Executive Summary

WATER TREATMENT AND SUPPLY

ACTIVITY MANAGEMENT PLAN

VERSION: 2021 – 4.0 For Audit Review

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021

Revision Information

Water Treatment & Supply Activity Management Plan 2021

Prepared by

Waipa District Council 101 Bank Street

www.waipadc.govt.nz

Activity Plan Owner Name Role Martin Mould Manager – Water Services

Revision History Revision Plan Author Revision Date Details 1.0 Neil Taylor Mar 2019 New template for completion 2.0 Joong Lee & James McKinnon October 2019 Version for Peer Review 3.0 Kelsi Green & Kristina Hermens September 2020 Post Peer review Updates 4.0 Kelsi Green & Kristina Hermens December 2020 For Audit Review

Reviewed By Name Role Tony Hale & Martin Mould Manager – Water Services Cyril Morris Asset Management Team Leader Mark Walmsley Senior Asset Planning Engineer Neil Taylor Asset Management Planning Analyst Dawn Inglis Group Manager – Service Delivery Tonkin & Taylor External Peer Review

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021

Content

Revision Information ...... 2 Content ...... 3 Executive Summary ...... 7 About This Plan...... 8 Why We Do It ...... 8 The Service Provided ...... 9 Managing Demand ...... 12 Risk and Resilience ...... 13 Managing our services and assets...... 13 Financials ...... 16 AM Improvement ...... 17 Main Document ...... 19 1 Introduction ...... 20 1.1 About This Plan ...... 20 1.2 About the Water Treatment and Supply Service ...... 21 1.3 Strategic Goals ...... 23 1.4 Planning and Regulatory Framework ...... 25 1.5 Effects of this Activity ...... 27 1.6 Variation from the Assessment of Water & Sanitary Services ...... 28 1.7 Current and Future Challenges and Opportunities ...... 29 1.8 Impact of Covid 19 ...... 30 2 The Service Provided ...... 31 2.1 The Services We Deliver ...... 31 2.2 What Do Our Customers and Stakeholders Value? ...... 33 2.3 Our Desired Levels of Service ...... 35 2.4 Our LOS and LOS Gaps ...... 36 2.5 Our Future Programme to Deliver LOS ...... 40 2.6 Our Future Performance Targets ...... 41 3 Managing Demand ...... 44 3.1 Demand Drivers ...... 44 3.2 Existing Demand ...... 45 3.3 Managing Demand on the Service ...... 51 3.4 How Demand Is Changing and How It’s Impacting the Service ...... 52 3.5 Our Future Programmes to Meet Demand ...... 64 4 The Assets We Own ...... 67

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4.1 Network Overview ...... 67 4.2 Water Supply Schematics ...... 71 4.3 Key Asset Statistics ...... 74 4.4 Critical Assets ...... 77 4.5 The Condition and Performance of Our Assets ...... 79 4.6 Asset Management Information System ...... 84 4.7 Asset Data Confidence ...... 85 5 Risk Management ...... 86 5.1 Risk Assessment ...... 86 5.2 Water Treatment and Supply Resilience Approach ...... 88 5.3 Climate Change ...... 89 5.4 Three Waters Master Plan 2020 ...... 90 5.5 Our Future Programmes to Address Risk ...... 92 6 Managing Our Services and Assets ...... 96 6.1 Operating and Maintaining our Services and Assets ...... 96 6.2 Future Programme to Deliver Operations and Maintenance ...... 103 6.3 Operations and Maintenance Future Costs Requirements ...... 105 6.4 Renewing the Assets ...... 106 6.5 Future Programme to Deliver Renewals ...... 108 6.6 Upgrading and Creating New Services and Assets ...... 110 6.7 New and Upgraded Services and Assets - Future Cost Requirements ...... 111 6.8 Project Programme to Deliver Solutions for the Water Supply ...... 112 6.9 Longer Term Projects - Years 11+ ...... 115 6.10 Stopping Services and Disposing of Assets ...... 115 7 Financial Summary ...... 116 7.1 Financial Requirements – What We Need ...... 116 7.2 Funding Strategy ...... 118 7.3 Assumptions Behind Financial Forecasts ...... 118 7.4 Financial Forecasts Confidence ...... 120 8 AM Improvement ...... 121 8.1 AM Maturity ...... 121 8.2 Improvements We Achieved ...... 123 8.3 Asset Management Planning Review – KPMG Audit ...... 124 8.4 Our Improvement Programme ...... 124 Impact of LTP Funding Provision ...... 129 9 Impact of LTP Funding Provision ...... 130 9.1 LTP Financial Landscape ...... 130

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9.2 Required Funding and LTP Funding Provision Comparison ...... 131 9.3 Projects – Reduced Funding and/or Delayed ...... 133 9.4 Projects - Unfunded ...... 135 Appendices ...... 136 Appendix A - Planning & Regulatory Framework: Supporting Information ...... 138 A1 Local Government Act – Local Government Role ...... 138 A2 Legislative Requirements – Water Treatment & Supply Specific ...... 139 Appendix B – Levels of Service: Supporting Information ...... 140 B1 Our Past Performance – Performance Measures Results ...... 140 B2 Benchmarking With Comparable Councils ...... 143 B3 Establishing Our Future Levels of Service ...... 147 B4 Choosing Performance Measures ...... 148 B5 Technical Performance Measures and Future Targets ...... 150 B6 Three Waters Masterplan - Proposed Future Changes to Performance Measures – Review of Existing Measures ...... 151 Appendix C – Managing Demand: Supporting Information ...... 153 C1 Population Growth Projections by Area (2013-base projections) ...... 153 C2 Population Projections – Refinement for Three Waters Master Plan ...... 154 C3 Water Management Plan – Executive Summary ...... 155 C4 Water Restriction Alert Levels ...... 158 Appendix D – The Assets We Own: Supporting Information ...... 159 D1 Water Supply Schematics - Cambridge and Historic ...... 159 D2 Asset Data Reliability Confidence Grades ...... 160 D3 Asset Criticality ...... 161 D4 Asset Condition ...... 165 D5 Waipa DC’s Asset Management Information System ...... 166 Appendix E – Risk Management: Supporting Information ...... 167 E1 Risk Register Guidance ...... 167 E2 Risk Register ...... 171 Appendix F – Managing Our Services & Assets: Supporting Information ...... 181 F1 Total Project Programme 2021 – 2031 ...... 181 F2 Projects – Business Case References ...... 187 Appendix G – Resourcing Requirements: Supporting Information ...... 189 G1 Resourcing Requirements ...... 189 Appendix H – Financial Summary: Supporting Information ...... 191 H1 Inflation Rates ...... 191 H2 Interest Rates ...... 191

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H3 Forecast Reliability Confidence Grades ...... 192

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Executive Summary

Water Treatment & Supply Activity Management Plan 2021

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021

Executive Summary

Executive Summary

About This Plan The purpose of the (WDC) water supply activity management plan (AMP) is to:

▪ Provide clear identification and justification of projects and budgets for inclusion in the Long Term Plan (LTP) ▪ Provide guidance for asset management decision making.

Why We Do It Providing a safe, high quality and reliable water supply is important to the health and wellbeing of WDC’s residents. Council is also required to provide the service under the following legislation: ▪ Local Government Act 2002 ▪ Health (Drinking Water) Amendment Act 2007

WDC’s goals and desired community outcomes that are supported by the service as outlined in the table below. Linkage to Council’s Goals & Community Outcomes How the Service Supports those Vision Community Outcome Outcomes He aha te mea nui o te ao? Māku e kī atu he tangata, he tangata, he tangata! – it’s all about Socially Resilient people ▪ Waipā is a great place to live, work, play and invest ▪ By providing safe water to drink

▪ We invest in hauora and support the great work community groups do ▪ Waipā provides a high quality of life for current and future generations Cultural Champions Promoting our culture and heritage ▪ We champion the unique history of Waipā ▪ By delivering a service which ▪ We have a high level of cultural awareness recognises and mitigates cultural ▪ We partner with tangata whenua effects ▪ We respect the cultural diversity in our district Environmental Protecting and sustaining our environment

Champions Building Connected Building Communities

▪ Environmental awareness and responsibility

- ▪ By delivery of the service within our is promoted within the community resource consent limits and minimise ▪ We support programmes that promote our impact on the environment environmental sustainability ▪ We are responsive to climate change

Supporting a thriving, sustainable economy ▪ We have financially sustainable decision making and work programmes Economically Progressive ▪ We provide new infrastructure as an ▪ By presenting the most cost-efficient economic stimulus for our district solution through the sourcing of ▪ Our services provide excellent value for Waipā Home Waipā of Champions integrated solutions to meet the money growth, demand, level of service issues ▪ We actively promote our district to enable and risks development, employment and business opportunities ▪ Waipā is a great place to invest and do business

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The Service Provided The water supply activity applies to all drinking water supplies owned and managed by WDC. This includes all water treatment plants, pump stations, reservoirs and the reticulation network.

Council supplies water through the following four schemes: ▪ Te Awamutu: servicing Te Awamutu township and ▪ : servicing the Kihikihi township ▪ Cambridge: this scheme includes Village, Cambridge North and Cambridge South (Leamington) ▪ Pukerimu: this scheme includes Ohaupo township and the Pukerimu rural area

Council’s water supply is fed by six sources and is split into thirteen water supply areas (6 urban and 7 rural). While the levels of service in urban (on demand, firefighting capability) and rural (restricted supply) areas differ, all water supply area customers are provided with potable drinking water; with supply and demand being managed to ensure prudent use of water.

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Executive Summary

Assets The figure below shows the extent of the networks required to provide the services identified above.

District Water Supply: Area of Service

The table below provides a breakdown of the key assets and their value:

Water Supply Asset Overview (as at 30 June 2019) Value Type of Water Supply Asset Quantity Optimised Depreciated Gross Replacement Cost Replacement Cost Watermains 607km Valves and Hydrants 6,101 Number of Connections 15,586 $232.6m $131.8m Pump stations 11 Reservoirs 17 Treatment Plants 7

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Key achievements The key achievements during the last 3 years:

▪ In 2018, WDC introduced universal water metering across its supplies. This has resulted in 20% reduction in residential water demand, demonstrating improved water use efficiency and deferring capital expenditure ▪ Commissioning a new WTP at Karapiro to provide a more efficient and reliable water supply to Cambridge and Karapiro ▪ Decommissioning of the Hicks Road Springs, a non-compliant water source ▪ Works are almost complete on a pipeline to link the Parallel Rd WTP (Pukerimu) to the Te Awamutu water supply network to provide for growth and improve operational resilience

Levels of Service The International Infrastructure Management Manual defines Levels of Service as the parameters or combination of parameters that reflect social, political, economic and environmental outcomes the organisation delivers. Level of Service statements describe the outputs or objectives an organisation or activity intends to deliver to customers. 1

WDC has agreed to provide the following levels of service (LOS) identified below to its communities. There is no change to the LOS direction given by Council for the following services: ▪ Water abstraction and treatment ▪ On demand supply to towns and villages ▪ Restricted supply to some rural areas ▪ Maintenance of plants and networks

Key LOS issues and actions are summarised in the table below:

Key LOS Issue Proposed Action Not all existing areas of the water supply network meet performance measures in terms of: ▪ Piped network renewals and treatment plant and ▪ pressure, reservoir upgrades are proposed to address these ▪ water quality security, and LOS issues over a staged period. ▪ firefighting capacity and storage.

