to meet financial targets compliance performance and customer levels of service. Asset Operation is the active process of utilising an asset that consumes resources such as manpower, energy and materials. Operations include routine inspections and testing to monitor the asset condition and identify the need for maintenance or repair work. Asset maintenance is the day to day work required to keep the asset serviceable and to prevent premature deterioration or failure. Two types of maintenance are carried out: Unplanned Maintenance work carried out in response to reported problems of defects, i.e. pipe burst or leakage Planned maintenance work carried out to a pre-determined schedule, i.e. routine servicing of pumps; or programmed as a result of identified needs, i.e. repair of faults of a more significant nature which do not pose an immediate hazard.

10 EDS Gravity Main Gravity Outfall Overflow Pressure Sewer Rising Main Grand Total Pump Station Single Dwelling Pumpstation Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-6 We regularly monitor the quality of the treated wastewater discharges in line with the requirements of the resource consents. In addition to this, we have installed an alarm system throughout the network, monitoring all of the wastewater treatment plants and wastewater pumping stations with detailed contingency plans for alarm response. TSL maintains the wastewater networks and responds to faults notified via our Request for Service (RFS) system. Faults typically include sewer breaks, leaks, and unplanned discharges from the system and odour issues. Authority to interrupt and/or work on the wastewater systems is strictly controlled and TSL has been delegated this authority in order to respond efficiently to breaks and leaks, and ensure that procedures to protect public health are strictly followed Physical parameters We operate and maintain seventeen wastewater systems in the District as shown in Figure 1. There were eighteen schemes until in 2014 when the Awanui scheme was connected to the Kaitaia scheme. All but one of the wastewater schemes consist of a sewer reticulation system which collects the sewage from individual properties and conveys it to a centralised treatment facility. The reticulation operates mainly via gravity but where necessary, pumping stations has been employed to ensure that all flows reach the treatment facilities. The exception is the scheme at Whangaroa which consists of a reticulation system which conveys the wastewater to a holding tank. Council transports the Whangaroa wastewater from the holding tank to the Kaeo treatment plant via tankers. Table 3: The basic components of each scheme Ahipara 12,383 6,768 19, Awanui 9,834 9, East Coast 37,732 14,651 52, Hihi 3, ,299 2 Houhora ,292 1 Kaeo 7, ,665 10,546 7 Kaikohe 32, ,381 8,506 44, Kaitaia 42, ,763 4,313 55, Kawakawa 12, ,069 13,366 1 Kerikeri 16,603 1,421 8,475 26, Kohukohu 3, ,720 5,172 3 Matauri Bay 4,157 4,157 Opononi 9, ,013 13,109 8 Paihia - Waitangi 3,446 31,917 14,292 15,769 65, Rangiputa 2, ,531 1 Rawene 8, ,693 9,999 5 Russell 14, ,360 20,104 7 Whangaroa Whatuwhiwhi 23,778 4,326 28, Grand Total 6, ,980 2, ,847 80, , Table 4: Population and Treatment Process of each Scheme Scheme Population Treatment Plant Ahipara 1,200 Oxidation pond followed by an artificial wetland. East Coast 2,100 Aerated ponds followed by an artificial wetland. Hihi 320 Activated sludge plant followed by an artificial wetland. Kaeo 560 Two oxidation ponds in series followed by an artificial wetland. Kaikohe 4,280 Two anaerobic ponds in parallel, followed by an oxidation pond and then an artificial wetland. Kaitaia and 5,720 Three oxidation ponds in series, with a floating wetland on the last

11 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-7 Scheme Population Treatment Plant Awanui pond prior to discharge. Kawakawa 1,600 Bio-reactor followed by a filter and UV disinfection followed by an artificial wetland. Kerikeri 2,120 Primary settlement, two RBCs in parallel followed by UV disinfection prior to discharge. Kohukohu 230 Oxidation pond followed by an artificial wetland. Matauri Bay 0 Packed bed reactor followed by land irrigation. Opononi 700 Aerated pond followed by an artificial wetland and a tidally controlled discharge. Paihia 3,800 Three anaerobic ponds in parallel followed by two oxidation ponds in series followed by an artificial wetland. Rangiputa 75 Two oxidation ponds in series followed by discharge to ground. Rawene 590 Anaerobic pond followed by two oxidation ponds in series followed by an artificial wetland. Russell,1800 Sequential batch reactor followed by filtration and UV disinfection followed by discharge to a borehole field. Whangaroa 60 Holding tank which is periodically emptied by tanker Whatuwhiwhi 500 Two ponds in series followed by a discharge to land. The both ponds have aerated Aquamat systems which consist of fibre mats suspended in the pond with permanent aeration being supplied. Followed by UV disinfection Table 5 below shows the value of the assets contained within each wastewater scheme. These figures are based on the 2014 Valuation of Utilities Assets. Table 5: Value of wastewater scheme assets Scheme Gravity Pipes Pressure Mains Manholes Service Connections Pipe Bridges Pump Stations Treatment Plants Land Other TOTAL District Wide ,994 1,006, ,143 1,170,531 Ahipara 2,329,564 1,447,713 1,025, ,940 9,370 1,272, ,582 14,000 86,043 7,505,722 Bay of Islands ,414,128 1,414,128 East Coast 7,156,478 4,041,824 2,530,750 1,085,760 67,437 2,984,713 1,755,854 72,100 58,905 19,753,821 Hihi 625, , , , ,247 1,235,381 84,600 75,108 2,752,755 Kaeo 1,502, , , ,810 5, ,374 1,002,125 55,000 78,408 4,400,269 Kaikohe 7,984,290 2,381,968 2,208,600 1,290, ,568 1,495,293 1,888, , ,134 17,670,457 Kaitaia and Awanui 11,664,553 3,187,210 3,124,500 1,880, ,766 4,981,819 1,954, , ,138 27,421,190 Kawakawa 2,493, ,450 1,008, ,750 17, ,145 3,943,712 31,000 42,492 9,194,520 Kerikeri 3,192,476 2,370,675 1,251, ,860 4,455 1,959,095 2,406, , ,752 12,311,264 Kohukohu 487, ,846 38,850 70, , ,602 6,000-2,094,231 Matauri Bay - 472,638 9, , ,892 Opononi 1,927, , , ,540 7, , , , ,833 5,280,388 Paihia 7,009,776 8,552,708 2,578,900 1,446, ,978 8,934, , , ,040 30,099,479 Rangiputa 411,923 61, ,000 81, , , ,000 81,612 1,254,987 Rawene 1,561, , , ,790 15, ,337 1,309,323 37, ,712 4,731,702 Russell 2,832,792 1,375,526 1,159, , ,380,091 3,330, ,000 76,145 11,237,066 Whangaroa 57,336 18,370 33,750 10, , ,436 Whatuwhiwhi 4,474, ,423 1,714, ,790 3,800 1,309,238 3,134,109 52,000 22,279 12,050,952 District Total 55,712,655 26,703,704 18,645,100 9,216, ,585 28,074,469 26,748,799 1,879,827 3,861, ,396,791 The data in Table 3, 4 and 5 and Figure 3 are sourced from current asset data held on Council s AssetFindA systems Below Ground Assets The below ground assets are primarily pipelines and manholes. Within the District, there are a total of 386,750 metres of pipes, of which 254,980 metres operate by gravity and 122,376 metres are pressure pipes. There are a total of 4,489 manholes spread across the 17 wastewater schemes. There are a total of 611 pumping stations throughout the District. These are primarily underground assets; though they all have an above ground component in electrical cabinet. Reticulation was first installed in Kaikohe in the 1950's, with asbestos cement pipes being the most common. In the 1960 s, Awanui, Kaitaia and Kawakawa were constructed still with

12 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-8 asbestos cement being the most common material. In the 1970 s, only Paihia and Whangaroa were added; but the mix was then approximately half asbestos cement and half upvc. All the other schemes were added in the 1980's, using upvc pipes. Since the late 1980 s, there has been no new schemes installed. New reticulation is only provided through the extension of the service to new customers or by development. From the start of 2000, PE pipes began being used in the District, and this has been the primary material since the mid 2000's. Figure 3 shows there are approximately 76,400 metres of asbestos cement pipes that have been in the ground for more than 40 years with approximately 59,000 metres of those older than 50 years. These pipes are nearing the end of their useful life and should be considered for renewal in the near to medium term future. Figure 3: Comparison of Sewer pipe type, length and dates of installation

13 Wastewater Activity OVERVIEW OF THE ASSETS PART C Gravity Pipes and Manholes Gravity Sewers These are broken down into the following materials by length across all the wastewater schemes in the District: Figure 4: Gravity Pipes Material distribution by length across all wastewater schemes By a scheme basis, the mix of materials is shown in the chart below: Figure 5: Gravity Pipes Material distribution by length in individual wastewater schemes

14 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-10 As detailed above, the amount and age of the asbestos cement pipes, located in Kaitaia, Kaikohe, Paihia, Kawakawa and Kaeo, represent an operational and maintenance risk as these pipes are coming to the end of their useful life. Unfortunately, excluding some information in Kaitaia, Council does not have specific condition information on these pipes but have identified them for a programme of inspections. The gravity pipe diameters across all materials range from 50mm to 475mm as shown in Figure 6. The gravity pipes below 100mm are largely confined to Awanui, Kohukohu and Veronica Point in Paihia, all of which are served by effluent discharge systems (EDS). With EDS each property has its own septic tank and the settled effluent is taken off the tank via a coarse filter and conveyed through small diameter pipes to the treatment facility. The 100mm gravity pipes were predominately laid in the 1980's and 1990's and were used prior to Council's current Engineering Guidelines coming into force. These pipes represent a risk to the operation of the system as they are more likely to block due to debris and silt. The Engineering Guidelines specify that the minimum diameter of a public sewer is 150mm unless part of an EDS system. Figure 6: Gravity Pipes Diameter distribution by length across all wastewater schemes Manholes Figure 7 shows the number of manholes in each wastewater scheme. The average distance between manholes is 87 metres except for the Kohukohu scheme where the average distance between manholes is 315m. This is due to the Kohukohu scheme being an EDS system and hence fewer manholes are required.

15 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-11 Figure 7: Number of Manholes by wastewater schemes Pressure Pipes These are broken down into the following materials by length across all the wastewater schemes in the District: Figure 8: Pressure Pipes Material distribution by length across all wastewater schemes

16 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-12 On a scheme basis the mix of materials for the pressure pipes are shown in Figure 9. Figure 9: Pressure Pipes Material distribution by length in individual wastewater schemes The amount and age of the Asbestos cement pipes, located in Paihia and Kaitaia, represent an operational and maintenance risk; as these pipes are coming to the end of their useful life. Within the last 8 years, Council has replaced significant amounts of asbestos cement pressure mains in Paihia. These pipes had broken or were at risk of breaking, prompting the replacements. The remaining asbestos cement pipes have been identified for an inspection programme. The pressure pipe diameters range from 50mm to 500mm, as shown in Figure 10, are all in the Paihia catchment and make up the pipeline from Waitangi major pumping station to the treatment works in the Waitangi Forest. This pipe was laid in 2007 as a replacement for an asbestos cement pipe which had come to the end of its useful life. Figure 10: Pressure Pipes Diameter distribution by length across all wastewater schemes

17 Wastewater Activity OVERVIEW OF THE ASSETS PART C Pump Stations Each wastewater scheme relies on pumping stations for proper operation. These are made up of 162 larger pump stations and 449 single dwelling pump stations giving a total number of schemes within the District of 611; as per Figure 11. Figure 11: Number of pumping stations by wastewater scheme Air Valves Air valves are an integral part of the pressure system and these require frequent maintenance to ensure correct operation of the pressure system. Figure 12 shows the distribution of air valves throughout the District. Figure 12: Number of air valves by wastewater scheme Above Ground Assets The above ground assets consist of the wastewater treatment facilities. Most of the wastewater schemes within the District utilise oxidation ponds as the method of treating the wastewater. However, with increasingly more stringent discharge standards being imposed,

18 Ahipara East Coast Hihi Kaeo Kaikohe Kaitaia/Awanui Kawakawa Kerikeri Kohukohu Matauri Bay Opononi Paihia Rangiputa Rawene Russell Whangaroa Whatuwhiwhi Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-14 it has been necessary to add treatment components to existing schemes in order to ensure compliance. Resource Consent compliance is the biggest issue facing the wastewater treatment facilities and is the primary driver for capital expenditure. Table 6: Lists the major components of the treatment facilities for each scheme Treatment Plant Component Anaerobic Pond Oxidation Pond Aquamat System 1 Floating Wetland 1 Activated Sludge Filtration UV Disinfection Packed Bed Reactor 1 Constructed Wetland Natural Wetland Discharge River Discharge Harbour Discharge Bore field Discharge 1 Land Discharge Tanker Transfer to Treatment 1 In addition to the treatment plants, there are also a number of pipe bridges throughout the District, which are employed when pipelines have to cross sudden abrupt changes in ground elevation; such as water courses, road side drains, etc. These pipe bridges are of major concern to the operations of the systems as failure of the bridge structure can occur significantly earlier than failure of the pipe. Consequently, these structures need inspection on a more frequent basis than the pipelines. Table 7: Details of Pipe Bridges SCHEME Number of Pipe Bridges Average Length metres Longest bridge metres Ahipara East Coast Kaeo Kaikohe Kaitaia Kawakawa Kerikeri Kohukohu Opononi Paihia Rawene Whatuwhiwhi 4 3 4

