Section 2: Draft Auckland 30 Year Infrastructure Strategy Long-term Plan (LTP)

Transcription

1 Section 2: Draft Auckland 30 Year Infrastructure Strategy Long-term Plan (LTP) Prepared under Section 101B of the Local Government Act for the following Auckland Council infrastructure: Water Wastewater Stormwater Transport Community facilities and open space

2 Contents Executive Summary Introduction... 4 Purpose... 5 The Auckland context An overview of our infrastructure assets Auckland Council s Role in Providing Infrastructure Demographic context Auckland s Physical Context Auckland s Strategic Context Significant Infrastructure Issues Drivers of demand for infrastructure Funding Constraints Our infrastructure strategy The Auckland Plan Development Strategy Implementation and Spatial Prioritisation Mechanisms to help manage demand for infrastructure Smart / Transformative infrastructure investment Strategic long-term network/systems planning Efficient and innovative asset management New funding and delivery mechanisms Monitoring Programme for Growth Infrastructure investment summary Total Expenditure Major Transport Capital Works Programme Major Wastewater Capital Works Programme Major Water Supply Capital Works Programme Major Stormwater and Flood Control Capital Works Programme Major Community Facilities Capital Works Programme Major Public Open Space Capital Works Programme Appendix 1 Key Assumptions Appendix 2 Transport renewals... 55

3 Infrastructure demand Funding constraints Section 2: Draft Auckland 30 Year Infrastructure Strategy Executive Summary Infrastructure provides a foundation for building strong and resilient communities. This Strategy sets out the Auckland Council s existing infrastructure base for water, wastewater, stormwater, community facilities and parks and open space. The Strategy then identifies the significant pressures on this infrastructure demand led by; Auckland s growth, demographic change, service level expectations, environmental sustainability, resilience and the condition of existing assets. It also recognises that this infrastructure demand is happening in an environment where there are funding constraints. The Auckland Plan sets in place a 30 year vision for Auckland to be the world s most liveable city. This strategy builds on this vision, providing a package of mechanisms that will respond to the challenges that Auckland faces. This is illustrated in the following diagram. Growth Demographic changes Trade-offs and key strategies Service level expectations Environmental sustainability Resilience Infrastructure plans and tools for the world s most liveable city Asset condition The package of policy responses developed as part of the Strategy comprises: 1. The Auckland Plan Development Strategy Implementation and Spatial Prioritisation 2. Management of the demand for infrastructure 3. Smart investment / transformative infrastructure investment 4. Infrastructure provision aligned across the networks 5. Efficient and innovative asset management 6. Additional funding tools 7. A monitoring programme for growth. The Strategy then sets out an investment summary for the period and the major infrastructure projects that have been identified during this period.

4 1 Introduction Auckland is a young city with a bold vision to become the world s most liveable city. Auckland consistently ranks highly for its quality of life and is working to build a reputation as a city which is business friendly. The success of Auckland is important for the success of New Zealand. As one integrated council we now have a greater ability to plan and deliver the infrastructure that is needed across Auckland as a foundation for our communities, homes and workplaces. Auckland is supported by a broad range of infrastructure networks based on pipes, reservoirs, dams, treatment plants, roads, footpaths, cycleways and public transport services, parks and community facilities. This core Auckland Council infrastructure is the focus on this strategy. This infrastructure underpins Auckland as a city; protecting public health, by providing clean drinking water and ensuring our waste is removed and treated. It facilitates the movement of people and goods enabling economic and social exchanges essential for the viability, health and development of Auckland. It provides the public spaces and community spaces that benefit the social and cultural wellbeing of Aucklanders. Infrastructure also protects our homes and businesses from flooding and inundation from the sea, while working to reduce the harmful effects of urban activity on the natural environment. Investing in infrastructure has a direct benefit on Auckland s and New Zealand s economy and enables Auckland s businesses to be internationally competitive. Decades of underinvestment combined with rapid growth, however, means that Auckland now faces substantial demand for new and expanded infrastructure. Rising community expectations, changing demographics, the need to improve environmental sustainability and resilience to natural disasters all add to this demand. At the same time, we also need to look after Auckland s large existing asset base. Infrastructure is a big ticket item and the cost of meeting this demand is substantial. Many of the projects that will be needed to underpin Auckland s ongoing success as it grows will require significant capital investment and on-going operational costs. However for Auckland to be successful, it must be also an affordable place to live, work and do business. Despite significant funding streams from central government and potential opportunities to partner with the private sector, this will inevitably mean that funding for Auckland infrastructure will be constrained.

5 Infrastructure demand Funding constraints Section 2: Draft Auckland 30 Year Infrastructure Strategy 2 Purpose Articulate how we will manage infrastructure demand A key purpose of this strategy is to set out how we are going to manage the major drivers of demand for Auckland s infrastructure over the next 30 years within a constrained funding environment. This is illustrated in the following diagram (figure 1). Auckland has a bold vision to be the world s most liveable city. Achieving this will require us to prioritise in order to make the most of available funding. Growth Demographic changes Trade-offs and key strategies Service level expectations Environmental sustainability Resilience Infrastructure plans and tools for the world s most liveable city Asset condition Figure 1 Auckland s Infrastructure Strategy Provide a long-term perspective Infrastructure assets have long-term impacts as many of their life spans are greater than the 30 year term of this strategy. Many also are transformational in nature in that they are likely to influence the form of our city in addition to the way it functions. As illustrated in the diagram below (figure 2), history demonstrates that past infrastructure projects have had a powerful influence on Auckland s current urban form in terms of where housing and businesses are located, and how future growth can be accommodated. For these reasons it is important that we make the right decisions about what infrastructure we need, where we need it, and when it is needed.

6 Figure 2 Auckland City Shaping Projects and Urban Form This strategy therefore focuses on understanding our medium to long-term infrastructure requirements, which would subsequently inform our shorter term (Long-term Plan) decision-making. By taking a long-term view, we can assess whether there are potential investment gaps or affordability issues beyond the 10 year horizon of the Long-term Plan. Signalling our longer term view also provides direction to the wider community, including other infrastructure and skills training providers, which informs and supports their long term planning. Coordinate effective and efficient infrastructure management Infrastructure investment also delivers a broad range of wider benefits to Auckland. Infrastructure provides a foundation for Auckland. Beyond the immediate impact on the land use patterns of Auckland, it has wider economic, environmental, social and cultural benefits as shown in the following table. Table 1 Wider Benefits of Infrastructure Economic Benefits Improves international competiveness Increases business activity Increases attractiveness for investment Attractiveness for people living in or visiting Auckland Environmental Benefits Minimises impacts on the environment Enables environmental standards to be met Increases resilience to climate change and natural hazards

7 Social Benefits Greater social cohesion Improves access to jobs, education community and recreation facilities Increases opportunities for children and young people Provides public health benefits Cultural Benefits Increases investment opportunities for Māori Supports papakaianga Strengthens community participation, spirit and resilience This strategy will help ensure that our investment in infrastructure can achieve the potential benefits as efficiently and effectively as possible. This will require coordination. This strategy aims to be a focal point for coordinating and integrating individual plans for individual assets and providing a coherent perspective across asset groups.

8 3 The Auckland context 3.1 An overview of our infrastructure assets Auckland Council and council-controlled organisations have an extensive infrastructure portfolio, with assets estimated at over $29 billion. This ranges from the pipes under the ground to the roads and community facilities. In some cases assets serve multiple purposes for example, stormwater reserves which serve as open space. Some key information about each of the infrastructure types dealt with in this strategy is provided below 1. Transport, including roading, footpaths, parking and public transport Auckland s transport system is one of the region s most valuable assets, at $15 billion.. This includes; 7,227km of roads, 6,879km footpaths, 1021 major bridges and culverts, 42 rail stations, 27 park and ride sites, 21 wharves and ferry facilities, 171 off-street car park sites and 19 parking buildings. Auckland Transport is a council-controlled organisation which is responsible for the development, operation and management of all of Auckland s local land transport services 2. Integrated planning with other transport providers such as the New Zealand Transport Agency (NZTA) and Kiwirail is a key role. The primary sources of funding for Auckland Transport are the council (60 per cent) and the New Zealand Transport Agency (28 per cent) with the remaining 12 per cent coming from operating revenues including user charges and fees. Water supply and wastewater Watercare Services Limited is a council-controlled organisation responsible for the provision of Auckland s safe and reliable drinking water and the treatment of wastewater to a high standard and in an environmentally sustainable manner 3. Watercare has $8.4 billion worth of assets including; 12 Dams, 14 bores and springs, 3 river sources, 21 water treatment plans, 84 reservoirs, 8,800km clean water pipes, 90 water pump stations, 7,700km wastewater pipes, 537 wastewater pump stations and 20 wastewater treatment plants. During 2014 Watercare provided 326million litres of water each day on average. Watercare is required to fund its own activities as it does not receive any funding from Auckland Council or central government. Stormwater and flood control Auckland Council has $4 billion of stormwater assets including 6,000km of stormwater pipes, 20,000km of streams, 150,000 manholes and 370 ponds and wetlands. The council manages and operates this stormwater infrastructure ensuring that stormwater flows are managed cost-effectively and adverse impacts on public health and safety, the environment, public and private property and the economy are reduced. The water quality of our harbours and waterways is particularly related to stormwater management. Stormwater and flood control are funded out of the council s general rate. The council works to minimise the potential for damage to both Auckland s natural and built environments and to limit the disruption in basic services should flood events happen. Parks, community and lifestyle Auckland Council has $5 billion worth of parks, community and lifestyle assets, this includes; 26 regional parks, 2,838 local parks, 241 sports parks, 73 libraries, 51 community houses/centres, 41 recreational facilities and 30 art facilities. 1 For more detailed information please refer to the Integrated Transport Programme (ITP) and Asset Management Plans for Watercare, Stormwater, Parks and Open Space. 2 Excluding state highway network and the rail corridor which is the responsibility of the New Zealand Transport Agency and Kiwi Rail respectively. 3 with the exception of Papakura, where Veolia Water retails water and wastewater services to homes and businesses under a franchise agreement

9 3.2 Auckland Council s Role in Providing Infrastructure The council operates within a legislative and regulatory framework that includes the Local Government Act the Resource Management Act, the Land Transport Management Act, as well as other national standards and policy statements; these direct the way in which the council invests in and manages infrastructure. Auckland Council has a number of roles in the planning and delivery of infrastructure and is a major investor across a broad range of infrastructure types. It also has a regulatory role; designating, consenting, monitoring and developing new planning rules and policy for infrastructure. It is also a facilitator, working with other infrastructure providers to deliver affordable services to residents and businesses. Investor/Provider Facilitator Regulator Direct investor in and provider of infrastructure Contracting of infrastructure services to third parties Organiser of private public partnerships Provides funding to community groups Table 2: Auckland Council s role in providing infrastructure 3.3 Demographic context Promotes private investment in Auckland Organises industry advisory groups and panels Works with communities to assist in infrastructure development Develops regional planning frameworks (within a national context) for integrated land-use and infrastructure Processes resource consents, notices of requirement, outline plans, and plan changes Produces new planning regulations e.g. Proposed Auckland Unitary Plan Auckland has diverse demographic characteristics and different parts of Auckland have different demographic characteristics. Auckland is home to over 180 ethnicities and almost 39 per cent of Aucklanders were born outside New Zealand. Whilst the majority of Auckland s population is New Zealand European (59 per cent), we also have the largest Polynesian population of any city of the world (15 per cent), around 11 per cent of our residents identify as Māori and 23 per cent are Asian. Like many other parts of New Zealand Auckland s population is aging and between 2006 and 2013 we experienced a 27 per cent increase in the number of residents aged 65 years and over (an additional 34,608 older people). However, our population is, on average, younger than the rest of New Zealand and this is particularly apparent in some parts of Auckland where there are high concentrations of children and young people. 3.4 Auckland s Physical Context Auckland covers almost 500,000ha, from Te Hana in the north, to Waiuku on the edge of the Manukau Harbour in the south. It is home to a range of outstanding natural features. These defining features contribute significantly to Aucklanders' quality of life but also present some challenges for Auckland s infrastructure. The shape and nature of Auckland s urban form has been significantly influenced by its setting and natural features. Auckland is built on a narrow isthmus bordered by the Waitematā and Manukau harbours. Despite being New Zealand s largest city over 70 per cent of Auckland s landmass is rural. These rural areas vary from productive pastures for livestock, agriculture, horticulture and equestrian activities, to forestry areas and areas of protected native bush.

