activity summary: sewerage and the treatment and … · activity profile: sewerage and the...

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Activity Profile Wastewater approved DM:vrh

Activity Summary: Sewerage and the Treatment and Disposal of Sewage

Activity name Sewerage and the Treatment and Disposal of Sewage

Activity description The Kaipara District Council operates six community wastewater schemes for:

Dargaville

Glinks Gully

Kaiwaka

Te Kopuru

Mangawhai

Maungaturoto.

The Wastewater Activity (Sewerage and the Treatment and Disposal of Sewage) focuses on protecting public and environmental health

by collecting and treating wastewater prior to release into receiving environments. Council owns and maintains the wastewater service

network covering:

Collection and transfer of wastewater (reticulation)

Pump station facilities

Treatment and storage of wastewater

Discharge of treated wastewater into surrounding environments.

Council’s Wastewater Activity includes other responsibilities through their professional and physical works contracts. Council undertakes

the following:

Asset Management

Customer Services

Treatment Plant Operations and Maintenance

Capital and Refurbishment Programmes

Consent Monitoring and Compliance.

Activity Profile: Sewerage and the Treatment and Disposal of Sewage

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Level of Service Legal compliance with all Resource Consents for discharges into the environment from Council systems. The exception, provided

for in the consent, is severe weather events and power failure.

Extension of connections, disconnections to Council systems and exits from a scheme will be progressed where a business case

shows benefits are in line with costs.

We comply with Resource Consents except for Kaiwaka and Te Kopuru. Desludging of ponds will assist with compliance in the

future and assist to avoid or mitigate any breaches of consent conditions.

An extension of reticulation in Mangawhai is likely to be necessary to realise the full benefit from the investment already made.

Improvements are needed to the Asset Management Plan (AMP) to understand asset condition better and have an improved

investment programme.

Contribution to

Community Outcomes

Council wants to work with the people in Kaipara to make it a place where it’s easy to live. When it’s easy, it will be easy to do business

here, easy to join in and easy to enjoy nature.

The key issue for “easy” in this activity is affordability. A number of the schemes may become unaffordable in the future due to the level

of renewals required to fix aging assets, and the declining population in some villages who need to pay for the work. To address this,

Council is considering alternate ways of supplying this service to declining communities with aging infrastructure.

Activity delivery model The preferred option is Core Activity In-house. Undertaking Core Activity In-house enables Council to take control of the professional

services currently provided externally.

There would be significant change from what we currently do, meaning:

Management and Contract efficiencies

Direct professional services provided internally

Ownership of the asset.

The Kaipara District Council’s Wastewater Activity functions through two key contracts whilst maintaining some asset management

responsibilities in-house through Council’s General Manager Operations and Water Services Manager. The key external Contracts are:


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Operations and maintenance; carried out through a single multi-year Contract (Contract 527) that covers:

o Day-to-day operations, inspections and planning

o Responsive maintenance

o Planned maintenance

o Renewals (as requested)

o Capital upgrades (as requested)

o Resource consent reporting

o Financial reporting

o Asset data collection.

The Operations Contract delivers the Lifecycle Management outcomes on a day-to-day basis.

Professional Services; delivered through a separate multi-year Contract (Contract 666) that covers capital works.

Service level issues The schemes in the west are getting old and require investment, especially in the aged pipe network.

It may be unaffordable to continue to provide services with the current aging plant/pipes to declining communities with old

schemes. Communities most affected include Te Kopuru and Glinks Gully. The current levels of service will be maintained for the

next 3 years whilst further assessment of the infrastructure is undertaken.

The trend towards higher and higher environmental standards of discharges may incur increased costs that communities will

struggle to pay for.

The MCWWS has unused plant capacity. Investigation is required to assess whether it is affordable to extend disposal and

connection reticulation to use the full capacity of the plant. An Advisory Panel comprising six community members and two

Commissioners have been appointed to consider if the reticulation network and disposal capacity should be extended to use more

of the capacity of the plant. The business case for extension (or otherwise) will not be completed in time for inclusion in the Long

Term Plan for 2015/2025. To prepare for a decision that the extension should proceed, a budget allowance has been included in

years 4-10 totalling $2.7m. This should not be read as a decision to extend. This is still to be decided.


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Risks The biggest risk is scheme failure because of the lack of investment in pipe renewals in the schemes reaching the end of their

asset life.

Funding source and

rationale

Funding:

The sources of funding are from General Rates, Uniform Annual General Charges and Targeted Rates. Targeted Rates form the largest

proportion of funding.

Rationale:

There has been a falling ratio from around 78% Targeted Rate in 2013/2014 to 68% Targeted Rate in 2015/2016. Those that use the

system pay the greater costs that relate to the operation of the system. The increasing community share reflects that the entire

community benefits environmentally through sewerage systems that function in accordance with their Resource Consents and that cost-

sharing on this basis is appropriate.

Key policy and

statutory related cost

drivers

Local Government Act 2002

Resource Management Act 1991

Health Act 1956

Regional Policy Statement

Regional Water and Soil Plan

Regional Coastal Plan

New Zealand Coastal Policy Statement

National Policy Statement for Freshwater Management

Wastewater Drainage Bylaw 2009

Trade Waste Bylaw 2009

The cost drivers are the necessary investment in capital plant, and compliance with ever-increasing environmental standards.