1 As defined in the International Infrastructure Management Manual 2015

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Managing Demand The significant drivers influencing demand for the service include: ▪ Population growth: district’s population is forecast to increase ▪ Customer expectations ▪ Legislation: regulatory change ▪ Climate change: increased temperatures, frequency of droughts and intense rainfall events ▪ Demographic changes: new large industrial areas in Cambridge, Hamilton Airport and Te Awamutu

Initiatives to manage demand ▪ Water Metering: Universal water metering and volumetric pricing was implemented across the District in 2018 to reduce residential demand across the supply areas. ▪ Smart Water: This programme aims to change the way people think and use water ▪ Network Leakage reduction: Repair leaks reactively and undertake active leak detection surveys. Leakage reduction is a priority for Cambridge Water Supply Scheme

Forecast demand The figure below shows the overall predicted demand, likely upgrades and consent limits. Overall demand is likely to exceed consent allocations after 2040.

3 Schemes Future Demand

Key Demand Issues ▪ Capacity of current infrastructure is insufficient to supply new growth areas and new growth will put increasing pressure on the existing supplies. ▪ Increased pressure on water resources and stream ecology from very low river and stream flows. ▪ Increase in peak demand for stock watering, irrigation and domestic use. Increased peak Demand will bring forward the requirement for more storage capacity.

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Risk and Resilience Key risks to the water supply activity and proposed actions to reduce risk and improve resilience are summarised in the table below:

Key Risks Proposed Actions

Treatment capacity and ▪ Investigate a pipeline from Parallel Rd WTP to Cambridge to increase managing the effects of climate resilience; provide staged additional water treatment plant capacity for Te change Awamutu and Cambridge to meet growth needs; continue metering, targeted leak detection and education to manage demand Water quality ▪ Provide improved water quality at Kihikihi

Consent allocation ▪ Continue to plan for anticipated reduction in Te Tahi water take from 2030 and additional water allocation required post 2040

Energy efficiency ▪ Energy efficiency/carbon footprint of treatment plants and pump stations should be considered to improve sustainability ▪ Implement network upgrades so new developments do not impact current Network resilience water supply pressure and flow for existing areas. Address all areas with poor water pressure by 2050

Managing our services and assets Routine operations and maintenance are the regular day to day activities necessary for the delivery of the service and to keep assets operating. This includes instances where portions of the asset fail and need immediate repair to ensure continuity of service.

Proposed changes to operations and maintenance improvements The proposed changes to enhance the operations and maintenance of the water supply service are listed in the table below:

Proposed Change to Operations and Maintenance

Activity management ▪ Continuous improvement of asset data; align with RATA proposed asset management improvements; ongoing update of modelling and master plans ▪ Focus on drinking water and resource consent compliance. Ensure regular Legislation and compliance involvement and awareness of regulatory/statutory forums so that any updates are effectively planned for, e.g. Taumata Arowai

Operations depots ▪ Daphne Street depot is currently leased, but are no longer fit for purpose, investigation needs to be undertaken for options for new depots

Process improvements ▪ Implement process improvements to increase efficiency and response times, e.g. resource consent conditions, SCADA ▪ Recruit resources to improve processes and response times, manage water Resources conservation campaigns. Introduce succession planning and utilise existing graduate programme in order to maintain resources with appropriate technical skills ▪ Process and formalise agreements with third parties (formalising arrangements Service providers to meet KPIs); implement preferred panel of contractor and suppliers to improve processes and response times in line with best practice procurement

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Proposed LOS, growth and renewal projects The table below lists the key projects proposed over the next 10 years to meet LOS, growth and renewal requirements for the water supply activity. Note that some projects cover more than one activity (i.e. water supply, wastewater, stormwater) and driver (i.e. LOS, growth, renewal). Individual projects have been categorised against the key driver. It should be noted that some proposed projects that were unfunded or had reduced funding as part of the LTP have been funded via the Department of Internal Affairs’ stimulus funding for the three waters sector (as indicated by *).

Proposed Projects – Next 10 Years Key Projects LTP Funded? Driver ▪ Strategic Review of 3 Waters Business ▪ Unfunded* ▪ Water SCADA & Telemetry Upgrade ▪ Reduced Funding* ▪ Energy Efficiency on Pump Stations and Treatment Plants Study ▪ Unfunded ▪ Drinking Water Supporting Plans (Review and Update) ▪ Reduced Funding* ▪ Drinking Water Compliance ▪ Reduced Funding* ▪ Te Tahi - Treatment Operation Optimisation Study ▪ Unfunded ▪ Bulk Water Stations ▪ Unfunded LOS ▪ District Wide Water Modelling and Masterplanning Updates ▪ Fully Funded ▪ District Wide Water Zone Identification ▪ Reduced Funding ▪ Te Awamutu Fire & Water Level of Service Upgrades ▪ Reduced Funding ▪ Cambridge Fire & Water Level of Service Upgrades ▪ Reduced Funding ▪ Standby Generators for Treatment Plants ▪ Fully Funded ▪ Pukerimu Water Supply - Upgrade Supply to Airport and Ohaupo ▪ Reduced Funding ▪ Pukerimu Water Supply - Feasibility Study ▪ Reduced Funding ▪ Pukerimu Water Supply - Pipework Parallel Rd to Titanium ▪ Reduced Funding ▪ Cambridge North Water Provision ▪ Reduced Funding ▪ Cambridge Water Reticulation Growth - C2 & C3 ▪ Reduced Funding ▪ Cambridge Water Reticulation Growth - C1 ▪ Reduced Funding ▪ C10 (BIL) Water Reticulation Provision (2021 - 2026) ▪ Reduced Funding ▪ Cambridge North to Hautapu Pipeline and C8. C9 and Existing Hautapu ▪ Reduced Funding Industrial Area Growth Provision ▪ C4 Water Reticulation provision (2028) ▪ Unfunded ▪ T6 St Leger Water and Kihikihi Provisions for Growth, LOS and Renewals ▪ Unfunded ▪ Te Awamutu CBD Rising Mains - (New Pipe for LOS and Growth) (2021) ▪ Reduced Funding Growth ▪ Cambridge Growth Cell Facilitation Works - Water Provision (2021) ▪ Unfunded ▪ Fairview Road Water Main - (Capacity Increase for Renewal and LOS) ▪ Reduced Funding (2021) ▪ New Reservoir Renewals and Capacity Upgrades ▪ Reduced Funding ▪ Alpha Street Water Treatment Plant Renewal & Capacity Upgrade ▪ Reduced Funding ▪ Parallel Road Water Treatment Plant Upgrade ▪ Unfunded ▪ Frontier Rd to Taylors Hill Trunk Main ▪ Unfunded ▪ Rising Main from Frontier Road to Pirongia Road (Capacity Increase for ▪ Unfunded LOS and Growth) ▪ Above Ground Asset Renewals and Maintenance - non-Treatment Plant ▪ Reduced Funding ▪ Water Treatment Plant Renewals ▪ Reduced Funding ▪ District Wide Water Main Renewals ▪ Reduced Funding Renewal ▪ Water Meters - New and Replacement ▪ Reduced Funding ▪ TA Water Contn and Meter Renewals ▪ Fully Funded ▪ Cambridge Water Contn and Meter Renewals ▪ Fully Funded Summary programme

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The figure below identifies projects and strategic timelines over the next 30 years for the water supply activity.

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Financials The following pair of charts show the required Opex and Capex funding (as identified in the main body of this document) alongside the funding allocated to the service in the 2021 LTP.

Required Funding and LTP Budgeted Funding – Opex

The chart above comprises business as usual opex, operational projects and operational costs associated with capex. Opex budgets have been reduced resulting in a gap between the funding required and budgeted. There is an increased risk that existing levels of service will not be met. A component of the opex budget reduction is the removal of the operational costs associated with capital. Should growth cells not funded in the Long Term Plan be progressed privately, Council will need to increase opex budgets to allow for operating and maintaining the infrastructure when it is vested to Council.

Required Funding and LTP Budgeted Funding - Capex

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The chart shows overall that there is a gap between the funding required and the budgeted LTP funding. A reduction in capital budget has been acknowledged, meaning there is greater risk that the projects will cost more than currently budgeted for. Large differentials between the funding required and capital funding budgeted in 2022-2026 are growth cells, where infrastructure has not been funded through the LTP. There has also been an overall 40% reduction in capital renewal investment.

AM Improvement The level to which WDC aims to operate its Asset Management System and undertakes Activity Management (AM) activities is specified in Council’s Asset Management Policy 2016. The figure below outlines the desired AM levels for water supply along with that currently being achieved2 for each asset management area.

Asset Management Planning Review Council’s asset management planning frameworks and systems were audited by KPMG in late 2019. Overall, WDC was rated as “Developing” and several actions were suggested to improve asset management including group leadership, a single point of accountability and a documented asset management framework and system.

To address the report’s findings an Activity Management Planning: Organisational Improvement Project Control Group (PCG) has been established. The PCG will demonstrate leadership, formulate

2 The AM level currently being achieved has been taken from the Tonkin & Taylor report Asset Management Gap Analysis and Improvement Projects (ECM 7375504).

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vision, and champion the development, implementation, and continuous improvement of a formalised activity management framework across the organisation. Because the AM shortfalls will be addressed at a corporate level, details such as projects and costs are not covered within this AMP.

Improvements achieved and current programme During the last 3 years WDC has made some progress on improvement activities related to the quality and availability of asset condition data.

In this AMP, 26 improvement actions have been proposed for improving water supply activity management practice. These include: ▪ District wide leak and condition investigations to inform and focus renewals ▪ District wide water modelling and master planning updates and maintenance which will inform the scope and timing of infrastructure required to manage growth, LOS and renewals ▪ Identification of water distribution zones for the district's water supplies ▪ Review and update drinking water supporting plans

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Main Document

Water Treatment & Supply Activity Management Plan 2021

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 1 Introduction

1 Introduction

This section provides the reader with the reasons for preparing the AMP, an overview of the assets covered, and sound justification for delivering the services and owning and operating the assets covered in the plan.

1.1 About This Plan

Purpose of Plan Waipa DC has identified the following two key purposes for its AMPs:

▪ Provide clear identification and justification of projects and budgets for inclusion in the LTP with sufficient detail to permit the LTP project documentation to simply reference the AMPs. ▪ Provide guidance for AM decision making.

Relationship with other planning documents Diagram 1 below shows how the AMPs fit within the wider organisational planning framework. Of particular note is the importance of the AMPs feeding into the LTP and levels of service determination process.

Diagram 1: AMPs and the Organisational Planning Framework

Community Outcomes

Legislation and Other Council Determining National & AM Policy Policies and Levels of Regional Policy Strategies Service

Strategic AMP

Suite of AMPs Business Cases

Long Term Plan Infrastructure Strategy

Activity Business Plans

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1.2 About the Water Treatment and Supply Service

1.2.1. Scope of Services Council supplies water through its schemes at Te Awamutu, Kihikihi, Cambridge and Pukerimu. Council’s water supply is split into thirteen water supply areas fed by six sources. While the six urban water supply areas deliver a different level of service to the seven rural water supply areas (Table 1), all the water supply area customers are provided with potable drinking water, with supply and demand being managed to ensure prudent use of water. All non-residential and residential (from 2018) customers are charged for water by meter.

Table 1: Services Service Area Service Provided ▪ On demand supply Urban ▪ Firefighting water supply in the form of fire hydrants Rural ▪ A restricted supply only in specified areas

Cambridge Water Supply Scheme The Cambridge water supply scheme comprises three main networks; Karapiro Village, Cambridge North and Cambridge South (Leamington). Fonterra Hautapu is also supplied on a buffered, restricted commercial basis. Water is supplied on an unrestricted basis to the urban residential areas of Cambridge and Karapiro Village. The Cambridge South (Leamington) reticulation has an emergency connection to Pukerimu which is unmetered and normally closed.

Water for the Cambridge and Karapiro scheme is sourced from two locations: ▪ – Karapiro WTP ▪ River – Alpha St WTP

The Springs - Hicks Road WTP was decommissioned in 2020.