10 Much of Auckland is built on the Auckland Volcanic Field which covers 360 square kilometres and contains at least 50 volcanoes. The geology of Auckland means that some areas are prone to land instability 4. There are differences in ability of soils to drain and over time Auckland s land surface has been extensively modified by urban development, altering natural water drainage. Auckland has approximately 2,000km of coastline. Our coastal environment is diverse and includes developed urban areas, natural estuaries, harbours and bays. There are sheltered white sand beaches to the east contrasting with rugged black sand beaches in the west. The coast is a desirable location for development but has challenges including storm surge, coastal instability, high winds and tsunami. Our climate is changing. This may result in changes to temperature, rainfall and sea level. Over time, climate change will place pressure on our infrastructure which will need to be able to respond to different environmental effects such as extreme weather patterns. 3.5 Auckland s Strategic Context The Auckland Plan The Auckland Plan is the strategic guide for Auckland s future over the next 30 years. It sets a shared vision for Auckland as the world s most liveable city based on a quality, compact approach to accommodating projected growth. The Auckland Plan describes outcomes needed to achieve this vision by 2040, highlighting six transformational shifts where a step-change is needed, as shown in Figure 3. Figure 3 Auckland Plan Vision, Outcomes and Transformational Shifts Three of the six transformational shifts - the move to outstanding public transport, radically improving the quality of urban living and strongly commit to environmental action and green growth - relate closely to infrastructure provision and can be seen as enablers of the other transformations. Investment in these areas has the potential to drive change across environmental, economic, social and cultural outcomes. Aucklanders have expressed a clear desire to improve these outcomes. This translates into greater demand for new infrastructure as well as higher levels of service from existing infrastructure. As noted in the issues section, this will have impacts in terms of the funding that would be required to meet those expectations. Delivery of the Auckland Plan will be supported and enabled by a range of core strategies and plans; some such as the Economic Development Strategy are already in place, others such as the Proposed Auckland Unitary Plan are currently in development. 4 Portions of the Northland Allochthon feature north of Albany (which can present significant slope stability and site development issues). Parts of the south are characterised by Holocene Alluvium which typically comprises highly compressible soft to firm organic soils. It often includes layers of peat (typically considered unsuitable or difficult to construct over).

11 Commitment to Māori Auckland Council is committed to meeting its responsibilities under Te Tiriti o Waitangi/the Treaty of Waitangi and its broader legal obligations to Māori under the Local Government (Auckland Council Act) 2009, the Local Government Act 2002 and the Resource Management Act 1991 and associated legislation. Māori have a special relationship with Auckland s physical and cultural environment. Preservation of the mauri or life essence of water and waterways is a matter of great importance to Māori and is an issue that is central to many of Auckland s infrastructure projects. The Auckland Plan acknowledges that it will work to achieve Māori aspirations through partnership and active engagement in the delivery and supply of infrastructure. Subsequently, the Māori Responsiveness Framework has been developed to enhance and guide how the council, including council-controlled organisations, work. The Housing Accord and Special Housing Areas Auckland Council and central government entered into the Auckland Housing Accord in September 2013 to help tackle Auckland s housing challenges in terms of adequate supply and affordability. Through the Accord and associated legislation, Auckland Council s Housing Project Office (HPO) has been tasked with the identification and processing of applications associated with Special Housing Areas (SHAs). SHAs involve fast tracked planning processes to deliver the agreed housing targets in the Accord. Infrastructure availability is a critical factor in considering SHA applications. Civil Defence and Emergency Management Auckland Council has a statutory role in planning for civil defence and emergency management (CDEM) to meet the requirements of the CDEM Act This planning employs a resilience approach for infrastructure, including project assessment for the impact of various hazards on Auckland's infrastructure, identifying ways to reduce these impacts, and working collaboratively to increase preparedness. This approach will be supported through the Infrastructure Strategy. CDEM also assists Auckland through resilience building to support the community when the capacity of infrastructure is exceeded, for instance in storm events.

12 4 Significant Infrastructure Issues The overarching infrastructure issue facing Auckland over the next 30 years is how to respond to the various demands on infrastructure given the funding constraints we face. Our response needs to take into account the long-term perspective and align across infrastructure types. Projecting future demand for infrastructure is critical to ensuring that the right level of investment is made in the right infrastructure, in the right locations at the right time. Not doing this will significantly affect the council s ability to effectively and affordably deliver new infrastructure as well as maintain existing infrastructure. 4.1 Drivers of demand for infrastructure Auckland s growth Over the next 30 years Auckland is expected to experience significant population growth, with our population projected to grow by over 716,000 people 5. This level of growth will place significant pressure on the capacity of existing infrastructure and create demand for new infrastructure. The scale and speed with which our population grows over the next 30 years in combination with when and where across Auckland this growth occurs will impact on infrastructure needs and costs. Delivering infrastructure at the right scale, in the right locations and at the right time to accommodate this level of growth will be challenging. Poor alignment between the location and timing of growth and infrastructure investment can lead to infrastructure networks that are over-stressed and unable to deliver good outcomes, or to assets which are under-utilised, or to communities that do not have the right infrastructure at the right time. While development contributions can to some extent be used to fund the cost of providing growth-related infrastructure, this mechanism can only help fund the initial capital cost of the infrastructure rather than funding the full lifecycle and then the replacement cost of the infrastructure. In addition, increases in development contribution charges may impact on housing costs and may thereby have adverse consequences for housing affordability. Demographic change Auckland s demographic characteristics contribute to the thriving, cosmopolitan nature of Auckland. However, different demographic groups have different needs and preferences, for example some groups have a greater need for public transport services than others, and this affects demand for infrastructure and services. The demographic characteristics of Auckland s communities have changed and will continue to change over time and as our communities change demand for infrastructure and services will change. For example, recreational preferences are likely to change and diversify over time, influencing the way in which our parks, sports fields and leisure centres are used in the future. We will need to be agile and flexible and respond to changing preferences and manage competing demands for how our assets are used. Different demographic groups also have a differing capacity to pay for infrastructure and services. As our population ages an increasing proportion will, for example, be more reliant on fixed incomes to absorb increased costs of services. Service level expectations Even before the 716,000 anticipated additional people arrive in Auckland over the next 30 years, there is a significant gap in between the service levels Aucklanders expect and what our current infrastructure can deliver. Nowhere is this more prominent than in the public transport and arterial roading networks, despite significant catch-up investment in the last 5-10 years. Similarly, there are existing properties with known flood risks and an expectation that these will be rectified. In addition, expectations for Auckland s arts and community centres, playgrounds, sportsfields and our walking and cycling networks are all rapidly increasing. Prior to the amalgamation of Auckland Council, there were different approaches to the provision of infrastructure and this has resulted in comparative gaps of provision or in some cases in duplication across the region. This 5 Source: Auckland Council Long Term Growth Data, September 2014.

13 means that different parts of the region have different levels of service and differing access to some types of infrastructure and associated services. Environmental sustainability Auckland benefits from its location and proximity to a number of important natural areas and environments. Our environment is an essential part of our identity, our economy, and the way we live. However, urban development and the age and quality of our infrastructure can have a detrimental effect on our natural environment and on public health; for example, increased stormwater runoff can cause erosion of our streams impacting on water quality. Our existing infrastructure can at times, fail to meet current environmental standards. Expectations about how we treat our environment and national environmental standards are changing there will be costs associated with meeting these. The Auckland Plan recognises that a strong commitment to environmental action and green growth is required as the region develops. Infrastructure has a strong role in delivering on this commitment. To achieve this, the council s networks and assets will need to be planned, designed, and operated in a way which supports quality compact growth, reduces resource use and assists in generating positive behaviour change in Aucklanders. The Auckland Plan makes a commitment towards the implementation of water sensitive design, which will affect the ongoing planning and operation of our networks. Resilience Auckland s quality of life, health and economic wellbeing are reliant on infrastructure. The impact of infrastructure failure can include asset damage, cost of repair, loss of services or access, and resulting business and social disruption. Infrastructure failure can result from network failures, such as the 1988 Auckland city centre power outage caused by the failure of a cable, or due to the impacts of natural hazards as highlighted by the Canterbury earthquake sequence. Within the Auckland region, there are a number of existing and potential natural hazards which pose a risk to the safety and functioning of our infrastructure networks. Some of these hazards, such as flooding, coastal inundation, land instability and storms occur with greater frequency than others. In the future, weather related events are expected to increase in frequency and intensity due to climate change and coastal hazards will impact progressively inland from the areas currently affected as a result of of sea level rise. Auckland is also subject to geological hazards, as a result of our city s location on top of the Auckland Volcanic Field, the effects of volcanic ash from other North Island volcanoes and minor earthquakes. The vital role that infrastructure plays in our community means Auckland Council has a responsibility to plan for and invest in the resilience of its infrastructure. Resilience can be improved by reducing vulnerabilities and strengthening our adaptive capacity or ability to adapt to shocks and stresses. In this context resilience can be achieved by: Managing Risks: where vulnerabilities and hazards are identified, and risks are managed through planning and operational measures; and, Building Adaptive Capacity: where social infrastructure is strengthened and governance and decision makers are focused on improving the adaptive capacity of the community and businesses, including infrastructure providers. This Strategy focuses on managing risks. Building adaptive capacity, including strengthening of soft infrastructure networks such as improving preparedness and self-reliance, is not addressed in this Strategy but is acknowledged as an important element of building societal resilience. Investment will be required in order to reduce risks and vulnerabilities of infrastructure building resilience into our infrastructure networks will require investment. Building redundancy or spare capacity into our systems, relocating infrastructure which is at significant risk of hazards, strengthening existing assets (e.g. seismic strengthening) to withstand hazards or building assets which are less vulnerable to hazards, affects how we invest and operate our infrastructure 6. 6 Mamula-Seadon L, Auckland Council 30 Year Infrastructure Strategy, Infrastructure Resilience Technical Paper, October 2014

