total management planning strategiesforwaterservice … teske am planning.pdf · 2012. 3. 1. ·...

1.

TOTAL MANAGEMENT PLANNING

Strategies for Water ServiceProvidersPresenters:

Craig Teske – Principal Engineer (DNR)

Aneurin Hughes – Manager, Asset Management(Cardno MBK)

Rob Drury – Manager, InfrastructureManagement (DNR)

2.

A concept which encourages water service providersto:-

• utilise best practice planning;

• achieve least cost outcomes; and

• achieve whole-of-business sustainable management


3.

• Water Service Infrastructure in Queensland• Queensland Water Service Providers• What is Total Management Planning ?• TMP Development• Challenges in Developing the Guidelines• Typical TMP Documentation Structure• TMP Guideline Structure• Features of the Guidelines• KRA Guidelines• Links to other parts of the Water Industry• Where to from Here?

Total Management PlanningGuidelines (2000)

– Presentation Outline

4.

Extent:-

• Water-related infrastructure = $20 billion.

• $200 - $400 million new infrastructure per year.

• Urban water-related services:-$10,000 - $15,000 per household per year.

Benefits:-

• Improved living conditions

• Regional and local economic development

• Minimisation of environmental degradation

Queensland Water Service Infrastructure

5.

Rural Water Supply Boards

Urban Water Supply Boards

SunWater

Local Governments

Joint Local Governments

Aboriginal Community Councils

Torres Strait Island CommunityCouncils

WSP Category

18 drainage boards17 water supply boards (stockwater)11 water supply boards (irrigation)4 bore water boards

4 statutory water boards

1 (34 schemes)

125 operating over 400 water supplyschemes and 250 sewerage schemes

2

14

17

Number/Sub-Category

Queensland Water Service Providers

6.

Need for an overall, coordinated approach to ensure: -

� Sustainable essential services;

� Best practice to plan, design and build;

� Least-cost outcomes for the community.

Why TMP ?

7.

• Asset Management Guidelines developed -1989/91

• TMP Planning Guidelines developed 1990-1993

• TMP Manual published - 1994

• DCILGPS Subsidy to develop TMPs - 1994/95

• Approved TMPs for full subsidy since 1996/7

• TMP Guidelines are now being revised & updated

• TMP Guidelines complement Water Act 2000.

History of TMP

8.

• TMP Manual (1994) - 2 volume document(process-based).

• Subsidy link to TMP - an incentive

• After December 2000 - reduced subsidy if noTMP in place.

TMP Today

9.

Consultation with Local Government and ruralservice providers (TMP Workshop - November 1999)

Additional TMP guidelines being developed by DNR(Cardno MBK developed draft Guidelines)

DNR to finalise TMP guidelines - early 2001(Consultation with relevant stakeholders)

Development of Guidelines –Current Objectives

10.

• For different types of Water Service Providers

• More outcome oriented, less prescriptive andeasier to read

• More aligned with corporate objectives

• Provide methodologies for best practice andleast-cost planning processes

• Complementary to the Water Act 2000

• Integrated with other State Agency requirements(e.g. EPA)

The Aim of the New TMP Guidelines

11.

Aneurin Hughes (Cardno MBK)

12.

• Smart Thinking

• Smart Planning

• Smart Financing

• Smart Investment

• Smart Management

• Sustaining or Improving Services

What does Total Management PlanningMean ?

13.

• Diversity of WSPs

• Dispersed

• Autonomous

• Organisational sophistication, resources andskills

Getting the balance ‘right’

Challenges in Developing TMP Guidelines

14.

• Documentation Structure

• Guideline Structure

• Features of Guidelines

• KRA Guidelines

• Where to from Here?

Total Management Planning Guidelines(2000)

15.

Level Element Main Target Readership

1 Business Management Plan (Overview)Elected representatives;executive management;regulators

2 Operational sub-plans, includingaction plans

Operational management;regulators

3 Supporting documentation, includingprocedure manuals, reports, etc

Operational supervisors;technical staff

Basic TMP Structure

16.