19 Wastewater Activity OVERVIEW OF THE ASSETS PART C Other Activities In order to ensure that high levels of service (LOS) are achieved, the Council undertakes the following actions: New connections to the wastewater schemes Ensuring all statutory requirements are met and environmental standards are maintained Managing the network Monitoring wastewater effluent quality from the treatment plants to ensure compliance with Resource Consents to ensure that risk to public health does not develop Responding to leaks and faults within the agreed timeframe Asset Capacity/Performance Below Ground Assets Council has hydraulic models of the reticulation for twelve out of the eighteen wastewater catchments. The models were built and verified in 2006 and 2007 and have been updated as new development occur in the district. The hydraulic models have not been used as yet to assess current capacities or to determine limits on new developments. The model for Kaitaia was updated in late 2013 to enable the wastewater overflows to be modelled. The Consultants noted weakness with the model but concluded it was fit for purpose for storms up to 1:5 year return periods. A review of the other models found other weaknesses including Kerikeri being a trunk main model and Paihia pump stations modelled as fixed head points. The main capacity issues are likely due to new developments occurring upstream of existing 100mm diameter public sewers. Should this occur, then the developer would need to upsize any under-capacity pipes in the system downstream of the development. As a result of a failure on the main that connects Watea to the Paihia reticulation found that that main is very close to capacity and a upgrade would be required if expansion of the Watea development was to occur. Most of the pumping stations are equipped with duty and standby pumps. These are linked via telemetry to a central control station which monitors the performance of the pumping stations as well as the levels of water in the station. Most of the pumping stations have sufficient capacity to deliver the expected flows. Some pump stations in the Paihia network have very high run hours indicating they are very near capacity and that there could be capacity issues with the pumping stations in the near to medium term. Our RFS system logs all customer complaints and hence we have a good record of overflow from the system and the reason for the overflow Above Ground Assets Each of our wastewater treatment plants operate under a Resource Consent issued by Northland Regional Council (NRC). An integral part of these consents is a monitoring regime that must be carried out to demonstrate the plant is operating in accordance with the consent. All consents have a volume limit that restricts the amount of wastewater that can be treated in any given day. All of the Council' treatment plants have the capacity to treat the maximum wastewater volume permitted by their consent, except for the plant at Kerikeri. It is estimated that the Kerikeri plant is currently operating at capacity, although the current

20 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-16 daily wastewater flow is only approximately 64% of the permitted volume. These issues will be addresses when an application is made to renew the Kerikeri discharge consent in Asset Condition Condition assessment gives an understanding of the remaining life of the assets or components. This understanding drives future expenditure patterns and by conducting regular condition and performance monitoring, maintenance strategies and/or rehabilitation strategies can be updated and refined, and ultimate replacement programmes can be determined more accurately. It is critical that Council has clear knowledge of the condition of the assets and how they are performing, as management decisions regarding maintenance, rehabilitation and renewal revolve around these two aspects. Not knowing the current condition or performance level of an asset can lead to premature failure of the asset. The unforeseen failure of an asset can have consequences that constitute a public liability or potential loss to the organisation. The development and continued use of condition assessment data will allow preparation of verifiable predictive decay curves for particular asset types and hence permit prediction of remaining life. Consideration will still be required to allow for economic influences in the adopted life for the asset type. The asset inventory is drawn from our AssetFindA system where reliable information is held regarding the location, diameter, material, type and length of the assets. A substantial proportion about the condition of the asset is assumed. Confidence in the accuracy of data held is measured using the framework proposed within the International Infrastructure Management Manual. Table 8: Asset Data Confidence Levels Attribute Condition D Very Uncertain C Uncertain B Reliable A Highly Reliable Asset Quantity Continual improvement of asset data. Materials The proportion of unknown assets is reducing as assets are renewed or maintenance work is carried out. Diameters The database is reasonable complete as far as diameters are concerned. Condition Assessments are carried out on a limited basis. Asset Ages Ages are captured when new assets are installed. Revaluation makes assumptions based on current data.

21 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-17 Table 9: Asset Data - Confidence Grades Confidence Grade A - Highly Reliable B - Reliable C - Uncertain D - Very Uncertain General Meaning Data based on sound records, procedure, investigations and analysis, documented properly and recognised as the best method of assessment. Data based on sound records, procedures, investigations and analysis, documented properly but has minor shortcomings, for example the data is old, some documentation is missing, and reliance is placed on unconfirmed reports or some extrapolation. Data based on sound records, procedures, investigations and analysis which is incomplete or unsupported, or extrapolated from a limited sample for which grade highly reliable or reliable data is available. Data based on unconfirmed verbal reports and/or cursory inspection and analysis. The condition assessment model in table is the basis for assessing the condition of FNDC assets. Table 10: Asset Condition Rating Levels To be reviewed as part of the improvement plan. Attribute Condition 5 Poor 4 Below Average 3 Average 2 Good 1 Very Good Below Ground Assets Pipework Pumping Stations Valves and chambers Above Ground Assets Treatment Plants and Equipment Table 11: Typical Condition Rating Model Grade Condition Description of Condition 1 Very Good Sound physical condition. Asset likely to perform adequately without major work for 25 years or more. 2 Good Acceptable physical condition; minimal short-term failure risk but potential for deterioration in long-term (15 years plus). Minor work required. 3 Average Significant deterioration evident; failure likely within the next 5 years but further deterioration likely and major replacement likely within the next 15 years. Minor components or isolated sections of the asset need replacement or repair now but asset still functions safely at adequate level of service. 4 Below Average Failure likely in short-term. Likely need to replace most or all of assets within 5 years. No immediate risk to health or safety but works required within 3 years ensuring asset remains safe. Substantial work required in short-term, asset barely serviceable. 5 Poor Failed or failure imminent. Immediate need to replace most or all of asset. Health and safety hazards exist which present a possible risk to public safety or asset cannot be serviced/operated without risk to personnel. Major work or replacement required urgently Below Ground Assets The below ground assets are largely of an unknown condition. Excluding Kaitaia there have been very limited inspections carried out on the asbestos cement pipelines which indicated

22 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-18 that there may be a number of pressure mains that have come to the end of their useful life. In Kaitaia around 2006 approximately 30% of the pipes were inspected by CCTV. This inspection graded a large percentage of these are poor condition, albeit a staff review of the CCTV assessments does not support this finding. However, the sample set is too small to base any forecast replacement programme on. Based on the asset life, and the known installation date, it can be expected that there will be an increase in failure of our AC pipelines over the next ten years. This can be seen in Figure 13. Figure 13: Asbestos Cement Pipe expressed by age and length With an estimated life of 60 years, as can be seen from this graph it is likely that close to 30,000 metres of Asbestos Cement pipelines are at or near the end of their life with almost 50,000 metres being within 10 years of the end of their useful life. If the amount of AC pipes which are at or near to the end of their life is considered on a wastewater scheme basis the entire amount of pipes at 60 years of age or older are located in Kaikohe and Kaitaia. This represents approximately 60% of all the AC wastewater pipes. Consequently the Kaitaia and Kaikohe networks are at considerable risk of increase inflow and infiltration with increased failure of the watertightness of the pipes. The graph below shows the age of AC pipes in each wastewater system throughout the district.

23 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-19 Figure 14: Asbestos Cement pipe by length and scheme Above Ground Assets An assessment of the wastewater infrastructure above ground assets was last carried out by Harrison Grierson in Generally, the condition of the assets at that time was below average. This data has not been reassessed since and the general condition of the assets is uncertain. 4.3 Activity Rationale The proposed Council Community Outcome that the wastewater services activity primarily contributes to is: Sustainable, affordable, equitable infrastructure that contributes to the economic progress and social wellbeing of District For further details on Council s Community Outcomes, refer to Part B Corporate Management, Section Community Outcomes. Our sewage treatment plants, pumping stations and reticulation systems contribute by controlling the quality of effluent and minimising the risk of sewage overflows and spills. Our work programme is driven by community expectations about the quality of our environment and the need for sustainability by reducing our overall impact on the environment, both now and in the future. The sewerage function is one of the core activities of Council as confirmed by statute in the Local Government Act (LGA) Generally the LGA requires the continued operation of any sewerage system that Council operated at the time the LGA was passed and the continued operation of any new system that Council constructs after that date. 4.4 Key Service Drivers Council provides and maintains wastewater schemes on behalf of the communities requiring the services and who are prepared to pay the associated costs. The objective of the service is to:

24 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-20 Provide efficient and safe wastewater collection, treatment and disposal that are best value and are environmentally; economically, socially and culturally sustainable. Ensure that the present needs of the community are met without constraining future generations. Council has both statutory and community reasons for the continued delivery of the service. These can be summarised as Collective Benefits Benefits to the community from the management of the wastewater. Statutory Requirements under the Local Government Act 2002 (amended 2010); Health Act 1956; resource Management Act Community Expectation Public expectation for the provision of the service Community Support and Well-being basic requirement to maintain a healthy community and environment. Links to Community Outcomes A community that has access to effective services Policies, Strategies and Bylaws FNDC Policies and Strategies Council has developed various policies and works in partnership with many other agencies and organisations throughout the district to fulfil its role and align the activities. This means that in establishing its programmes, Council must be aware of the following policies, strategies and guidelines. A number of Policies and Strategies have been identified for review as indicated in Table 12 and Table 13 along with a target completion date. Table 12: Council Policies Policy Number Policy Name Status Target Completion 4203 Capital Contributions Sewage Connections Under Review 2104 Procurement Policy Current Table 13: Council Strategies Strategy Name Kerikeri/Waipapa Structure Plan Recreation open space and coastal access strategies Operative Far North District Plan External Policies, Strategies and Guidelines Strategy Name The (proposed) National Environmental Standard relating to the application of biosolids (sewage sludge) to land. The Sustainable Wastewater Management document published by the Ministry for the Environment. New Zealand Standard SNZHB 4360:2000 Risk Management for Local Government. The NAMs Manual (i.e. The International Infrastructure Management Manual). The New Zealand Infrastructure Asset Grading Guidelines, published in 1999 by the New Zealand Water and Wastes Association.

25 Cultural Social Economic Environmental Wastewater Activity OVERVIEW OF THE ASSETS PART C Bylaws Council bylaws can be found on Council s website Bylaws relating to the wastewater activity are: Bylaw Chapter 28 Onsite Wastewater Chapter 29 Wastewater Drainage Chapter 30 Collection and transportation of waste and diverted material Chapter 31 Trade Waste Status Current Current Current Current 4.5 Significant Negative Effects on the Activity The activity of provision of wastewater services has a potential for significant negative effect on communities. Council is committed to minimising any detrimental affects and ensuring that activities are conducted in accordance with principles of sustainability. The table below identifies potential significant negative effects. Table 14: Significant Negative Effects of the Activity Significant Negative Effect Mitigation Measure Reporting Procedure The cost of operating and/or improving the infrastructure may exceed the community s ability to pay. Consulting with the community on costs and options for levels of service via the LTP process. The inability of the infrastructure to meet the demand for wastewater may cause difficulty and hardship in the community. Implementing programmes of plant and system improvements and reducing inflow and infiltration into the reticulation system. The development of a Demand Management Plan and ensure the system has sufficient capacity for expansion. Acquisition of Resource Consent renewals is subject to environmental and cultural considerations in a manner that attracts significant interest and opinion from the community. Community is engaged in consultation throughout the renewal process with opportunity to formally submit under the RMA. Sewage spills to water can affect public access for bathing and recreational shellfish collection, as well as commercial oyster farming and tourism. Continued renewal and improvements of assets together with improved monitoring and management practices.

26 Wastewater Activity OVERVIEW OF THE ASSETS PART C Significant Changes for the Activity It is anticipated that there may be changes in the way we dispose of the treated effluent. In a number of communities, the options of not discharging to water are being evaluated including utilising the treated effluent for irrigation purposes. Alternative treatment processes are also being considered such as floating wetlands and vermiculture filtration techniques. These processes may provide cost efficient solutions to smaller communities and enhancements to existing treatment processes. While process performance is still under review, this type of technology will help to deliver acceptable solutions in culturally sensitive areas. Improvements are underway in the management of sludge disposal from pond based treatment sites. Sludge accumulation over past years will eventually result in a detrimental effect on process capacities, requiring a planned strategy of removal and disposal. Significant funding for new infrastructure and operational activities is required to maintain acceptable performance levels. Changes in the management of septage disposal from private on site disposal systems which contribute to pond sludge accumulation have been initiated. Volumetric charging of commercial operators will help to fund sludge disposal activities and the installation of upgraded reception facilities. 4.7 Strategic Goals We have a number of strategic goals for the wastewater service that we aim to achieve within the life of this plan. These are: Priority 1: Reducing the volume and frequency of wet weather overflow in Kaitaia and Kawakawa Priority 2: Expanding the Kerikeri reticulated area to service the central urban area of Kerikeri and upgrade the treatment plant to meet new resource consent effluent discharge limits Priority 3: Reducing the ammonia levels in the effluent discharge from the Paihia Wastewater Treatment Plant Priority 4: Commencing a project to de-sludge the treatment ponds that contain high levels of sludge including Kaitaia, Kaikohe, Kawakawa, Kaeo and Rawene Having an asset management plan in place that has been independently audited and reviewed at 3 yearly intervals supports the key goals of this policy. The direction of this policy is also reflected in Level of Service measures. 4.8 Statutory Requirements In addition to the legislation stated in Part B of the Asset Management Plans, there are a number of statutory requirements that are specific to the management of our wastewater supply activity. The key legislation is detailed below: National Statutory Requirements The Climate Change Response Act. The New Zealand Coastal Policy Statement The New Zealand Waste Strategy The Health Act The Government s Sustainable Development Action Plan.