14 Ensuring that we do not locate new communities and supporting infrastructure in areas at significant risk from hazards will affect where our city grows in the future and the form and affordability of development. Other relevant work which complements the Infrastructure Strategy and addresses the management of infrastructure risks includes: the Auckland Engineering Lifelines Group; the Natural Hazards Risk Management Action Plan; the Low Carbon Auckland Action Plan; the Climate Change Adaptation Guidelines; and the Civil Defence Emergency Management Group. All of these workstreams will contribute to addressing the impacts of climate change and tools needed, including infrastructure investment, to improve Auckland s response to the threat of climate change and uncertain energy supply. This is particularly critical for our transport networks, with transportation generating the majority of Auckland s emissions. Together they contribute to improving Auckland s infrastructure and societal resilience. Condition of existing assets Infrastructure, particularly aging infrastructure, can also fail even in optimal conditions. Regular maintenance, renewal and replacement of our networks and assets are critical to ensure that they remain reliable and stable foundations to our region. Historic underinvestment in infrastructure has been an issue for Auckland. In addition to capacity issues, this also means that some of our assets are no longer in optimal condition. These assets may require investment to ensure they can meet current and future capacity, are fit for purpose, resilient and of a suitable standard. Key assumptions about the current state of our infrastructure assets are included in Appendix 1. For many types of infrastructure assets, the most cost effective asset management strategy is to minimise whole of life costs through preventative planned renewals and maintenance. This is focussed on managing the assets to have a suitable condition profile to deliver levels of service and user satisfaction while minimising risk of failure. This approach is primarily to protect the current investment in the networks. At present, most asset categories such as our roads, bridges and parts of our community building portfolio generally have a suitable condition profile because of this preventative planned approach. However, this approach may not be possible across the whole asset portfolio in the short term given current funding constraints. In this case, there will be some short to medium term risk of reduced levels of service and user satisfaction and increased risk of failure. It may also lead to some increased whole of life costs in the medium to long term through increased maintenance and remedial works. This is the case for our transport assets as discussed in Section 5.5 and Appendix 2. Often when new infrastructure assets are provided, particularly for community infrastructure, there is a tendency to retain the old asset in addition to the new even if it is not needed to achieve the intended level of service. Retaining these old assets can unnecessarily add to operational and renewal requirements. 4.2 Funding Constraints While Aucklanders have expressed clear support for the creating the world s most liveable city, and in particular expressed a clear desire to fix Auckland s transport problems and improve the quality or Auckland s urban environment, they have also clearly told us they have no appetite for large increases in rates or the council debt. The council has access to significant funding streams from central government. It can raise revenue through development contributions, targeted rates and other mechanisms such as fees and charges, and has potential opportunities to partner with the private sector. However, it will remain challenging to balance Aucklanders aspiration for progress against their need for affordability. For transport alone, the gap between the 30 year funding requirement identified in the Auckland Plan and currently available funding sources was estimated to be $12 billion. As Auckland grows the full life-cycle cost of maintaining our infrastructure networks will increase over the next 30 years and we need to continue to look for effective and efficient approaches to maintaining and making the

15 best use out of our assets. However, the gap between the demand for infrastructure and our funding constraint is so large that efficient and innovative infrastructure management will not be sufficient to solve the problem by itself. What we need is a bold strategy to: manage growth and demand ensure investment in the right projects that have the potential to be truly transformative, and allow the significant trade-offs between cost, risk and service levels to be adequately considered and safely managed. In addition, we need to consider some new approaches to funding.

16 5 Our infrastructure strategy As part of developing this document a wide range of options for managing Auckland s infrastructure demand were identified and assessed 7. From this work seven key mechanisms were chosen which form a package of responses to the significant infrastructure demands and the funding constraints outlined above. These are: 1. The Auckland Plan Development Strategy Implementation and Spatial Prioritisation 2. Management of the demand for infrastructure 3. Smart investment / transformative infrastructure investment 4. Infrastructure provision aligned across the networks 5. Efficient and innovative asset management 6. Additional funding tools 7. A monitoring programme for growth Some of these mechanisms are already being used as part of the council s current infrastructure management practices. Particular mechanisms may address multiple issues, or alternatively may be more relevant to specific classes of infrastructure; for instance, demand management is an approach used within transport, water and wastewater rather than for community infrastructure. Some mechanisms are likely to have greater relative impact, however brought together and applied over the 30 year period they all combine to support Auckland Council s infrastructure strategy for the next 30 years. 5.1 The Auckland Plan Development Strategy Implementation and Spatial Prioritisation Addresses: growth, resilience, environmental sustainability, funding Auckland s funding constraints mean that we need to leverage off existing infrastructure wherever possible, and carefully plan for new growth and its likely implications for infrastructure. The Auckland Plan sets in place a quality compact approach to growth that aims to ensure that this happens. In developing the Auckland Plan several options for managing growth were considered 8 These were publicly consulted on and Aucklanders clearly signalled that they believed that taking a quality compact approach was the best option. This approach focuses on making best use of land which has already been developed or targeted for development, supplemented with well-managed expansion into appropriate greenfield areas. It will provide for per cent of growth (e.g., homes and jobs) within Auckland s existing core urban area; with per cent of growth occurring in new greenfield, satellite towns and rural and coastal towns. The approach also recognises the importance of creating quality neighbourhoods and urban places where people want to live and work and the staged release of greenfield land with the timely delivery of infrastructure. Proposed Auckland Unitary Plan and Land Release Programme While the Auckland Plan, particularly its Development Strategy, provides the overarching framework for our infrastructure strategic planning, there is still further work required to put in place underpinning policies, regulations and programmes. The Unitary Plan, which is currently being developed, is the key mechanism that the council has to shape land use, which can significantly influence the demand for existing and new infrastructure. Aligned to this will be the development of a Land Release Programme which sets out sequencing and timing of future urban areas. This will be significant as it will provide greater certainty for forward planning. Once completed, this programme will assist longer term infrastructure planning, especially for infrastructure needs after Spatial prioritisation 7 The Options Paper for the 30 Year Strategy, sets out the options that were considered, the issues they address and the implications 8 See Auckland Plan Scenario Evaluation Workstream Technical Paper, September 2011

17 Spatial prioritisation is being introduced as part of the LTP. It provides a process for targeting investment over time so that Auckland Council s limited resources are focused into areas that will enable multiple outcomes, including more jobs, more homes, greater mobility, connected communities, improved recreation and a quality environment. It aligns investment with the Auckland Plan s Development Strategy the transformational shifts and considers SHAs. It acknowledges investment will still occur outside these spatial areas focusing on key infrastructure requirements, optimising and completing existing investment, and enabling and stimulating economic development. Managing and maintaining the integrity of the various existing infrastructure networks and services is critical for building capacity and resilience across the wider region to meet the demands of growth. From an infrastructure perspective, the quality compact approach and spatial prioritisation will make better use of existing infrastructure, increase the viability of public transport and mean Auckland is better able to prioritise and align future infrastructure expenditure. This should translate into greater productivity and economic growth with greater social and cultural vitality. It also means our rural character and productivity will be maintained and negative environmental effects will be reduced. Forward Land and Infrastructure Programme (FLIP) FLIP is a programme that assists the achievement of more detailed alignment between land use planning and infrastructure delivery to ensure that the right things are in the right place at the right time and within budget. It aims to improve integration of growth projections with land use plans and infrastructure delivery over time and relies on greater information sharing and accessibility. 5.2 Mechanisms to help manage demand for infrastructure Addresses growth, resilience, environmental sustainability, service level expectations, funding Our funding constraints mean that we will not be able to respond to all increases in infrastructure demand by solely increasing the supply of infrastructure. Therefore, finding other ways to address demand for infrastructure will be necessary. Demand management is a planning approach used to minimise the need for new infrastructure. It refers to measures which change behaviour such as pricing, taxes, use of speed and red light cameras, statutory planning controls that are not based on infrastructure solutions but on policies, regulatory levers and incentives. For example, Watercare is targeting a 15 per cent reduction in water consumption per capita from 2004 levels by They plan to achieve this through consumer education and actively working with businesses to help them better understand their water usage. Other key examples include user charges for refuse collection and parking charges. The possible introduction of a motorway charge discussed in Section 5.6 below would also have the potential to significantly change the demand for roading infrastructure in Auckland. 5.3 Smart / Transformative infrastructure investment Addresses growth, resilience, environmental sustainability As noted previously, it is not possible to address Auckland s future infrastructure needs through traditional approaches of supplying more infrastructure in response to greater demand. To cope with our substantial growth and our funding constraints, we will need to think differently about how we provide infrastructure. This includes: Thinking about how infrastructure can shape growth and influence demand and ensuring that we invest in the right infrastructure to best manage growth and achieve our strategic goals Taking advantage of emerging new technologies over the next 30 years

18 Undertaking more holistic planning for infrastructure over a 30 year horizon and across asset groups. Some infrastructure is critical to achieving our strategic goals and has extraordinary effects in terms of the impact it makes on Auckland s infrastructure network. Through our strategic and financial planning processes Auckland Council has been identifying transformative projects that will be prioritised. A key example of such a transformative project is the City Rail Link. This will fundamentally change the growth and infrastructure landscape of Auckland, in a similar way to the original opening of the Auckland Harbour Bridge. It will in effect bring parts of the south and the west of Auckland close to the centre, and equally bring the centre closer to the south and west 9. Infrastructure assets are often costly to plan, purchase or build and most of our assets have long lifespans over which they must be managed and maintained. Technology is changing rapidly and there is little doubt that over the next 30 years innovation and new technology will continue to drive societal change and will open up new options for how we manage and build our infrastructure. Our planning for the future needs to ensure that we retain the flexibility to respond to challenges and utilise new technology to allow us to deliver the outcomes sought from our infrastructure in different and more cost effective ways 10. Many assets require significant forward planning to ensure that suitable land is secured in the right location and often many years in advance of an asset being required or built. Purchasing land or property early is typically more affordable and ensures that assets are located appropriately. Where there are network gaps in existing urban areas it can be costly to purchase suitably sized and located sites. 5.4 Strategic long-term network/systems planning Addresses growth, resilience, environmental sustainability, service level expectations, demographic change This is the process of utilising a number of key strategies (e.g., the Communities Facilities Plan, Integrated Transport Programme) to address challenges and issues at a network or system level. They consider the contribution of the network/system in meeting the aspirations of the Auckland Plan and supporting strategies and action plans, and take into account the management of assets. They also provide direction to Asset Management Plans. The potential benefits of addressing issues at a network/system level include, ensuring effective and efficient management of assets, and allocating investment in new assets. 5.5 Efficient and innovative asset management Addresses growth, resilience, sustainability, service level expectations, demographic change, asset condition This approach will enable infrastructure programmes to be refined and optimised so they achieve the best value for money from previous and new investments in terms of the level of service they deliver. There are four key components to this approach. They are, in order of priority: 1 Operate, maintain and renew infrastructure optimally: This means we take a long-term view and consider impacts over the next 30-years and beyond. For our existing assets, this also means that instead of only focusing on the best time to repair or replace each individual asset, we develop plans that consider how these assets all work together as part of an interconnected network. We therefore seek to develop asset plans that will ensure the entire network of assets is managed in a way that is fit for purpose, minimises cost over the long-term and ensures that risks to service levels and public safety are acceptable both now and in the future. Where near-term funding constraints do not allow a long-term optimal approach to be employed, we will monitor the condition of our assets to ensure that risk levels remain acceptable and future asset expenditure requirements sustainable. Without significant additional funding, this is the case for our transport assets. The council s proposed draft long-term budgets are therefore based on Auckland 9 Further information about the City Rail Link project and the benefits it will deliver are included in Section 6.2 of this document and section 5.6 of the for the long-term plan Consultation Document. 10 Discussion on two infrastructure project case studies which provide a high level understanding of the decision making process undertaken and to provide lessons for future decision making are included in the technical paper Bentley J and Hay D, Auckland Council 30 Year Infrastructure Strategy, Methodology for Future Decisions Technical Paper, September 2014