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Sewerage and the Treatment and Disposal of Sewage Asset Valuations 2010

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Dargaville 1 15 8.5 40.3 775 1,932 Assessment programme commenced 2013/2014

Glinks Gully 1 1 0.3 0.15 8 24 Assessment programme commenced 2013/2014

Kaiwaka 1 1 1.3 4 77 180 Assessment programme commenced 2013/2014

Maungaturoto 1 3 1.2 10.7 213 453 Assessment programme commenced 2013/2014

Te Kopuru 1 0 0 6.3 87 195 Assessment programme commenced 2013/2014

Mangawhai 1 12 5.5 57 798 1,870 Assessment programme commenced 2013/2014

Summary of Sewerage and the Treatment and Disposal of Sewage Asset Valuations

Community Replacement Costs

(including 2013/14 Reconciliation) $

Depreciated Replacement Cost $

Dargaville 18,663,775 7,581,385

Glinks Gully 257,034 157,503

Kaiwaka 1,797,113 807,643

Maungaturoto 5,793,851 3,310,426

Te Kopuru 1,956,388 785,089

Mangawhai 41,578,230 36,122,371

Total $70,046,391 $48,764,417


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Measuring performance: Sewerage and the Treatment and Disposal of Sewage - Measures 1-4 are statutory requirements

Performance indicator/service level

LTP Year 1 Target

2015/2016

LTP Year 2 Target

2016/2017

LTP Year 3 Target

2017/2018

LTP Years 4-10 Target

2018/2025

1 System and adequacy

The number of dry weather sewerage overflows from Council’s sewerage

systems, expressed per 1,000 sewerage connections to that sewerage system.

The Resource Consent provides for severe weather events and power failure

exceptions.

0

0

0

0

2 Discharge compliance

Compliance with the Council’s resource consents for discharge from its

sewerage system measured by the number of:

(a) abatement notices

(b) infringement notices

(c) enforcement orders, and

(d) convictions

received by the territorial authority in relation those Resource Consents.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

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Performance indicator/service level

LTP Year 1 Target

2015/2016

LTP Year 2 Target

2016/2017

LTP Year 3 Target

2017/2018

LTP Years 4-10 Target

2018/2025

3 Fault response times

Where the Council attends to sewerage overflows resulting from a blockage or

other fault in the territorial authority’s sewerage system, the following median

response times measured:

(a) attendance time: from the time that the territorial authority receives

notification to the time that service personnel reach the site, and

(b) resolution time: from the time that the territorial authority receives

notification to the time that service personnel confirm resolution of the

blockage or other fault.

1 hour

Minor blockages

4 hours,

Significant

blockages 3 days

1 hour

Minor blockages

4 hours,

Significant

blockages 3 days

1 hour

Minor blockages

4 hours,

Significant

blockages 3 days

1 hour

Minor blockages

4 hours,

Significant

blockages 3 days

4 Customer satisfaction

The total number of complaints received by the Council about any of the

following:

(a) sewage odour

(b) sewerage system faults

(c) sewerage system blockages, and

(d) the Council’s response to issues with its sewerage system.

16

16

15

1 hour

16

16

15

1 hour

16

16

15

1 hour

16

16

15

1 hour

Human Resources

Activity Profile Sub Profile 30/06/14 FTE 2014/15 FTE 2015/16 FTE 2016/17 FTE 2017/18 FTE 2019 + FTE

Water Services Wastewater 2.4 2.4 2.4 2.4 2.4 2.4


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Improvement Programme 2015/2025 – Sewerage and the Treatment and Disposal of Sewage

Year 1

Planned improvement/ change

2015/2016

CAPEX Improvement

Project Cost estimate $

Dargaville: Renewals + Pumpstation Safety 429,000

Kaiwaka: Environmental compliance 2,500

Mangawhai: Effluent discharge + growth

Maungaturoto: Renewal + Environmental compliance +

Pumpstation safety

485,000

25,500

Te Kopuru: Environmental compliance

Total

2,500

$944,500

OPEX Improvement – (as per Asset Management Improvement Programme Three Waters)


Condition Assessment of Wastewater – continuation 80,000

Improvement of Asset Information System (AssetFinda) 50,000

Hydraulic Modelling Wastewater 35,000

Total $165,000

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Improvement Programme 2015/2025 – Sewerage and the Treatment and Disposal of Sewage