27 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-23 The Waste Minimisation Act 2008 (pertaining to the disposal of sewage sludge to landfill) Regional Statutory Requirements Regional Policy Statement (administered by NRC) The purpose of the RPS is to give an overview of the resource management issues of the region and provide objectives, policies and methods to achieve integrated management of the natural and physical resources of Northland. Water and Soil Plan for Northland (administered by NRC) The Regional Water and Soil Plan for Northland covers the following activities: o o o o o o o o o Discharges to land such as landfills, rubbish dumps and tips, sewage, stormwater, agricultural discharges, industrial and trade discharges Discharges to water The taking, using, damming or diverting of surface and groundwater Building and modifying structures in river and lake beds Introducing plants to river and lake beds Drainage and river control activities Earthworks Vegetation clearance Activities within the Riparian Management Zone along rivers, lakes, and the coastal marine area Regional Air Quality Plan (administered by NRC). The Regional Air Quality Plan for Northland applies to discharges to air. The following issues are covered by the plan: o o o o o o Agrichemical spray application Abrasive blasting Burning of fuel or waste Odour Industrial pollution Dust District statutory requirements District Plan Council Vision for Wastewater Our vision is that the Far North s coastal marine, river waters and lakes are healthy at all times, so that they support healthy marine and freshwater ecosystems, recreational use, fishing and shellfisheries Key Issues In addition, a number of key issues and challenges were identified in the review process: Table 15: Key Issues and Challenges Key Issues Affordability of schemes Implications Per property, smaller schemes tend to be more expensive to operate than larger schemes. Requiring smaller schemes to meet the same standards of larger schemes can significantly affect the community s ability to afford the wastewater

28 Wastewater Activity OVERVIEW OF THE ASSETS PART C 4-24 Key Issues Worsening Inflow and infiltration issues resulting in more frequent sewage spills Minimising environmental impacts Ageing infrastructure reaching the end of its useful life Higher standards required by resource consents Climate change Implications scheme. Requires continued and improved sewer maintenance and capital expenditure. Loss of capacity can be caused by excessive stormwater entering the wastewater network, or as a result of the capacity of the network not being upsized to accommodate expansion of the scheme. Failing on site disposal systems may require expansion of reticulated schemes A continued programme of improving environmental awareness throughout the community so that everybody can play their part in protecting the environment. Faults, failures and blockages will become more frequent resulting in increased overflows. Requires timely, continued and improved sewer maintenance and capital expenditure. Loss of capacity can be caused by excessive stormwater entering the wastewater network, or as a result of the capacity of the network not being upsized to accommodate expansion. To meet these higher standards normally will require significant expenditure. This can significantly affect the community s ability to afford the wastewater scheme. The volume of storm water entering a wastewater network is relative to the size of the storm. With climate change, more frequent and larger storms are anticipated, which will impact on the wastewater network. 4.9 Resource Consents Council has a database of consents relating to wastewater activities. These are listed in Table 16 below. In accordance with both Regional and District Plans, there are a number of requirements that must be met during the life of the consent. These requirements stipulate monitoring conditions in the consent. The consent holder is required to report on compliance with the monitoring conditions. Table 16: Wastewater Related Consents Resource Consent ID Description Notes Expiry Date RC 3775 Ahipara WW 30/11/2010 RC 4007 East Coast WW renewal letter sent 13/01/ /11/2008 RC 7399 Hihi WW 30/11/2022 RC 7205 Kaeo WW 30/10/2022 RC 2417 Kaikohe WW Change to Consent 19/04/ /11/2021 RC 0932 Kaitaia WW 30/11/2021 RC 1168 Kawakawa WW 30/04/2010 RC 4111 Kerikeri WW 31/03/2015 RC 3839 Kohukohu WW 31/08/2016 RC 2667 Opononi WW renewal draft received 17/04/ /08/2019 RC 1108 Paihia WW 30/04/2014 RC 2635 Rangiputa WW 30/11/2032 RC 2577 Rawene WW 31/08/2008 RC 8339 Russell WW 30/04/2013 RC 7203 Whatuwhiwhi WW 30/11/2025 RC Paihia WW Disposal of Sludge from Anaerobic & Oxidation Ponds 30/04/2014

29 Wastewater Activity OVERVIEW OF THE ASSETS PART C Consent Monitoring and Compliance All wastewater related resource consents are provided in Table 16 above. At the end of the consent period, Council will need to apply to have the consents renewed, or will need to apply for new consents.

30 Wastewater Activity LEVELS OF SERVICE PART C LEVELS OF SERVICE 5.1 Existing Level of Service (LoS) Existing LoS were developed around community outcomes of public health and safety, services that support communities, legislation and the environment. Key projects/initiatives were also linked to the outcomes. It has been accepted that in some cases the links were not clear, with measures that were not fully understood, and as a consequence reporting was inadequate. Lessons learnt from the current monitoring and audit process have been key in the development of new levels of service. 5.2 Changes to Levels of Service New levels of service have been introduced to align with the compulsory KPI s established by the Department of Internal Affairs and part of a national benchmarking exercise. The KPI s established are to maintain the current level of service. A change in Levels of Service (LoS) will either be reflected as either an increase or decrease in the LoS. Any change will need to be consulted on with key stakeholders and the community. The outcomes will then incorporated into the decision making process.

31 Wastewater Activity LEVELS OF SERVICE PART C Levels of Service Previous Levels of Service, Performance Measures and Reporting Community outcomes: A safe and healthy district, a sustainable and liveable environment, a vibrant and thriving economy Table 17: Levels of Service for Customer Value Level of Service Technical Performance Measure Measurement Method Target Health and Safety Wastewater managed to ensure no risk to public health Reliability and Response Response to customer requests Type A target 92% Other 96% Sustainability & Environment Sustainability & Environment Maintain compliance with resource consents Maintain compliance with resource consents Number of sewage spills to a watercourse Monthly reporting from RFS system and spill log Monthly RFS reports 95% Compliance with RC discharge flow limits Monthly flow records 95% Compliance with consented discharge determined limits Monthly sampling reports 95% 9

32 Wastewater Activity LEVELS OF SERVICE PART C Long Term Plan Targets Based on the Levels of Services in Table 17 above, the expected performance over the coming ten years will be shown in Table 18. Table 18: Long Term Plan Targets KPI Focus Definition Performance Measure Measurement Method Baseline Target 2015/16 Target 2016/17 Target 2017/18 Target 2018/25 Our water, stormwater, and wastewater infrastructure protect the environment and people and enable sustainable development Our infrastructure protects the environment and people Performance measure one (system and adequacy) The number of dry weather sewerage overflows from Council s sewerage system, expressed per 1000 sewerage connections to that sewerage system. Records from Contractors operations log NEW <12 per 1000 connectio ns <12 per 1000 connections <12 per 1000 connections <12 per 1000 connections Our water, stormwater, and wastewater infrastructure protect the environment and people and enable sustainable development Performance measure two (management of environmental impacts) Compliance with the Regional Council's resource consents for discharge from its sewerage system measured by the number of: Our infrastructure protects the environment and people a) abatement notices; Correspondence received from Regional Council NEW 1 or less 1 or less 1 or less 1 or less

33 Wastewater Activity LEVELS OF SERVICE PART C 4-4 KPI Focus Definition Performance Measure Measurement Method b) infringement notices; Correspondence received from Regional Council Baseline Target 2015/16 Target 2016/17 Target 2017/18 NEW Target 2018/25 c) enforcement orders; and d) Convictions, received by Council in relation those resource consents. Correspondence received from Regional Council Correspondence received from Regional Council NEW NEW Our water, stormwater, and wastewater infrastructure protect the environment and people and enable sustainable development Our infrastructure protects the environment and people Performance measure three (response to sewerage system faults) Where Council attends to sewerage overflows resulting from a blockage or other fault in the Council s sewerage system, the following median response times measured: a) attendance time: from the time that the Council receives notification to the time that service personnel reach the site; and Data collected and monitored through internal RFS system supported by contractor field sheets NEW 1 hour 1 hour 1 hour 1 hour

34 Wastewater Activity LEVELS OF SERVICE PART C 4-5 KPI Focus Definition Performance Measure b) resolution time: from the time that Council receives notification to the time that service personnel confirm resolution of the blockage or other fault. Measurement Method Data collected and monitored through internal RFS system supported by contractor field sheets Baseline Target 2015/16 Target 2016/17 Target 2017/18 Target 2018/25 NEW 2 hours 2 hours 2 hours 2 hours Our water, stormwater, and wastewater infrastructure protect the environment and people and enable sustainable development Performance measure four (customer satisfaction) The total number of complaints received by Council about any of the following: NEW <150 <150 <150 <150 Our infrastructure protects the environment and people a) sewage odour; Data collected and monitored through internal RFS system NEW b) sewerage system faults; Data collected and monitored through internal RFS system supported by contractor field sheets NEW

35 Wastewater Activity LEVELS OF SERVICE PART C 4-6 KPI Focus Definition Performance Measure c) sewerage system blockages; and d) the District Council s response to issues with its sewerage system, expressed per 1000 connections to the Council s sewerage system. Measurement Method Data collected and monitored through internal RFS system supported by contractor field sheets Data collected and monitored through internal RFS system supported by contractor field sheets Baseline Target 2015/16 Target 2016/17 Target 2017/18 NEW NEW Target 2018/25 Our water, stormwater, and wastewater infrastructure protect the environment and people and enable sustainable development Our infrastructure protects the environment and people Provide and manage the urban stormwater networks to meet community expectations The % of respondents indicating they are very satisfied / satisfied with urban wastewater Annual community feedback survey NEW 85% 85% 85% 85%

36 Wastewater Activity LEVELS OF SERVICE PART C Risks to Delivery of the Levels of Service Table 19: Risks to Delivery of the Levels of Service Level of Service Risk Likelihood 1-3 The number of dry weather sewerage overflows from Council s sewerage system, expressed per 1000 sewerage connections to that sewerage system. Compliance with the Regional Council's resource consents for discharge from its sewerage system measured by the number Where Council attends to sewerage overflows resulting from a blockage or other fault in the Council s sewerage system, the following median response times measured: The total number of complaints received Council about any of the following: Lack of appropriate maintenance causing multiple failures Required upgrades are not installed by the required due dates. The requirements of the Operations contract do not align with the performance measure An exceptional event occurs resulting in a higher number than normal complaints being received Consequences 1-3 Action 1 3 Further investigation into asset condition and areas of known weaknesses to determine appropriate maintenance requirements. 2 3 Ensure sufficient investigates are undertaken to enable appropriate funds are included in the Annual Plan and LTP process 2 2 To ensure the Operations contract aligns with the kpi. 1 3 Monitor the reasons why complaints are lodged. Priority Yr 1-3 Year 1 & 2 - Year 1,2 &3 Year 1. Years 1 & 2 The % of respondents indicating they are very satisfied / satisfied with urban wastewater The level of satisfaction with wastewater services continually drops 2 2 Monitor complaints to understand why the level of dissatisfaction has been increasing and endeavour the issues raised. Years 2&3

37 Wastewater Activity ASSET MANAGEMENT PLAN ASSUMPTIONS PART C ASSET MANAGEMENT PLAN ASSUMPTIONS 6.1 Assumptions In order to prepare the asset management plan it has been necessary to make assumptions. These assumptions have been summarised below. The asset inventory is recorded as per the information recorded in AssetFindA. Renewal programmes for above ground assets have been based on available condition and performance information. For below ground assets the renewals programme is based on assumed condition, performance levels and age. Assumptions have been made as to the average useful lives and average remaining lives of the asset groups That the Levels of Service will remain constant and be reviewed annually or as circumstances dictate That Council will remain in ownership of the assets The 10 year forecasts are based on current maintenance levels CAPEX is based on imposed or likely Resource Consent conditions and customer expectations. Council funding approval is required for all work programmes identified in this plan, and the timing and scope of the works may differ from that shown in this plan, once the community consultation/engagement cycle(s) has been completed. An improvement programme for asset management will be undertaken to improve the informative decision making, the knowledge of assets and customer expectations and the accuracy of the financial projections. The following Asset Management assumptions have been made in preparing the 10 and 30 year expenditure forecasts: The wastewater assets currently in Council ownership will remain in Council ownership throughout the 30 year period. All expenditure is stated in dollar values as at 1st July 2014 with allowance made for inflation based on the BERL adjustment factors over the 30-year planning period. Operational costs are largely based on historical expenditure. Council staff has developed this programme with no formal consultation with the public. Regulations relating to wastewater collection, treatment and disposal will remain essentially the same. The following general assumptions have been made in preparing the 10 and 30 year financial forecasts. Maintenance and operations allocations are largely based on maintaining current service levels. The present management system will remain the same. The determination of, asset replacement value, depreciated value, and renewal projections are based on the valuation data as at 30th June The depreciation has been calculated on a simple straight-line basis.

38 Wastewater Activity ASSET MANAGEMENT PLAN ASSUMPTIONS PART C 4-2 Confidence in the data used to produce the 10 and 30 year forecasts for this AMP has been assessed at E (refer Section B Estimate Accuracy). The assumptions that have been used in the valuation of the assets are as follows: Depreciation is by the straight-line method. Asset Base Life is Total Useful Life 6.2 Confidence Levels Confidence in the data presented in this AMP is E (Low to Medium). This has been based on the accuracy and completeness of the data required to achieve a Core AMP. The completeness of information varies within the activity and will trigger improvements that we will have to implement in order to achieve the Moderate AMP status over the coming ten years.

