activity summary: water supply - kaipara district · water rates are set to reflect the cost of...

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Activity Profile Water Supply approved

Activity Summary: Water Supply

Activity name Water Supply

Activity description The Kaipara District Council operates four community Water Supply schemes for Dargaville (including Baylys), Glinks Gully, Ruawai,

and Maungaturoto. These schemes are for the purpose of providing these communities with a constant, adequate and sustainable

potable water supply. There is also a small scheme in Mangawhai.

The Council owns and maintains the whole Water Supply network. The Water Supply activity covering:

Collection of raw water

Treatment of raw water to produce suitable quality and quantities of drinking water

Distribution of treated water to the point of supply to the customer, to consistently meet specific flow, pressure and quality

standards. This includes water required for emergency fire-fighting services for urban area in Dargaville.

Council’s Water Supply activity also includes other responsibilities and through their professional and physical works contracts, Council

undertakes the following:

Asset Management

Customer Services

Treatment Plant Operation and Maintenance

Network Operations and Maintenance

Capital and Refurbishment Programme

Water Billing

Consent Monitoring and Compliance.

Activity Profile: Water Supply

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Level of Service The supply of water is discretionary and defined by historic circumstances specific to the communities that comprise the District. The

preferred policy is that except where current systems supply to urban communities, households should expect to provide their own

Water Supply through harvesting of water.

The level of service for Water Supply is:

Council will continue to provide water as is currently supplied within the District.

Council will provide water to Drinking Water Standards for New Zealand 2005 (NZDWS) over the authorised timeframe.

Fault response time to outages will make up less than 1% of supply time.

Council will not extend its reticulation areas within the District to include new residential areas.

Where there are proposals for new commercial and industrial areas, Council will consider supporting that economic

development through the Water Supply as part of a rezoning proposal, on a cost-recovery basis.

Council will comply with Resource Consents in respect of water takes.

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.

Water Supply services provided by Council support industry. For example, Council services are central to Silverfern Farms in

Dargaville and Fonterra in Maungaturoto.

Working within our consents ensures that the service does not impact negatively on the environment.

The challenge is to maintain the services at an affordable cost. Affordability is the biggest barrier for people maintaining a sense of

belonging and being able to join in with communities.

Activity delivery model Council will retain accountability for managing the Water Supply function in-house, with use of external services through two key

contracts:

Operations and Maintenance; carried out through a single multi-year contract (Contract 527).


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Professional Services; delivered through a separate multi-year contract (Contract 666).

The Professional Engineering Services Contract is provided within a larger contract that also covers Wastewater and Stormwater.

Contracts are due to be renewed in 2015/2016.

Service level issues: The Water Supply assets are in generally good shape with the exception of the network of pipes for the older schemes, which are

nearing the end of their effective lives and need renewal. The cost of renewing these assets will be high and need to be done in a

planned and affordable manner. Some small communities, serviced by old schemes, and the small Mangawhai scheme may find the

renewals required unaffordable.

The service levels as described will be applied to Dargaville (including Baylys), Maungaturoto and Ruawai schemes. There is a

six-year programme to gain better knowledge of the pipe assets that will enable a long-term renewal programme to be confirmed.

Meanwhile, these schemes will be kept in good working order.

The small schemes of Glinks Gully and Mangawhai will be reviewed over the next three years, when a decision on the future of these

schemes will be made. Meanwhile, these schemes will receive operational and response maintenance only. They will not be upgraded

to drinking water standards within the review period.

Other service level issues include:

A number of properties access raw water from takes in Dargaville, Maungaturoto and Mangawhai before it is treated to potable

standard.

Council does not consistently comply with all Resource Consent conditions for water takes.

Water taken from one of the sources for the Dargaville supply has no consents.

Security of supply for Dargaville is challenging during dry years. A pipeline from the Waiatua Dam at a cost of $2.8 million

would solve this (pencilled in for years 2016 onwards), but the Dargaville community may find it unaffordable.


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Risks The taking of raw water and Council charging for it is a risk, as it does not comply with NZDWS and Council would be liable for

health issues should they arise.

Ministry of Health may take legal action against Council if compliance with NZDWS is delayed (as planned for Glinks Gully and

Mangawhai Schemes).

Dargaville Water Supply has drought risks.

The renewals programme is currently based on affordability, rather than condition.

Asset knowledge (mainly pipes) is mixed. This, and the above mean that Council runs some risks of asset failure.

The Maungaturoto Scheme is experienced as expensive by older residents of the community. The Scheme was mainly

supplied to service Fonterra.

Funding source and

rationale

Funding:

Water Supply to be funded by targeted rates on the communities who receive the service, and some volumetric charges.

Rationale:

Water rates are set to reflect the cost of services and residents are charged on the amount of water used and this is reflected in

targeted rates.

Key policy and statutory

related cost drivers

Local Government Act 2002

The Health (Drinking Water) Amendment Act 2007

Drinking-water Standards for New Zealand 2000 and 2005

Resource Management Act 1991

Cost drivers for this activity are meeting compliance with Resource Consents and drinking water standards.


