Draft Three Waters Asset Management Plan
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Asset ManagementDRAFTDRAFT Plan Three Waters 2021 Draft www.mdc.govt.nz Three Waters Activity Management Plan 2021 Draft 1 Contents 1. EXECUTIVE SUMMARY 4-11 1.1 The Purpose of the Plan 4 1.2 Asset Description 4 1.3 Levels of Service 9 1.4 Future Demand 9 1.5 Lifecycle Management Plan 10 1.6 Asset Management Practices 11 1.7 Monitoring and Improvement Programme 11 1.8 Conclusion 11 2. INTRODUCTION 12-20 2.1 Background 12 2.2 Goals and Objectives of Asset Ownership 12 2.3 Asset Management 17 3. LEVELS OF SERVICE 20-35 3.1 Customer Research and Expectations 20 3.2 Strategic and Corporate Goals 20 3.3 Legislative Requirements 21 3.4 Customer Levels of Service 25 3.5 Gap Analysis 29 4. FUTURE DEMANDDRAFT 36-69 4.1 Demand Drivers 36 4.2 Demand Impact and Demand Management Plan 36 4.3 Demand Forecasts 39 4.4 Demand Impact on Assets 64 4.5 Demand Management Plan 66 4.6 Asset Programs to meet Demand 66 5. LIFECYCLE MANAGEMENT PLAN 69-151 5.1 Asset Overview 69 Three Waters Activity Management Plan 2021 Draft 2 5.2 Stormwater 69 5.3 Water Supply 92 5.4 Asset Condition, Capacity and Performance 142 5.5 Asset Development Strategy 143 5.6 Operations and Maintenance Strategy 150 5.7 Renewals Strategy 150 5.8 Disposal Strategy 151 6. RISK MANAGEMENT PLANNING 152-170 6.1 Introduction 152 6.2 Critical Assets 152 6.3 Organisational Risk Management 156 6.4 Identifying Risks 158 6.5 Evaluating the Risks 158 6.6 Managing the Risks 167 6.7 Monitoring and Review 167 6.8 Assessing Infrastructure Resilience 169 6.9 Lifelines Services - Risks of Natural Hazards 170 7. FINANCIAL SUMMARY 171-185 7.1 Introduction 171 7.2 Identifying and Categorising Lifecycle Costs 171 7.3 Valuation Approaches 172 7.4 Funding Strategy 175 7.5 Calculating Depreciated Replacement Cost 178 7.6 Developing Long Term Financial Forecasts 179 7.7 Developing Funding Plans 180 7.8 Funding of Capital Expenditure 182 7.9 DevelopmentDRAFT Contributions 182 7.10 Funding Sources 182 7.11 Insurance 183 7.12 Forecast Reliability 183 8. IMPROVEMENT AND MONITORING 186-188 8.1 Monitoring Performance 186 8.2 Improvement Plan 187 8.3 Monitoring and Review Procedures 188 8.4 Performance Measures 188 8.5 Asset Valuation Three Waters Activity Management Plan 2021 Draft 188 3 1. EXECUTIVE SUMMARY 1.1 The Purpose of the Plan Asset management planning is a comprehensive process ensuring delivery of services from infrastructure is financially sustainable. This Asset Management Plan (AMP) details information about infrastructure assets with actions required to provide an agreed level of service in the most cost-effective manner while outlining associated risks. The plan defines the services to be provided, how the services are provided and what funds are required to provide over the 2021-2041 year planning period. The Asset Management Plan will link to a Long-Term Financial Plan which typically considers a 20 year planning period. This plan covers the infrastructure assets that provide three waters to the Manawatu District Council. The purpose of this Plan is to improve the stewardship of assets by Council on behalf of its customers and stakeholders and achieve compliance with statutory obligations. This plan specifically does that by: • Demonstrating responsible stewardship of three waters infrastructure assets; • Identifying minimum lifecycle (long term) costs to provide the agreed level of service; • Improving understanding of service level standards and options; • Assisting with an integrated approach to asset management throughout the organisation; • Improving customer satisfaction and organizational image; • Managing the risk of failure to deliver the required level of service; • Supporting long term financial planning of the Council; • Clearly justifying forward works programmes; • Improving decision-making based on costs and benefits of alternatives. 1.2 Asset Description The Council provides a variety of infrastructure to manage water supply, wastewater and stormwater within identified urban and rural areas. Three waters infrastructure assets provide a significant and essential service for residents and businessesDRAFT within the Manawatu District Council area. The three waters function represents around 24% of Council’s overall annual operating expenditure, with capital works also making up a large proportion of the Council’s expenditure. The following information provides an overview of the assets involved in the Manawatu District three waters activity. The information shown is collated here as a reference resource of the extent of the assets involved. The three waters infrastructure assets have a replacement value of $307,856,468. Three Waters Activity Management Plan 2021 Draft 4 Asset Register Three waters assets are managed in