39 Wastewater Activity IMPROVEMENT PLAN PART C IMPROVEMENT PLAN The purpose of the Improvement Plan is to: Identify and develop implementation of AM planning processes. Identify and prioritise ways to cost-effectively improve the quality of the AM plan. Identify indicative time-scales, priorities, and human and financial resources required to achieve AM planning objectives. 7.1 Improvements to Asset Management Planning Here we detail an improvement programme to enhance our practices to improve the future level of confidence in the AM plan strategies and financial projections. We also identify the timetable for future reviews of the plan and measures adopted to monitor its effectiveness. An improvement plan was included in the 2012 Activity Management Plan and identified the possible improvements that could have been made to aspects of the plan. This Improvement Plan at the time focused mainly on improvements to the actual asset rather than how to improve the AMP processes. Tabled below are the items included in the 2012 plan. Table 20: 2012 AMP Improvement Plan Achieved Item Updated survey of private wastewater systems before the next LTCCP Reconsideration of SWSS application, subject to funding, for those communities that had rejected the earlier approach. Complete the Energy Efficiency Plan Development of processes for compliance with New Zealand Waste Strategy X Y Appendix Relative Urgency Completed Comments X Y Ongoing as part of the Septic Tank Bylaw SWSS has come to an X N end. No more funding is available. X Y Energy efficiency study carried out. Development of processes for the government s Sustainable Development Plan X N Upgrading of electrical components and systems X Continuing Development of process control philosophy Development and implementation of overflow spill management procedure X Y Sludge removal strategy X N Hydraulic and process upgrading of treatment plants X Continuing Infiltration management programme X N Improve the current process of tracking the Renewals against funding. X Y Prepare easement plans and details for all public wastewater systems Develop processes and procedures for future designation and zoning of properties. X X X Y Continuing N Compliance Action meetings held to review issues Being carried out as part of a rolling renewals programme Upgrading of telemetry system in progress Being done as part of Resource Consent renewals Risk processes established. Monitoring of expenditure carried out monthly Agreement for easements being carried

40 Wastewater Activity IMPROVEMENT PLAN PART C 4-2 Item Review periodically the existing demand management process Investigate the desirability of introducing a trade waste bylaw Investigate the use of consultation software to assist with managing the consultation process Complete future action and improvement programme data Assess the robustness of asset management data Key: 1 = Extremely urgent (needs to be addressed now) 2 = Very urgent 3 = Urgent 4 = Reasonably or fairly urgent 5 = Not urgent 6 = A good idea for some time in the future Appendix Relative Urgency Completed Comments Hydraulic models built X Continuing for catchments. Assessment of options to be carried out X Y Trade waste bylaw introduced New module X Y incorporated in to Pathway X X N N Asset Management Review The management of the wastewater activity and associated infrastructure assets is a continual improvement process. The programme reflects the overall objectives for improving asset management practices, and delivering the service at lowest long-term cost to the community. The highest priority improvement tasks focus on: The strategic objectives Developing levels of service options and costs while consulting with the community to ensure they have input into selecting the best option Monitoring and reducing activity risk Incorporating growth scenarios for each wastewater area to meet community expectations Ongoing improvements of processes and practices that support the activity. The three-year asset management improvement programme has been developed based on an assessment of asset management practice and the current status of the previous improvement programme. Council' staff have assessed the current practice and set a 3 year target for improvements, dependant on the availability of resources and funding allocation by Council Improvement Plan Status Council has initiated the update of the Wastewater Asset Management Plan. The current plan is considered to reflect an Intermediate level / /2019 Improvement Plan Review of current practices, processes, data and system has identified the following key projects (Table 21,) that need to be implemented over the next three years. Some of these improvements are already underway and will continue to be progressed during 2015/16.

41 Wastewater Activity IMPROVEMENT PLAN PART C Three Year Improvement Plan Table 21: Improvement Plan 2015/2018 Understanding the network Item Priority Programme Underground Assets: Develop systems to better predict lives of buried assets Develop the rules defining critical assets then undertake a critical asset analysis of above and below ground assets Complete condition assessment of below ground assets in accordance with NZWWA guidelines Improvements to the planned maintenance procedures, review and document plans, schedules and reporting requirements Develop systems to record and display system performance, Improvements to the planned maintenance procedures, review and document plans, schedules and reporting requirements Above Ground Assets Develop systems to better predict lives of above ground assets Develop the rules defining critical assets then undertake a critical asset analysis of above ground assets Improvements to the planned maintenance procedures, review and document plans, schedules and reporting requirements Determine the operating capacity of each treatment plant relative to demands and varying water quality Undertake condition assessment of above ground assets in accordance with NZWWA guidelines System Improvements Item Priority Programme UPDATE and IMPROVE AssetFindA DATA: Have ipads linked to AssetFindA to enable field capture of data Have blockages and faults recorded in AssetFindA Have Asset Lives inserted into AssetFindA Have Asset Values inserted into AssetFindA

42 Wastewater Activity IMPROVEMENT PLAN PART C 4-4 Item Priority Programme Introduction of new systems to integrate all aspects of the asset workflow from operational, new works, development, asset records and financial management, Build processes for the prediction of failure modes based on asset condition, performance and historical maintenance records. Develop processes for the recording of unit rates from contractors, capturing, analysing and assessing asset lifecycle costs and assessing whole of life costs in capital works Create a process that reviews current maintenance activities to ensure an efficient service is being provided and that there is an optimum balance between planned and unplanned maintenance costs Management Practices INFORMATION SYSTEM: Update the following section of the AMP Figure 2, Add in National average Table 7 Asset Data Confidence Level; Attributes Table 8: Asset Data Confidence Levels Table 9 Asset Data Confidence Level; Assets Table 12 Council Policies Table 13, Council Strategies External Policies Bylaws Table 15 Water related consents National Statuatory requirements Regional statuatory requirements District statuatory requirements Councils vision for wastewater Table 16 Resource consents Table AMP Improvement Plan Achieved Item Priority Programme

43 Wastewater Activity IMPROVEMENT PLAN PART C Gap Analysis Section 10 Risk Management (To align with new Council standard) Figure 16: Proposal Information Form Figure 17: Project Score Matrix Table 26 Renewal funding issues APPENDIX C PROJECT NEEDS STATEMENTS Item Priority Programme Build a risk evaluation, analysis and reduction process for the anlysis of capital and operational expenditure, monitoring and reporting processes, linkages to corporate risk profiles. Ensure process are in place to record, monitor and manage risks. Review and refine risk scoring process, capital needs statements, risk escalation & communication, project mandates. Prepare an asset disposal policy Ensure adequate budget and training is available and that a skills matrix is developed and maintained for all staff involved in Asset Management activities IMPROVEMENT PLAN REVIEW Council has completed a number of projects and improvements since the previous AMP, and it is important that this level of activity is maintained. It is important to review the Improvement Plan and Council s progress against it on an annual basis. Items may need to move from one year to another or their priority may change.

44 Current 3-Year Target 10-Year Target Wastewater Activity IMPROVEMENT PLAN PART C GAP Analysis A GAP analysis has been undertaken for the wastewater activity and is shown in Figure 15. The analysis would indicate that our current AMP falls in the core area for asset management, but it is our intention for progress in our maturity so that in ten years we achieve a moderate level. It is felt that for us to progress beyond this level of maturity would be prohibitively expensive for an activity of this size. Figure 15: GAP Analysis Minimum Core Moderate Advanced Waste Water Gap Analysis Key Element Average Demand Analysis Knowledge of Assets Asset Accounting and Costing Strategic Planning CAPEX Evaluation Business Risk Asset Creation / Acquisition Asset Disposal Asset Operations Asset Maintenance Continuous Improvement AM Information and Support Systems Data Commercial Tatics Governance and Management Issues Personnell Issues Asset Management Plans - Production Capability

45 Wastewater Activity FUTURE DEMAND PART C FUTURE DEMAND The Local Government Act 2002 requires that growth and demand be considered as part of asset management planning to ensure that future requirements are identified and planned for. This will ensure that the needs of individuals, the community and the District can be maintained over the long term. This section outlines management options and strategies that Council utilises with regards to growth and demand for wastewater infrastructure. The key demand drivers that influence growth and demand are assessed in detail. The individually identified components that contribute to the overall wastewater network are investigated. In addition, the impacts and management are assessed with a view to forward planning, ensuring that the needs of individuals, communities, the District and the wider Region contribution can be sustained. 8.1 Planning for Growth Far North Council has determined that for the first 3 years of this strategy and the Long Term Plan, growth will continue to decline at a rate of approximately 0.02% per annum. Change in the usually resident population will continue to be uneven across the District. While some Eastern coastal communities will see growth of between 0.05% and 2% per annum, most townships will continue to experience a decline in Usually Resident Population (at a rate of between -ve0.02 to -ve2% p.a.). Further details on growth assumptions are contained in to Part B section Future Demand Overview of Key Demand Drivers The key demand drivers influencing the growth and the demand on the FNDC s wastewater assets are below: Population Considerations Residential & Commercial Development Primary Industries Increasing levels of inflow and infiltration due to an aging network Demand Management Plan Accurate forecasting of wastewater services demand scenarios is essential for the effective long term wastewater services planning. Our philosophy is to focus on sustainability and cost effectiveness meeting the future demand at least cost to the community while protecting the environment Demand Management Strategies Demand management strategies provide alternatives to the creation of new assets in order to meet demand and looks at ways of modifying customer demands in order that utilisation of existing assets is maximised and the need for new assets is deferred or reduced. Demand management is practiced continuously to maintain the total demand at reasonable and sustainable levels. The components of demand management are shown in Table 22. Table 22: Demand Management strategies Demand Component Controlled Development Inflow and infiltration (I&I) Description Criteria as set out in the District Plan Undertake I&I studies to identify cost effective sewer rehabilitation options, which will reduce system demand and allow for increased future capicity

46 Wastewater Activity SUSTAINABILITY PART C SUSTAINABILITY 9.1 Provision for effects of failure The effects of failure are frequently experienced on both a localised level usually due to plant breakdown, or alternatively may have a serious impact on multiple assets district wide, such as during a severe storm event. The effects of plant failure are mitigated using the following methods:- Table 23: Mitigation measures for asset failure Duty standby arrangements for critical plant, i.e. pumps. Critical spares Telemetry alarm system Fixed and mobile stand by power generation Emergency response procedures Council Emergency Response centre 9.2 Business Continuity Plan These arrangements exist where the timeframe required to replace a failed asset will not meet the requirements for continued service provision. Asset procurement timeframes will not meet continued operational service requirements, but not necessary to implement formal standby provisions. Automated monitoring and 24/7 alarm initiation for selected assets, enabling operator responses to meet business needs. Through a program of risk management a number of key sites upgraded to include standby generators. Provision of a small fleet of mobile generators to enable deployment across the district to smaller targeted sites. These have been produced by the operations contractor in order to efficiently respond to escalating incidents and emergency events. Provisions include resource management and responsibilities, subcontractor and procurement contact details and arrangements, principal 3 rd party contacts and integration with council coordination team if required. The Emergency Operating Centre (EOC) is mobilised during times of civil defence alert or major incident with potential for widespread public impact. Key staff provides links between EOC and operational contract personnel. For further details on the Business Continuity Plan, refer to Part B - Corporate Management, Section Business Interruption Insurance For further details on Business Interruption Insurance, refer to Part B - Corporate Management, Section Information Technology (IT) For further details on Information Technology, refer to Part B - Corporate Management, Section Intranet/Internet For further details on the Intranet/Internet, refer to Part B - Corporate Management, Section

47 Wastewater Activity SUSTAINABILITY PART C 4-2 Civil Defence Emergency Management For wastewater supply services, the loss or failure of the service can have a significant impact on community health. In the event of a pandemic, wastewater services are viewed as an essential core service and if necessary will require redeployment of available staff from other areas. The impact of any civil defence emergency will be dependant on the nature of the event, which could result in widespread loss of services. Response procedures have been developed by the operational contractor, Transfield Services, which will integrate with the Council s own civil defence management systems. For further details on Civil Defence Emergency Management, refer to Part B - Corporate Management, Section Lifelines Staff from within the wastewater team has attended these meetings, there are 3 per year which discusses forward planning at a regional level for emergency events such as tsunamis, major cyclones and flooding. For further details on Lifelines, refer to Part B - Corporate Management, Section Incident Response Civil Defence Managers Coordinate Emergency Response within each Council s designated areas of responsibility. Management of emergency events is by the New Zealand Coordinated Incident Management System (CIMS). Contingency planning is an ongoing process in order to compliment existing response plans.

48 Wastewater Activity RISK MANAGEMENT PART C RISK MANAGEMENT 10.1 Risk Management Context Overview The risk management process, procedures, and guidance are covered in Part B Corporate Summary. This section concentrates on significant risks which are specific to the water supply activity. These risks have been quantified and analysed using the procedures stated, and are summarised in the following registers.