Year 2


2016/2017

CAPEX Improvement


Dargaville: Renewals 430,000

Kaiwaka: Pond curtain + Environmental compliance 42,500

Mangawhai: Additional capacity for growth 40,000

Maungaturoto: Renewal + Environmental compliance

Te Kopuru: Environmental compliance

Total

52,500

2,500

$567,500

Year 3


2017/2018

CAPEX Improvement

Project Cost estimate

Dargaville: Renewals 430,000

Kaiwaka: Environmental compliance 2,500

Mangawhai: Additional capacity for growth 40,000

Maungaturoto: Renewal + Pumpstation storage +

Environmental compliance

52,500

Total $525,000

Years 4-10


2018/2025

Wastewater

Capital Expenditure 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25

Dargaville 270,000 610,000 610,000 610,000 710,000 728,000 728,000

Glinks Gully 10,000 20,000 - - 5,000 - -

Kaiwaka 2,500 80,000 - - 120,000 140,000 160,000

Maungaturoto 12,500 132,500 132,500 130,000 212,500 230,000 230,000

Te Kopuru 10,000 20,000 - 8,840 22,500 50,000 70,000

Mangawhai 40,000 40,000 40,000 40,000 730,000 730,000 965,000

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Financial Information – Sewerage and the Treatment and Disposal of Sewage

Funding Impact Statement – Operating

For the period commencing:

Annual

Plan Forecast Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget

1 July 2014-2015 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Operating fundingSources of operating funding

General rates, uniform annual general

charges, rate penalties 1,891 1,891 2,844 2,661 2,710 3,239 3,262 2,737 3,481 3,318 3,339 3,599

Targeted rates (other than a targeted

rate for water supply) 4,901 4,901 5,091 5,711 5,836 6,030 6,692 6,928 7,297 8,076 8,843 9,199

Subsidies and grants for operating purposes 0 0 0 0 0 0 0 0 0 0 0 0

Fees, charges and targeted rates

for water supply 9 9 9 10 10 10 10 11 11 12 12 12

Internal charges and overheads recovered 0 0 0 0 0 0 0 0 0 0 0 0

Local authorities fuel tax, fines, infringe-

ment fees and other receipts 8 8 0 0 0 0 0 0 0 0 0 0

Total operating funding 6,809 6,809 7,944 8,382 8,556 9,279 9,964 9,676 10,789 11,406 12,194 12,810

Application of operating funding

Payments to staff and suppliers 2,591 2,587 2,649 2,460 2,392 2,420 2,663 2,651 2,724 3,022 3,515 3,306

Finance Costs 3,375 3,375 3,836 3,805 3,819 3,776 3,713 3,700 3,653 3,599 3,511 3,451

Internal charges and overheads applied 612 612 935 889 876 890 954 963 993 1,073 1,196 1,161

Other operating funding applications 0 0 0 0 0 0 0 0 0 0 0 0

Total applications of operating funding 6,578 6,574 7,420 7,154 7,087 7,086 7,330 7,314 7,370 7,694 8,222 7,918

Surplus (deficit) of operating funding 231 235 524 1,228 1,469 2,193 2,634 2,362 3,419 3,712 3,972 4,892

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Funding Impact Statement - Capital


Annual

Plan Forecast Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget

1 July 2014-2015 2014-2015 2015-2016 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025

$'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000

Capital fundingSources of capital funding

Subsidies and grants for capital expenditure 0 0 0 0 0 0 0 0 0 0 0 0

Development and financial contributions 645 645 361 361 361 404 467 510 552 595 658 722

Increase (decrease) in debt 194 190 19 -519 -633 -1,154 -590 -144 -939 -1,246 -1,703 -2,380

Gross proceeds from sale of assets 0 0 0 0 0 0 0 0 0 0 0 0

Lump Sum Contributions 0 0 0 0 0 0 0 0 0 0 0 0

Total sources of capital funding 839 835 380 -158 -272 -750 -123 366 -387 -651 -1,045 -1,658

Applications of capital funding

Capital Expenditure - to meet additional demand 173 173 429 42 44 270 627 647 670 695 387 403

Capital Expenditure - to improve the level of service 412 412 70 50 38 20 41 6 43 13 7 7

Capital Expenditure - to replace existing assets 485 485 445 505 491 315 905 875 880 2,168 2,335 2,797

Increase (decrease) in reserves 0 0 -40 474 623 836 940 1,199 1,438 185 197 27

Increase (decrease) of investments 0 0 0 0 0 0 0 0 0 0 0 0

Total applications of capital funding 1,070 1,070 904 1,071 1,196 1,441 2,513 2,727 3,031 3,061 2,926 3,234

Surplus (deficit) of capital funding -231 -235 -524 -1,229 -1,468 -2,191 -2,636 -2,361 -3,418 -3,712 -3,971 -4,892

Funding Balance 0 0 0 -1 1 2 -2 1 1 0 1 0


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Capital Expenditure Programme – Sewerage and the Treatment and Disposal of Sewage


Annual

Plan Budget Budget Budget

1 July 2014-2015 2015-2016 2016-2017 2017-2018

$'000 $'000 $'000 $'000

Dargaville

Increase pump station capacity 99

Renewal of reticulation areas 150

Step screen at oxidation ponds 96

Various projects generated from 2013/14 Condition Assessment 175

Glinks Gully

Effluent Flow Meter 5

Kaiwaka

Various projects generated from 2013/14 Condition Assessment 12

Mangawhai

Disposal system improvements and expansion 280

Reticulation extension 143

Maungaturoto

Upgrade Telemetry 10

Pipe Renewal 50

Upgrade Telemetry 40

Te Kopuru

Discharge monitoring mechanism 10

Total 1,070 944 597 573

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