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Water Supply Asset Overview Summary

Co

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un

ity

Wate

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Po

int

Wate

r T

reatm

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t P

lan

t

Pu

mp

Sta

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ns

Sto

rag

e

Reti

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on

(km

)

Co

nn

ecti

on

Po

ints

(F

ire

hyd

ran

ts,

Valu

es, M

ete

rs)

Dargaville/Baylys 5 1 4 3 136 2,782 3,115

Maungaturoto 4 1 3 4 13 447 496

Ruawai 2 1 0 1 6.5 251 129

Glinks Gully 3 1 0 4 1.4 85 9

Mangawhai 1 0 0 5 2.9 18 14

Summary of Water Supply Asset Valuations 2013

Component Replacement Cost $

Depreciated Replacement Cost $

Annual Depreciation $

Dargaville/Baylys 46,786,098 15,945,127 735,195

Maungaturoto 17,241,373 9,061,429 260,037

Ruawai 2,672,342 1,048,715 70,556

Glinks Gully 755,269 441,466 12,380

Mangawhai 853,733 552,914 14,938

Water Supply Total $68,308,815 $27,049,651 $1,093,106

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Measuring performance: Water Supply - Source – Long Term Plan 2012/2022 (pages 139 and140)

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. Safety of drinking water in accordance with DWS

2005 (2008).

The extent to which KDC’s drinking water supply

complies with:

(a) part 4 of the drinking-water standards (bacteria

compliance criteria), and

(b) part 5 of the drinking-water standards (protozoa

compliance criteria).

Dargaville Maungaturoto

Ruawai


Ruawai


Ruawai


Ruawai


Ruawai


Ruawai


Ruawai


Ruawai

2. Maintenance of the reticulation network.

The percentage of real water loss from KDC’s

networked reticulation system

Source: Water Balance and Review for Kaipara District

Council dated January 2013

Note: Nationally adopted practices for calculating a

water balance (this includes the Infrastructure Leakage

Index) have been used in this exercise.

Dargaville 28%

Maungaturoto 33%

Ruawai 33%

Mangawhai 65%

Dargaville 25%

Maungaturoto 30%

Ruawai 30%

Mangawhai 30%

Dargaville 20%

Maungaturoto 25%

Ruawai 25%

Mangawhai 25%

Dargaville 20%

Maungaturoto 25%

Ruawai 25%

Mangawhai 25%


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2015/2016

LTP Year 2 Target

2016/2017

LTP Year 3 Target

2017/2018


2018/2025

3. Fault response times

Where KDC attends a call-out in response to a fault

or unplanned interruption to its networked reticulation

system, the following median response times

measured:

(a) attendance for urgent call-outs: from the time that

the local authority receives notification to the time

that service personnel reach the site, and

(b) resolution of urgent call-outs: from the time that the

local authority receives notification to the time that

service personnel confirm resolution of the fault or

interruption.

(c) attendance for non-urgent call-outs: from the time

that the local authority receives notification to the

time that service personnel reach the site, and

(d) resolution of non-urgent call-outs: from the time

that the local authority receives notification to the

time that service personnel confirm resolution of

the fault or interruption.

1 hour

2 hours

2 hours

3 days

1 hour

2 hours

2 hours

3 days

1 hour

2 hours

2 hours

3 days

1 hour

2 hours

2 hours

3 days


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2015/2016

LTP Year 2 Target

2016/2017

LTP Year 3 Target

2017/2018


2018/2025

4. Customer satisfaction.

The total number of complaints for the District received

by KDC about any of the following:

(a) drinking water clarity

(a) drinking water taste

(b) drinking water odour

(c) drinking water pressure or flow

(d) continuity of supply, and

(e) the local authority’s response time to any of these

issues.

5

6

4

18

8

24 hours

5

6

4

18

8

24 hours

5

6

4

18

8

24 hours

5

6

4

18

8

24 hours

5. Demand management.

The average consumption of drinking water per day per

resident within Kaipara District

= Billed Metered Consumption (m3) x 1000

No of connections x 365 x 2.5 (Occupancy rate)

Dargaville 275

Maungaturoto 340

Ruawai 130

Glinks Gully 52

Mangawhai 230

Dargaville 275

Maungaturoto 340

Ruawai 130

Glinks Gully 52

Mangawhai 230

Dargaville 275

Maungaturoto 340

Ruawai 130

Glinks Gully 52

Mangawhai 230

Dargaville 275

Maungaturoto 340

Ruawai 130

Glinks Gully 52

Mangawhai 230

6. Water Take Consents 100% compliance with

Northland Regional

Council Water Take

Consents

100% compliance with

Northland Regional

Council Water Take

Consents


Northland Regional

Council Water Take

Consents


Northland Regional

Council Water Take

Consents

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 Water Supply 2 2 2 2 2 2


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Improvement Programme 2015/2025 – Water Supply