49 Consequence Likelihood Factor Description Effectiveness Consequence Likelihood Factor Wastewater Activity RISK MANAGEMENT PART C Risk Register The risk registers below provide our current and future wastewater risks for the activity that have been developed in consultation with key staff. Table 24: Asset Management Risks General Risks Gross Risk Current Practice/Strategy Net Risk Management Options Risk ID Risk Descriptor Risk Type WS01 Business Continuity the ability to attract and/or retain skilled core staff, and ability to maintain services in the event of a major disaster e.g. storm event, pandemic Organisational There is a shortage of skilled personnel within the industry and this can impact on areas outside of the major centres. Council s promoting the district as an attractive place to live and work. Fair Review the recruitment policy, to include scholarships / cadetships (NZCE/BE/Diploma) for graduates and engineering technicians, succession planning; investigate flexibility within individual contracts. Provide suitable office accommodation and improve working environment. Pandemic planning to be in place to deal with staff shortages, should it occur. WS02 WS03 Knowledge management the ability to retain knowledge and have sufficient systems (technology) in place to manage data/information due to an ageing workforce and reliance on Consultants is creating large gaps in institutional knowledge Project Management ensuring projects are adequately scoped, budgeted, managed and documented Organisational Some systems are in place. Fair Expand systems and databases to ensure that knowledge is transferred, stored and accessible. Define champions and successors; ensure knowledge is transferred from outside service providers. Develop a coherent succession plan. Written procedures and policies. Operational Training for key staff, use of trained external resource. Contract in place to manage SW works Ensure adequate (quality) training for key staff and maintain a register of training that identifies timeliness for upgrades of skills WS04 WS05 WS06 External Planning planning issues causing impacts. Changes in legislation (e.g. RMA)/community expectations Resource Consents time and budget constraints impacting on project delivery (internal and external) Public Health and Safety accidents and contamination causing death, injury, sickness and or damage to Far North residents/visitors/or property resulting in claims and or negative publicity WS07 Local Natural Hazards (slips/flooding/coastal erosion/wind) causing damage and/or hindering development WS08 Global Natural Hazards - Climate Change leading to increased intensity, frequency and duration of rainfall, rise in sea levels, Tsunami Legislative District and Regional Plans, LGA. Reasonable and improving Partnerships with key external bodies. Plans always being reviewed. Improving planning processes. Legislative Planning involvement at initial stage. Monitoring of Consent requirements. Public Health Programmes in place to identify areas, issues, risks that may impact. Public and Environmental Health Operational, Environmental / Public Health Good Identify upfront what resource consents are required and develop a framework to ensure all legislative requirements are met Good Council s liability and H & S policy under continual review, ongoing monitoring and improvement Emergency response, Civil Defence. Good Liaise with Northland Regional Council to identify hazards and ensure emergency response mechanisms are in place in the event of a hazard occurring. Lifelines, CDEM. Ongoing improvements being undertaken Monitoring climate change and liaison with government. Bodies. Emergency response, Civil Defence. Fair improving as several events have been experienced Analyse design of current systems, and incorporate where able for Climate Change plan for and implement improvement plan. Continual improvements of Emergency Response & Civil Defence.

50 Consequence Likelihood Factor Description Effectiveness Consequence Likelihood Factor Consequence Likelihood Factor Description Effectiveness Consequence Likelihood Factor Wastewater Activity RISK MANAGEMENT PART C 4-3 Gross Risk Current Practice/Strategy Net Risk Management Options Risk ID Risk Descriptor Risk Type WS09 Maintenance Contracts substandard performance causing liability, loss of revenue and or deliverable not achieved to an acceptable standard. WS10 Condition/performance assessment helps determine renewals, replacements and valuations Operational Reactionary to needs. Good Continue to monitor to determine any evident trends. Contract improvements. Operational Historic, data capture, minimal CCTV. Good Continue to be reactionary. Evaluate modelling information that will help to determine a renewals and replacement programme. Table 25: Asset Management Risks Wastewater Services Gross Risk Current Practice/Strategy Net Risk Risk ID Risk Descriptor Risk Type Management Options WS11 WS12 WS13 WS14 WS15 WS16 Changes to the Regional Policy Statement or the National Environmental Standards may require capital investment to meet the standards Per capita water use and wastewater discharge remains at current levels, actual level of growth higher than that assumed so there is insufficient capacity available Renewed and new Resource Consents will require higher quality standards for the discharge from treatment plants. Higher than forecast capital expenditure may be required to meet new standards. Asset lives as detailed in this document are incorrect and assets depreciate more rapidly than assumed impacting on budgets Power failures affecting treatment plants and pump stations Leakage of wastewater due to burst pipes Organisational Operational Growth trends kept under review Fair Operational Appeal resource consent conditions and negotiate standards reflecting the receiving environment Organisational Little investigations carried out in order to determine existing asset lives Operational Standby generators at a few key points only. The rest are served by sucker trucks emptying out the sumps and transferring to treatment plants. Additional storage has been added in some locations. Operational Monitor RFS system and quick operational response Poor Investigate alternative methods of wastewater treatment and disposal. Early communications with local communities and working with the communities to set up joint solutions. None Investigations into current asset conditions and determination of remaining life will allow depreciation to be more accurately set and hence budgets correctly allocated. Fair / Good Establishing an emergency power supply strategy which recognises key places for the deployment of stand by generators. A part of this strategy will be the use of sucker trucks to service less vital installations during power outages. Good Continue to use the RFS system and ensure that the operational response time does not reduce.

51 Consequence Likelihood Factor Description Effectiveness Consequence Likelihood Factor Wastewater Activity RISK MANAGEMENT PART C 4-4 Gross Risk Current Practice/Strategy Net Risk Risk ID Risk Descriptor Risk Type Management Options WS17 WS18 WS19 Contaminants entering water courses and / or estuaries caused by sewage overflows from pipe breaks or network flooding. Blue green algae outbreaks on treatment plant ponds leading to non-compliance and/or health risks of downstream users. Failure of critical assets impacting on the ability to provide the service Operational Monitor RFS system and quick operational response. Replace failing infrastructure and plan maintenance based on asset criticality and risk of failure. Operational Extensive sampling and monitoring programme in place. Management procedures for communication with downstream users. Operational Purchase of critical spares to ensure they are available locally. Good Continue to use the RFS system and ensure that the operational response time does not reduce. Poor - Does nothing to stop the outbreak Investigations into early detection of potential blue green algae blooms and establishing a pre-emptive strategy to prevent the blooms from happening or significantly reduce the occurrence of the blooms. Fair / poor Undertake a thorough assessment of the wastewater assets to determine the criticality so measures can be put in place to manage the critical assets WS20 WS21 WS22 WS23 Inflow and infiltration into the sewerage system. Odour issues at treatment plants and pumping stations Failure to meet Resource Consent Conditions Maintenance & Management Contracts possible liability, loss of revenue and or deliverable standards Operational Known sources of infiltration are removed through the renewals programme. Issue notices to property owners to remove inflow. Operational Existing operational process in place to ensure minimum odour issues at plants and pumping stations Operational Monitoring in accordance with Resource Consent monitoring schedules. Amend operational procedure in anticipation of failures, if possible. Operational Maintenance contract and management in place. Partnering. Poor Undertake detailed inflow and infiltration studies in worst affected catchments and implement mitigation measures as required Good Continue to review and monitor operational processes. Fair Support the operational procedures with capital upgrades where necessary to ensure that Resource Consent conditions are complied with. Excellent Carry out performance reviews throughout the term of the contract. Review contract in its entirety and make necessary change. Partnering evaluations.

52 Wastewater Activity ROUTINE MAINTENANCE PLAN PART C ROUTINE MAINTENANCE PLAN Routine day to day maintenance can occur in two ways, planned or reactive. Planned maintenance requires an in depth knowledge of the assets and their specific servicing requirements, together with a management system to enable scheduling, resourcing and recording of all activities carried out. Reactive maintenance describes the operational response to plant and equipment breakdowns or failures, where there is an urgent need to restore operational conditions to meet levels of service. For many decades Council has operated by undertaking basic routine operations with planning predominantly dictated by a reactive regime, but there is a desire to shift emphasis into the planned maintenance arena. Benefits will include better understanding and forecasting of operational budgets extending asset lives by prevention of early breakdowns renewal cost efficiencies gained from planned maintenance activities Increased asset knowledge and condition assessment Increased plant reliability and reduced operational risk Movement to a comprehensive planned maintenance regime does require strict management procedures and investment in resources. At the same time, the need for reactive maintenance will always remain; not only for unforeseen failures, but in cases where planned servicing may not be cost effective, e.g. small pump replacement costs may be equivalent to servicing costs. In moving into the planned maintenance arena, Council has already made significant changes to its operating activities. This has included the procurement of the MEX maintenance operating software and the development of AssetFindA for asset information. These have enabled planning, scheduling and recording of all maintenance activities. Future maintenance planning needs to include:- Full establishment of the AssetFindA management system at Council improvements in asset data cleansing and management Further refinement of equipment schedules and review of resource levels and capabilities. Linking AssetFindA to in field operations. These actions are included in the improvement plan Planned Maintenance Category The current maintenance program using MEX software has been developed from a site review of all plant and equipment and identification of service and maintenance requirements relevant to each item. The MEX scheduling tool allows for creation of work orders allocated to specific personnel responsible for the particular activity. Responses following work order allocations are collected and recorded on the MEX system against each plant item. Reports are generated and reviewed monthly to understand levels of planned activity and progress achieved. A maintenance manager is employed by the operations contractor, Transfield services, to supervise the process. Procurement of water jetting plant and CCTV sewer survey equipment has enabled a proactive approach to the maintenance of sewers resulting in better knowledge and a reduction in the frequency of spillages.

53 Wastewater Activity ROUTINE MAINTENANCE PLAN PART C 4-2 Routine sewer cleaning was the first area to be considered as part of the planned maintenance program. An exercise was carried out to assess risk from spills across all sewers in the district. For each sewerage scheme the following features were considered. history of blockages or spills reported proximity to a water course local operator knowledge From the review Council has been able to establish a prioritised schedule of sewer jetting aimed at reducing the highest levels of risk, subject to approved financial investment in appropriate plant and resources. A summary of activities currently being carried out under planned maintenance includes: Sewer jetting Sewer CCTV Pump station cleaning Pump inspection & maintenance Probe cleaning Screen maintenance Blower maintenance UV lamp replacement Plant maintenance Reactive Maintenance category Reactive maintenance is carried out in response to plant and equipment failures or breakdowns usually highlighted via the council RFS system or direct to the operations contractor as an alarm raised via telemetry. TSL provides a service that is able to respond over 24 hours, 7 days a week. Coding of RFS s identifies the level of urgency and response times required to meet LoS. Similarly telemetry alarms have been allocated predetermined priority levels and relevant response timeframes. Activities which occur as reactive maintenance include: Sewer blockages Sewer spills Sewer reticulation faults, lose manholes etc. Pump station faults Treatment plant faults

54 Wastewater Activity RENEWAL/REPLACEMENT PLAN PART C RENEWAL/REPLACEMENT PLAN Asset renewal describes major work that restores an asset to its original capacity or the required condition. It includes rehabilitation and replacement. Renewals forecasts and annual plans have been based on data held in the asset register which combine expected asset lives and installation dates to trigger theoretical renewal dates and feedback from the asset operators as to weaknesses with the networks. With the asset register some installation dates are unreliable and many assets lack accurate condition ratings. This has required the need for a more realistic approach to renewals management. In recent years, the theoretical replacements have been reviewed by the operational team to develop a risk based process for development of renewals programs, taking account of current issues and determining their impact at an operational level. Implementation and delivery of the renewals program is managed under the operations contract, by TSL, with authorisation of scoping and funding being retained by council. A procedure for asset data capture following renewal is in place to ensure that the asset register is maintained up to date 12.1 Planned renewals risk based approach. When an asset needs to be replaced is dependant on how critical that asset is, and the impact or frequency of failure. As the exact time of failure is seldom known, there is a financial advantage in sweating the asset. That is planning for failure, but not replacing the asset until failure occurs. With long life assets, this approach can add years to the theoretical life of an asset. Also the life of assets falls into a bell curve with the theoretical life being the medium life. This means some assets will fail early and others well after the theoretical life. These variations in asset life can be managed using a risk based approach. Reviewing current issues within a risk based framework allows for consistency in determination of priorities. A series of risk drivers are tested against each issue, with scores allocated depending on expected levels of impact. Frequency of occurrence is also taken into account when calculating the risk score. This methodology is similar to that used in the general risk management process outlined in Section 1.6. The risk drivers used are:- Wastewater Quality (i.e. compliance with resource consents) Health & safety (i.e. reported accidents) Customer levels of service (i.e. sewer spills & blockages) Efficiency (i.e. potential for OPEX savings) Public relations (i.e. adverse media) Criticality (i.e. criticality of asset) Ease of repair (i.e. lead time to initiate repair) The outcome from the risk based approach exercise is a prioritised list of renewal needs. A review of the asset register identifies any assets reaching renewal date based on expected life and age attributes. The asset management team is then able to assess and combine theoretical needs together with operational risks, resulting in a more robust and reliable renewals program. Assets, which feature as renewal requirements on the register but which are deemed low risk, are given virtual life extensions subject to reassessment the following year. To date, renewal programmes have been dominated by the theoretical renewal dates.

55 Wastewater Activity RENEWAL/REPLACEMENT PLAN PART C 4-2 While this process is currently a yearly exercise to determine the forthcoming annual program, it is recognised that a longer term planning mechanism is required, taking account of potential major high cost renewal requirements, to assist with future financial budgeting Reactive renewals Reactive renewals occur due to plant and equipment failures, where asset maintenance or repair is uneconomical. Assets are replaced as an emergency activity in order to maintain service provision. Allowance is made within budgets for an expected level of reactive asset replacement. Forecasts are based on the previous year s experience. It is anticipated that because of the approach of sweating the assets, the funding requirements for reactive renewals will not reduce over time. However the location and value of reactive renewals will be more predictable.