the Assetfinda database. Over 47,852 individual assets or components are detailed in the database. The following table shows a summary of the Replacement Costs and Depreciated Replacement Costs of Asset Values for the Utilities. Class Group Replacement Value Depreciated Annual Replacement Value Depreciation Value Water $120,018,675 $61,607,128 $1,709,914 Wastewater $119,543,793 $77,541,263 $2,017,766 Stormwater $68,294,000 $38,973,120 $627,435 Total $307,856,468 $178,121,511 $4,355,115 Assets Included in this Plan An overview of the three waters assets owned by the Manawatu District Council are outlined in Tables 1-3 below. Table 1 - Water Supply Service Summary Scheme Source Treatment Reticulation Feilding Surface water: Almadale Treatment Plant On Demand (Surface Water) • Oroua River Excluding Mt Taylor which Awa St Treatment Plant is on a restricted supply Groundwater: (Groundwater) • Campbell Rd Bore • Newbury Line Bore Sanson Groundwater Fagan Street Treatment Plan adjacent to Restricted Supply the new bore Rongotea Groundwater Rongotea Water Treatment On Demand Plant Himatangi Beach Groundwater Himatangi Beach Water On Demand Treatment Plant Stanway – Halcombe Shallow bores adjacent to Water Treatment Plant Rural water scheme the Rangitikei River adjacent to bores Restricted Supply Waituna West Groundwater Waituna West Water Rural water scheme Treatment Plant Restricted Supply Kiwitea Rural DRAFTRural water scheme, Restricted Supply This scheme is operated entirely by a community committee and is not covered in this Asset Management Plan Oroua No.1 Rural Rural water scheme, Restricted Supply This scheme is operated entirely by a community committee and is not covered in this Asset Management Plan Three Waters Activity Management Plan 2021 Draft 5 Table 2 Wastewater Service Summary Scheme Reticulation Treatment Within Centralisation Scope Feilding Gravity network Feilding WWTP Yes – Destination Treatment Plant (Excluding Mt Taylor which Dual land/surface water has a pressure system) discharge system. Halcombe Gravity network Halcombe WWTP – Dual Yes land/ surface water discharge Sanson Gravity network Sanson WWTP – Dual land/ Yes surface water discharge Rongotea Gravity network Rongotea WWTP – Yes Discharge to surface water Cheltenham Gravity network servicing Cheltenham WWTP – Yes onsite septic tanks. Discharge to land Kimbolton Gravity network servicing Kimbolton WWTP – Yes onsite septic tanks. Discharge to surface water Awahuri Gravity network servicing Awahuri WWTP – Discharge Yes onsite septic tanks. to surface water Himatangi Beach Pressure system with onsite Himatangi Beach WWTP – Yes (no plans to pipe to pump stations. Discharge to land Manawatū WWTP) Table 3 - Stormwater Service Summary Scheme Reticulation Treatment Within Centralisation Scope Feilding Well Developed, urban Targeted stormwater rate Harmonised stormwater stormwater network rate Rongotea Formal, village stormwater Targeted stormwater rate Harmonised stormwater network rate Sanson Formal, village stormwater Targeted stormwater rate Harmonised stormwater network rate Halcombe Village stormwater service No service Harmonised stormwater rate Cheltenham Village stormwater service No service Harmonised stormwater rate Himatangi Beach Village stormwater service No service Harmonised stormwater rate Tangimoana DRAFTVillage stormwater service No service Harmonised stormwater rate Bainesse Rural Drainage Scheme No change Maire Rural Drainage Scheme No change Makowhai Rural Drainage Scheme No change Oroua Downs Rural Drainage Scheme No change Three Waters Activity Management Plan 2021 Draft 6 Dwellings Insurance No Valuation Reference Asset Description Location 2315 14160/21010 Dwelling 341 Kawakawa Road, Feilding 2414 14160/07902 Dwelling 269 Kawakawa Road, Feilding 2649 14160/08000 Dwelling 223 Kawakawa Road, Feilding 2860 14160/08100 Dwelling 295 Kawakawa Road, Feilding Asset Condition and Performance Asset condition is a measure of an asset’s physical integrity. Knowing the condition of an asset enables more accurate prediction of asset development, maintenance and renewal/replacement requirements. The Manawatu District Council identifies the condition of the three waters infrastructure assets by the age of the asset, through visual targeted inspections (including sampling) and maintenance monitoring. Targeted inspections are carried out on asset components that are considered critical to Council and the community, have the potential to impact on public health and safety; or where there is a specific requirement, for example to meet regulatory requirements or for asset acquisition, disposal, or justification. Targeted inspections of infrastructure assets are carried out by Council staff, or a specialist Consultant to identify the condition of specific asset components at intervals specified