Te Awamutu Water Supply Scheme The Te Awamutu water supply area comprises two reticulation zones; the Te Awamutu township and Pirongia. There are rural connections off the treated trunk main prior to Pirongia into Te Awamutu. There is an emergency connection (100mm pipeline) to Kihikihi from the Te Awamutu supply which is normally closed. Fonterra Te Awamutu is supplied through this scheme.

Water for the Te Awamutu scheme is sourced from two locations: ▪ Water is diverted from the Mangauika Stream into a settling pond then into a raw water storage reservoir prior to treatment at the Te Tahi WTP ▪ The Frontier Road Bore

The water take consent requires a reduction in abstraction from the Mangauika Stream from 2030. To ensure a future water supply for Te Awamutu/Pirongia, design work is underway to increase the capacity of the Parallel Rd WTP (which serves Pukerimu and Ohaupo) and construction is underway of a new pipeline from Parallel Rd to the Taylors Hill reservoir.

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Kihikihi Water Supply Scheme The Kihikihi water supply scheme consists only of the Kihikihi township and is sourced by groundwater bores. A 100mm water supply main between Kihikihi and Te Awamutu provides resilience of supply and mitigation in emergency situations, however flow constraints mean pressures and flows are predominately weak and low

Pukerimu Water Supply Scheme The Pukerimu water supply area consists of the Ohaupo township and the Pukerimu rural area. Water is abstracted from the and pumped 3.5km to the sole treatment plant at Parallel Road.

Potable water is run in two main parts. It is allocated on: ▪ An unrestricted basis to the township of Ohaupo – pressurised on demand system ▪ A restricted basis to: o The boundary of the Mystery Creek Event Centre o Hamilton Airport and Titanium Park at up to 600m3/day o 616 rural properties located within the Pukerimu rural water supply area (variable amounts allocated) – most of these customers have private tanks

1.2.2. Scope of the Assets Figure 1 shows the extent of the networks required to provide those services identified above.

Figure 1: Extent of the District Water Supply Service

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Table 2 provides a breakdown of the key assets and their value. Further asset details are provided in Section 4. Table 2: Water Supply Asset Overview (as at 30 June 2019) Value Type of Water Supply Asset Quantity Optimised Depreciated Gross Replacement Cost Replacement Cost Watermains 607km Valves and Hydrants 6,101 Number of Connections 15,586 $232.6m $131.8m Storage reservoirs 11 Treatment Plants 6

1.2.3. Key Stakeholders Key stakeholders in the water supply activity are described below. Further information is provided in Section 2.2.

▪ Residential, commercial and industrial users ▪ Fonterra uses approximately 40% of water distributed in Cambridge and Te Awamutu ▪ Neighbouring Councils ▪ Shared Services (with Hamilton City Council and WLASS) ▪ Waikato Regional Council ▪ Ministry of Health ▪ Community Groups and Boards ▪ Iwi partners

1.3 Strategic Goals

1.3.1. Why We Do It The ‘Why we do it’ is a simple statement of justification as to why Council is involved in the service and asset ownership rather than someone else. All activities within this service area should be aligned with Council’s ‘Why we do it’ statement.

“To ensure our community benefits from the ongoing provision of potable water”

Providing a safe, high quality and reliable water supply is important to the health and wellbeing of Waipa’s residents. Council is also required to provide the service under the following legislation:

▪ The Local Government Act 2002 requires that local government organisations that provide water services must continue to do so, the Act states there is an obligation to maintain water services (Section 130). ▪ Under the Health (Drinking Water) Amendment Act 2007, the requires suppliers of drinking water to take all practicable steps to ensure that an adequate supply of drinking water is provided to each point of supply that the supplier provides for (Section 69S).

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1.3.2. Linkage to Council’s Vision and Community Outcomes How Council’s Vision and desired Community Outcomes are supported by the service and their impact upon the service are explored in Table 3 below.

Table 3: Linkage to Council’s Vision and Community Outcomes Vision Community Outcome How the Service Supports those Outcomes Impact on Service He aha te mea nui o te ao? Māku e kī atu he tangata, Socially Resilient he tangata, he tangata! – it’s all about people ▪ Waipā is a great place to live, work, play and invest ▪ The community’s perception of quality of life ▪ By providing safe water to drink ▪ We invest in hauora and support the great work should not be negatively impacted by the service. community groups do ▪ Waipā provides a high quality of life for current and future generations

Cultural Champions Promoting our culture and heritage ▪ When setting LOS consideration needs to be given ▪ We champion the unique history of Waipā ▪ By delivering a service which recognises and to Council’s ability to minimise any negative ▪ We have a high level of cultural awareness mitigates cultural effects cultural impacts resulting from the delivery of that ▪ We partner with tangata whenua LOS. ▪ We respect the cultural diversity in our district

Environmental Champions Protecting and sustaining our environment

Building Connected Building Communities ▪ When setting LOS consideration needs to be given ▪ Environmental awareness and responsibility is - promoted within the community ▪ By delivery of the service within our resource to Council’s ability to minimise any negative ▪ We support programmes that promote consent limits impacts on the environment resulting from the environmental sustainability delivery of that LOS. ▪ We are responsive to climate change

Champions Supporting a thriving, sustainable economy ▪ We have financially sustainable decision making Economically Progressive and work programmes ▪ By presenting the most cost-efficient solution ▪ We provide new infrastructure as an economic ▪ Need to balance the provision of high service levels through the sourcing of integrated solutions to stimulus for our district as desired by customers against the cost of meet the growth, demand, level of service issues ▪ Our services provide excellent value for money delivery. Waipā Home Waipā of ▪ We actively promote our district to enable and risks development, employment and business opportunities ▪ Waipā is a great place to invest and do business

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1.3.3. Council’s Strategic Priorities As part of the 2018 LTP Council identified a range of strategic objectives and within those identified areas of focus along with specific actions. Where actions specific to this service were identified they are listed in Table 4 along with the impact upon the service.

Table 4: Council Priority Actions and Impact on LOS Council Priority Actions (Water Supply) Impact on Service ▪ This has the potential to support raising the LOS around quality Secure Te Awamutu with a quality water through a more consistent supply source. supply that can cater to seasonal ▪ A more consistent supply would reduce the need for summer demand restrictions thus increasing LOS around availability. ▪ This has the potential to raise the LOS around availability of supply Continue to improve water usage by by reducing the need for summer restrictions. reducing system losses and guiding ▪ The LOS around the degree of negative impacts on the environment usage behaviour would improve through reduced water wastage.

In addition to the high-level priorities within the 2018 LTP further priorities have been identified within the service itself. The provision of water infrastructure is seen as a main strategic priority in response to projected population growth and increasing environmental constraints. The following water supply challenges need to be addressed:

▪ Water supply and demand, especially during summer ▪ Renewal of aging assets ▪ Water pressure, taste and odour issues ▪ Compliance with consent conditions, including water take restrictions ▪ Compliance with drinking water standards ▪ Improving resilience to maintain services during unplanned events ▪ Reducing carbon footprint and improving energy efficiency ▪ Flexibility to provide for currently un-serviced areas

1.4 Planning and Regulatory Framework The following planning and regulatory rules have a direct impact upon the service we provide. Please refer to Appendix A for more details.

Regulatory Framework ▪ Building Act 2004 ▪ National Policy Statement on Urban Development ▪ Civil Defence Emergency Management Act 2002 Capacity ▪ Climate Change Response (Zero Carbon) ▪ Nga Wai o Maniapoto () Act 2012 Amendment Act 2019 ▪ Ngāti Tūwharetoa, Raukawa, and Te Arawa River Iwi ▪ Drinking Water Standards for New Zealand 2005 Waikato River Act 2010 (Revised 2008) ▪ Resource Management Act (Water Metering) ▪ Firefighting Water Supply SNZ PAS 4509 Regulations 2010 ▪ Hazardous Substances and New Organisms Act 1996 ▪ Resource Management Act 1991 ▪ Health Act 1956 ▪ Waikato Regional Plan ▪ Health and Safety at Work Act 2015 ▪ Waikato-Tainui Raupatu Claims (Waikato River) ▪ Local Government Act 2002 Settlement Act 2010 ▪ National Environmental Standards: Sources of ▪ Waipa District Plan Drinking Water 2007 ▪ WDC Water Supply Bylaw 2013 ▪ National Policy Statement Freshwater Management

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Planning Framework ▪ Environmental Strategy 2010 ▪ Three Waters Master Plan 2020 ▪ Regional Infrastructure Technical Specifications ▪ Waipa 2050 ▪ Sub-Regional Three Waters Strategy 2012 ▪ Water Demand Management Plans 2013 – 2017 ▪ Sub-Regional Water Management Plan Strategic ▪ Water Safety Plans 2014 – 2017 Overview 2015

1.4.1. Te Ture Whaimana o Te Awa and Regional Plan Change 1 Following treaty settlements with Waikato Tainui and Maniapoto, Te Ture Whaimana o Te Awa o Waikato -Vision and Strategy for the Waikato River was developed and published in 2008 under the guidance and direction of the Guardians Establishment Committee. The Vision and Strategy documents the status of the river and provides the general direction and challenge to all the community. The vision for the Waikato River is as follows:

“Our Vision is for a future where a healthy Waikato River sustains abundant life and prosperous communities who, in turn, are all responsible for restoring and protecting the health and wellbeing of the Waikato River, and all it embraces, for generations to come.”

The Operative Waikato Regional Plan identifies the issues, objectives, goals, and implementation methods for water resource management in the region. Plan Change 1 (PC1) to the Waikato Regional Plan is designed to give effect to the Vision and Strategy for the Waikato River. Its focus is on protecting and restoring water quality by managing land use and diffuse and point source discharges of nitrogen, phosphorus, sediment and bacteria. PC 1 sets out significant changes to the current planning regime for managing water quality in the Waikato and Catchments that will be implemented over time.

Under PC1 it is proposed that when applying for resource consent, point source discharges adopt the best practicable option to avoid or mitigate adverse effects. If it is not practicable to avoid or mitigate adverse effects, it is possible to instead propose an offset measure.

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1.5 Effects of this Activity Schedule 10 of the Local Government Act covers the information required to be included in the LTP. Part 1, Section 2 (1) (c) requires Council to identify any significant negative effects that any activity within the group of activities may have on the local community. The purpose of this is to ensure that Council activities are conducted in accordance with the principles of sustainability – refer to Table 5 below. Table 5: Effects of this Activity Wellbeing Positive Effects Negative Effects Mitigation of Effects ▪ Community health is protected by providing safe and reliable water ▪ Water restrictions during ▪ Smart Water Programme supply the summer months. to manage demand and Social ▪ Provides water for a range ▪ Insufficient water during minimise use of of recreation and leisure drought or emergencies restrictions. activities, e.g. swimming pools ▪ Engagement with Ngā Iwi ▪ The activity is managed Tōpū O Waipā and operated in ▪ Impact of water ▪ Give effect to the Cultural accordance with Vision and abstraction mauri of provisions of the Joint Strategy for the Waikato waterbodies Management Agreement River (JMA) ▪ Implementation of water ▪ Climate change affecting demand initiatives like the water use patterns Smart Water Programme Environmental ▪ None ▪ Discharges to water from to manage demand. treatment processes ▪ Compliance with resource consents ▪ Economic growth can ▪ The availability and ▪ Ensure water abstraction is Economic occur with new/upgraded allocation of water is maintained within infrastructure impacted consented limits.

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1.6 Variation from the Assessment of Water & Sanitary Services Part 6 of Schedule 10 of the LGA 2002 requires that Council’s Long Term Plan identify and explain any significant variation between proposals in the Long Term Plan and Council’s Water and Sanitary Services Assessments. The purpose of such an assessment is to assess, from a public health perspective, the adequacy of water and other sanitary services in the district.