56 Wastewater Activity RENEWAL/REPLACEMENT PLAN PART C Renewals funding strategy Over recent years a number of questions have arisen in relation to the correct use of renewal funding, and provision of adequate auditable records. Debate surrounding maintenance versus renewal activities, the desire to sweat non-critical assets together with deficiencies in the quality of asset data, has led to the need for further clarification on funding. Table 26 below identifies a number of these issues with proposed solutions. Further development of issues is likely to continue as renewal processes are improved. Table 26: Renewal funding issues Typical Issues Options & Recommendations Solution 1 UV lamps not itemised in asset register Filter media not itemised in asset register Breakdown principal asset and create additional item. Reallocate total asset value and adjust replacement frequencies. 2 Asset not loaded on register Create new asset and update register. Problem is administrative error only. 3 Pipeline section replacement only. Asset ID loaded fro node to node but can be several kilometers 4 Asset register value do not reflect whether asset replaced singularly or as part of a wider project and are below replacement cost 5 Asset lives are not precise and failures occur in bell curves resulting in some asset early replacement according to register 6 Sewer infiltration remediation work. Failure of the asset can be due to failure of a third parties asset over which Council has limited control 7 Access roads require continuous maintenance are not generally replaced 8 Building refurbishment loaded as single asset on register Establish minimum permanent replacement length deemed as asset renewal. Breakdown asset to lengths reflecting age. Update asset register with new value Asset lives are average timeframes subject to over/under s. Allocation of special renewal funding for sewer asset refurbishment (condition related); or allocate additional operational budget. Options include -Additional operations main budget -Rolling refurbishment through renewals -Transfer maintenance to Roading, no budget. There is a need for additional operational maintenance funding together with renewals funding for major permanent refurbishment Use renewal funding for replacement Use renewal funding for replacement Use renewal funding for asset length node to node Use renewal funding for replacement length >12m Use Operational funding for replacement length <12m Use renewal funding for replacement Use renewal funding subject to correct maintenance Review current infiltration exercise and assess typical outcomes pending decision on funding options Compile access road maintenance list to be priced by Roading unit pending decision on funding and ownership. Compile building maintenance list for review by district facilities unit

57 Wastewater Activity RENEWAL/REPLACEMENT PLAN PART C Future renewals planning With the introduction of enhanced asset management capability, a number of future improvements are proposed: Asset data cleansing The AssetFindA register was developed in 2005 and populated with data collected in a previous asset condition survey. Since then, numerous new assets have been created, along with a greater number of asset renewals. Systems for asset data update have been developed in recent years that may have captured some but not all of the asset additions and replacements. Furthermore, many operational changes have been made; including movement of spares which have not been captured in the register. As part of a comprehensive data review, it is proposed to develop a new asset identification hierarchy. This has been completed for treatment plants. Current asset identity (ID) was arbitrary based on the date stamp at time of entry onto the register. This method of identification is not suitable for use in other management processes such as the maintenance module for above ground assets; where asset location and position in the process are important descriptive factors. The new hierarchy will include a functional location code in addition to retaining current individual asset ID's. Integrated management system Council currently utilises a number of IT operating systems in its asset management processes. AssetFindA access database used as the primary asset register for water, stormwater and wastewater assets. Fixed asset register - XL spreadsheet application used by the finance team, updated from AssetFindA and configured to communicate with the Finance application Tech1 Tech1 Finance application system Pathways access database application for customer service management MEX access database application used by operations contractor for maintenance scheduling and recording. A proposal is currently being considered to change from MEX to AssetFindA to provide an integrated asset management system which will enable easy access and flow of information between Council departments, and provide links from all activities directly to individual assets. Critical asset management Critical assets are not currently identified on the asset register. Some work had previously been carried out at an operational level to identify those assets deemed essential to maintain services during peak demand periods. Spares for these assets were provided and the asset register updated. Further review is required across all assets to formally identify critical assets and put in place both enhanced maintenance procedures and contingency arrangements in the event of failure. It is proposed that critical assets be defined as any asset for whose failure could result in any of the following: A serious public health incident a serious operator health and safety incident

58 Wastewater Activity RENEWAL/REPLACEMENT PLAN PART C 4-5 loss of service to a large number of customers A long term loss of service Significant environmental impacts Asset condition monitoring Future asset condition assessment will assist in the process of planned renewals forecasting. For above ground assets, this could be achieved with some development under the routine maintenance activity. Further facilitation will occur with roll out of the integrated management system. Pipe condition assessment poses more difficulty in accurately establishing asset condition. Improved management of information collection during response to pipe breaks will be of assistance; together with targeted sampling and inspection of operational pipelines. Long term programming Current long term renewals programming have been based on experience, with LTP budgets reflecting renewal expenditure over previous years. As part of the future improvement plan, it is proposed to develop more accurate programs, which will give more certainty over future cash flow projections, reducing the risk of unforeseen expenditure, and assist in timing of other capital investment. Cyclic renewal needs are identified by assessing: Material age Condition reports Maintenance records Impacts on KPI s Asset criticality Observations from maintenance staff.

59 Wastewater Activity NEW WORKS PLAN PART C NEW WORKS PLAN New works are those works that create new assets that did not previously exist, or works which upgrade or improve an existing asset beyond its existing capacity. They may result from growth, legislative, service levels or environmental needs. In addition, assets may be acquired at no direct capital cost to the organisation (i.e. subdivision development). The initial planning stage for new works begins with the identification of a need for capital investment in response to a known risk. A needs statement is then produced setting out the basic issues, risk drivers, a notional solution and proposed funding options. A risk assessment and score is undertaken to assist in determination of project priority and timing. An example of the Proposal Information Form template is shown in Figure 16 Long Term Plans will capture proposed future funding requirements and programs, and are subject to review in accordance with Council s planning procedures. A value management process involving relevant stakeholders is undertaken before project sign off, ensuring decisions result in effective and efficient solutions with due consideration to whole life asset management. Project management is led by council staff using professional services assistance, and following Council s procurement strategy for delivery and implementation. Upon project completion, new assets are recorded on the council register, with responsibility for operation and maintenance passed to the Operations team. Table 27 lists a summary of new works projects planned over the next 10 years, together with proposed budget forecasts and funding sources. The table identifies risk levels and expected completion dates. Project Cost Estimation and Accuracy Levels Table 27 Also lists o list a column detailing the accuracy of the estimates. To understand the variability and uncertainty of new works and projects costs throughout the different phases please refer to Part B Corporate Management, Section Lists a summary of new works projects planned over the next 10 years, together with proposed budget forecasts and funding sources. The table identifies risk levels and expected completion dates. A further detailed breakdown of project forecast costs and cash flow requirements are discussed in Section 15.

60 Wastewater Activity NEW WORKS PLAN PART C 2 Figure 16: Proposal Information Form Proposal Information Form To be used to request funding to be allocated in Long Term Plans or Annual Plans or as a precursor for formation of a Business Case and Project initiation. Include any background documentation you may have but complete this summary as required. Refer to the Guidance Notes before completing. Proposal Information Form Allocated numbers: LTP file. Applied by BPI Project No. Applied by BPI Project/Proposal Name Description Reason for doing the project Linkages to Council s policies and plans Known dependencies and other projects Stakeholders Officer Responsible Activity (as specified in LTP) Name What is the proposal about 2 3 sentences Why? What are the reason(s) for doing this? State known linkages to existing Projects/Goals/KPIs etc. Is this linked to other known outcomes? List Who will be responsible for delivering this do they know?! Roading, Finance, etc. No Year Total Short Year Total Cost Total Cost Rates Rates Loan Funds Funded by Loans Depre n Other Reserve s Reserve s Subsid y Subsidi es Ot he r re ve nu es Ot he r re ve nu e Development Contributions and AMPS % Re ne wal % Re ne wal % Increa sed Servic e % Increa sed Servic e DCF % Growth DCF % Growth

61 Wastewater Activity NEW WORKS PLAN PART C 3 Decision(s) required by SMT: Include in LTP / AP, Proceed with Business Case (State type below), JDI, Other (State below) What decision do you required from SMT put budget into LTP, LTP amendment required, Agree to go for Business Case, feasibility study, etc. Decision of SMT: Decision give by SMT accept / decline / more information etc. Signed: Other requirements: (to be detailed by SMT) please list: Date: SMT to describe any extra work required before they can make a decision/the decision as required by requestor Signed: Date

62 VL L M H VH Wastewater Activity NEW WORKS PLAN PART C 4-4 Figure 17: Project Score Matrix Description VL L M H VH Score Criteria > < 10 1 yr yr. yr. yr. yr. Description VL L M H V H Score PROBABILITY P IMPACTS R O B A B I L I T Y IMPACT VL L M H VH RISK MATRIX Value ID Health and Safety 1 Description IMPACT PROBABILITY Score (P*I) Provision of water not fit to drink due to increase breakages Quality 2 Water quality reduced due to increase damage to pipelines Reliability 3 Loss of service to customers will increase as assets age Environmental 4 Increased wastage of water due to asset failures 2 4 8

63 Wastewater Activity NEW WORKS PLAN PART C 4-5 Sustainability Community Impact Legislation 5 Failure to meet resource consents to abstract water. These consents now state water loss criteria Figure 10 - Projects Needs Statement template TOTAL SCORE 12 No of RISKS 5 RISK SCORE Summary of Future Costs Table 27 below lists wastewater projects to be carried out over the next 10 years. Table 27: Projected Capital Works Expenditure for wastewater Project Name Value Period Wastewater Schemes Bay of Islands - Whangaroa Kaeo Pump Station Safety Improvements Safety Improvements 22, Kaeo Seal Floodable Manholes Prevention 22, Kawakawa Communications to WWTP Site Communications 32, Kawakawa Pump Station Safety Improvements Safety Improvements 3, Kerikeri Pump Station Safety Improvements Safety Improvements 33, Kerikeri Rising Main from Blue Marlin to Kerikeri Reticulation Rising Main 286, Kerikeri Treatment & Reticulation Extensions Reticulation Extensions 20,487, Paihia Mains from Watea to Haruru Falls Treatment Plant Improvement 1,778, Estimate Accuracy C C C C C E C D Risk of Significant Scope Change low low low low low high medium high

64 Wastewater Activity NEW WORKS PLAN PART C 4-6 Project Name Value Period Paihia Odour Reduction from Pump Station at Haruru Falls Prevention 255, Paihia Odour Reduction from Pump Station at Waitangi Prevention 32, Paihia Power Supply Installation Power Supply 450, Paihia Pump Station Emergency Storage at Haruru Falls Emergency Storage 498, Paihia Pump Station Safety Improvements Safety Improvements 66, Paihia Pumping Capacity Improvement Treatment Plant Improvement 886, Paihia Treatment Plant Improvement Treatment Plant Improvement 3,330, Russell Pump Station Safety Improvements Safety Improvements 24, Russell Rising Main at Tapeka Rising Main 376, Russell Telemetry Connection for Flow Meter to SCADA Telemetry 10, District Inflow Infiltration works C/fwd Health & Safety 1,000, Minor Capital Reactive Works Health & Safety 2,844, Kaikohe - Hokianga Kaikohe Improvements Associated with Renewal of Consent Resource Compliance 3,273, Kaikohe Pump Station Safety Improvements Safety Improvements 26, Kaikohe Sludge Treatment Facility Sludge Management 333, Kohukohu Pump Station Safety Improvements Safety Improvements 10, Kohukohu Treatment Plant Improvement Treatment Plant Improvement 157, Ngawha Pump Station and Storage Prevention 140, Opononi Pump Station Safety Improvements Safety Improvements 19, Opononi Treatment Plant Improvement Treatment Plant Improvement 940, Rawene Pump Station Safety Improvements Safety Improvements 16, Rawene Treatment Plant Improvements Treatment Plant Improvement 130, Te Hiku Ahipara Pump Station Safety Improvements Safety Improvements 33, East Coast Communications To WWTP Site Communications 21, East Coast Power Supply Installation Power Supply 118, East Coast Pump Station Safety Improvements Safety Improvements 79, Estimate Accuracy E E C E C E C C D E E E E C E C E C C E C E C C E C Risk of Significant Scope Change medium medium low medium low medium medium low medium low low low high low high low high low low medium low medium low low low low

65 Wastewater Activity NEW WORKS PLAN PART C 4-7 Project Name Value Period East Coast Upgrade to meet consent Treatment Upgrade 896, Hihi Communications to WWTP Site Communications 10, Hihi Inlet Screen Installation Treatment Plant Upgrade 200, Hihi Pump Station Safety Improvements Safety Improvements 6, Kaitaia Basic Treatment of Existing Overflows Option 4 Prevention 500, Kaitaia Improvements Associated with Renewal of Consent Resource Compliance 1,431, Kaitaia Improvements To Septage Disposal Septage Disposal 162, Kaitaia Installation of Algae Reduction System Prevention 833, Kaitaia Pump Station Safety Improvements Safety Improvements 46, Kaitaia Reduction of Wastewater Overflows Option 1 Prevention 13,741, Kaitaia Wave Band Replacement Prevention 220, Rangiputa Easement Purchase for Power Supply Power Supply 43, Whatuwhiwhi Pump Station Safety Improvements Pump Stations 36, Wastewater Sludge Management Kaitaia Sludge drying ponds and associated pipework Sludge 1,534, Estimate Accuracy E C D C E E E E C E B E C C Risk of Significant Scope Change high low medium low high high medium high low high medium low low low

66 Wastewater Activity DISPOSAL PLAN PART C DISPOSAL PLAN Asset Disposal is the retirement or sale of assets whether surplus or superseded by new or improved systems. Assets may become surplus to requirements due to obsolescence, under utilisation, changes in policy, etc. There is currently no agreed plan or program associated with disposal of assets. This section will form part of our future improvement program.