BUSINESS MANAGEMENT PLANBUSINESS MANAGEMENT PLAN

ServiceStandards

FinancialSustainability

AssetManagement

EcologicalSustainability

RiskManagement

PerformanceManagement

OrganisationManagement &Development

KEYRESULTAREAS

Service StandardsPlan

Service StandardsPlan

Drinking WaterQualityManagement Plan


FinancialManagementPlan

FinancialManagementPlan

Water DemandManagementPlan

Water DemandManagementPlan

Water LossManagementPlan

Water LossManagementPlan

InfrastructurePlanningOverview

InfrastructurePlanningOverview

AssetProcurementPlan

AssetProcurementPlan

AssetEvaluation andRenewal Plan

AssetEvaluation andRenewal Plan

OperationsManagementPlan

OperationsManagementPlan

MaintenanceManagementPlan


Sewer I/IManagementPlan


Water SourceManagementPlan


EnergyManagementPlan

EnergyManagementPlan

EnvironmentalManagementPlan

EnvironmentalManagementPlan

RiskManagementPlan

RiskManagementPlan

EffluentManagementPlan

EffluentManagementPlan

BiosolidsManagementPlan

BiosolidsManagementPlan

Trade WasteManagementPlan

Trade WasteManagementPlan

PerformanceAssessmentPlan

PerformanceAssessmentPlan

QualityManagementPlan

QualityManagementPlan

InformationManagementPlan

InformationManagementPlan

Human ResourcesManagement Plan

Human ResourcesManagement Plan

Community Consultation

Marketing Plan

Customer Service Policy

Service Level Agreements

Water Supply Agreementswith Major Customers

Long-term FinancialModel

Financial ManagementPractice Manual

Developer ContributionsPolicy

Infrastructure ChargesPlan

Pricing Policy

Full Cost Pricing Strategy

Metering Policy

Water Conservation Strategy

Strategic Infrastructure Plan

Detailed Planning Studies

Capital Works Program

Project Evaluation Manual

Infrastructure Planning/Design Guidelines

Asset Registers

Asset Valuation Reports

Water Source Entitlements

Water Allocations

Outsourcing Strategy

O&M Manuals

Telemetry Strategy

Environmental Plansunder EPP (Water)

Water Reuse Agreements

Trade Waste Policy

ERA Licenses

Catchment ManagementPlans

WAMPs

Environmental FlowManagement Plan

On-site Treatment

Risk/HazardAssessment

Critical InfrastructureManagement Plan

Dam Safety

Counter Disaster Plans

DocumentedContingency Plans

Insurance Policies

Performance Reports

Performance Monitoring

Benchmarking

TMP Coordinator’sManual

Quality ManagementSystems

Organisational Structure

Staffing Plan

Training andDevelopment Program

WH&S Policy

CommercialisationPolicies

TYPICALSUB-PLANS

TYPICALSUPPORTINGDOCUMENT-ATION

Typical TMP Structure

17.

Service Standards

Financial Sustainability

Asset Management

Ecological Sustainability

Risk Management

Performance Management

Organisational Managementand Development

Key Result Area

Customer charters/guarantees, customer interaction,community consultation, drinking water guidelines

Financial modelling, commercial objectives, tariff structures

Full asset lifecycle from infrastructure planning to assetrehabilitation/disposal including demand management

Environmental compliance, environmental managementsystems, effluent quality, effluent reuse, biosolidsmanagement, trade waste management

Risk assessment, minimising risk exposure, risk monitoring

Performance monitoring and compliance, qualitymanagement, information management

Organisational culture, change management, staffdevelopment, industrial relations

Typical Issues Covered

Key Result Areas

18.

Variation in WSPs:

• user friendly

• easily understood by range of targetaudiences

• outcome focussed but expresses StateGovernment requirements

• flexibility to accommodate WSP processes

• readily updateable

Guideline Structure

19.

• TMP guideline - Overview

- Detailed

• KRA Guideline - Overview

- Detailed

• Process and Content Guideline

• Development Level

• Prioritisation Methodology

Features of Guidelines

20.