19 Transport moving towards a more targeted risk-based approach to managing our transport assets that aims to achieve acceptable levels of satisfaction while minimising risks to public safety. This approach would result in higher risk, potentially higher future operating expenditure requirements and a reduction in the current very high road maintenance standards to a level that is still quite high compared to other cities internationally. Specifically, road maintenance standards for all urban roads (as measured by smooth travel exposure) are projected to decrease from about 83 per cent to 77 per cent over the next seven years, and then remain at about 77 per cent. Auckland Transport s condition modelling tool indicates this approach would result in the proportion of assets in poor to very poor condition steadily increasing over the next 20 years but then stabilising after that. We therefore consider that while this approach may not be optimal over the long-term, it is prudent and sustainable. Auckland Transport will use regular monitoring, analysis and prioritisation to actively managing the risks over time. Further information on Auckland Transport s approach to managing its renewals requirements over the next 30 years is included in Appendix 2. 2 Make better use of networks: Experience with managing infrastructure systems suggests the best returns from investment can often be achieved through optimal management and use of existing assets. Examples of network optimisation activities include: safety schemes; changes to clearways and other parking management measures; tuning traffic signalling systems; speed limit reviews and minor upgrades to existing arterial roads and local roads. In terms of parks and community infrastructure, making better use of the network may mean disposing of poorly utilised or non-performing assets in order to fund new assets. It may also mean closing or disposing of an old asset when a new asset is created. Because funding constraints mean that we will not be able to maintain all of our parks and community assets in their optimal condition, we will review these asset portfolios to ensure that we are achieving best value for money in terms of service levels across each portfolio. 3 Manage demand efficiently and safely: Demand management refers to measures which change behaviours such as education, pricing, taxes, statutory planning controls that are not based on infrastructure solutions but on policies, regulatory levers and incentives. Our asset planning processes will consider opportunities to address demand through these kinds of non-asset based solutions. 4 Invest in new infrastructure, services and technology: Major transport improvements will be crucial to meet increasing demand associated with growth, and to maintain good levels of service for freight and commercial vehicles. The Integrated Transport Programme undertakes a prioritisation process for new investment to clearly link the relative priority of projects to the strategic direction of the Auckland Plan. When we invest in new libraries and community facilities, we will focus on the provision of multi-use facilities rather than just expanding the existing network of separate facilities. 5.6 New funding and delivery mechanisms Addresses growth, resilience, environmental sustainability, funding Non-traditional ways to fund and deliver infrastructure are being investigated. This includes options such as public-private partnerships; private sector funding or provision; new funding mechanisms such as regional fuel taxes; congestion charging; and tax incremental financing; user charges; sponsorship opportunities; and partnership or collaborative approaches. Using such options may be able to deliver infrastructure that might not otherwise be possible. A key issue for consultation as part of the Long-term Plan is whether Aucklanders support increased investment in Auckland s transport network, and are prepared to pay more to support the investment required. A group of independent experts have worked out two ways Auckland could fund this additional investment. One option involved increases in fuel taxes and higher overall rates increases each year, while the other involves a motorway user charge of around $2 each time people entre Auckland s motorway system. Government support and changes to legislation would be required under either of these two options 11. Another example is SkyPath, one of the first Public Private Partnership (PPP) type projects that Auckland Council is evaluating. The SkyPath proposal, for providing cycling and walking over the Waitematā Harbour, is 11 Further information about these key choices for transport are included in Section 11 of the for the long-term plan Consultation Document.

20 being developed by the private sector. It seeks to complete a key missing gap in Auckland s cycling and walking networks. It is proposed that the council's interest would be limited to that of a potential underwriter and the eventual owner of the asset at the end of the concession period. This means that, if the project were to proceed, the project s capital costs would be covered by the private sector. Post settlement iwi will be looking to re-invest settlement monies in long-term investments and this may have a number of significant implications for infrastructure planning and the Long-term Plan (LTP). Māori will be significant urban landowners looking to actively participate in urban development and to promote specific outcomes for Auckland, the environment and for iwi through partnerships, investments and greater involvement in decision making. Current examples include iwi-led housing developments in Orakei and Weymouth (approved SHAs). Benefits from projects may vary, depending on the mechanism used, but could include targeting funding for infrastructure investment to an area or community which receives the benefit; improved environmental performance; improved resilience and greater equity in funding contributions. There is also potential for more collaborative approaches to infrastructure investment. Part of the assessment will need to look at risk factors such as the potential need for legislative changes and the robustness of business cases. 5.7 Monitoring Programme for Growth Addresses growth, demographic change, resilience, environmental sustainability Monitoring the scale, speed and location of growth, to inform decision making around when, where and how much additional infrastructure capacity is required will ensure the investment on new infrastructure is aligned to the level of growth. Some monitoring is already undertaken as part of the Long-term Plan, the Auckland Plan Annual Implementation Update, Asset Management Planning and the Forward Land and Infrastructure Programme and further monitoring will be required for the Land Release Programme which is currently being developed. A sound evidence base from a comprehensive monitoring programme will inform good decision making, including planning for the management of our assets. Alignment between growth and the council's infrastructure investment will provide financial efficiencies.

21 6 Infrastructure investment summary Significant decisions about capital expenditure As outlined in the introduction Auckland is a large and rapidly growing city. The provision of good quality, affordable infrastructure is the key to Auckland being able to achieve its goal of becoming the world s most liveable city. Many of the numerous infrastructure projects are small, relative to the size and scale of the organisation, however the next 30 years includes some major challenges and opportunities that will require decisions which will have a significant impact on the future of the city s infrastructure. These major projects are the cornerstones or enablers around which much of the other community infrastructure will be built. Our infrastructure strategy in Section 5 outlines seven key mechanisms that will be used to prioritise infrastructure projects. Within each asset category there are some major capital expenditure requirements where the decisions on timing and scope will have a major influence on infrastructure provision. All networks for transport, water, wastewater, stormwater, community facilities and open space are being driven by a common set of growth assumptions, by our spatial priorities and by the planning for special housing areas. This section details the overall infrastructure investment of Auckland Council for the next 30 years which is needed to resolve the issues discussed in Section 4, including the issues of affordability and constrained funding. It should be recognised that the council s infrastructure responses are not restricted to capital investment and include responses through demand management, regulation (including land use planning regulations), exploring new approaches to funding and optimising operational management practices. 6.1 Total Expenditure The following table sets out the capital and operational expenditure proposed for each of the activity groups over the 30 years of the Strategy. Infrastructure Activity Capital Expenditure Operational Expenditure Transport (Roads and footpaths) $16.8 billion $27.0 billion Wastewater $10.9 billion $19.0 billion Water Supply $9.6 billion $13.1 billion Transport (Public transport) $6.8 billion $18.6 billion Stormwater (Drainage and Flood Protection) $3.9 billion $4.7 billion Community Facilities $3.3 billion $11.9 billion Public Open Space $7.8 billion $16.4 billion 6.2 Major Transport Capital Works Programme Transport Assets Satisfying the ever increasing demand our rapid growth is placing on our transport network has been identified as the council s major challenge over the next 30 years. Auckland has suffered from years of under-investment and a number of major new projects are proposed over the next 30 years. The need to live within our means and keep things affordable for our residents and businesses is another key consideration in planning for the future transport investment. Auckland Transport has developed an Integrated Transport Programme (ITP) which sets out the 30 year investment programme by all transport agencies to meet the priorities outlined in the Auckland Plan and the Government Policy Statement for land transport (central government s key strategic transport document). The ITP looks at the components of the network and at the most appropriate responses. The key transport challenges are:-

22 Poor quality transport options that undermine Auckland s economic prosperity and liveability. Network inefficiencies and projected increases in congestion on our local and arterial roads, which impact on travel times and in particular the movement of freight within the city Public transport capacity constraints (rail and bus) Growth, which will increase pressure on existing roads and public transport networks and require investment to serve newly developing areas The adverse health, safety, environmental and cultural effects from the transport system The high cost of providing new transport infrastructure and services. The Auckland Transport ITP has six benefit areas, identifying the desired outcomes that all capital projects are assessed against to determine their priority and sequencing. These are: Increased access to a wider range of quality affordable transport choices Auckland s transport system moves people and goods efficiently Better use of transport investment Auckland s transport system enables growth in a way that supports communities and a high quality urban form Reduced adverse safety effects from Auckland s transport system Reduced adverse environmental effects from Auckland s transport system. Auckland Transport s primary approach to addressing Auckland s transport challenges is to apply a rigorous priortisation methodoloy based on these six benefit areas. As part of this LTP we are asking Aucklanders for feedback on a proposal to provide additional funding for our transport infrastructure (refer to section 11 of the LTP information pack). The outcome of the consultation on ways to fund the Auckland Plan Transport Network will have major impact on what can be achieved over the next 30 years. Some of the initiatives and projects we propose to meet our transport challenges are:- 1. The City Rail Link (CRL) is the top transport priority for Auckland and is the key to delivering the Auckland Plan, the City Centre Master Plan, the Long-term Plan and the Integrated Transport Programme. This project is transformational. It will double rail capacity and allow for more frequent services. As a result travel times across the entire rail network will be shorter and the number of people within 30 minutes train travel of a city centre station will double. The project will provide for future expansion of the network to the North Shore and the airport. 2. A number of key projects are designed to free up roads for freight and business traffic. This includes the Auckland Manukau Eastern Transport Initiative (AMETI) and East West Connections which are a group of projects for the southeast of Auckland to improve transport choices and connections. A major component of this programme is to get people onto public transport thereby freeing up roads for freight and business. The East West Connections programme will investigate current and future issues on the transport network for the Onehunga, Mt Wellington, Otahuhu, Penrose, Māngere and East Tamaki area: Auckland s industrial hub that employs over 130,000 people and generates more than $10 billion a year in GDP. Freight volumes are increasing along with economic and population growth in the area. This will put increasing pressure on the nation s supply chains and the local transport network. 3. A number of infrastructure projects are required to support introduction of the new public transport network, which will untangle the complex web of infrequent bus services and put in place a simpler network of frequent services. The new network will triple the proportion of Aucklanders within walking distance of frequent public transport services, significantly improving transport choice and the efficiency of the system itself. Interchanges are required in Pukekohe, Otahuhu, Manukau, Te Atatu, Lincoln Road and in various city centre locations, while bus lane improvements and extensions are also necessary to ensure the new network is a success.