67 Wastewater Activity FINANCIAL PROJECTIONS PART C FINANCIAL PROJECTIONS To undertake a sustainable, long-term approach to asset management, it is essential to prepare long-term financial forecasts. This allows a long term view of how the asset will be managed, how much this will cost and when additional funding may be required to meet expected service levels. These financial forecasts are a culmination of the previously discussed aspects of the Asset Management Plan such as: Community Consultation Levels of Service Demand Management Lifecycle Management Asset Lives Condition Ratings Asset Valuation Sustainability The above forms the basis of the long-term operations, maintenance and capital requirements. Funding requirements have also been included in the financial statements Financial Statements and Projections Table contain the wastewater statement of Financial Performance, which incorporates the projected income and funding sources to fund operational, renewal and capital expenditure Operating Expenditure Operations and maintenance expenditure covers reactive and proactive maintenance corporate management, debt serving, depreciation and interest payable. Operations expenditure is estimated at approximately $13.8 million in 2015/16 (including corporate overheads, debt serving and depreciation). These projections increase over the 10 year period to $17.4 million Renewals Works (Rehabilitation and Replacement) Renewal works includes rehabilitation and replacement of assets to restore an asset to its original level of service, i.e. the required condition. Renewals expenditure forecasts shown in the source and application of funds table in the LTP cover the cost of asset renewal through its whole lifecycle through to disposal of the asset. A total of $15.1 million is budgeted for renewals over the 10-year period Capital Works (New Works) Capital works (new works) involves the creation of new assets, or works, which upgrade or improve an existing asset beyond its current performance in response to changes in usage or customer expectations. New works expenditure forecasts shown in the source and application of funds table in the LTP show a total of $57.3 million is budgeted for new works over the 10-year period.

68 Wastewater Activity FINANCIAL PROJECTIONS PART C Wastewater Income and Expenditure Forecast Table 28: Wastewater Income and Expenditure Forecast Water and Waste District Wide Operating Statement Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Income General Rates 483, , , , , , , , , ,074 Service Rates 10,343,470 11,171,356 12,265,145 13,322,049 14,054,405 14,747,808 15,155,180 15,586,802 16,091,075 16,920,231 Rates Penalties 320, , , , , , , , , ,442 Fees 129, , , , , , , , , ,693 Connections 4,104 4,104 4,104 4,104 4,104 4,104 4,104 4,104 4,104 4,104 Recoveries Total Operating Income 11,281,135 12,146,799 13,247,639 14,409,988 15,064,278 15,700,121 16,107,493 16,539,115 17,043,388 17,872,544 Direct Costs Wastewater Administration 887, , , , ,225 1,025,050 1,052,103 1,088,410 1,119,514 1,153,248 Wastewater Schemes 4,414,164 4,478,443 4,616,795 4,732,539 4,899,987 5,037,910 5,228,274 5,391,868 5,613,028 5,806,698 Septic Tank Response (0) (0) (0) (0) (0) (0) (0) (0) (0) (0) Wastewater Sludge Management 2,730,890 1,912,640 1,470,690 2,402, , , , , , ,709 Interest 1,347,982 1,686,519 2,173,408 2,751,968 2,871,702 3,071,434 3,006,714 2,952,894 2,888,794 3,025,232 Depreciation 3,738,320 4,017,203 4,262,578 4,613,039 4,822,221 5,049,341 5,268,967 5,513,857 5,766,927 6,138,726 Total Direct Operating Expenditure 13,118,942 13,018,508 13,466,093 15,468,318 13,916,099 14,523,584 14,906,448 15,308,968 15,762,493 16,511,613 Indirect Costs 736, , , , , , , , , ,611 Total Indirect Costs 736, , , , , , , , , ,611 Total Operating Expenditure 13,855,503 13,766,998 14,225,771 16,246,524 14,709,220 15,339,009 15,740,469 16,166,625 16,640,824 17,413,224 Net Operating Surplus/(Deficit) (2,574,368) (1,620,199) (978,132) (1,836,536) 355, , , , , ,320 Funding Net Profit/(Loss) (2,574,368) (1,620,199) (978,132) (1,836,536) 355, , , , , ,320 External Loans Raised 2,705,890 1,887,015 1,444,397 2,375, , , , , , ,061 Development Contributions Repaid (78,824) (78,824) (183,922) (183,922) (183,922) (183,922) (183,922) (183,922) (183,922) (183,922) Depreciation Renewal Fund Withdrawals 962,079 3,992,345 6,015,904 3,516,398 1,014,899 2,707,583 4,715,812 2,629, ,864 1,516,747

69 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-3 Water and Waste District Wide Depn Debt Funding Withdrawal 1,970,785 2,256,500 2,529,750 2,942,869 3,035,444 3,141,533 3,246,867 3,300,602 3,239,681 3,355,023 Retained Earnings Generated (Opex) 2,574,368 1,620, ,132 1,836,536 (355,058) (361,112) (367,024) (372,490) (402,564) (459,320) Retained Earnings Withdrawals EB (2,574,368) (1,620,199) (978,132) (1,836,536) 355, , , , , ,320 Notional Loans Raised 5,737,800 6,116,980 11,010,377 2,917,941 2,597,716 2,323,008 2,602,024 2,503,018 5,557,320 3,374,676 Total Capital Expenditure 8,723,362 12,553,817 19,838,374 9,731,771 7,121,374 8,660,546 11,068,690 8,952,680 9,948,224 8,876,905 Capital Expenditure Capital Projects New 5,737,800 6,116,981 11,010,376 2,917,942 2,597,716 2,323,008 2,602,024 2,503,018 5,557,320 3,374,676 Capital Projects Renewal 962,079 3,992,346 6,015,905 3,516,398 1,014,899 2,707,583 4,715,812 2,629, ,864 1,516,747 Debt Repayment 2,023,483 2,444,493 2,812,093 3,297,433 3,508,758 3,629,956 3,750,853 3,820,631 3,801,040 3,985,482 Total Capital Expenditure 8,723,362 12,553,820 19,838,374 9,731,773 7,121,373 8,660,547 11,068,689 8,952,680 9,948,224 8,876,905 NET SURPLUS / (DEFICIT) 0 (3) 0 (2) 1 (1) Table 28 last updated: 11/08/2015

70 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-4 Figure 18: Wastewater Operating Expense Figure 18 shows the total Operating Expense for the next 10 years including depreciation and Interest. The Activity Cost is estimated at $13.8 million in 2015/16 and increases to $17.4 million in 2024/25. This equates to an increase of approximately $3.6 million over the 10 year period. Interest values show the marginal cost of interest expense on the proposed programme. Capital projects increase depreciation payable which when adjusted for inflation will impact on available funding and the depreciation included in this plan. Depreciation is estimated at $3.7 million in 2015/16 and increases to $6.1 million in 2024/25, equating to an increase of approximately $2.4 million over the 10 year period.

71 Wastewater Activity FINANCIAL PROJECTIONS PART C Future Infrastructural Asset & Land Values Table 29: Future Infrastructural Asset (Optimised Replacement Value) & Land Values Asset Type Commissioned Assets Incl Work In Progress Wastewater Administration 85, , , ,213 85,227 85,227 85,227 85,227 85,227 85,227 85,227 85,227 Wastewater Schemes 209,415, ,227, ,928, ,326, ,111, ,491, ,902, ,125, ,627, ,535, ,953, ,227,997 Septic Tank Response Wastewater Sludge Management 1,534,392 1,534, ,126 1,534,392 1,534,392 Total 211,034, ,888, ,054, ,452, ,196, ,576, ,987, ,210, ,712, ,115, ,572, ,847,615 Figure 19: Estimated Infrastructure Asset Value (Optimised Replacement Value) Table 29 last updated: 11/08/2015 Figure 19: shows an upward trend for Optimised Replacement Value from the current year with a value of approximately $177.0 million in 2015/16 to $214.8 million in 2024/25, equating to a increase in replacement cost of approximately $37.8 million.

72 Wastewater Activity FINANCIAL PROJECTIONS PART C Infrastructural Asset Depreciation (Current & Future Values) Table 30: Infrastructural Asset Depreciation (Current Values) Table 31: Infrastructural Asset Depreciation (Future Values) Table 30 last updated: 17/2/2015 Table 31 last updated: 17/2/2015

73 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-7 Figure 20: Depreciation Requirements Figure 20 shows the resultant increase in depreciation for the proposed 10 year new works programme from $3.7 million in 2015/16 to $4.6 million in 2024/25, an increase of approximately $900 thousand. The Forecast Depreciation (Inflation Adjusted) line shows the impact of inflation on the base assets and proposed new works.

74 Wastewater Activity FINANCIAL PROJECTIONS PART C Future Infrastructural Asset & Land Values Table 32: Future Infrastructural Asset (Optimised Depreciated Replacement Value) & Land Values Commissioned Assets Incl Work In Progress Asset Type Wastewater Administration 70,645 70,645 70,645 70,645 70,645 70,645 70,645 70,645 70,645 70,645 70,645 70,645 Wastewater Schemes 103,565, ,565, ,968, ,102, ,475, ,196, ,854, ,218, ,772, ,630, ,909, ,866,320 Septic Tank Response Wastewater Sludge Management , , , , , , , ,213 1,909,674 1,854,987 Total 103,636, ,636, ,528, ,650, ,011, ,721, ,366, ,718, ,259, ,598, ,889, ,791,952 Figure 21: Estimated Infrastructural Asset Value (Optimised Depreciated Replacement Value) Table 32 last updated: 11/08/2015 Figure 21 shows an upward trend for Optimised Depreciated Replacement Value from the current year with a value of approximately $112.5 million in 2015/16 to $142.8 million in 2024/25, equating to an increase in depreciated replacement cost of approximately $30.3 million over the next 10 year period.

75 Wastewater Activity FINANCIAL PROJECTIONS PART C Capital Works funding sources Table 33 shows the capital costs analysed under the headings: new (loans) and renewal works. Table 33: Budgeted New Works Priorities and Drivers Asset Project Name Loan New Subsidy Renewal Subsidy Renewal Project Cost Health & Safety Inflow Infiltration works C/fwd -100, ,000 Health & Safety Minor Capital Reactive Works -250, ,000 Power Supply Paihia Power Supply Installation -450, ,000 Prevention Kaitaia Basic Treatment of Existing Overflows Option 4-100, ,000 Prevention Kaitaia Reduction of Wastewater Overflows Option 1-40, ,000 Prevention Paihia Odour Reduction from Pump Station at Haruru Falls -200, ,000 Reticulation Extensions Kerikeri Treatment & Reticulation Extensions -682, ,000 Treatment Plant Improvement Paihia Treatment Plant Improvement -3,200, ,200,000 Treatment Plant Upgrade Hihi Inlet Screen Installation -200, ,000 Wastewater Renewals East Coast upgrade to meet consent -75, ,000 Total ,297, ,500 5,800, Health & Safety Inflow Infiltration works C/fwd -100, ,000 Health & Safety Minor Capital Reactive Works -256, ,250 Prevention Kaitaia Basic Treatment of Existing Overflows Option 4-100, ,000 Prevention Kaitaia Reduction of Wastewater Overflows Option 1-100, ,000 Reticulation Extensions Kerikeri Treatment & Reticulation Extensions -4,992, ,132,625 Wastewater Renewals East Coast upgrade to meet consent -150, ,000 Total ,699, ,439,788 8,138, Health & Safety Inflow Infiltration works C/fwd -100, ,000

76 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-10 Health & Safety Minor Capital Reactive Works -262, ,925 Prevention Kaitaia Reduction of Wastewater Overflows Option 1-1,041, ,603,400 Reticulation Extensions Kerikeri Treatment & Reticulation Extensions -8,628, ,325,729 Treatment Plant Improvement Kohukohu Treatment Plant Improvement -157, ,755 Wastewater Renewals East Coast upgrade to meet consent -525, ,850 Total ,715, ,259,759 15,975, Communications East Coast Communications To WWTP Site -21, ,602 Communications Hihi Communications to WWTP Site -10, ,801 Communications Kawakawa Communications to WWTP Site -32, ,403 Emergency Storage Paihia Pump Station Emergency Storage at Haruru Falls -54, ,005 Health & Safety Inflow Infiltration works C/fwd -100, ,000 Health & Safety Minor Capital Reactive Works -270, ,025 Power Supply East Coast Power Supply Installation -118, ,811 Power Supply Rangiputa Easement Purchase for Power Supply -43, ,204 Prevention Kaitaia Reduction of Wastewater Overflows Option 1-1,480, ,700,000 Prevention Paihia Odour Reduction from Pump Station at Waitangi -27, ,403 Pump Stations Whatuwhiwhi Pump Station Safety Improvements -16, ,202 Reticulation Extensions Kerikeri Treatment & Reticulation Extensions -37, ,005 Safety Improvements East Coast Pump Station Safety Improvements -32, ,403 Safety Improvements Hihi Pump Station Safety Improvements -6, ,481 Safety Improvements Kaeo Pump Station Safety Improvements -22, ,682 Safety Improvements Kaitaia Pump Station Safety Improvements -21, ,602 Safety Improvements Kawakawa Pump Station Safety Improvements -3, ,240 Safety Improvements Opononi Pump Station Safety Improvements -19, ,442 Safety Improvements Paihia Pump Station Safety Improvements -21, ,602 Septage Disposal Kaitaia Improvements To Septage Disposal -162, ,015 Telemetry Russell Telemetry Connection for Flow Meter to SCADA -10, ,801 Wastewater Renewals East Coast upgrade to meet consent -146, ,050