Develop, adopt &refine

infrastructure planningpolicies

Collect &analyse supporting

information

Ensure linkageswith other

planning activities

Project managethe infrastructureplanning process

Undertake planningstudies

Prioritiseinfrastructure

investment program

Document outputsof planning

studies

THEINFRASTRUCTURE

PLANNINGPROCESS

The Infrastructure Planning Process

21.

• Issues Covered• Purpose• Policies that May be Required• Other TMP Elements Intimately Linked to Sub-Plan• External Issues Contributing to Current Operating

Environment• What Issues Need to be Considered in

Summarising Status of Current Operations• What Should be the Strategic Basis of the Plan• Suggested Performance Measures• Supporting Documentation

Further Reading

Content Guideline - 1 Page

22.

Sub-Plan: Water Demand Management Plan

Issues Covered in Sub-Plan

• Supply metering;• Water pricing;• Customer education;• Water-efficient hardware;

• Irrigation efficiency;• Water restrictions (consumption regulation);• Supply reduction.

Purpose of Plan • To provide an overview of the WSP’s current water demand management practices.• To outline the WSP’s future objectives and initiatives in managing water demand.

What Policies may beRequired

• Pricing;• Customer metering;• Water use restrictions;

• Effluent reuse;• Trade waste minimisation;• Infrastructure service standards (re supply rates andpressures)

What Other TotalManagement PlanElements are LinkedIntimately to this Sub-Plan

• Infrastructure Service Standards Plan – considers supply-side service parameters (eg supply rates and pressures)which influence demands.• Financial Management Plan – considers implications of consumption-based pricing and falling demands.• Infrastructure Planning Overview – takes account of deferring future headworks consequent on falling demands.• Unaccounted-for Water Plan – provides for water audits which utilise demand data, and may incorporate commonstrategy(ies), eg pressure reduction.

What External IssuesContributing to theCurrent OperatingEnvironment Need to beConsidered

• New developments in Government WaterWise program.• Local Government Act requirements for two-part tariffs for certain urban supplies.• Increasing encouragement of WSPs by governments to develop formal demand management programs, with someoffering financial assistance on preparation and/or implementation.• Progressive implementation of COAG pricing principles for irrigation water pricing.• Requirements of EPP (water) for preparation of local government environmental plans on water conservation byJune 2002. (This sub-plan and the Water Loss Management Plan should jointly be formulated so as also to meet theserequirements.)• Consumption data from other WSPs for benchmarking current demands.• Efficiency improvements in irrigation practices.• Advances in efficiency of water appliances, irrigation equipment and other hardware.

What Issues Need to beConsidered inSummarising the Statusof Current Operations

• Scope of WSP’s demand management program.• Progress on environmental plan for water conservation under EPP (water), for local government WSPs.• Status of customer education programs, eg, WaterWise.• Extent of customer metering.• Water consumption trends and benchmarking results.• Current and planned pricing practices, and effects on consumption tends.• Promoting of water-efficient hardware, improved irrigation practices, trade waste minimisation recycling and reuse,etc.

d l i f l i

23.

What should be the StrategicBasis of the Plan

The strategic elements forming the basis of the plan should include:� goal for asset management� objective(s) for water demand management� adopted KPIs� management strategies and performance targets.

The management strategies developed will be based on the identified key strategic issues and SWOTfindings, including risk assessment, in respect of water demand management, and on the requiredTMP development level.

Many WSPs are likely to require strategies for enhancing their customer educational and promotionalprograms; optimising water-pricing policies in terms of water demand and projected revenue; andminimising consumption on all WSP-owned properties.

The strategies should be supported by detailed action plans that would cover up to a 3-year period.

Suggested PerformanceMeasures

Outcome: Infrastructure investment cost (new works): base year cost ratioOutput: Average water demand/customer

Maximum day: average day demand ratioPeak hour: average day demand ratio

Supporting Documentation These will depend on the WSP, but typically would include:� current WaterWise (or similar) water conservation program;� strategic demand management reports; and� water consumption analysis/benchmarking reports.