Section 125 of the Local Government Act 2002 requires Council to assess the provision of water services (water supply and wastewater) and other sanitary services (public toilets and cemeteries) from time to time. Council last updated its Water and Sanitary Services Assessment in 2004.

The following activities vary from the last assessment:

▪ The Te Rore rural water supply scheme has been transferred to the Te Rore Rural Water Supply Group who now operate and maintain the scheme as a private water supply. ▪ Council has completed the process of supplying the Hicks Road water supply scheme via the newly upgraded Karapiro Water Treatment Plant to meet the Drinking Water Standards for New Zealand. Council will seek to transfer the water allocation at Hicks Springs to the Karapiro water supply take. ▪ Council is upgrading the Parallel Rd water treatment plant and installing a pipeline from the treatment plant to the Taylors Hill reservoir to feed Te Awamutu. This is due to a consent condition reducing the water take from the Mangauika Stream commencing in 2030.

Due to the time since the Assessment was last done a review and update is required (see Section 8.4.4 for details of proposed review).

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1.7 Current and Future Challenges and Opportunities Waipa District Council Three Waters Masterplan (Beca, 2020) reviewed and identified challenges/opportunities for the existing water supply activity, these are summarised in Table 6.

Table 6: Water Supply Current and Future Challenges and Opportunities Issue Current Future ▪ Sufficient reservoir capacity currently ▪ Insufficient future capacity forecast, as a Reservoir available. result of growth in demand Capacity ▪ Reservoir condition is poor, with risks ▪ Further deterioration in the condition of District Wide: identified with respect to contamination, the existing reservoirs will reduce the total seismic resilience and operability. storage available. ▪ There is a risk that there will not be sufficient water take available (as currently ▪ There is sufficient water normally available consented) to meet future peak demand within each Scheme once the connection for Te Awamutu, Kihikihi and Cambridge. ▪ Future peak day demand should be met in The from Parallel Rd WTP to Te Awamutu is the Pukerimu scheme Supply/Demand completed. Balance ▪ The implications of the minimum residual ▪ The ‘low demand season’ and ‘annual’ flow at Te Tahi are not clearly understood supply constraints should still provide (i.e. the frequency at which abstractions sufficient water to meet demand are required to be reduced). ▪ Additional allocation is expected to be needed around 2035-2040 as a result of growth ▪ Potential future effects include increased demand due to warmer weather and population growth, combined ▪ Reduced water availability as a result of increased drought events ▪ The potential implications of climate ▪ Low flow restrictions (Waikato River) may Climate change change on the supply / demand balance are occur more frequently not well understood ▪ The Te Tahi source restrictions may occur even more frequently ▪ The yield of the Kihikihi boreholes, which are constrained by drought drawdown, may reduce further, opportunity to offset through connection to Te Awamutu ▪ It is important that the Hicks Rd resource ▪ The reduction in Te Tahi consent from 2030 consent allocation be retained if possible, Consents will reduce the water available for Te to maximise the use of the Comprehensive Awamutu and Pirongia from that source. Consent ▪ Some areas of Cambridge currently suffer from low pressure ▪ Fireflow standards are not met at either ▪ Growth results in large areas of the Cambridge or Te Awamutu Cambridge and Te Awamutu networks with Network issues ▪ High user demands are significant for low pressures and high head loss Cambridge and Te Awamutu – seasonal ▪ Growth at Titanium Park may lead to high demands from Fonterra impact on the head loss network and system operation ▪ The network layout and zoning are not optimised

▪ Only 1 year of metered data is available – ▪ Analysis of demand data will give greater Data availability data for several years is required to certainty of the demand forecasts determine accurate demand patterns.

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1.8 Impact of Covid 19

1.8.1. General Impacts of Covid 19 The Covid-19 pandemic is widely described as a one in hundred year event that is likely to result in a rewriting of economic understanding, urban and transport planning as well as work and health practices. It has created an almost overwhelming level of universal uncertainty as countries grapple with how to manage the ongoing and changing impact on communities, health systems and economies.

At a local district level however, the current viewpoints of the Council’s expert economic advisors (Infometrics) and demographic advisors (National Institute for Demographic and Economic Analysis) is that the impact on the district’s economy and population growth will be largely short term. Based on evidence drawn from previous global crises (Financial Crisis of 2008, Great Depression of the thirties, and Spanish Flu pandemic of 1919) there is a strong likelihood that we will return to our long term economic and population growth projections following the resolution of the pandemic event.

1.8.2. Direct Impacts of Covid 19 on the Water Treatment and Supply Service New Zealand responded to the Covid-19 pandemic via a series of alert level responses (1 least restrictions to 4 most restrictions) from March to September 2020:

▪ Alert level 4 (25 March to 27 April) ▪ Alert level 3 (28 April to 13 May) ▪ Alert level 2 (14 May to 8 June) ▪ Alert level 1 (9 June to 14 August) ▪ Alert level 2 (15 August to 21 September) all of Zealand except (at alert level 3) ▪ Alert level 1 (from 22 September)

Businesses were severely restricted during alert levels 3 and 4 and this has had some ongoing economic effects. Winter is typically a low demand period for water supply in general, particularly for large volume users, such as Fonterra.

It is likely there will be reduced revenue in 2019/20 and 2020/21 due to lower business demand during the alert level response periods. The 2020/21 summer is predicted to be dry and seasonal water demand is expected to increase from December 2020 to March 2021 in a similar pattern to pre-Covid levels.

To date there has been no significant effects on the overall rate of growth and development within the district that may affect demand for water services in the medium to long term.

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2 The Service Provided

This section explores current services and the levels to which those services are delivered (Levels of Service), and the reasoning behind them. Levels of Service take into account customer expectations, asset and service capacity, financial affordability and relevant legislative requirements.

2.1 The Services We Deliver Table 7 provides a summary of the services delivered, Figure 1 shows the geographical extent of those services. Table 7: Services Service Area Service Details Delivery Model ▪ Maintain and Comply with Consents All parts of the service are delivered by ▪ Ensure Bores are secure Source a mixture of in house, shared services ▪ Abstract Water and external contractor resources. ▪ Monitor quality of raw water While most operational, compliance ▪ Produce potable water to Drinking Water Standards and project management work is Treatment ▪ Comply with Discharge Consents completed in house, water sampling and laboratory services are carried out ▪ Monitor treatment process by a shared services arrangement with ▪ Installation of new network to meet growth Hamilton City and Waikato LASS, and ▪ Provide water for firefighting services external contractors are brought in to ▪ Provide Potable water to customers for Domestic, fill gaps in expertise or resourcing, and Reticulation Commercial and Industrial uses also where physical construction ▪ Maintain and renew assets cost effectively works are outside the capabilities of our internal crews. ▪ Monitor quality of reticulated portable water

2.1.1. Areas of Service: Water Supply Waipa DC provides water supply (both restricted and unrestricted) to the communities shown in Figure 1. Figure 1: Water Supply Areas

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2.1.2. Key Achievements The key achievements during the last 3 years:

▪ In 2018, WDC introduced universal water metering across its supplies. This has resulted in 20% reduction in residential water demand, demonstrating improved water use efficiency and deferring capital expenditure ▪ Commissioning a new WTP at Karapiro to provide a more efficient and reliable water supply to Cambridge and Karapiro ▪ Decommissioning of the Hicks Road Springs, a non-compliant water source ▪ Works are almost complete on a pipeline to link the Parallel Rd WTP (Pukerimu) to the Te Awamutu water supply network to provide for growth and improve operational resilience

2.1.3. Three Waters Review The Government is reviewing how to improve the regulation and supply arrangements of drinking water, wastewater and stormwater (three waters) to better support New Zealand’s prosperity, health, safety and environment. Most three waters assets and services, but not all, are owned and delivered by local councils.

The Three Waters Review is a cross-agency initiative led by the Minister of Local Government. Other involved agencies and portfolios include: Health, Environment, Finance, Business Innovation and Employment, Commerce and Consumer Affairs, Primary Industries, Climate Change, Infrastructure, Civil Defence and Emergency Management, Housing and Urban Development, Transport, Conservation, and Rural Communities.

As of July 2020, the Government approved a suite of regulatory reforms to help ensure safe drinking water, and deliver improved environmental outcomes from New Zealand’s wastewater and stormwater systems.

A new dedicated water regulator (Taumata Arowai) has been established to oversee the regulatory regime (Taumata Arowai—the Water Services Regulator Act 2020 enacted 22 July 2020). The regulator has a range of responsibilities and functions, including sector leadership; standards setting; compliance, monitoring and enforcement; capability building; information, advice and education; and performance reporting.

The Water Services Bill is a companion piece of legislation to the Taumata Arowai—the Water Services Regulator Act was first introduced to Parliament in July 2020. It proposes to provide the tools and framework for Taumata Arowai. At this stage this Bill applies to drinking water rather than stormwater and wastewater.

In July 2020, the Government announced a funding package to support the delivery of three waters services in response to the Covid-19 pandemic and also plans to transform the industry to large scale service providers over the next three years.

It is likely that the delivery of water and wastewater services (stormwater services are to be confirmed) will be transferred from WDC to a new larger utility (covering a wider geographical area) in the next three years.

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2.1.4. WDC Waters Review In 2020, the structure of the Water Services team was reviewed. The purpose of this review was to:

▪ increase resourcing and investment in staff (rather than continuing to rely heavily on consultants/contractors), by providing opportunities for development, career pathways, and enhancing work/life balance and health and safety practices; ▪ position Water Services to meet community expectations as growth continues, and give it capacity to adopt a strategic focus, with the ability to better understand and proactively plan for the future of our assets. ▪ enable preparedness for Three Waters reform from central government

As at October 2020, team leader roles had been filled and the remainder of vacancies advertised. Appendix G. provides an outline of the previous and new structures.

2.2 What Do Our Customers and Stakeholders Value?

2.2.1. How We Engage Our Customers and Stakeholders Customers and Stakeholders expectations and requirements need to be taken into account when setting LOS. To achieve this it is critical to engage with those Customers and Stakeholders. This is achieved through the on-going process of formal and informal consultation including:

▪ Community consultation is undertaken as part of the Waipa District Council Annual Customer survey designed to measure residents’ perceptions of Council’s performance on its Water Treatment & Supply assets as well as the processing of complaints and related requests made to Council ▪ Informal customer liaison is also undertaken by operations field staff, working closely with landowners in regard to specific works and maintenance issues. ▪ Additionally, all customers have access to the annual plan and LTP process, where they can lodge submissions on the scheme works programmes or raise issues of concern.

Stakeholder feedback is formally considered through the annual plan and LTP process. Written submissions are made and submitters have the opportunity to present their submissions to Council at annual hearings. Council then deliberates and decides actions required in the annual plan/LTP.

At this stage, there are no plans to expand consultation on water supply services beyond the status quo.

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2.2.2. What They Value Core customer and stakeholder groups for the service are listed in Table 8 along with Council’s understanding of the service criteria that they value.