77 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-11 Total ,658, ,241,062 4,899, Emergency Storage Paihia Pump Station Emergency Storage at Haruru Falls -444, ,560 Health & Safety Inflow Infiltration works C/fwd -100, ,000 Health & Safety Minor Capital Reactive Works -277, ,850 Prevention Kaeo Seal Floodable Manholes -22, ,228 Prevention Kaitaia Installation of Algae Reduction System -833, ,550 Prevention Kaitaia Wave Band Replacement -176, ,001 Prevention Paihia Odour Reduction from Pump Station at Haruru Falls -55, ,570 Pump Stations Whatuwhiwhi Pump Station Safety Improvements -20, ,005 Safety Improvements Ahipara Pump Station Safety Improvements -33, ,342 Safety Improvements East Coast Pump Station Safety Improvements -33, ,342 Safety Improvements Kaikohe Pump Station Safety Improvements -26, ,674 Safety Improvements Kaitaia Pump Station Safety Improvements -24, ,451 Safety Improvements Kerikeri Pump Station Safety Improvements -22, ,228 Safety Improvements Paihia Pump Station Safety Improvements -22, ,228 Safety Improvements Rawene Pump Station Safety Improvements -16, ,671 Sludge Management Kaikohe Sludge Treatment Facility -333, ,420 Total ,442, ,000 2,486, Health & Safety Inflow Infiltration works C/fwd -100, ,000 Health & Safety Minor Capital Reactive Works -286, ,175 Prevention Kaitaia Reduction of Wastewater Overflows Option 1-915, ,289,400 Rising Main Kerikeri Rising Main from Blue Marlin to Kerikeri Reticulation -286, ,175 Safety Improvements East Coast Pump Station Safety Improvements -13, ,736 Safety Improvements Kerikeri Pump Station Safety Improvements -11, ,447 Safety Improvements Kohukohu Pump Station Safety Improvements -10, ,302 Safety Improvements Paihia Pump Station Safety Improvements -22, ,894 Safety Improvements Russell Pump Station Safety Improvements -24, ,039

78 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-12 Treatment Plant Improvement Opononi Treatment Plant Improvement -114, ,470 Treatment Plant Improvement Paihia Pumping Capacity Improvement -228, ,175 Total ,013, ,430,875 3,444, Health & Safety Inflow Infiltration works C/fwd -100, ,000 Health & Safety Minor Capital Reactive Works -295, ,050 Prevention Kaitaia Reduction of Wastewater Overflows Option 1-944, ,360,400 Treatment Plant Improvement Opononi Treatment Plant Improvement -826, ,140 Treatment Plant Improvement Paihia Pumping Capacity Improvement -236, ,050 Total ,401, ,475,250 3,876, Health & Safety Inflow Infiltration works C/fwd -100, ,000 Health & Safety Minor Capital Reactive Works -304, ,775 Prevention Kaitaia Reduction of Wastewater Overflows Option 1-975, ,438,200 Resource Compliance Kaikohe Improvements Associated with Renewal of Consent -121, ,910 Rising Main Russell Rising Main at Tapeka -48, ,955 Treatment Plant Kaitaia Sludge Drying Ponds & Associated Pipework -495, ,126 Treatment Plant Improvement Paihia Pumping Capacity Improvement -243, ,775 Total ,289, ,536,066 3,825, Health & Safety Inflow Infiltration works C/fwd -100, ,001 Health & Safety Minor Capital Reactive Works -315, ,125 Resource Compliance Kaikohe Improvements Associated with Renewal of Consent -3,151, ,151,250 Resource Compliance Kaitaia Improvements Associated with Renewal of Consent -126, ,050 Rising Main Russell Rising Main at Tapeka -252, ,125 Treatment Plant Kaitaia Sludge Drying Ponds & Associated Pipework -1,039, ,039,266 Treatment Plant Improvement Paihia Mains from Watea to Haruru Falls -302, ,150 Total ,286, ,655 5,424,967

79 Wastewater Activity FINANCIAL PROJECTIONS PART C Health & Safety Inflow Infiltration works C/fwd -100, ,001 Health & Safety Minor Capital Reactive Works -326, ,475 Resource Compliance Kaitaia Improvements Associated with Renewal of Consent -1,305, ,305,900 Treatment Plant Improvement Paihia Mains from Watea to Haruru Falls -1,119, ,399,925 Treatment Plant Improvement Paihia Treatment Plant Improvement -130, ,590 Treatment Plant Improvement Rawene Treatment Plant Improvements -130, ,590 Total ,113, ,985 3,393,481 TOTAL Table 33 last updated: 11/08/2015

80 Wastewater Activity FINANCIAL PROJECTIONS PART C Budgeted Capital Works Table 34 outlines the New Works Forecast Expenditure by project. Over the next 10-years Council has budgeted to spend $57.3 million on new assets. Table 34: Budgeted Capital Works Forecast Expenditure by Project Project Name Wastewater Schemes Bay of Islands - Whangaroa Kaeo Pump Station Safety Improvements , Kaeo Seal Floodable Manholes , Kawakawa Communications to WWTP Site , Kawakawa Pump Station Safety Improvements , Kerikeri Pump Station Safety Improvements ,228 11, Kerikeri Rising Main from Blue Marlin to Kerikeri Reticulation , Kerikeri Treatment & Reticulation Extensions 975,000 7,132,625 12,325,729 54, Paihia Mains from Watea to Haruru Falls ,150 1,399,925 Paihia Odour Reduction from Pump Station at Haruru Falls 200, , Paihia Odour Reduction from Pump Station at Waitangi , Paihia Power Supply Installation 450, Paihia Pump Station Emergency Storage at Haruru Falls , , Paihia Pump Station Safety Improvements ,602 22,228 22, Paihia Pumping Capacity Improvement , , , Paihia Treatment Plant Improvement 3,200, ,590 Russell Pump Station Safety Improvements , Russell Rising Main at Tapeka , ,125 0 Russell Telemetry Connection for Flow Meter to SCADA , District Inflow Infiltration works C/fwd 100, , , , , , , , , ,001 Minor Capital Reactive Works 250, , , , , , , , , ,475 Kaikohe - Hokianga Kaikohe Improvements Associated with Renewal of Consent ,910 3,151,250 0 Kaikohe Pump Station Safety Improvements , Kaikohe Sludge Treatment Facility ,

81 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-15 Project Name Kohukohu Pump Station Safety Improvements , Kohukohu Treatment Plant Improvement , Opononi Pump Station Safety Improvements , Opononi Treatment Plant Improvement , , Rawene Pump Station Safety Improvements , Rawene Treatment Plant Improvements ,590 Te Hiku Ahipara Pump Station Safety Improvements , East Coast Communications To WWTP Site , East Coast Power Supply Installation , East Coast Pump Station Safety Improvements ,403 33,342 13, East Coast upgrade to meet consent 75, , , , Hihi Communications to WWTP Site , Hihi Inlet Screen Installation 200, Hihi Pump Station Safety Improvements , Kaitaia Basic Treatment of Existing Overflows Option 4 250, , Kaitaia Improvements Associated with Renewal of Consent ,050 1,305,900 Kaitaia Improvements To Septage Disposal , Kaitaia Installation of Algae Reduction System , Kaitaia Pump Station Safety Improvements ,602 24, Kaitaia Reduction of Wastewater Overflows Option 1 100, ,000 2,603,400 3,700, ,289,400 2,360,400 2,438, Kaitaia Wave Band Replacement , Rangiputa Easement Purchase for Power Supply , Whatuwhiwhi Pump Station Safety Improvements ,202 20, TOTAL: Wastewater Schemes 5,800,000 8,138,875 15,975,659 4,899,779 2,486,120 3,444,813 3,876,640 3,330,615 4,385,701 3,393,481 Wastewater Sludge Management Te Hiku Kaitaia Sludge Drying Ponds & Associated Pipework ,126 1,039,266 0 TOTAL: Wastewater Sludge Management ,126 1,039,266 0 TOTAL 5,800,000 8,138,875 15,975,659 4,899,779 2,486,120 3,444,813 3,876,640 3,825,741 5,424,967 3,393,481

82 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-16 Table 34 last updated: 11/08/2015

83 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-17 Figure 22: Budgeted New Capital Requirements Figure 22 shows the capital works programmed for wastewater and the spikes in the first three years are primarily relating to the Paihia Treatment Plant and the Kerikeri Treatment and Reticulation Extensions.

84 Wastewater Activity FINANCIAL PROJECTIONS PART C Budgeted Renewal Works Table 35 outlines the Budgeted Renewals Expenditure by Project. A total of $15.1 million is budgeted for renewals over the 10-year period. Table 35: Budgeted Renewals Expenditure By Project Project Name Wastewater Schemes Bay of Islands - Whangaroa Kaeo Discharge Consent ,307 18, Kaeo Pump Station Upgrades 40, Kaeo Wastewater Renewals 0 13, , ,250 3, ,020 Kawakawa I/I Reduction Mill Road 0 51, , Kawakawa Pipe Bridge Replacement Waiomio Stream 100, Kawakawa Wastewater Renewals , , ,147 15,551 21,689 0 Kawakawa WWTP Clarifier , Kerikeri Discharge Consent 90,000 10, Kerikeri Wastewater Renewals 0 0 6, ,216 11,295 Paihia Discharge Consent ,669 44,118 0 Paihia Pump Station 1 Upgrade Opua Marina 200, Paihia Pump Station 12 Upgrade Haruru Falls 0 205, Paihia Pump Station 16 Upgrade Causeway Road , Paihia Pump Station 17 Upgrade Orchard Road 0 76, Paihia Pump Station 19 Upgrade Thompson King , Paihia Pump Station 22 Upgrade Sullivans Road , Paihia Pump Station 25 Upgrade Franklin Road , Paihia Pump Station 4 Upgrade Lonely Valley , Paihia Pump Station 6 Upgrade Te Haumi Bridge ,295 Paihia Pump Station 7 Upgrade Tohitapu Road , Paihia Wastewater Renewals 8,430 3,702 11,697 19, ,759 27, ,723 42,772 Russell Discharge Consent ,382 63,025 0

85 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-19 Project Name Russell Wastewater Renewals 13, ,150 6,546 86,558 30,316 28, , ,194 20,128 0 Russell WWTP Dispoal Bores 0 307, District District Wide Telemetry Upgrades 0 205, , , , , , , , ,180 District Wide Wastewater Renewals , ,304 13, ,105 0 Kaikohe - Hokianga Kaikohe Discharge Consent ,853 29, Kaikohe Pump Station 3 Upgrade Tawa Street , Kaikohe Pump Station 5 Upgrade Windsor Street ,295 Kaikohe Pump Station 9 Upgrade McDonalds ,025 0 Kaikohe Wastewater Renewals ,141 36,780 3,173 24,945 1,554, ,779 0 Kohukohu Discharge Consent 50,000 20, Kohukohu Wastewater Renewals ,935 11,461 6, , Opononi Discharge Consent ,408 22, Opononi Tidal Outflow Controls 10, Opononi Wastewater Renewals ,303 42,807 8, ,394 25,889 2,446 9,144 14,301 Rawene Discharge Consent ,669 44,118 0 Rawene Wastewater Renewals , , , ,209 2,842 0 Te Hiku Ahipara Wastewater Renewals 795 5, ,914 32,115 48,101 35, ,975 31,272 Ahipara Wave Band Replacement ,025 0 Awanui Wastewater Renewals ,224 14,430 0 East Coast Wastewater Renewals 5,551 3, ,895 40, , ,676 4,284 18,499 1,713 Hihi Discharge Consent ,406 24, Hihi Wastewater Renewals 0 5, ,683 54,028 12, ,759 6,300 0 Kaitaia Discharge Consent ,853 29, Kaitaia Pump Station 10 Upgrade Terry Cresent , Kaitaia Pump Station 11 Upgrade Triboard Mill , Kaitaia Pump Station 12 Upgrade Rongopai Place ,

86 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-20 Project Name Kaitaia Pump Station 13 Upgrade Rugby Park , Kaitaia Pump Station 14 Upgrade South Road 50, Kaitaia Pump Station 15 Upgrade Community Centre ,295 Kaitaia Pump Station 16 Upgrade Ahipara Road , Kaitaia Pump Station 17 Upgrade Treatment Plant 0 123, Kaitaia Pump Station 4 Upgrade Te Maire Avenue 150, Kaitaia Pump Station 5 Upgrade Church Road , Kaitaia Pump Station 6 Upgrade Jamieson Street , Kaitaia Pump Station 7 Upgrade North Road Intermediate School , Kaitaia Wastewater Renewals 180,456 2,946 1, , , ,179 71, , ,150 Rangiputa Wastewater Renewals , Whangaroa Wastewater Renewals , Whatuwhiwhi Discharge Compliance ,605 78,354 Whatuwhuiwhi Wastewater Renewals , ,923 4, TOTAL: Wastewater Schemes 899,879 1,970,450 1,050,352 1,534,560 1,126,495 1,585,778 3,370,319 1,306, ,217 1,497,942 Wastewater Sludge Management Bay of Islands - Whangaroa Kawakawa Sludge Management Renewals , Kaikohe - Hokianga Kaikohe Sludge Management Renewals , Rawene Sludge Management Renewals , TOTAL: Wastewater Sludge Management , TOTAL 899,879 1,970,450 1,050,352 1,534,560 1,126,495 1,585,778 3,370,319 1,306, ,217 1,497,942 Table 35 last updated: 17/08/2015

87 Wastewater Activity FINANCIAL PROJECTIONS PART C 4-21 Figure 23: Budgeted Renewals Requirements Figure 23 shows the total renewals throughout the District over the 10-year period.

88 Wastewater Activity FINANCIAL PROJECTIONS PART C Relationship between Renewals and Depreciation Figure 24 compares the proposed 10 year renewal expenditure with the Forecast Depreciation. Depreciation rated is the amount funded by rates based on asset values and expected lives. The Renewal Expenditure is the programmed renewals expenditure. The Depreciation funded is the portion of the programmed expenditure that can be funded from the depreciation collected. The difference between the cost of renewals and depreciation funding is funded as new capital. This difference can be created by different means including the cost of renewal being greater than the expected replacement cost, or depreciation started part way through the assets life, or increasing the level of service. The resultant increase in depreciation from $3.7 million in 2015/16 to $6.1 million in 2024/25 is approximately $2.4 million. Funded Depreciation is the depreciation funded from rates. There are a number of years where the depreciation expenditure exceeds the renewal expenditure. This is as a result of depreciation expenditure being used to partially fund capital expenditure. This occurs where there is a minor renewal component associated with capital works. Figure 24: Depreciation Provision V Renewals Expenditure