23 4. In the longer term, key components of the transport programme focus on meeting the transport needs of a rapidly growing city, further improving transport choice and efficiencies and reducing adverse impacts caused by transport. Some of these key projects include the extension of rail electrification to Pukekohe 12 an additional Waitemata Harbour Crossing 13, rail to the airport and busway extensions. Some of these projects will be solely funded by Central Government (e.g. state highway improvements) while others will be funded jointly by Government and Auckland Council, with exact arrangements to be worked out over time. 5. In 2012, the City Centre Future Access Study (CCFAS) responded to a government request to develop a robust and achievable transport programme for access to the city centre. It identified that the city centre is facing capacity issues for all roads into the city centre which would worsen from as early as The study also identified that even with the City Rail Link and bus improvements, there would still be access problems into the city centre and in some areas the high number of buses would negatively impact on the quality of the urban environment. To address these issues, work is currently underway to provide an effective public transport solution for those parts of inner Auckland and the city centre that cannot be served by the heavy rail network (including the City Rail Link). This solution would need to support growth requirements in a way that maintains or enhances the quality and capacity of the city centre streets. A range of options are being explored including light rail. The enhanced public transport programme will have the following benefits: improve transport access into and around the city centre from areas not served by the rail network to address current problems and for a rapidly growing Auckland by providing a transport system that is best able to satisfy the immediate needs and the long-term, rapidly growing customer demand in the city centre and approaches improve the efficiency and resilience of the transport network of the city centre by: o o o o improving journey time, frequency and reliability of transport access into and within the city centre and city fringe improving the linkages and servicing of key destinations, particularly those not served by the City Rail Link, notably the university campuses and the Wynyard Quarter maximising the benefits of existing and proposed investment in transport (including the City Rail Link) releasing the capacity constraints around the city centre s most important approach routes and nodes. 12 This is not in the list of key Auckland Council projects as the electrification will be a Kiwirail project. 13 This is not on the list of key Auckland Council projects as the second Harbour crossing will be funded by NZTA

24 The major projects identified are listed in the table below 14. Unless otherwise stated the anticipated timing shown here is based on the Basic Transport Network which forms the basis of the Long-term Plan financial projections. If Auckland agrees to new funding mechanisms to enable the alternative Auckland Plan Transport Network, then some of these projects would be able to be delivered earlier. The principal options for the major projects listed in the table below are to progress with the project on the timeframe listed, progress with the project on a different timeframe, break up the project into different stages, or not do the project. City Rail Link An underground rail line linking Britomart and the city centre with the existing western rail line near Mt Eden. Project benefits and implications Growth, demographic change, service level expectations, environmental sustainability (enabling works commencing in 2015/2016 and main construction commencing in 2018/2019. Operational in 2023) $2.5b (includes $200m spent prior to this LTP) Benefits of progressing: Enables improved network efficiencies and frequencies Improves attractiveness of public transport, increasing usage Improves city centre amenity and efficiency by reducing bus and private vehicle use Encourages growth in city centre and around rail network by enhancing accessibility Boosts economic productivity by enabling employment growth in city centre and other key centres. Implications of not progressing: Bus and car traffic volumes expected to create significant congestion in city centre and on approach roads PT network remains inefficient and poor use of existing rail corridor Growth in city centre is constrained and redevelopment of areas around rail corridor is constrained. NorSGA North west transformation Upgrade of the Hobsonville Road corridor to accommodate a quality transit network of buses, upgraded intersections, wider footpaths and cycleways to support new developments. Initiatives at Massey North/Westgate are also included. Growth $63m Benefits of progressing: Enables growth in an emerging metropolitan centre and surrounding growth area Maximises existing investment in other infrastructure networks (e.g. community facilities) Supports more efficient movement of freight between the north and west. Implications of not progressing Growth in the NorSGA area not supported by transport initiatives, increasing congestion on the North West motorway. East-west connections project 15 A joint NZTA / AT programme focused on the Onehunga, Mt Wellington, Otahuhu, Penrose, Māngere and East Tamaki area, to improve freight efficiency, commuter travel, public transport and walking and cycling options over the next 30 years. Growth, service level expectations, environmental sustainability This may be delivered earlier under a government accelerated package. $135m Benefits of progressing: Existing and projected inefficiencies for freight travel are reduced in Auckland s industrial heartland Economic potential of Auckland is improved. Implications of not progressing: Existing transport deficiencies and congestion points become worse over time, undermining Auckland s economic potential. 14 For detailed information about projects see the Transport Asset Management Plan and the Integrated Transport Programme. 15 East West Connections is a joint project with NZTA. The figure above is the council s capital funding contribution to the project.

25 AMETI A package of transport improvements in the Glen Innes - Panmure - Pakuranga - Botany corridor, that aim to provide a high quality strategic transport link between the eastern suburbs and unlock the economic potential of the area by improving strategic transport links in the area. The main projects are: An urban busway between Panmure, Pakuranga and Botany town centres; New stations at Panmure and Pakuranga town centre; Roading improvements at traffic bottlenecks, including a new north-south Panmure road, the Reeves Rd flyover in Pakuranga and replacing the Panmure roundabout with traffic light. Growth, service level expectations $553m first decade $545m Second decade Benefits of progressing: Improved efficiencies and better transport choices available for a large part of Auckland currently very dependent on private vehicles Growth is enabled and supported in broader Tamaki area and in the southeast of Auckland Removal of key pinch-points will ease congestion and improve efficiencies. Implications of not progressing Existing poor transport choice and network inefficiencies become exacerbated as growth occurs. City Centre Public Transport Improvements Projects include the Wynyard Bus Interchange, Learning Quarter Interchange and Downtown Interchange and bus priority improvements along Fanshawe and Wellesley Street corridors. Growth, demographic change, service level expectations, environmental sustainability $117m Benefits of progressing: Improved PT accessibility to major growth area and key employment area Improved network efficiencies by enabling new PT network and providing improved turn-around area for isthmus buses. Promoting mode change from private vehicles through service improvements. Implications of not progressing: Poor PT access to Wynyard Quarter and restricted PT efficiency within the Central City Inefficient PT system across whole isthmus area Higher mode share of private vehicles and associated congestion and greenhouse gas emissions. Mill Road (northern alignment) An upgrade of the Redoubt-Mill Road corridor to support residential and employment growth. The northern alignment extends from SH1 Redoubt Road to Popes Road vicinity. Growth, service level expectations $144m Benefits of progressing: Improved network efficiencies, including for buses Improved safety Enabling and supporting growth in southern areas. Implications of not progressing: Existing inefficiencies and safety problems become exacerbated over time as growth occurs.

26 Mill Road (southern alignment) Continuation of the upgrade of the -Mill Road corridor to support residential and employment growth. The southern alignment extends from Popes Road vicinity to SH1 at Drury. Growth, service level expectations Benefits of progressing: Enabling and supporting growth in southern areas. Implications of not progressing: Existing inefficiencies become exacerbated over time as growth occurs Growth may be constrained $676m North-western busway 16 A busway running along the SH16 motorway corridor that will enable frequent, high-speed, high-capacity and high-quality public transport services from the Northwest growth area to the city centre (providing rapid transit to a different catchment to that served by the Western Railway Line). Growth, demographic change, service level expectations, environmental sustainability $68m Benefits of progressing: Improved transport choices for people in Northwest Auckland Increased capacity along SH16 corridor Supporting growth in broader North west Auckland and especially the success of Westgate / Massey North emerging metro centre Enabling improved PT efficiencies for whole North-west bus network. Implications of not progressing: PT choices remain limited SH16 becomes increasingly congested, leading to longer and less reliable travel times Growth in North-west is constrained and Westgate / Massey North does not fulfil its potential PT network remains inefficient. SMART (Airport Rail Link) 17 Will investigate improvements to roads, public transport, and cycling in the vicinity of the Airport. In the longer term it also looks at dedicated rail to the airport. Growth, demographic change, service level expectations, Environmental sustainability $18m first decade Investigation phase / route protection $667m second decade (Onehunga to Māngere) $2.569b third decade (Māngere to Airport) Benefits of progressing: Direct rapid transit connection to airport Improved transport choices for people in South-west Auckland Reduced congestion on airport road links Supporting growth in broader South-west and providing economic benefits to the region as a whole Enabling improved PT efficiencies for whole rapid transit network. Implications of not progressing: Transport choices to airport and South-west Auckland would be limited Airport road links become increasingly congested, leading to longer and less reliable travel times Growth in South Auckland is constrained and employment areas adjacent to airport remain car dependent 16 The North-western busway is the council s funding part of the Auckland Plan Transport Network package 17 SMART is part of the Auckland Plan Transport Network package

27 PT network constrained and inefficient to airport. Penlink 18 A proposed alternative route between Redvale and Whangaparaoa in the north of Auckland. Growth, service level expectations $556m Benefits of progressing: Improves travel times in the Whangaparaoa and Hibiscus Coast highway area Improves network performance and resilience Facilitates economic activity (Silverdale and Dairy Flat), planned growth and mode choice. Implications of not progressing: Continuing congestion with unreliable travel times Development in Whangaparaoa not supported by efficient roading network. May constrain economic activity in Silverdale and Dairy Flat. 18 Penlink is part of the Auckland Plan Transport Network package.

28 Millions Millions Section 2: Draft Auckland 30 Year Infrastructure Strategy The charts below shows the projected capital expenditure associated with the management of Auckland Council transport infrastructure assets to Roads and footpaths capex and opex - 10 years Renewal Level of service Growth Operating costs FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 7,000 Roads and footpaths capex and opex - 30 years 6,000 5,000 4,000 3,000 2,000 1,000 Renewal Level of service Growth Operating costs 0 FY16-FY20 FY21-FY25 FY26-30 FY31-35 FY36-40 FY41-45 Note: the above charts include the following 10 year budgets for footpath and cycleway renewals. New investment in footpaths and cycleways is spread across a range of other projects including major projects like AMETI. $000s Footpath & Cycleways 13,272 14,410 15,614 16,479 17,397 18,374 19,414 20,540 21,722 22,959

29 Millions Millions Section 2: Draft Auckland 30 Year Infrastructure Strategy 700 Public transport capex and opex - 10 years Renewal Level of service Growth Operating costs FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 4,500 4,000 3,500 3,000 2,500 2,000 1,500 1, Public transport capex and opex - 30 years Renewal Level of service Growth Operating costs FY16-FY20 FY21-FY25 FY26-30 FY31-35 FY36-40 FY41-45