Table 8: Our Customers and Stakeholders and What They Value Customer What They Value

Urban Residential ▪ Affordability ▪ Continuity of supply Rural Residential ▪ Good communication Direct Customers ▪ Responsiveness Commercial ▪ Sustainability ▪ Water Quality Industrial ▪ Water Safety Stakeholder What They Value Councillors and Sub-committees ▪ Public health and safety Community Boards ▪ Reliability, availability, environment, cost Executive Planning & Regulatory ▪ Consent Management

Internal Strategic Planning ▪ District Plan and growth projects Stakeholders Community Relationships ▪ Wastewater customer related issues Information Services ▪ Record keeping Property Management ▪ Use of council buildings Roading Services ▪ Access to road corridor Health & Safety Advisor ▪ Staff and public Finance Team ▪ Financial accounting of assets Waikato Regional Council and ▪ Environment, shared services, and compliance Other TLAs External Government Agencies (MoH, ▪ Public health and safety, service reliability, environment, Stakeholders MoE, Audit NZ etc.) cost, compliance Iwi partners ▪ Environment and cultural heritage Suppliers ▪ Procurement, technical, payment

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2.3 Our Desired Levels of Service

2.3.1. Defining Levels of Service The International Infrastructure Management Manual defines Levels of Service as the parameters or combination of parameters that reflect social, political, economic and environmental outcomes the organisation delivers. Level of Service statements describe the outputs or objectives an organisation or activity intends to deliver to customers. 3

2.3.2. Establishing Changes to Desired LOS The high-level direction on desired levels of service for the 2021-31 LTP period was confirmed with Council in a series of workshops during June and July 2019. The LOS direction given by Council for Water Treatment & Supply is shown in detail in Diagram 4, Appendix B3, and summarised in Table 9 below. Table 9: LOS Direction – June 2019 Service Change Water Abstraction and Treatment No Change On Demand Supply to Towns and Villages No Change Restricted Supply to Some Rural Areas No Change Maintenance of Plants and Networks No Change

2.3.3. Potential Future Impacts on LOS The following potential future impacts on LOS are:

▪ Changes in customer expectations (e.g. move from restricted to on demand supply ▪ Climate change resilience (drop in level of service over time) due to more extreme rainfall events or LOS affected by drought ▪ Water allocation by regulatory authorities

3 As defined in the International Infrastructure Management Manual 2015

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2.4 Our LOS and LOS Gaps

2.4.1. Performance Measures The LOS statements and performance measures in Table 10 form part of the organisational Performance Framework; Diagram 2 provides an overview of that Performance Framework.

Diagram 2: Organisational Performance Framework Description of the service output(s) the customer is to receive

The Service We Provide – Written in terms the customer can understand The LOS Statement and relate to

Does not have to be directly quantifiable – this is done by the Performance Measure

Used to determine service performance against the declared LOS

How We Measure Success – Measures the output, not the activity the Performance Measures

PerformanceFramework Must be a qualitative or quantitative measure

Measures the output, not the activity Performance Targets Must be a qualitative or quantitative measure

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In 2014 the DIA4 introduced a set of compulsory performance measures for local authorities to use when reporting to their communities on the delivery of stormwater, wastewater, water supply, and roading services. Individual local authorities can report against additional measures as they deem appropriate. For water supply services Council currently uses only the compulsory performance measures for customer focused performance measures.

2.4.2. Benchmarking With Comparable Councils Appendix B2 includes details of how Waipa’s LOS compare with other similar Councils.

2.4.3. Our Current Performance Our LOS, Performance Measures and how we are performing against those LOS are detailed in Table 10 on Page 38 along with issues around LOS delivery. Past performance measure results are provided in Appendix B1. A summary of overall LOS performance is given below:

Not all existing areas of the water supply network meet performance measures in terms of: ▪ pressure, ▪ water quality security, and ▪ firefighting capacity and storage.

This is due to changes in performance measures, water industry standards and extending the network to meet growth. Piped network renewals and treatment plant and reservoir upgrades are proposed to address these LOS issues over a staged period of time.

4 Department of Internal Affairs; https://www.dia.govt.nz/Resource-material-Our-Policy-Advice-Areas-Local- Government-Policy#performance-measures

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Table 10: Level of Service, and LOS Gaps

Why We Do It To ensure our community benefits from the ongoing provision of potable water

The Service We Provide How we measure success LOS Being (LOS) Customer Performance Measure Technical Performance Measure Achieved? Issue Alpha Street Achieved Frontier Road Achieved Water Treatment Plants – compliance with Karapiro Achieved bacteriological criteria Parallel Road Achieved [M] Rolleston Street Achieved Te Tahi Achieved Alpha Street Achieved Frontier Road Achieved The extent to which the local authority’s Water Treatment Plants Karapiro Achieved Non-compliances was related to the exceedance of the maximum interval between samples for Cambridge, Karapiro, drinking water supply complies with the – compliance with Pukerimu Rural and Te Awamutu distribution zones. These were considered technical transgressions that did not affect the drinking-water standards. 5 protozoal criteria [M] Parallel Road Achieved safety of the water. Rolleston Street Achieved The community is Te Tahi Achieved provided with safe and Cambridge Not Achieved wholesome drinking water within specified Kihikihi Achieved areas in a way that is Network zones – Ohaupo Achieved most cost-effective compliance [M] Pirongia Achieved Pukerimu Rural Not Achieved Te Awamutu Not Achieved Attendance for urgent call-out from the time Achieved of notification. (hours) 7 [M] Resolution of urgent call-outs from the time Median response time for call-outs in 8 Achieved of notification (hours). [M] Lack of resourcing of operations team, sub-optimal Systems and Management Practices, and a lack of formal contracts with response to a fault or unplanned interruption 6 Attendance for non-urgent call-outs from the suppliers creates a risk of delayed response to callouts, along with non-compliance with other council policies. to the network. Achieved time of notification (days) 9 [M] Resolution of non-urgent call-outs from the Achieved time of notification (days) 10 [M] The number of unplanned interruptions to Resilience levels are lower than required to deliver the desired level of risk of service failure due both increasing/changing Achieved the service demand and natural disasters [M] = DIA mandatory measure

5Full wording of mandatory measure is: The extent to which the local authority’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 (protozoal compliance criteria). 6 Full wording of mandatory measure is: Where the local authority attends a call-out in response to a fault or unplanned interruption to its networked reticulation system, the following median response time measured. 7 Full wording of mandatory measure is: Attendance for urgent call-outs: from the time the local authority receives notification to the time that service personnel reach the site. 8 Full wording of mandatory measure is: Resolution of urgent call-outs: from the time the local authority receives notification to the time service personnel confirm resolution of the fault or interruption. 9 Full wording of mandatory measure is: Attendance for non-urgent call-outs: from the time the local authority receives notification to the time that service personnel reach the site. 10 Full wording of mandatory measure is: Resolution of non-urgent call-outs: from the time the local authority receives notification to the time service personnel confirm resolution of the fault or interruption.

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Why We Do It To ensure our community benefits from the ongoing provision of potable water

The Service We Provide How we measure success LOS Being (LOS) Customer Performance Measure Technical Performance Measure Achieved? Issue The total number of complaints received about any of the following: Drinking water clarity, While stated LOS are being met the following issues remain: taste, odour, pressure or flow, continuity of supply, and the response to any of these issues11 Achieved ▪ Taste issues from Te Tahi The community is [M] ▪ Dirty water complaints in Kihikihi provided with safe and Fire Supply to FW 2 level as per the New wholesome drinking Zealand Fire Service Firefighting Water Not Measured ▪ Low Pressure issues in Te Awamutu and Cambridge North water within specified Supplies Code of Practice in Urban Areas areas in a way that is most cost-effective Minimum water pressure the customer can Not Measured ▪ Pressure and flow requirements not met in some areas in Te Awamutu and Cambridge North expect at the boundary of the property.

Cambridge & Karapiro Not Achieved ▪ Data confidence issues create uncertainty over actual water loss ▪ Lack of zoning and bulk water meters to confirm estimated water losses The percentage of real water loss from the Te Awamutu & Pirongia Achieved ▪ Ageing network increases water loss as pipes start to leak networked reticulation system.12 [M] ▪ Illegal water take Kihikihi Not Achieved ▪ Data confidence issues create uncertainty over actual water loss The supply and demand ▪ Lack of zoning and bulk water meters to confirm estimated water losses are managed to ensure Ohaupo & Pukerimu Achieved prudent use of water Cambridge & Karapiro Not Achieved ▪ Data confidence issues create uncertainty over actual consumption ▪ Water Supply consents contain increasing requirements around protecting and minimising impacts on the natural Te Awamutu & Pirongia Not Achieved The average consumption of drinking water environment per day per resident. 13 [M] Kihikihi Achieved ▪ Public perception of water availability is at odds with councils push to reduce consumption. ▪ Residential High water users have insufficient motivation to reduce consumption. Ohaupo & Pukerimu Achieved ▪ New growth using as much, or more water than existing properties. [M] = DIA mandatory measure

14 WDC’s water supplies were assessed for compliance against the Drinking-water Standards for New Zealand 2005 (Revised 2018) and duties under Health Act 1956 for period 1 July 2019 to 30 June 2020 . High levels of compliance for WDC water supplies are being maintained and non-compliances only relate to the exceedance of the maximum interval between samples for Cambridge, Karapiro, Pukerimu Rural and Te Awamutu distribution Zones. To resolve this issue, WDC will review sampling intervals with its service provider.

11 Full wording of the mandatory measure is: The total number of complaints received by the local authority about any of the following (expressed per 1000 connections to the local authority’s networked reticulation system): Drinking water clarity, drinking water quality, drinking water taste, drinking water odour, drinking water pressure or flow, continuity of supply, the local authority’s response to any of these issues. 12 Full wording of the mandatory measure is: The percentage of real water loss from the local authority’s networked reticulation system. Note these results are from pre 2013/2014. 13 Full wording of the mandatory measure is: The average consumption of drinking water per day per resident within the territorial authority district. 14 Health Board (2020), Report on Compliance with the Drinking-water Standards for New Zealand 2005 (Revised 2018) and duties under Health Act 1956

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2.5 Our Future Programme to Deliver LOS

2.5.1. Projects to Deliver on LOS The projects required over the next 10 years to ensure delivery of the desired service levels are listed below along with the issues they are intended to address. Costs, timeframes, and priority are summarised in Table 48 (Page 113), while fuller detail of the projects including objectives and benefits are covered in Appendix F1.

Table 11: New and Upgraded Services and Assets Projects – LOS Driven Driver: LOS Issue15 Project Name Project Number ▪ Central government direction ▪ Strategic Review of 3 Waters Business - ▪ Improved consent compliance ▪ Water SCADA & Telemetry Upgrade PR2419 ▪ Climate change and Zero Carbon Act ▪ Energy Efficiency on Pump Stations and Treatment Plants Study - ▪ Improved drinking water and consent compliance ▪ Drinking Water Supporting Plans (Review and Update) PR2514 ▪ Improved drinking water compliance ▪ Drinking Water Compliance PR1858 ▪ Te Tahi - Treatment Operation Optimisation Study PR2160 ▪ Bulk Water Stations PR1496 ▪ District Wide Water Modelling and Masterplanning Updates PR1500 ▪ District Wide Water Zone Identification PR1553 ▪ Te Awamutu Fire & Water Level of Service Upgrades PR2024 ▪ Supply/demand balance - improved reliability ▪ Cambridge Fire & Water Level of Service Upgrades PR2028 ▪ Standby Generators for Treatment Plants PR2048 ▪ Pukerimu Water Supply - Upgrade Supply to Airport and Ohaupo PR2415 ▪ Pukerimu Water Supply - Feasibility Study PR2571 ▪ Pukerimu Water Supply - Pipework Parallel Rd to Titanium PR2572

2.5.2. BAU Changes to Deliver on LOS LOS gaps can also be addressed in some cases through changes to BAU practices rather than a project. Those BAU changes can be such changes as increasing service availability or a reduction in response times to address a LOS gap. Planned changes to BAU to address LOS issues are detailed in Table 12. Table 12: BAU Changes – LOS Driven Additional Costs - Driver: LOS Issue BAU Change Objective Benefits Opex ▪ Resource acquisition required due to expansion of schemes and increased levels of compliance (resource ▪ Meet LOS, consenting requirements and Iwi input) – water ▪ High performing team, treatment operators, compliance officers , reticulation ▪ Recruitment of resources ▪ Improve processes, response times. $10,000,000 ▪ Resilience team, asset management engineering, project ▪ Appropriate inhouse skills engineering, maintenance contract engineer, asset information officer ▪ Resource consent condition changes are unknown at ▪ Meet LOS To be scoped ▪ Changes to processes i.e. Resource consent condition, this time ▪ Improve processes, response times. SCADA process ▪ High performing team ▪ SCADA process currently in planning phase To be scoped ▪ Improve processes, response times. ▪ Meet LOS ▪ Suppliers agreements ▪ Preferred panel of contractor and supplier To be scoped ▪ Best practice procurement ▪ High performing team ▪ Legislative changes ▪ Water regulator ▪ To comply with new legislation changes ▪ Meet all legislative requirements Unknown ▪ RATA (Regional Asset Technical Accord) ▪ Unknown ▪ To adopt new structure to manage assets under RATA ▪ Enhanced performance in asset management Unknown

15 Significant LOS issues, as identified in Table 6 to be addressed by projects

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2.5.3. Resource Needs In many cases a project or BAU change will require a resourcing change to enable their implementation and ongoing delivery. A brief summary on the impacts on the services resourcing needs resulting from the planned project and BAU changes is proved below.