24.

• Levels 1 - 4 Based mainly on current cost ofinfrastructure

Development Level

Prioritisation of Strategies/Actions

• Suggested methodology based onassessment of benefits/risks

25.

• Service Standards

• Financial Sustainability

• Asset Management

• Risk Management

KRA Guidelines

26.

FinancialManagement

Plan

Model

INPUTS(from other TMP Sub-Plans)• Operating revenue and

expenditure• Capital related revenue

and expenditure• Current ‘cash’ position• Asset values, depreciation• Growth projections

OUTPUTS

• Estimated impact on charges• KPIs• Optimised infrastructure

investment program• estimated future ‘ cash’ position

Relationship Between the FinancialManagement Plan and the Model

27.

General Inputs

CurrentEstimatedConnectedPopulation POPULATION 2,400CurrentEstimatedNoofConnections CONNECTIONS 730

Variable Inputs 0Demographics Year 1999/2000

ProjectedPopulationGrowthRate

%ChangeinGrowthinFlows

ExpenditureProjections-aboveCPI

Revenue

ChangeinRatesandChargesChangeinNon-CapitalGrantsandSubsidiesChangeinOtherRevenueExpenses

ChangeinOperationsExpenseChangeinMaintenanceCostChangeinManagementandAdministrationExpenseChangeinInfrastructurechargesincashForecastChangeinDonatedassetsChangesinOtherExpenses

1 2 3 4 5 6 7 8 92000/2001 2001/2002 2002/2003 2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

9.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

-20.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

-3.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%0.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

-14.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%

SHIRE COUNCIL - WATER SUPPLYGrowth and Demand Projections

28.

Year 1999/2000 2000/2001 2001/2002 2002/2003OPERATINGREVENUE

Water/Sewer RatesandCharges 714,500$ 786,593$ 794,459$ 802,404$Interest Revenue $0 $0 $1,176 $1,651Non-Capital GrantsandSubsidies -$ -$ -$ -$Other Revenue 3,000$ 2,400$ 2,400$ 2,400$Total OperatingRevenue 717,500$ 788,993$ 798,035$ 806,454$

OPERATINGEXPENDITUREOperations 362,000$ 351,140$ 354,651$ 358,198$MaintenanceCost -$ -$ -$ -$Management andAdministration 82,000$ 70,520$ 71,225$ 71,937$Interest Expense 88,500$ 61,134$ 52,825$ 43,550$Depreciation 413,840$ 422,190$ 439,113$ 449,547$Other operatingexpenses(specifybywayof note) 17,500$ 17,500$ 17,500$ 17,500$Total OperatingExpenditure 963,840$ 922,484$ 935,314$ 940,732$

OPERATINGSURPLUS/(DEFICIENCY) -$246,340 -$133,491 -$137,279 -$134,278CAPITALRELATEDREVENUE

Capital GrantsandSubsidies -$ 333,480$ 616,850$ 272,000$Developer Contributions(Infrastructurecharges) -$ -$ -$ -$Donatedassets -$ -$ -$ -$Funds fromDisposal of Noncurrent assets -$ -$ -$ -$Total Capital relatedRevenue -$ 333,480$ 616,850$ 272,000$

CAPITALRELATEDEXPENSECapital relatedexpense -$ -$ -$ -$Abnormal andExtraordinaryItems -$ -$ -$ -$Total Capital RelatedExpense -$ -$ -$ -$

TOTALOPERATINGSURPLUS/(DEFICIENCY) -$246,340 $199,989 $479,571 $137,722

2003/2004 2004/2005 2005/2006 2006/2007 2007/2008 2008/2009 2009/2010

810,428$ 818,532$ 826,717$ 834,984$ 843,334$ 851,768$ 860,285$$3,934 $6,456 $9,105 $11,282 $17,734 $24,391 $31,581