30 6.3 Major Wastewater Capital Works Programme The major wastewater projects identified provide additional capacity to meet current and future demand as well as replacing aging infrastructure, providing resilience of the services, and delivering environmental benefits. Today Watercare manages three metropolitan schemes with wastewater treatment plants at Rosedale, Māngere, Army Bay and Pukekohe; and 15 non-metropolitan schemes servicing around 65,000 people in the rural townships of Franklin and Rodney. The non-metropolitan schemes are based on individual local treatment plants servicing a local community. Some of these schemes may be rationalised over time as they approach capacity and are no longer able to fulfil their consent requirements. A number of interrelated projects will provide additional wastewater capacity within Auckland s existing urban areas, enabling residential and business growth as part of a quality compact city approach to accommodating growth. The first of these projects is the Central Interceptor; a tunnel stretching 13 kilometres from Māngere Wastewater Treatment Plant to Western Springs, it will replace an aging system and provide additional capacity in central, southern and eastern Auckland. The project will also deliver environmental benefits reducing the volume of wet weather overflows into Auckland s harbours by 80 per cent. Once this key project is completed then the Northern Interceptor Project will, in turn, be able divert flows that are currently conveyed to the Māngere Wastewater Treatment Plant north to the Rosedale Wastewater Treatment Plant. This project will consequently provide additional capacity in Auckland s north and west, including the NorSGA growth area. Through reducing the load on the Māngere Wastewater Treatment Plant, this project will also make available further capacity in central eastern and southern areas of the city. Our existing wastewater treatment plants at Māngere and Rosedale have sufficient capacity to meet demand up to 2027 and several upgrades, which are planned to increase capacity, will defer the need to build any additional treatment plants for at least 20 years These projects include the upgrading of the existing wastewater treatment plants and processes (eg Māngere Wastewater Treatment Plant Biological Nutrient Removal Project). The proposed projects will address multiple issues, increasing capacity, resilience, levels of service and environmental outcomes. In a similar way the Pukekohe Wastewater Treatment Plant upgrade will deliver benefits to its southern catchment, an area where significant growth is planned. There are also secondary stages to both the Central and Northern Interceptor projects identified. These projects will maximise the investment made in the initial Interceptor projects through replacing related collector and link sewers. When planning new projects Watercare has a strategy to build redundancy into the treatment and reticulation systems to ensure that critical systems can be shut down for maintenance without jeopardising services to customers. This approach is reflected in the planning of key projects in this strategy. There is an on-going programme to replace and upgrade elements across the network. This renewal work is also a key element of the strategy, ensuring that existing levels of service are maintained or increased. The major projects identified are listed in the table below. Central Interceptor Spine A new wastewater conveyance and storage pipeline Growth environmental sustainability, resilience, asset condition $966m Benefits of progressing Replacing aging infrastructure Providing extra capacity for growth in central Auckland as well as the Isthmus, east and south Improving levels of service by reducing wet weather overflows into the harbours by 80 per cent Growth enabled in central Auckland. Implications for not progressing Risk of failure by aging infrastructure Reduced capacity for growth in central Auckland as well as the Isthmus, east and south Reduced levels of service, wet weather overflows not reduced

31 Restricted growth in central Auckland. Central Collector and Link Sewers Works to maximise investment in Central Interceptor Spine Growth, environmental sustainability, resilience, asset condition $299m Benefits of progressing Collector and link sewers to maximise the investment in the Central Interceptor spine Replacing aged infrastructure Providing extra capacity for growth in central Auckland as well as the Isthmus, east and south Improving levels of service by reducing wet weather overflows Growth in central Auckland. Implications for not progressing Undermines investment in the Central Interceptor spine Risk of failure by aging infrastructure Reduced capacity for growth in central Auckland as well as the Isthmus, east and south Reduced levels of service by reducing wet weather overflows Restricted growth in central Auckland. Northern Interceptor Stage 1 A new wastewater pipeline which will divert flows from Māngere Wastewater Treatment Plant catchment to Rosedale Wastewater Treatment Plant. Growth, service level expectations, environmental sustainability, resilience, asset condition $135m Benefits of progressing Provides capacity for growth in northern and western Auckland by diverting flows from the Māngere Wastewater Treatment Plant catchment to the Rosedale Wastewater Treatment Plant catchment Replacing aged infrastructure Providing extra capacity for growth in central Auckland, Isthmus, east and south by reducing load on Māngere Wastewater Treatment Plant Improving levels of service by reducing wet weather overflows. Implications for not progressing Reduced capacity for growth in northern and western Auckland Risk of failure by aging infrastructure Reduced capacity for growth in central Auckland, Isthmus, east and south Reduced levels of service by reducing wet weather overflows. Northern Interceptor Stage 2 Diverts wastewater flows from Swanson, Massey and Glen Eden catchments to the Rosedale Wastewater Treatment Plant. Growth 2032 $102m Benefits of progressing Diverts flows from Swanson, Massey and Glen Eden to the Rosedale Wastewater Treatment Plant Increases the capacity of the Māngere Wastewater Treatment Plant to support growth in central Auckland. Implications for not progressing Flows from Swanson, Massey and Glen Eden continue to Māngere Wastewater Treatment Plant Reduced capacity of the Māngere Wastewater Treatment Plant to support growth in central Auckland Undermines investment in upgrades to the Rosedale Wastewater Treatment Plant. Waterfront Interceptor 3.5 km conveyance and storage tunnel from Ponsonby to St Mary s Bay. Growth, service level expectations, environmental sustainability, resilience, asset condition Benefits of progressing Rehabilitating aged infrastructure Capacity for growth in central Auckland and western Isthmus Reduction in wet weather discharges $25m $325m

32 Implications for not progressing Risk of failure from aged infrastructure Reduced capacity for growth in central Auckland and western Isthmus Increase in wet weather discharges. Māngere Wastewater Treatment Plant Biological Nutrient Removal (BNR) Provides additional biological nutrient removal to comply with resource consent conditions. Growth, service level expectations, environmental sustainability, resilience, asset condition $99m Benefits of progressing Will cater for growth in the central isthmus, south and east areas serviced by the Māngere Wastewater Treatment Plant Replacement of aging assets Process improvements and security. Implications for not progressing Reduced growth in the central isthmus, south and east areas serviced by the Māngere Wastewater Treatment Plant Risk of failure from aged infrastructure Less efficient processing and reduced security. Māngere Wastewater Treatment Plant Solids Stream Upgrade Provides additional solids treatment capacity to cater for increased population growth. Growth, service level expectations, environmental sustainability, resilience, asset condition $75m Benefits of progressing Will cater for growth in the central isthmus, south and east areas serviced by the Māngere Wastewater Treatment Plant Replacement of aging assets Continue to meet resource consent requirements. Implications for not progressing Reduced growth in the central isthmus, south and east areas serviced by the Māngere Wastewater Treatment Plant Risk of failure from aged infrastructure Failure to meet resource consent requirements. Puketutu Island Restoration of Puketutu Island through biosolids deposition Growth Benefits of progressing Renewal of the existing on-site placement capacity Capacity for growth in areas within the Māngere Wastewater Treatment Plant catchment Operational and financial benefits. Implications for not progressing On-site placement capacity exceeded and alternative capacity would need to be found elsewhere Reduced capacity for growth in areas within the Māngere Wastewater Treatment Plant catchment Increased operational and financial costs. Rosedale Wastewater Treatment Plant Upgrade Provision of additional treatment capacity to cater for population growth on the north shore and diversion of flow and load from Māngere Wastewater Treatment Plant catchment through Northern Interceptor. Growth, service level expectations, service level expectations, asset condition. $59m $60m $48m Benefits of progressing Increased treatment capacity to cater for growth population growth in NorSGA and the North Shore

33 Diverts flow and load from the Māngere Wastewater Treatment Plant which improves capacity for growth in this catchment. Implications for not progressing Reduced growth in NorSGA and the North Shore Reduced growth in the Māngere Wastewater Treatment Plant catchment area. Rosedale Wastewater Treatment Plant Capacity Upgrade Provision of additional treatment capacity to cater for population growth on the north shore and diversion of flow and load from Māngere Wastewater Treatment Plant catchment through Northern Interceptor. Growth, service level expectations, service level expectations, asset condition $48m Benefits of progressing Increased treatment capacity to cater from growth population growth in NorSGA and the North Shore Diverts flow and load from the Māngere Wastewater Treatment Plant which improves capacity for growth in this catchment Implications for not progressing Reduced growth in NorSGA and the North Shore Reduced growth in the Māngere Wastewater Treatment Plant catchment area. Pukekohe Trunk Sewer and Wastewater Treatment Plant Upgrade Additional trunk network and treatment capacity to cater for population growth in the Pukekohe Wastewater Treatment Plant catchment. Growth, service level expectations, resilience, asset condition $106m Benefits of progressing Capacity for growth in the areas serviced by the Pukekohe Wastewater Treatment Plant catchment (Pukekohe, Paerata, Tuakau and Pokeno) Improved levels of service. Implications for not progressing Reduced capacity for growth in the Pukekohe Wastewater Treatment Plant catchment Reduced levels of service. Pukekohe Wastewater Treatment Plant capacity Upgrade Provides additional trunk network and treatment capacity to cater for population growth in the Pukekohe Wastewater Treatment Plant catchment. Growth, service level expectations, resilience, asset condition $95m Benefits of progressing Capacity for growth in the areas serviced by the Pukekohe Wastewater Treatment Plant catchment Improved levels of service. Implications for not progressing Reduced capacity for growth in the Pukekohe Wastewater Treatment Plant catchment Reduced levels of service.

34 Millions Millions Section 2: Draft Auckland 30 Year Infrastructure Strategy The chart below shows the projected capital expenditure associated with the management of Auckland Council wastewater infrastructure assets to Wastewater treatment and disposal capex and opex - 10 years Renewal Level of service Growth Operating costs 0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 6,000 Wastewater treatment and disposal capex and opex - 30 years 5,000 4,000 3,000 2,000 1,000 Renewal Level of service Growth Operating costs 0 FY16-FY20 FY21-FY25 FY26-30 FY31-35 FY36-40 FY Major Water Supply Capital Works Programme The major water supply projects are focused on addressing three issues of network resilience, growth and replacement of aging infrastructure; with many projects delivering multiple outcomes. Currently, Auckland s water is sourced through dams in the Hunuas and Waitakeres as well as the Waikato River and an aquifer at Onehunga. A series of projects is planned to provide network resilience and ensure security of Auckland s water supply. In the south the projects include a second Waikato water supply treatment plant and pipeline, additional reservoirs (eg Runciman Road) to enhance storage capacity that will insulate the network against supply failures, and the duplication of pipelines. This network will service the south and the city centre. A similar network approach will ensure water supply from the Waitakere dams to the north and west, linking to the city centre, through renewed and upgraded water treatment plants, duplication of watermains and increased reservoir capacity.

35 A second water treatment plant and pipeline from the Waikato River is an important component of this planning. The Waikato River provides a source that is an alternative to Auckland s dams, with ability to provide water when other sources may be compromised through outages, contamination or drought. This reflects the lessons learnt from previous droughts that Auckland has experienced and a need to be prepared for climate change scenarios where such events may occur with more frequency in the future. Additional water from the Waikato River would also provide a significant addition to Auckland s water supply and would be able to service growth as it occurs. This would complement the greater capacity delivered through network projects such as the watermain duplications. In the past, Auckland has had some distinct growth phases where the city expanded into rural areas. An example of this would be the North Shore expansion following the opening of the Harbour Bridge in However, much of the city s infrastructure is now aging and needs to be replaced. There is an on-going programme to replace and upgrade elements across the network. This renewal work is a key element of the strategy, ensuring that existing levels of service are maintained or increased. When planning new projects Watercare has a strategy to build redundancy into the treatment and reticulation systems to ensure that critical systems can be shut down for maintenance without jeopardising services to customers. This approach is reflected in the planning of key projects in this strategy. The major projects identified are listed in the table below. Hunua No.4 Watermain The watermain will run for 28 km from Redoubt North Reservoir in Manukau to Epsom, connecting to the existing local water supply network along the way. Growth, service level expectations, resilience $80m Benefits of progressing Ensuring regional water supply capacity to meet demand (existing and additional demand from growth) Network resilience. Implications for not progressing Reliance on existing and aging water supply infrastructure Inadequate water supply capacity constrains ability to meet increased population and additional development areas. Hunua No.4 Watermain extension The Hunua Watermain will be extended through to the Khyber reservoirs in the central city. Growth, service level expectations, resilience $66m Benefits of progressing Ensuring regional water supply capacity to meet growth Network resilience. Implications for not progressing Reliance on existing and aging water supply infrastructure Inadequate water supply capacity constrains ability to meet increased population and additional development areas. North Harbour Watermain Duplication Duplicates the North Harbour Watermain from a new Titirangi No 3 Reservoir to the Albany Reservoir. Growth, service level expectations, resilience, asset condition Benefits of progressing Ensuring water supply capacity to meet growth on the North Shore and Rodney Creating network resilience. Implications for not progressing $196m