A review of our current BAU provision of network maintenance was undertaken by Citycare, the resulting report recommended changes to our processes and resourcing. This was incorporated into the Water Services structure review in June 2020. Refer to Appendix G. for an outline of the previous and new structures.

2.5.4. Longer Term LOS Issues and Significant Projects (Years 11+) The previous sub-sections have concentrated on the impacts on LOS changes and projects over the next 10 years. However it is also necessary to look beyond that 10 year horizon in order to identify any significant longer term changes and significant projects that need to be highlighted within Council’s 30 Infrastructure Strategy.

Table 13 provides a summary of the LOS issues and responding projects for the period 2031/32 onwards. It should be noted that some of the issues may be a continuation of the issues being addressed in the initial 10 year programme. The overall financial impact of all projects required beyond 2031 are shown in Section 6.9.

Table 13: New and Upgraded Services and Assets Projects – LOS Driven Years 2031/32+

Longer Term LOS Issue Project Total Capex Total Opex Year(s)

▪ Pressure Cambridge: New trunk main from ▪ Water quality security Alpha Street Water Treatment Plant $3,432,728 $0 2031-2035 ▪ Firefighting capacity and storage to Taylor Street ▪ Pressure Cambridge: New and upsized main ▪ Water quality security $906,651 $0 2031-2035 along Victoria Street ▪ Firefighting capacity and storage ▪ Pressure Cambridge: Upsized main along $2,075,603 $0 2031-2035 ▪ Firefighting capacity and storage Taylor Street Te Awamutu: Pipe upsizing in ▪ Pressure various areas and hydrants to $1,416,998* $0 2031-2035 ▪ Firefighting capacity and storage provide fire flow FW2 Pirongia: pipe upsizing to provide ▪ Firefighting capacity and storage $1,596,618 $0 2031-2035 fire flow FW2 ▪ Pressure Kihikihi: pipe upsize along Golf Road $207,560* $0 2031-2035 ▪ Firefighting capacity and storage *values are 50% of total project cost, remainder is renewal element.

2.6 Our Future Performance Targets The customer performance measures and intended targets going forward are shown, within the context of the wider framework in Table 14 and Table 15. Related technical measures and their targets going forward are shown in Appendix B5.

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Table 14: Customer Performance Measures & Targets

Result for Performance Target The Service We Provide How we measure success 2019/20 2021/22 2022/23 2023/24 2024-31 Alpha Street C C C C C Frontier Road C C C C C Water Treatment Plants – compliance Karapiro C C C C C with bacteriological Parallel Road C C C C C criteria [M] Rolleston Street C C C C C Te Tahi C C C C C Alpha Street C C C C C The extent to which The community is provided Frontier Road C C C C C the local authority’s Water Treatment with safe and wholesome drinking water supply Plants – compliance Karapiro C C C C C drinking water within complies with the with protozoal criteria specified areas in a way that is Parallel Road C C C C C drinking-water [M] most cost-effective Rolleston Street C C C C C standards. 16 Te Tahi C C C C C Cambridge NC C C C C Kihikihi C C C C C Network zones – Ohaupo C C C C C compliance [M] Pirongia C C C C C Pukerimu Rural NC C C C C Te Awamutu NC C C C C [M] = DIA mandatory measure

16 Full wording of mandatory measure is: The extent to which the local authority’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 (protozoal compliance criteria).

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Table 15: Customer Performance Measures (cont.)

Result for Performance Target The Service We Provide How we measure success 2019/20 2021/22 2022/23 2023/24 2024-31 Attendance for urgent call-out from the time 0.60 2 2 2 2 of notification. (hours) 18 [M] Resolution of urgent call-outs from the time 1.72 6 6 6 6 Median response time for call-outs of notification (hours). 19 [M] in response to a fault or unplanned 17 Attendance for non-urgent call-outs from the The community is provided with interruption to the network. 0.74 2 2 2 2 safe and wholesome drinking time of notification (days) 20 [M] water within specified areas in a Resolution of non-urgent call-outs from the way that is most cost-effective 0.80 10 10 10 10 time of notification (days) 21 [M] The total number of complaints received about any of the following: Drinking water clarity, taste, odour, pressure or flow, continuity of supply, and the response to any 7.85 <15 <15 <15 <15 of these issues22 [M] Cambridge & Karapiro 4% <12% <12% <12% <12% The percentage of real water loss Te Awamutu & Pirongia 10% <12% <12% <12% <12% from the networked reticulation system. 23 [M] Kihikihi 15% <20% <20% <20% <20% The supply and demand are Ohaupo & Pukerimu 19% <20% <20% <20% <20% managed to ensure prudent use of water Cambridge & Karapiro 195 190 190 190 190 The average consumption of Te Awamutu & Pirongia 164 190 190 190 190 drinking water per day per resident. 24 [M] Kihikihi 174 190 190 190 190 Ohaupo & Pukerimu 197 190 190 190 190 [M] = DIA mandatory measure

17 Full wording is: Where the local authority attends a call-out in response to a fault or unplanned interruption to its networked reticulation system, the following median response time measured. 18 Full wording is: Attendance for urgent call-outs: from the time the local authority receives notification to the time that service personnel reach the site. 19 Full wording is: Resolution of urgent call-outs: from the time the local authority receives notification to the time service personnel confirm resolution of the fault or interruption. 20 Full wording is: Attendance for non-urgent call-outs: from the time the local authority receives notification to the time that service personnel reach the site. 21 Full wording is: Resolution of non-urgent call-outs: from the time the local authority receives notification to the time service personnel confirm resolution of the fault or interruption. 22 Full wording is: The total number of complaints received by the local authority about any of the following (expressed per 1000 connections to the local authority’s networked reticulation system): Drinking water clarity, drinking water quality, drinking water taste, drinking water odour, drinking water pressure or flow, continuity of supply, the local authority’s response to any of these issues. 23 Full wording is: The percentage of real water loss from the local authority’s networked reticulation system. 24 Full wording is: The average consumption of drinking water per day per resident within the territorial authority district.

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3 Managing Demand

This section looks at the changes in demand for the service and the consequences for the management and utilisation of the service and assets.

3.1 Demand Drivers Demand for a service can be influenced by a variety of drivers. The significant drivers influencing demand for the outputs of this activity are detailed in Table 16.

Table 16: Demand Drivers Demand Driver Details Population growth leads to development which has a significant impact on water Population Growth demand; with all other factors equal water usage will increase as population increases. The services and the level to which they are provided are influenced by customer Customer Expectations expectations. A change in those expectations can lead to changes in demand. Legislative change can significantly affect the Council’s ability to meet minimum levels of service, and may require improvements to infrastructure assets. Changes in Legislative Changes environmental standards and the Resource Management Act 1991 in particular may affect water treatment and supply options. Waipa District is likely to be hotter on average, experience more extreme events (heavy Climate Change rainfall and droughts) but may have little change in average annual rainfall. Demographic Changes New large industrial areas in Cambridge, Hamilton Airport and Te Awamutu

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3.2 Existing Demand Information within this section has come from the Waipa District Council Three Waters Masterplan (Beca, 2020) ECM 10385789.

3.2.1. Water Users WDC supplies water through its schemes at Te Awamutu, Kihikihi, Cambridge and Pukerimu. Figure 2 to Figure 5 illustrate the current distribution of demand for these supply schemes.

High users account for at least 40% of water demand in both Cambridge and Te Awamutu. High users can be defined by three categories: ▪ Commercial operations with high water consumption (both schemes supply Fonterra on a commercial basis) ▪ Initial/new water users are deemed to be high users where $500+ is billed for their first quarter ▪ Where prior consumption records are referenced to determine unusual or irregular spikes and/or increases in water usage

Figure 2: Summary of Cambridge Demand Figure 3: Summary of Te Awamutu Demand Components (2018/19 Data) (WaterCycle Components (2018/19 Data) (WaterCycle Consulting, 2019) Consulting, 2019)

Figure 4: Summary of Kihikihi Demand Figure 5: Summary of Pukerimu Demand Components (2018/19 Data) Components (2018/19 Data)

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3.2.2. Water Metering Universal water metering and volumetric pricing was implemented across the District in 2018 to manage residential demand. The purpose of metering was to reduce residential demand. (Waipa District Council Three Waters Masterplan (Beca, 2020)).

Table 17 shows the percentage of connections in the water supply scheme that were metered prior to and after the implementation of universal metering and volumetric pricing on 1 July 2018 (Waipa District Water Management Plan, Waipa District Council, November 2019).

Table 17: Connections and Percentage Metered and Residential Te Awamutu Cambridge Kihikihi Pukerimu % metered prior to 2017/18 19% 15% 33% 100% % metered prior to 2018/19 100% 100% 100% 100% 2018/19 connections 5,648 7,738 1,159 919 Source: Waipa District Water Management Plan, Waipa District Council, November 2019

WDC has a trigger level of 1.6 m³/day for high residential consumption and residential meter readings are reviewed against this threshold. WDC continues to proactively contact property owners whose water bills remain unusually high.

3.2.3. Historic Water Use Information within this section has come from the Waipa District Water Management Plan, Waipa District Council, November 2019.

Figure 6 to Figure 8 normalise the annual average and peak day demands in Cambridge (excluding Fonterra), Te Awamutu (excluding Fonterra) and Kihikihi by dividing by the estimated annual population connected to the water supply.

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Figure 6 shows that there is a decrease of almost 20% in the Cambridge scheme’s per capita net treated demand from 2014/15 to 2018/19.

Figure 6: Cambridge Annual Average and Peak Day Demands per Capita

Figure 7 shows that there is a significant decrease of over 30% for the Te Awamutu scheme’s per capita net treated demand from 2013/14 to 2018/19.

Figure 7: Te Awamutu Annual Average and Peak Day Demands per Capita

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The trends shown in Figure 8 confirm that the Kihikihi scheme has shown decreasing average day and peak day demands per capita since 2012/13.

Figure 8: Kihikihi Annual Average and Peak Day Demands per Capita

Figure 9 shows the demand for the Pukerimu scheme in m3/day. As Pukerimu is predominantly a rural scheme with mainly restricted rather than on-demand connections. it is not useful to present the normalised demands per person.

Figure 9: Pukerimu Annual Average and Peak Treated Demands from 2012/13 to 2018/19

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3.2.4. Water Balance Information within this section has come from the Waipa District Water Management Plan, Waipa District Council, November 2019.

Assessment of Water Losses The industry’s standard tool for assessing the annual level of water loss is the International Water Association (IWA) Water Loss Task Force standard water balance. This water balance approach is shown in Figure 10 and has been adopted by Water New Zealand. There are three main categories of non-revenue water (NRW): unbilled authorised consumption; apparent losses; and real losses (leakage). Water New Zealand has developed a spreadsheet tool for undertaking the water balance called Benchloss NZ. This spreadsheet was used by WDC to assess the non-revenue water components including real loss for each water supply area (ECM 10445733, 10445738, 10445748, 10445769). Figure 10: Standard Water Balance

Water Balance Estimates for Water Loss The water balance results for Non-Revenue Water are presented in Table 18. The 95% confidence limit allows for the uncertainties in the calculations including the estimation of unmetered residential consumption. The Pukerimu rural scheme is the only scheme with a service connection density below 20 connections/km of main, therefore the preferred performance measure is water loss volume in m³/km/day rather than L/connection/day.