-$ -$ -$ -$ -$ -$ -$2,400$ 2,400$ 2,400$ 2,400$ 2,400$ 2,400$ 2,400$

816,761$ 827,388$ 838,222$ 848,667$ 863,468$ 878,559$ 894,266$

361,780$ 365,398$ 369,052$ 372,742$ 376,470$ 380,234$ 384,037$-$ -$ -$ -$ -$ -$ -$

72,657$ 73,383$ 74,117$ 74,858$ 75,607$ 76,363$ 77,127$33,198$ 21,644$ 8,748$ -$ -$ -$ -$

453,214$ 453,214$ 455,714$ 460,089$ 460,089$ 460,089$ 460,089$17,500$ 17,500$ 17,500$ 17,500$ 17,500$ 17,500$ 17,500$

938,348$ 931,138$ 925,130$ 925,189$ 929,665$ 934,186$ 938,752$-$121,587 -$103,750 -$86,908 -$76,522 -$66,197 -$55,627 -$44,486

160,000$ 160,000$ 280,000$ -$ -$ -$ -$-$ -$ -$ -$ -$ -$ -$-$ -$ -$ -$ -$ -$ -$-$ -$ -$ -$ -$ -$ -$

160,000$ 160,000$ 280,000$ -$ -$ -$ -$

-$ -$ -$ -$ -$ -$ -$-$ -$ -$ -$ -$ -$ -$-$ -$ -$ -$ -$ -$ -$

$38,413 $56,250 $193,092 -$76,522 -$66,197 -$55,627 -$44,486

SHIRE COUNCIL - WATER SUPPLYOperating Statement

29.

Operating Surplus

-$300,000

-$250,000

-$200,000

-$150,000

-$100,000

-$50,000

$0

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Year

$

Charge per Connection

$-

$100.00

$200.00

$300.00

$400.00

$500.00

$600.00

$700.00

$800.00

$900.00

$1,000.00

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

Year

$

Return on Equity

-2.0%

-1.8%

-1.6%

-1.4%

-1.2%

-1.0%

-0.8%

-0.6%

-0.4%

-0.2%

0.0%

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

Year

$

Infrastructure Investment Profile

$-$100,000$200,000$300,000$400,000$500,000$600,000$700,000$800,000$900,000

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Year

$

New Capital Works Repl. Cap Wrks

Debt

-$100,000

$-

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Year

$

Reserves

-$200,000

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

$1,600,000

$1,800,000

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Year

$

Cash Movement (Closing Cash Bal)

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Year

$

Return on Assets

-2.0%

-1.8%

-1.6%

-1.4%

-1.2%

-1.0%

-0.8%

-0.6%

-0.4%

-0.2%

0.0%

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

Year

$

Reserves to Accumulated Depreciation

-$2,000,000

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

1999

/2000

2000

/2001

2001

/2002

2002

/2003

2003

/2004

2004

/2005

2005

/2006

2006

/2007

2007

/2008

2008

/2009

2009

/2010

Year

$

Reserves Accumulated Depreciation

SHIRE COUNCIL - WATER SUPPLYGraphs

30.

General Checklist

HAVE YOU?

Automatic Check 1 - CASHFLOW

Are Cashflows Positive (Y/N) YESAutomatic Check 2 - BALANCE SHEET

Does the Balance Sheet Balance? YESDoes the Business Grow over time? YESAutomatic Check 3 - OPERATING SURPLUS

Does the Business Provide a return on funds invested? NOAutomatic Check 4 - CAPITAL FUNDING

Does the Capital Funding Sheet Balance? YES

Identified Key Constraints?gfedcb

Completed the Growth/Demand Projections?gfedcb

Calculated & Entered Depreciaton andReplacement Cap X data?gfedcb

Entered Base Yr Ops Revenue and Expense data?gfedcb

Completed New Cap X Budgetgfedcb

SHIRE COUNCIL - WATER SUPPLYCheck Sheet

31.