36 Existing and aging water supply infrastructure for the North Shore and Rodney unlikely to meet future needs Inadequate water supply capacity constrains ability to meet increased population and additional development areas on the North Shore and Rodney. Runciman Road Reservoir The provision of additional storage reservoir capacity to maintain security of supply standards for increasing water demand arising from growth. Growth, service level expectations, resilience Benefits of progressing Security of supply (region wide). Implications for not progressing Reduced ability to meet demand during network outages $47m Runciman Road Reservoir No.2 See description above Growth, resilience $43m Benefits of progressing Ensuring regional water supply capacity to meet growth Expanding plant capacity in line with growth. Implications for not progressing Compromises ability to provide a regional water supply capacity to meet growth Inability to meet demand arising from growth. Waikato Water Treatment Plant expansion Expansion of the capacity of the existing treatment plant to cater for additional water demand arising from growth. Growth, service level expectations, resilience $55m Benefits of progressing Ensuring regional water supply capacity to meet demand Wider network resilience, particularly in events where other sources may be compromised (eg droughts from climate change, source contamination, treatment plant outages). Implications for not progressing Potential for inadequate water supply capacity to meet regional growth Lack of resilience for water supply to natural events and system outages (eg droughts from climate change). Waikato Water Treatment Plant No.2 and watermain The provision of additional water abstraction, treatment and conveyance capacity from the Waikato river to cater for increased water demand arising from growth. Growth, service level expectations, resilience 2025 $400m Benefits of progressing Ensuring regional water supply capacity to meet demand Wider network resilience, particularly in events where other sources may be compromised (eg droughts from climate change, source contamination, treatment plant outages). Implications for not progressing Potential for inadequate water supply capacity to meet regional growth Lack of resilience for water supply to natural events and system outages (eg droughts from climate change). Waikato Water Treatment Plant No.2 Capacity upgrade Expansion of the capacity of the new Waikato plant to cater for additional water demand arising from growth. Growth, resilience $316m

37 Benefits of progressing Ensuring regional water supply capacity to meet growth Expanding plant capacity in line with growth. Implications for not progressing Compromises ability to provide a regional water supply capacity to meet growth Inability to meet demand arising from growth. Hunua No.1 and Huia No.1 watermains The replacement of critical watermains which are nearing the end of their design lives. Service level expectations, resilience, asset condition. Benefits of progressing Nearing end of asset life, renewal required to maintain supply. Implications for not progressing Loss of supply if asset fails $90m Huia Water Treatment Plant Upgrade The replacement of the Huia Water Treatment Plant which is reaching the end of its design life and the provision of improved treatment processes which will maintain supply and improve levels of service. Growth, service level expectation, resilience, environmental sustainability, asset condition $241m Benefits of progressing Ensuring water supply continues to meet public health standards Nearing end of asset life. Renewal will offer opportunity to improve treatment process and capability to meet tighter standards. Implications for not progressing Comprises ability to continue meeting public health standards Lack of resilience with higher level of plant outage leading to loss of supply. Huia No.2 watermain replacement The replacement of a critical watermain which is nearing the end of its design life. Service level expectations, resilience, asset condition $110m Benefits of progressing Replacing aging infrastructure to provide security of supply and continuing levels of service Implications for not progressing Potential for failure which would compromise security of supply and levels of service. Waitakere Treatment Water supply upgrade The replacement of the Waitakere Water Treatment Plant when it reaches the end of its design life. Service level expectations, environmental sustainability, resilience, asset condition $123m Benefits of progressing Ensuring water supply continues to meet public health standards Nearing end of asset life. Renewal will offer opportunity to improve treatment process and capability to meet tighter standards. Implications for not progressing Comprises ability to continue meeting public health standards Lack of resilience with higher level of plant outage leading to loss of supply.

38 Millions Millions Section 2: Draft Auckland 30 Year Infrastructure Strategy The chart below shows the projected capital expenditure associated with the management of Auckland Council water supply infrastructure assets to Water supply capex and opex - 10 years Renewal Level of service Growth Operating costs ,000 3,500 3,000 2,500 2,000 1,500 1, Water supply capex and opex - 30 years Renewal Level of service Growth Operating costs FY16-FY20 FY21-FY25 FY26-30 FY31-35 FY36-40 FY41-45

39 6.5 Major Stormwater and Flood Control Capital Works Programme Stormwater projects address issues at a catchment level. They aim to deliver multiple outcomes across environmental, social and economic outcomes with design moving towards greener infrastructure solutions using innovative water sensitive design. The stormwater system is organised into 235 catchments and 10 consolidated receiving environments. Stormwater projects are primarily driven by a focus on improving customer and environmental levels of service, supporting population growth, ensuring the sustainability and resilience of our stormwater system and future proofing for future generations. Typically, the major capital projects for stormwater are a scale below those identified for transport, water and wastewater; ranging between $20-30 million. Investment is aligned within programmes for asset renewal to ensure levels of service are maintained for existing customers, supporting growth, reducing existing flooding, catchment planning and environmental protection. The major projects identified as part of this Strategy, focus on the first decade. In existing urban areas, the projects align with spatial priorities and address flooding and water quality issues, particularly central Auckland with aging infrastructure. In the south, major stormwater projects in the Takanini/ Manurewa area remove constraints on development of greenfield areas that have been zoned for urban release. Beyond the first decade projects will be funded based on growth in the programme that is in line with the trend over the first decade. This acknowledges that stormwater projects address specific catchments and are able to be planned within 10 year periods with some flexibility. Priorities will be identified taking into account spatial priorities, including SHAs, and land release sequencing and timing as part of the Land Release Programme currently under development. The major projects identified are listed in the table below. Artillery Tunnel A one kilometre long tunnel from McLennan Park to Pahurehure Inlet to service Takanini Growth areas Growth Takanini, service level expectations, resilience, environmental sustainability $22m Benefits of progressing Reduced risk of widespread flooding for future residents in the Takanini 2a and 2b areas Growth facilitated in the Takanini 2a and 2b areas (SHA 63 Takanini Strategic Area). Implications for not progressing Development will occur in the floodplain, because it is zoned for urban development and new homes at risk from flooding Continuation of widespread flooding in the Takanini 2a and 2b growth areas Development in Takanini 2a and 2b growth areas impeded. Takanini Conveyance Cascades A new open channel incorporating cascading weirs and associated green space to convey the 100year flood, servicing Takanini 2a and 2b. Growth, resilience, environmental sustainability $22m Benefits of progressing Reduced risk of widespread flooding for future residents (people, properties and infrastructure) in the Takanini 2a and 2b areas Growth facilitated in the Takanini 2a and 2b areas (SHA 63 Takanini Strategic Area). Implications for not progressing Development will occur in the floodplain, because it is zoned for urban development and new homes at risk from flooding Continuation of widespread flooding in the Takanini 2a and 2b growth areas Development in Takanini 2a and 2b growth areas impeded.

40 Ports of Auckland Outfall The design and installation of a 3.3 m diameter stormwater pipe from the south side of Quay St across Ports of Auckland to the Waitemata Harbour. To replace a pipeline in poor condition that has previously collapsed and remains in service with a temporary repair. Resilience, condition of existing asset. Benefits of progressing Replacing aged critical asset infrastructure in poor condition Mitigates safety risks to the POAL assets and operations. Implications for not progressing Risk of failure from aged infrastructure Critical asset failure which impacts on Port operations $22m Oakley Creek Conveyance Upgrading culverts and widening of Oakley Creek through Walmsley Park to convey flood flows enabling intensification and redevelopment of the upper catchment. Growth, resilience, environmental sustainability, condition of existing asset $30m Benefits of progressing Reducing flooding risk in existing residential area Enabling intensification and redevelopment in a large proportion of the inner west triangle spatial priority area Environmental enhancement through stream restoration and habitat improvements Amenity benefits of streamside passive open space. Implications for not progressing Continuation of flooding risks in existing urban areas Constraining intensification and redevelopment in a large proportion of the inner west triangle spatial priority area Loss of opportunity for environmental enhancement Loss of opportunity for open space. Freeman s Bay Outfall Frequent surface flooding occurs in Daldy St, Fanshawe St, parts of Victoria St and Victoria Park. Two significant combined sewer overflows are also connected to the existing pipeline and the route needs to integrate with the second harbour crossing. Resilience, condition of existing asset, level of service $21m Benefits of progressing Reduced surface flooding (Daldy St, Fanshawe St, Victoria St and Victoria Park) Level of service improvements Fanshawe Street Eases overflows from existing aging combined sewers and improves harbour water quality. Implications for not progressing Continuation of flooding risks in urban area Continuation of overflows from aging combined sewer.

41 Millions Millions Section 2: Draft Auckland 30 Year Infrastructure Strategy The charts below shows the projected capital expenditure associated with the management of Auckland Council stormwater and flood control infrastructure assets to Stormwater capex and opex - 10 years Renewal Level of service Growth Operating costs 20 0 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 1,400 Stormwater capex and opex - 30 years 1,200 1, Renewal Level of service Growth Operating costs 0 FY16-FY20 FY21-FY25 FY26-30 FY31-35 FY36-40 FY Major Community Facilities Capital Works Programme The projects for Community facilities over the next 10 years are identified in the LTP. No major projects are identified over the second and third decades of the Strategy. By their nature, these projects tend to be on a smaller scale than the major infrastructure projects discussed above. Nevertheless, a network of quality, fit for purpose community facilities is essential for building resilient, healthy and vibrant communities. Priorities for new investment will be identified taking into account spatial priorities, including SHAs, and land release sequencing and timing as part of the council s Land Release Programme currently under development. There are several key challenges facing community facilities infrastructure:

42 Millions Section 2: Draft Auckland 30 Year Infrastructure Strategy There are gaps and duplication in provision which will require decisions on where new facilities should be developed and potentially where underperforming facilities, which are no longer meeting community need, could be divested or repurposed Auckland is growing and becoming more diverse and the network of community facilities will need to be flexible enough to respond to changing community needs Some facilities are no longer fit for purpose due to the quality, design or layout There are a number of aging facilities that will require investment to remain operational or may need to be divested if they are no longer suitable to meet community needs Overall there is a need to improve the financial sustainability of community facilities to reduce the overall cost of provision There are a variety of other providers of community facilities across Auckland which need to be considered as part of future provision. There is a requirement for thorough and consistent planning to properly understand community needs and determine the most appropriate responses. To address these challenges, four key objectives for the future planning and provision of community facilities have been identified. These are: Undertake robust and consistent planning Maintain, improve and better utilise existing community facilities Ensure community facilities are flexible, multi-purpose and co-located /integrated with other community infrastructure Leverage and support partnerships. The chart below shows the projected capital expenditure associated with the management of Auckland Council community facilities infrastructure assets to Community infrastructure capex and opex - 10 years FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Renewal Level of service Growth Operating costs