Table 18: Water Balance Estimates for Non-Revenue Water for Each Scheme for 2018/19 % of Total 95% confidence Range Scheme L/connection/day Water Supplied limit L/connection/day Te Awamutu 12% 160 ± 21% 127 – 193 Cambridge 18% 261 ± 18% 212 – 309 Kihikihi 20% 169 ± 20% 169 - 206 Pukerimu 24% 4.7 m³/km/day ± 18% 3.9 – 5.5 m³/km/day

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Water Loss Benchmarking and Comparison with Levels of service The water balance results for real water loss are presented in Table 19. The 2018/19 real loss as a percentage of total water supplied for each scheme meet the targets set in the 2018 LTP.

Table 19: Water Balance Estimates for Real Loss for Each Scheme for 2018/19 Scheme % of Total 2018 LTP L/connection/d 95% confidence Infrastructure Water Supplied Target ay limit leakage Index Te Awamutu 9% <12% 115 ± 35% 1.9 Cambridge 14% <12% 201 ± 21% 4.3 Kihikihi 24% <20% 146 ± 24% 1.9 Pukerimu 18% <20% 3.6 m³/km/day ± 26% 2.3

The Infrastructure Leakage Index (ILI) is a water loss performance indicator for inter-utility water loss comparisons recommended by leading international best practice and New Zealand water benchmarking guidance material (Water New Zealand, National Performance Review 2017/18).

The 2018/19 ILI estimates for the Te Awamutu, Kihikihi and Pukerimu water supply schemes were all around or slightly below 2 which is puts in them top performance in the National Performance Review 2017/18 dataset. The Cambridge water supply scheme had a higher ILI estimate of 4.3 which puts it in the bottom third. Leakage reduction is a priority for the Cambridge water supply scheme and this is recognised by WDC with its investment in decommissioning the Hicks Road transmission pipeline.

As further information from water metering and upgrades becomes available WDC will review its ILI targets.

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3.3 Managing Demand on the Service Managing demand centres on controlling and altering demand for the service instead of creating new assets to meet that demand. The aim is to modify customer demands to a level more compatible with existing asset and service levels, and to minimise the impact of growth.

Pressures from demand for limited water resources are not new, however those pressures are increasing as population increases and land use intensifies. The need to manage the use and allocation of water more efficiently is a key component to meeting cultural, social, environmental and economic needs of the district.

3.3.1. Smart Water Demand management centres on controlling and altering demand for the service instead of creating new assets to meet that demand. The aim is to change customer demand to a level more compatible with existing asset and service levels.

Water use attitudes and behaviour depend on the level of understanding people have about water as a finite resource, the impact of climate change, and the pressures of a growing population and how they impact the region’s water systems and water supply.

Waipa District Council has partnered with Hamilton City to form a Shared Service that provides a Smart Water Programme. The programmes aim is to change the way people think and use water. There are three main components to the programme;

▪ Annual Smart Water Summer campaign to increase the community’s awareness on the need to conserve water over summer ▪ Smart Water Education in Schools Programme to increase water literacy in our young people; the future decision makers ▪ Water efficiency tools are provided to residential and commercial customers to educate and encourage them to reduce their water consumption.

Waipa District Council also runs a campaign for better water management from users of Council water supplies. The campaign works alongside Smart Water and employs a dedicated demand management officer (in conjunction with Hamilton City Council) to help increase awareness of the districts water demand through universal water metering, water loss management, and education. This staff member also coordinates and manages water restrictions which are applied during the summer months to reduce peak day demands. The alert levels are detailed in Appendix C4 (Waipa District Water Management Plan, Waipa District Council, November 2019)

3.3.2. Universal Water Metering Water meters were installed on all un-metered properties in the Te Awamutu, Cambridge and Kihikihi water supply schemes in 2017/18, and volumetric pricing was introduced for all newly metered customers from 1 July 2018. This has resulted in at least 20% water savings in residential customer consumption (the savings include the repair of leaks on private properties) (Waipa District Water Management Plan, Waipa District Council, November 2019) .

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3.3.3. Network leakage reduction WDC’s ongoing practice has been to repair network leaks reactively, when they are reported by meter readers or the public. In addition to WDC’s reactive leak repair approach, WDC also undertake active leak detection surveys on an ad-hoc basis (Waipa District Water Management Plan, Waipa District Council, November 2019).

3.3.4. Development Controls Waipa DC operates under the Regional Infrastructure Technical Specifications (RITS), which is managed by Waikato Local Authority Shared Services on behalf of its member councils. The purpose of RITS is to provide a single regional guide and specifications for building public infrastructure. The RITS manual sets out how to design and construct transportation, water supply, wastewater, stormwater and landscaping infrastructure which aligns with requirements of the Waipa District Plan.

3.4 How Demand Is Changing and How It’s Impacting the Service

3.4.1. Guiding Growth The following initiatives guide growth within the Waipa district and Waikato region.

Future Proof Strategy Future Proof is a growth strategy specific to the Hamilton, Waipa, and Waikato sub-region that has been developed jointly by Hamilton City Council, Waikato Regional Council, and Waipa and Waikato District Councils. Other key organisations and groups involved in the project include Tāngata Whenua and New Zealand Transport Agency (NZTA). The settlement pattern for this sub regional strategy was updated in November 2017 and will be updated again in 2019/20.

Sub-Regional Three Waters Strategy This strategy was developed in 2012 to provide an over-arching vision and series of measurable goals to facilitate an integrated sub regional approach to urban three waters management across the three Partner Councils (Hamilton City Council, WDC and Waikato District Council).

The partner councils have prepared an Action Plan to implement the Sub-Regional Three Waters Strategy and report on progress against those actions via the Future Proof Implementation Committee. The strategic issues particularly relevant to the master plans include meeting future growth, planning for and adapting to climate change, the availability and allocation of water and ensuring that iwi and hapu are involved in the management of the three waters.

Hamilton to Auckland Corridor – Three Waters Study In 2018/19, Future Proof with iwi partners and central government agencies commenced a Sub- Regional Waters Investigation project. The purpose of this project is to provide a long term plan for delivering three waters services to growing communities within the corridor between Auckland and Hamilton, including Waipa district.

Waipa 2050 – District Growth Strategy Waipa 2050 is WDC’s growth strategy. It describes WDC’s vision and incorporates tāngata whenua perspectives to provide a strategy for managed growth. This includes growth targets and future development patterns for towns and rural centres; and implementation methods such as town

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centre plans, the District Plan, structure plans, Environment Strategy, 10-Year Plan; Regional Infrastructure Technical Specifications (RITS) and partnership with key stakeholders.

The strategy was last updated in 2017 and makes the following growth management assumptions in relation to three waters:

▪ Co-management of the Waikato and Waipa Rivers and their catchments will continue and is proving an effective management mechanism ▪ There will be an increasing need to conserve water and promote and provide for improved water quality in Waipa’s lakes, rivers and streams ▪ A three waters management strategy (water, wastewater, stormwater) is in place and being implemented. The purpose of the strategy is to maximise efficient water take and use and increase the quality of discharges

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3.4.2. Projected Population For the 2021 LTP and supporting planning documents Waipa DC’s approach is to continue using the 2016 Projections developed by NIDEA (National Institute of Demographic and Economic Analysis) at the University of Waikato for use in developing Waipa 2050. These projections will be updated once the detailed data from the last Census data becomes available. The original plan was to have this done in time to feed in the 2021 AMP/LTP process but the ongoing delays to the release of that data have prevented this.

The 2016 district wide population projection is shown in Figure 11 along with previous projections; Figure 12 shows the projected age profile.

Figure 11: Population Projections

Figure 12: Population Age Profile Projections

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The key points from the district wide projections are:

▪ Rate of change to peak in 2031 followed by a significant slowing down. ▪ Household Occupancy Rates to show a steady decrease. ▪ District’s age structure will change with the 65+ age group moving from the smallest to the largest age group.

The 2016 projections were further refined for the 3 waters Master Plan, as detailed in B6, and used to project population connected to each scheme, as explored below.

3.4.3. Projected Population Connected to Council Water Supply Information within this section has come from the Waipa District Council Three Waters Masterplan (Beca, 2020: ECM 10385789)

Figure 13 to Figure 17 below presents the connected water supply population projections for Cambridge, Te Awamutu, Kihikihi, and Ohaupo (part of the wider Pukerimu Rural Water Scheme). It is based on the predicted 2021 base population, the inclusion of growth cells with midpoint occupancy, midpoint infill growth within the existing residential areas and “opportunistic” additional connections from nearby properties. 2019 baseline population has also been presented for comparison.

Cambridge The highest predicted impact to the population connected to the water supply network in Cambridge is the addition of growth cells as identified in Plan Change 5 and 11, with the number of people connected to the water network doubling by 2050. This demonstrates that the greatest sensitivity is the allowance and timing of growth cells.

Figure 13: Cambridge Water Supply Connected Population Forecast

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Te Awamutu The highest predicted impact to the population connected to the water supply network in Te Awamutu is the addition of growth cells as identified in Plan Change 5, whilst the existing population decreases. The number of people connected to the water network exceeds the existing population by 2050, demonstrating that the greatest sensitivity is the allowance and timing of growth cells.

Figure 14: Te Awamutu Water Supply Connected Population Forecast

Kihikihi Figure 15 below demonstrates that the rate of population growth for Kihikihi will remain static due to the balance between decreasing occupancy and increasing infill rates.

Figure 15: Kihikihi Water Supply Connected Population Forecast

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Pirongia Figure 16 below demonstrates that the midpoint rate of population growth for Pirongia is slowly decreasing due to a decreasing occupancy rate out competing increasing infill rates.

Figure 16: Pirongia Water Supply Connected Population Forecast

Ohaupo: Ohaupo is part of the wider Pukerimu Rural Water Scheme and therefore the connected properties also take this area into account. It also means than any population that is added to Cambridge and connects to the rural scheme is added to Ohaupo. The highest predicted impact to the population connected to the water supply network in Ohaupo is the addition of growth cells as identified in Plan Change 5, whilst the existing population decreases (Figure 17). The number of people connected to the water network impacts the population growth most significantly within 2050, demonstrating that the greatest sensitivity is the allowance and timing of growth cells. It is likely that the number of people in the urban areas are closer to 500. As such, the population is expected to double as a result of the growth cells.

Figure 17: Ohaupo (Pukerimu Scheme) Water Supply Connected Population Forecast

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3.4.4. Forecast Demand This section shows the predicted long term peak water demand against current consent limits and when capacity upgrades are likely to be required. (Waipa District Council Three Waters Masterplan (Beca, 2020) ECM 10385789)

Figure 18 below shows the overall predicted demand, likely upgrades and consent limits. Overall demand is likely to exceed consent allocations by 2040. Each individual scheme is discussed individually below. Figure 18: 3 Schemes Future Demand

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Cambridge Figure 19 shows a rapid increase in demand over the first five years for the Cambridge scheme. Two treatment plant capacity upgrades are required to meet the future peak demand; these are during the 2025 to 2030 period (assumed to be an upgrade at Alpha St) followed by a second WTP capacity upgrade by 2040. By 2040 there is not sufficient water consent allocation available.