Dispose ofAssets andDe-register

Customerand

BusinessRequirements

Man

age

Dem

and

Manage Demand

OperateAssets

ProcureAssets

MaintainAssets

RenewAssets

Set or ReviewService Levels

Plan forAsset andNon-AssetSolutions

EvaluateAsset Conditionand Performance

OptimiseOperationalEfficiency Monitor

Costs

Register andValue Assets

ConstructAsset

DesignAsset

OptimiseInfrastructureInvestment (CapitalWorks) Program

Plan at aDetailed Level

PlanStrategically

Replace orRehabilitate Assets

Modify Assets orConfirm Need forAssets

Optimise AssetMaintenance/Rehabilitation/Replacement

Manage Demand

The Asset Management Process

32.

Service StandardsService StandardsAsset/system performance.

Financial SustainabilityFinancial Sustainability

Ecological SustainabilityEcological Sustainability

Risk ManagementRisk Management

Performance AssessmentPerformance Assessment

Organisation Management& Development

Organisation Management& Development

Asset ManagementAsset Management

Service standards/levels will drive investmentin new/replacement assets and O&M strategies.

Infrastructure investment (new/replacement) costs,O&M costs, depreciation, renewals annuity.

Financial targets to be achieved.

Infrastructure investment to meetenvironmental requirements.

Ecologically sustainability ofO&M practices.Minimisation of water demands,energy and sewer overflows.

Infrastructure extent, conditionand performance.

Infrastructure and servicedelivery related risks.

Asset related informationAsset/system performance and condition

Human resource requirementsprocesses/procedures.

Human resources.

BusinessManagement

Plan

BusinessManagement

Plan

Strategic Direction.

Benchmarking and performance comparisonInformation management systems.Quality management systems.

RelationshipBetween AssetManagementand Other KeyResult Areas

33.

Establish contextEstablish context

Identify risksIdentify risks

Analyse risksAnalyse risks

Evaluate risksEvaluate risks

Define risktreatment

strategies/controls

Define risktreatment

strategies/controls

Assess risksDetermine tentative scope of TMPDetermine tentative scope of TMP

Collate and analyse informationCollate and analyse information

Confirm scope of TMPConfirm scope of TMP

Prepare draft TMPPrepare draft TMP

Finalise TMPFinalise TMP

Implement TMPImplement TMP

Prioritised strategies andcontrols for inclusion inrelevant sub-plans

Collected information (egSWOT analysis) as basisfor summary risktreatment schedule

TMP Development Process(based on Reference 3)

Simplified Risk Management Process(based on Reference 1)

Integration of Risk Management and TMPDevelopment Processes

34.

Rob Drury (DNR)

35.

1. Councils are adopting a more rigorousinfrastructure investment decision makingprocesses, with non-asset based solutions, fulllifecycle costs, risks and various alternatives beingconsidered before deciding to constructinfrastructure;

2. Need to optimise the performance and utilisation ofexisting infrastructure;

3. Need to ensure that infrastructure can sustainagreed customer service standards; and

4. Recognition that asset management is a corebusiness function to support service delivery.

Links to COAG/NCP/Commercialisation

36.

The current TMP review process provides forapproval as part of the TMP by DNR of CouncilsEnvironmental Management Plans for water andsewerage services required under the EPP (Water).

The EMP would cover Sewer Inflow Infiltration,Demand Management, Trade Waste and StormwaterManagement Plans. Material is currently beingdeveloped and negotiations are under way with EPAregarding how this will be put in place.

Links to EPA

37.

A major part of the TMP is related to performance andimprovement. The Performance Monitoring andBenchmarking (PM&B) process managed by DNR willprovide not only the basis for the relevant sections ofthe TMP guidelines, but will provide the basic systemand data for a Council developing a TMP for thoseCouncils participating in the process.

Similarly, much of the data utilised in the PM&Bprocess will also be used when Service Providersdevelop Standards of Service required under theWater Act 2000.

Links to Performance Monitoring &Benchmarking

38.