Year 1

Planned improvement

2015/2016

Capex Improvement Cost Estimate $

Dargaville: Renewals + Manage existing water source

and consents + Take consent compliance and DWS

compliance + LOS Backlog

1,175,000

Maungaturoto: Renewals + NZDWS compliance and

watertake consent compliance projects

228,000

Ruawai: Renewal + NZDWS compliance 41,500

Mangawhai: Water take consent compliance 1,500

Glinks Gully: Water take consent compliance 1,500

Total $1,447,500

Opex improvements

Condition Assessment of Water Supply – continuation 70,000

Improvement of Asset Information System (AssetFinda) 50,000

Hydraulic Modelling Water Supply 35,000

Total $155,000

Year 2 Planned improvement

2016/2017

CAPEX Improvement Cost Estimate $

Dargaville: Renewals + Water take consent compliance

and DWS compliance

755,000

Maungaturoto: Renewals + NZDWS compliance and

Water take consent compliance

153,000




Total $952,500

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Year 3

Planned improvement

2017/2018

CAPEX Improvement Cost Estimate

$

Dargaville: Renewals + Take consent compliance and

DWS compliance

743,000

Maungaturoto: Renewal + NZDWS compliance and

water take consent compliance

153,000




Total $940,500

Years 4-10

Planned improvement

2018/2025

Water Supply

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

Dargaville & Baylys Beach 1,007,500.00 1,157,500.00 1,407,500.00 1,707,500.00 1,807,500.00 1,807,500.00 1,907,500.00

Glinks Gully 31,500.00 11,500.00 11,500.00 11,500.00 16,500.00 21,500.00 26,500.00

Ruawai 51,500.00 51,500.00 51,500.00 61,500.00 61,500.00 101,500.00 126,500.00

Maungaturoto 154,500.00 154,500.00 204,500.00 304,500.00 354,500.00 504,500.00 604,500.00

Mangawhai 51,500.00 11,500.00 11,500.00 11,500.00 16,500.00 21,500.00 26,500.00


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Financial Information – Water Supply

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 0 0 0 0 0 0 0 0 0 0 0 0

Targeted rates (other than a targeted

rate for water supply) 0 0 0 0 0 0 0 0 0 0 0 0

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 2,851 2,851 3,175 2,965 2,919 3,014 3,084 3,204 3,495 3,668 3,758 3,931

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 12 12 0 0 0 0 0 0 0 0 0 0

Total operating funding 2,863 2,863 3,175 2,965 2,919 3,014 3,084 3,204 3,495 3,668 3,758 3,931

Application of operating funding

Payments to staff and suppliers 1,120 1,208 1,059 815 749 800 779 805 883 864 897 989

Finance Costs 332 332 344 355 334 314 315 323 351 402 377 352

Internal charges and overheads applied 369 369 515 464 455 474 477 491 517 521 539 569

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

Total applications of operating funding 1,821 1,909 1,918 1,634 1,538 1,588 1,571 1,619 1,751 1,787 1,813 1,910

Surplus (deficit) of operating funding 1,042 954 1,257 1,331 1,381 1,426 1,513 1,585 1,744 1,881 1,945 2,021

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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 37 37 0 0 0 0 0 0 0 0 0 0

Increase (decrease) in debt 296 184 191 -325 -344 29 121 468 876 -405 -414 -427

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 333 221 191 -325 -344 29 121 468 876 -405 -414 -427

Applications of capital funding

Capital Expenditure - to meet additional demand 148 148 0 0 0 0 0 0 0 0 0 0

Capital Expenditure - to improve the level of service 0 0 495 13 11 82 15 15 16 16 17 17

Capital Expenditure - to replace existing assets 1,227 1,027 953 989 1,016 1,372 1,590 2,002 2,581 2,883 3,259 3,716

Increase (decrease) in reserves 0 0 0 5 10 0 28 36 24 -1,424 -1,744 -2,139

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

Total applications of capital funding 1,375 1,175 1,448 1,007 1,037 1,454 1,633 2,053 2,621 1,475 1,532 1,594

Surplus (deficit) of capital funding -1,042 -954 -1,257 -1,332 -1,381 -1,425 -1,512 -1,585 -1,745 -1,880 -1,946 -2,021

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

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Capital Expenditure Programme – Water Supply


Annual

Plan Budget Budget Budget

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

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

Dargaville

Raw water pipe bridge - Parore Street 59

Protection of raw water main - Rotu Stream 49 50

Replace pipe bridges - Awakino Point and Baylys Coast Road 59

Pipe Renewals 315 753 794 811

Manage ex water source & Ahikiwi 212

Waiatua Dam Improvements 49 50

Mamaranui Pump 19 20

Automate shut-off valve Water Treatment Plant 29 30

Gated Weir across Kaihu River or Waiatua Stream 59 60

Water meter renewal 20

Glinks Gully

Minor replacement projects 1 1 2 2

Mangawhai

Water Treatment Plant Upgrade 31 2 2 2

Maungaturoto

Upgrade Telemetry 50

Watermain upgrades 265 160 161 167

Renewal of Railway Village pipeline and bulk meters 100

Water take improvements 68

State Highway 12 Relocation Maungaturoto Town Water Main 60

Ruawai

Replace 1.2km of piping to meet fireflow requirements 190 42 43 45

Upgrade Telemetry 20

Total 1,375 1,448 1,002 1,027

activity summary: water supply - kaipara district · water rates are set to reflect the cost of...

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