43 Millions Section 2: Draft Auckland 30 Year Infrastructure Strategy 3,000 Community infrastructure capex and opex - 30 years 2,500 2,000 1,500 1, Renewal Level of service Growth Operating costs 0 FY16-FY20 FY21-FY25 FY26-30 FY31-35 FY36-40 FY Major Public Open Space Capital Works Programme Quality public open space is a critical component for healthy life styles in an urban environment. Auckland s public open space network, including extensive regional parks and open spaces in the urban core and the associated trails and walkways, contributes to its unique identity, quality of life, healthy lifestyle, tourism potential and economic wellbeing. To ensure our parks and open spaces contribute to Auckland s liveability, the four areas of focus over the next 30 years are to: protect and conserve significant ecological, natural, cultural and historic heritage values in our parks and open spaces. expand and develop our parks and open space network to accommodate more use visually and physically connect Auckland s network of parks, open spaces and streets maximising synergies between our open spaces and creating a green, resilient and prosperous city with thriving communities. Projects for Open Spaces and Reserves over the next 10 years are identified in the LTP. No major projects are identified over the second and third decades of the Strategy although it is anticipated that ongoing investment in the open space network at a similar level to the LTP period will be required to meet the ongoing demands arising from growth over the 30 years. For existing urban areas the initial challenge will be addressing differences in the level of provision of open space, with both the availability and price of land within Auckland limiting how much new, high quality open space can be delivered. In existing urban areas there will also be a focus will be on investment in the existing open space network to increase the capacity of the network so that it can accommodate increased usage from the growing population. In greenfield areas, the focus will be on both acquisition of land to create the open space network within new urban areas, and to develop that network with the range of facilities and features required to support use. Again, the price of land is a significant factor in determining the extent of land that can be acquired for open space and reserves. Assets will be managed in an integrated way, sustaining and enhancing the values while ensuring Aucklanders continue to enjoy easy access to our coastline, waterways and volcanic features. To accommodate more use and activities in our open spaces, we need to invest in redeveloping existing parks, and creating new parks that are flexible, accessible, safe and welcoming.

44 Millions Millions Section 2: Draft Auckland 30 Year Infrastructure Strategy Priorities will be identified taking into account spatial priorities, including SHAs, and land release sequencing and timing as part of the Land Release Programme currently under development. In addition to acquiring additional land, we will also work with landowners to secure more public access to our open spaces. Creating a green network over the next 30 years involves the creation of greenways that connect our parks, streets and esplanade reserves with a network of walkways, cycleways and trails. We will also develop an integrated network of trails that are destinations for walking, riding, and paddling that will provide world-class recreation experiences for locals and tourists alike. The relationship between open space and the transport network will become more important as the city grows. The chart below shows the projected capital expenditure associated with the management of Auckland Council public open space infrastructure assets to Regional and local parks capex and opex - 10 years FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 Renewal Level of service Growth Operating costs Regional and local parks capex and opex - 30 years 5,000 4,000 3,000 2,000 1,000 Renewal Level of service Growth Operating costs 0 FY16-FY20 FY21-FY25 FY26-30 FY31-35 FY36-40 FY41-45 Waterfront Development and Regional Facilities A smaller but still important component of the council s assets portfolio is our waterfront and regional facilities assets. These include the public and commercial assets on the waterfront in areas such as the Wynyard quarter and our regional facilities such as our stadiums, Arts and entertainment facilities and Zoo.

45 These facilities do not form part of this 30 Year Infrastructure Strategy however we have added some commentary to assist readers to understand our plans in this area. No specific projects have been identified beyond the first 10 years for these facilities however provision has been made for ongoing levels of asset renewal expenditure in the financial projections. The next 10 years will see further enhancements along the waterfront as well as the implementation of the stadium strategy and some significant asset renewals at our 90 year old Zoo.

46 Appendix 1 Key Assumptions To ensure that this analytical process is relevant to Auckland Council, a series of assumptions have been made which establish the parameters for future Auckland Council investment and action. These assumptions range across both planning and financial aspects of the council and are detailed below: General Assumptions Meeting the Auckland Plan Development Strategy This assumption relates to the future growth and development pattern of Auckland. Specifically, we have assumed that Auckland will develop as a quality, compact city which has a 70:40 split in growth 19 in line with the Auckland Plan, which is the overarching strategic document for Auckland Council. Medium Growth Projections In line with the projections used elsewhere in the Long-term Plan, we have assumed that Auckland s population will grow by an additional 716,000 people by This reflects our assumptions about demand for services i.e. that population growth increases demand for services for all of our key infrastructure assets. There is a high degree of uncertainty about the pace of future growth which gives rise to a risk that our provision of infrastructure may be inefficient. We will manage this risk through careful growth monitoring. A potential uncertainty is if we build infrastructure in the wrong place; at the wrong time; or build too much, this would result in inefficient use of the council resources. Spatial Priorities Areas and Special Housing Areas These assist in determining the priority for investment in new infrastructure to service growth. We have assumed that there will be no changes to areas that have already been agreed or approved, and that any new areas will be consistent with the Auckland Plan Development Strategy. Current legislation as a basis This strategy has been developed within the current legislative context. Over a 30 year period there will be changes to relevant legislation, we are not able to predict what these might be. Any future changes to legislation will be addressed through future strategy reviews and the LTP process. This is one of our two levels of service assumptions (external levels of service only). Rates increase limit - The Long-term Plan is being developed based on a proposed policy of limiting the overall increase in general rates for existing ratepayers to 3.5 per cent each year. This is higher that the projected rate of inflation to enable us to achieve the right balance between affordability and making progress for Auckland. We have assumed that this policy will apply over the 30-year period of this Strategy. Use of the Proposed Auckland Unitary Plan The PAUP is currently going through a statutory process of submissions and hearings prior to its adoption (which is anticipated within 3 years). While many aspects of the PAUP could be changed during this time (e.g. the location of the Rural Urban Boundary), it is difficult to predict what these changes could be. We have therefore assumed that the adopted Auckland Unitary Plan will not be significantly different to the current content of the PAUP. The high degree of uncertainty about the final content of this plan gives rise to a risk that our provision of infrastructure is inefficient. We will manage this risk by ensuring that our infrastructure providers are kept up to date with potential changes to the plan contents. A potential uncertainty is if we build infrastructure in the wrong place and/or at the wrong time or build too much, this would result in inefficient use of the council resources. Resource Consents and Environmental Standards We have assumed that all existing resource consents will be renewed and that the current environmental standards will apply to the design and construction of future works. This is one of our two levels of service assumptions (external levels of service only). 19 The 70:40 split provide for 60-70% of growth (e.g., homes and jobs) within Auckland s existing core urban area; with 30-40% of growth occurring in new greenfield, satellite towns and rural and coastal towns.

47 Inflation All project costs and financial projections have been inflated using the assumptions in the council s LTP for the first 10 years ( ). The following inflation factors have been applied to capital and operational expenditure projections for years of this strategy:- Capital Expenditure Inflation Factor Transport 3.0% Water and Wastewater 3.2% Stormwater 2.6% Parks and Community Facilities 2.9% Other Capital Expenditure 2.2% Operating Expenditure Inflation Factor Staff Costs 2.4% Other Costs 3.0% Specific Network Assumptions Transport The 30 Year Infrastructure Strategy is based on the Basic Transport Network as outlined in the Consultation Document and for the council s Long-term plan, unless otherwise stated. Water and Wastewater Project budgets for future works assume an annual efficiency savings target of 5 per cent per annum in the delivery of capital projects through improved design scope, smarter procurement practices and project management. We have assumed that these efficiencies can be achieved without materially impacting service levels or the intended project benefits.

48 Asset Life Cycle Assumptions Transport The future life cycle costs of transport are dominated by the road network which represents 82 per cent of Auckland Transport s depreciable assets as at June The following table gives an indication of the value and assets lives of the main transport network components (by asset value). Asset Value June 2014 Asset Life $millions Roads 7, yrs Train Stations yrs Buildings yrs Rolling Stock yrs Bus Stations yrs Wharves yrs Yrs Within the road network the main assets are the road carriageway, which has a life of 50 years for arterials and 100 years for local roads, and the associated pavement surface which has a life of between 10 and 15 years. Footpaths have a life of between 25 and 50 years and bridges have a life of 99 years. Auckland Transport has an ongoing condition assessment programme for major asset groups. Higher priority was given for critical assets with a focus on structures including bridges, retaining walls, ferry facilities, bus shelters and rail assets. Detailed inspections are undertaken for these critical assets while non-routine condition assessments at an appropriate frequency are undertaken for non-critical assets. Auckland Transport uses a condition-based forecasting model to optimise long-term renewals investment across its asset portfolio. In the current financial environment, renewal work is focused on critical or highly utilised asset groups that have a high proportion in poor to very poor condition.

49 Further information on Auckland Transport s approach to managing its renewals requirements over the next 30 years is included in Appendix 2. Water Supply Watercare undertakes an ongoing comprehensive condition assessment programme for all the bulk supply network pipes and consequently has collected reliable condition data for these pipes. The assessment of the condition of inherited local water distribution pipe networks was historically approached in different ways and with differing consistency across the region. Consequently uniform comparable condition data is currently not available. However, the majority of the local distribution pipe networks are estimated to be in good to excellent condition based on the condition data that does exist and due to their relatively young age (compared to their life expectancy).

50 The useful life of pipe assets that make up 61 per cent of the total value of water supply has been estimated across the different networks from industry standards, local knowledge and pipe deterioration modelling. The results of this desktop analysis estimates that less than 20 per cent of the local distribution pipes are in poor or very poor condition.

51 Wastewater collection and treatment The condition of the trunk network assets is assessed during scheduled crew inspections, specialist pipe bridge and rising main inspections and closed circuit television (CCTV), sonar and walk-through inspections. Watercare has reliable data for the trunk assets (owned prior to 1 November 2010). A condition assessment for the local networks (including trunk networks inherited by Watercare at 1 November 2010) was not consistently undertaken and consequently the data is not readily comparable. The wastewater pipes account for 72 per cent of the total value of the wastewater assets. The useful life of the wastewater pipes has been estimated across the different networks from industry standards, local knowledge and pipe deterioration modelling. Pipes (including manholes) generally have longer useful lives than many of the other assets in the schemes. Estimated lives for the pumps, instrumentation or electrical assets of the pump stations and treatment

52 Stormwater drainage and flood protection The entire piped network has been condition rated either based on actual inspections or based on analysis and extrapolation of actual pipe conditions. The effects of pipe material, diameter, age and locality (catchment) on pipe deterioration were considered for extrapolation in the asset renewal models. It is assumed that the overall length of pipes in poor or very poor conditions across the region would be about 460km or 7 percent of the entire stormwater network. Out of this percentage, approximately 140 km of inspected pipes will need intervention in the next 10 years and another 160km of inspected pipes are estimated be in need of some work in the next 20 years. The approach to renewals will shift the focus to more planned renewals focused on optimised management of performance risks. The pipe renewal programme aims to maximise the economic life of an asset. Replacing a pipe before the end of its useful life increases the cost of providing a given level of service. Stormwater assets tend to be renewed or rehabilitated right at the end of their economic life as they are typically able to perform to an adequate level even when they are in a poor condition. Community facilities The Property department undertake building inspections on a regular basis to: identify any hazards and health and safety work to be completed immediately check that previous condition assessments are still accurate and relevant identify the remaining life of building components