The TMP includes sub-plans for addressing otherareas relating to best practice water use such as :

• Demand Management – to manage and minimisewater consumption and ensure it is included in futurewater demand planning as an option

• Unaccounted for water – to manage and reduce waterloss

• Water Source Management – to monitor and managewater sources and catchments

• Energy Management – to make best use reduce costsassociated with power use

Links to Water Use Efficiency andConservation

39.

The Water Act 2000 requires the preparation of aStrategic Asset Management Plan (SAMP). A fullTMP will cover virtually all of the requirements of aSAMP. Hence, although a different approvalprocess, a SAMP will require minimal extra work,reducing administrative duplication and the impactof compliance with the Act.

The new TMP guidelines are thus being developedin conjunction with SAMP guidelines under the Act.

TMP Approvals

40.

Key Result Areas and Sub Plans

EPP(Water)

SAMP’sUnderWater Act

PossibleWQMPHealthDept

Corporate/Business Plan

Water Service Provider TMP

PM&B

TMP Links to Other Approvals

41.

KEYRESULTAREAS

TYPICALSUB - PLANS

TYPICALSUPPORTINGDOCUMENTATION

ServiceStandards Sustainability

FinancialManagement

AssetSustainability

EcologicalManagement

RiskManagementPerformance

TOTAL MANAGEMENT PLAN

ModelLong-term Financial

Metering Policy

ManagementFinancial

Practice Manual

Pricing PolicyMajor CustomersAgreements withWater Supply

Strategy

Detailed Planning

Water Conservation

InfrastructurePlanning / DesignGuidelines WAMP's

ERA Licenses

Water Re-use

under EPP (Water)Environmental Plans

CatchmentManagement Plans

EnvironmentalFlow ManagementPlan

On-siteTreatment

AgreementsService Level

StrategyFull Cost Pricing

Counter Disaster

Dam Safety

Risk / HazardAssessment

Critical InfrastructureManagement Plan

Plans

Insurance Policies

ReportsPerformance

Benchmarking

CommunityConsultation

Marketing Plan

Customer ServicePolicy Studies

Capital Works

DocumentedContingency Plans

MonitoringPerformance

Agreements

Charges PlanInfrastructure

StrategicInfrastructure Plan

Trade Water Policy


Plan

ServiceStandards

Plan

FinancialManagement

PlanManagementWater Demand Unaccounted -

forWater Plan

Infrastructure

OverviewPlanning

AssetProcurement

PlanManagementOperations

Renewal PlanEvaluation andAsset




Biosolids

Management

Management

Trade Waste

EffluentManagement

ManagementPlan

Environmental

PlanManagementInformation

PlanManagementQuality

ManagementPlan

RiskAssessmentPlan

Performance

EnergyManagement

Plan

Plan

Plan

Plan

Plan

- Plans required for TMP

- Supporting Plans (required in whole or in part) for

&

ContributionsDeveloper

Policy

Asset Registers

Asset Valuation Reports

Water Source

Program

Entitlements

Water Allocations

Strategy

Telemetry Strategy

Outsourcing

O & M Manuals

Quality ManagementSystems

TMP Coordinator'sManual

Water Act 2000

TMP/SAMP Relationship

42.

TMP’s are becoming more holistic in theapplication and will provide:

• A tool to plan and manage water andsewerage infrastructure in a manner thatprovides the best outcomes for their customers

• A system for integrating different watermanagement mechanisms into the overallplanning process and ensuring all aspects ofwater planning is linked

The Future of TMP’S

43.

• A mechanism that will provide concurrentapproval with legislative requirements of otherDepartments and the Water Act 2000.

• A system to ensure all parts of the water basedinfrastructure systems are planned in the mostefficient, balanced manner with strong linksbetween financial and technical issues.

• An ongoing plan to ensure water schemes aresustainable both financially and operationally.

The Future of TMP’S (cont’)

44.


- a concept which encourages water serviceproviders to utilise best practice planning,achieve least cost outcomes and whole-of-business sustainable management

45.

Any Questions ?

total management planning strategiesforwaterservice … teske am planning.pdf · 2012. 3. 1. ·...

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