Figure 19: Cambridge Future Demand

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Te Awamutu Figure 20 below shows the forecast supply / demand balance for the Te Awamutu scheme. The water available increases from 2021 when the Parallel Rd WTP upgrade is completed. The ‘water available’ from 2021 to 2029 does not take account of the hydrological constraints associated with the Te Tahi abstraction during summer low flow periods. Once the Parallel Rd upgrade is implemented, the water available will be more resilient during dry summers. The Frontier Rd bore supply is included in the consent capacity.

The resource consent for the Te Tahi abstraction reduces to 4.3 ML/d in 2030. At this time a capacity upgrade at Parallel Rd WTP is required to provide an additional 4 ML/d to Te Awamutu. In the future, growth in demand is likely to require further water consent allocation and additional treatment plant capacity to supply Te Awamutu between 2035 and 2040.

Figure 20: Te Awamutu Future Demand

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Kihikihi Limited growth is expected within the Kihikihi scheme. The resource consent for the bores shows that there is 4 ML/d of resource consent available, but this is currently limited by the bore drawdown and delivery pump capacity. Figure 21 suggests that the bore infrastructure should be expanded to meet future demand which may require bore redevelopment or additional bores.

Figure 21: Kihikihi Future Demand

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Pukerimu Figure 22 shows the forecast of supply and demand for Pukerimu scheme. This shows that approximately 5 ML/d is required to meet demand for the next 10 to 15 years. Following the next proposed upgrade to the Parallel Rd WTP by 2030, a further 1 ML/d should be reserved for Pukerimu scheme to meet peak demand to the end of the planning period.

Figure 22: Pukerimu Future Demand

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3.4.5. Summary of Issues Driven by Demand Drivers Where demand drivers are changing those changes are detailed in Table 20 along with the significant impacts those changes are having on the service.

Table 20: Demand Changes and Significant Issues Demand Driver How It Is Changing Impact on Service – Demand Issue ▪ Capacity of current infrastructure is insufficient to supply Population The Districts population is new growth areas and new growth will put increasing Growth forecast to increase pressure on the existing supplies and consent allocations. Increasing requirements around protecting and minimising impacts on the ▪ This could result in a requirement to change our future Legislation natural environment. resource consent requirements and our treatment and supply processes. Regulatory change for drinking water suppliers. ▪ Increased pressure on water resources and stream ecology from very low river and stream flows. ▪ Minimum/environmental flow could be reached more Increased frequency of often and abstraction for schemes reduced for increased droughts. periods of time. ▪ Increase in algae blooms in surface water sources, reducing output of treatment plants during bloom. Climate Change ▪ potential change to the quality of source water – High Intense rainfall events turbidity during storm events reduces efficiency and output of treatment plants. Increase in average temperatures and occurrences ▪ Increase in peak demand for stock watering, irrigation and of very hot days increasing domestic use. Increased peak Demand will bring forward stock watering, irrigation and the requirement for more storage capacity. domestic use ▪ Industrial use can have a greater demand for water than New large industrial areas in Demographic residential However, it is difficult to forecast the increase Cambridge, Hamilton Airport Changes in demand that industrial areas will create as it will depend and Te Awamutu on the requirements of individual businesses.

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3.5 Our Future Programmes to Meet Demand

3.5.1. Projects to Deliver on Demand The projects required over the next 10 years to address changes in demand are listed below along with the issues they are intended to address. Costs, timeframes, and priority are summarised in Table 48 (Page 113), while fuller detail of the projects including objectives and benefits are covered in Appendix F1.

Table 21: New and Upgraded Services and Assets Projects – Demand Driven Driver: Demand Issue25 Project Name Project Number ▪ Cambridge North Water Provision PR2019 ▪ Cambridge Water Reticulation Growth - C2 & C3 PR2302 ▪ Cambridge Water Reticulation Growth - C1 PR2303 ▪ C10 (BIL) Water Reticulation Provision (2021 - 2026) PR2410 ▪ Cambridge North to Hautapu Pipeline and C8. C9 and Existing Hautapu Industrial Area Growth Provision PR2027 ▪ Network - meet growth needs ▪ C4 Water Reticulation provision (2028) - ▪ T6 St Leger Water and Kihikihi Provisions for Growth, LOS and Renewals PR2271 ▪ Te Awamutu CBD Rising Mains - (New Pipe for LOS and Growth) (2021) PR2546 ▪ Cambridge Growth Cell Facilitation Works - Water Provision (2021) - ▪ Fairview Road Water Main - (Capacity Increase for Renewal and LOS) (2021) PR2532 ▪ Reservoir capacity district wide - improved resilience ▪ New Reservoir Renewals and Capacity Upgrades PR2547 ▪ Reservoir - meet LoS and improved resilience ▪ Alpha Street Water Treatment Plant Renewal & Capacity Upgrade PR2020 ▪ Supply/demand balance - increase supply to meet demand ▪ Parallel Road Water Treatment Plant Upgrade - ▪ Supply/demand balance - improved resilience ▪ Frontier Rd to Taylors Hill Trunk Main PR2109 ▪ Pukerimu Water Supply - Feasability Study PR2571 ▪ Supply/demand - meet growth at Titanium Park and airport; improved resilience for existing supply ▪ Pukerimu Water Supply - Pipework Parallel Rd to Titanium PR2572 ▪ Supply/demand - meet growth and improved resilience for existing supply ▪ Rising Main from Frontier Road to Pirongia Road (Capacity Increase for LOS and Growth) -

25 Significant Demand issues, as identified in Table 20 to be addressed by projects

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3.5.2. BAU Changes to Deliver on Demand Demand issues can also be addressed in some cases through changes to BAU practices rather than a project. Those BAU changes can be such changes as increasing service availability or a reduction in response times to address a LOS gap. Planned changes to BAU to address LOS issues are detailed in Table 22 Table 22: BAU Changes – Demand Driven Driver: Demand Additional Costs - BAU Change Objective Benefits Issue26 Opex Nothing has been identified - - - -

3.5.3. Resource Needs As the size of the network and the number of treatment plants, reservoirs, pump stations, automated valves and other significant network assets increases, the number of staff and associated resourcing required to operate and maintain the service will also increase. The increase in staff and resources are not directly proportional to growth, and so regular assessment of the resourcing requirement will be required.

This was incorporated into the Water Services structure review in June 2020. Refer to Appendix G. for an outline of the previous and new structures.

26 Significant LOS issues, as identified in Table 11 to be addressed by BAU Changes

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3.5.4. Longer Term Demand Issues and Significant Projects (Years 11+) The previous sub-sections have concentrated on the impacts on demand changes and projects over the next 10 years. However it is also necessary to look beyond that 10 year horizon in order to identify any significant longer term changes and significant projects that need to be highlighted within Council’s 30 Infrastructure Strategy.

Table 23 provides a summary of the demand issues and responding projects for the period 2031/32 onwards. It should be noted that some of the issues may be a continuation of the issues being addressed in the initial 10 year programme.

Table 23: New and Upgraded Services and Assets Projects – Demand Driven Years 2031/32+ Longer Term Demand Issue Project Total Capex Total Opex Year(s) Cambridge: Reservoir (10ML) and ▪ Population Growth pump station, associated pipe $14,929,080 $0 2031-2035 works

Cambridge: Additional supply $5,250,000 $0 2036-2040 ▪ Population Growth (3.5ML/day)

Cambridge: Alpha Street $162,500* $0 2030-2033 ▪ Population Growth Reservoir renewal (0.25ML)

Kihikihi: Upgrade Golf Road $207,560 $0 2031-2035 ▪ Population Growth pipeline

Pukerimu: New pipeline Parallel ▪ Demographic Changes $8,861,229 $0 2031-2035 ▪ Customer Expectations Road to Titanium Park

Te Awamutu: T10 growth cell, ▪ Population Growth $854,191 $0 2031-2035 ▪ Customer Expectations supply via Cambridge booster

Te Awamutu: Additional supply (3 ▪ Population Growth $4,500,000 $0 2034-2037 ▪ Customer Expectations ML/day)

Te Awamutu: Additional storage $2,600,000 $0 2046-2050 ▪ Population Growth required (2 ML)

Te Awamutu: Taylors Hill ▪ Population Growth reservoir replacement and $3,250,000** $0 2031-2035 upgrade * values are 50% of total project cost, remainder is renewal element ** values are 25% of total project cost, remainder is renewal element

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4 The Assets We Own

This section explores the assets required to deliver the service.

4.1 Network Overview WDC supplies water to four schemes shown in Figure 23 these are:

▪ Cambridge, including Leamington, Karapiro and Maungatautari ▪ Te Awamutu, including Pirongia ▪ Kihikihi ▪ Pukerimu (on an unrestricted basis to Ohaupo and a restricted basis to 616 rural properties and to the boundary of Mystery Creek events centre and the Hamilton Airport)

Waipa District Council provides potable water to thirteen water supply areas from six sources. Water is treated at six treatment plants and distributed through three separate water supply networks into six supply zones. Council has one raw water storage reservoir and 1 treated water storage reservoirs, as listed in Table 24. There are also two abandoned treated water reservoirs that are no longer in use.

Figure 23: Water Supply areas of Waipa District Council

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Table 24: Summary of Waipa District Council's Reservoirs

Build Capacity Reservoir Purpose Material

Year (m3)** Scheme

Alpha Street (TP)* Treated Water 1989 Timber 250 Hautapu (supplies Fonterra Treated Water 1993 Glass coated steel 2,000 Dairy only) Karapiro Reservoir #1 Treated Water 1963 Concrete 2,400 Karapiro Reservoir #2 Treated Water 1971 Concrete 4,900 Karapiro Village Treated Water 1955 Concrete with steel roof 190

Cambridge & Cambridge Karapiro Watkins Road Treated Water 2007 Earth Bank with plastic liner 3,000 Earth dam with plastic wave Ta Tahi Dam Raw Water Dam 2001 117,000 band

Pirongia Te Tahi #1 (TP)* Treated Water 1984 Timber 500

Te Tahi #2 (TP)* Treated Water 1984 Timber 500 Taylors Hill #1 (Greenhill Treated Water 1964 Concrete 4,800 Drive) Taylors Hill #2 (Greenhill

Te Awamutu Te & Treated Water 1990 Concrete 2,900 Drive)

Frontier Road Treated Water 2015 Concrete 6000

Rolleston Street #1 (TP)* Treated Water 1976 Concrete 600

Kihikihi Rolleston Street #2 (TP)* Treated Water 2010 Concrete 1,000

Parallel Road (TP)* Treated Water 1985 Timber 350 Ohaupo Treated Water 1986 Timber 800

Cox Road Treated Water 1993 Timber 800

Pukerimu Ohaupo& Titanium Park Treated Water 2012 Steel 1,000 *Reservoirs co-located with Treatment Plants **Capacity data as per Opus Reservoir Reports 2013.

Information within this section has come from the Waipa District Council Three Waters Masterplan (Beca, 2020).

Resource consent (139861) affects almost all of the WDC water schemes. It states the following take limits across three sites; Karapiro (Lake Karapiro), Alpha St (Waikato River) and Parallel Rd (Waikato River): ▪ Low Season (May to July) Demand: 33,500 m3/d ▪ Summer Season Demand: 41,000 m3/d; and ▪ Total combined annual net take volume: 12,397,500 m3/yr

There is a total combined daily net take volume for these three take sites and Te Tahi (Maungauika Stream) of 45,268m3/d. The Karapiro take site also has a maximum daily take of 20,500m3/d. The Hicks Rd water source (Resource Consent limit 4,000m3/d) has been decommissioned. It may be possible to renew this consent prior to its expiry date of 30 April 2021. The allowable take for the Te Tahi consent reduces to 4 ML/d in 2030.

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Groundwater take consents are held for bores at Frontier Road, Te Awamutu with up to 2 ML/d, and Kihikihi bores with up to 4 ML/d. The groundwater takes can be limited by actual yield as well as consent allocation limit.

Figure 24 shows the different consent limits based on low and summer (peak) seasonal demand following the Te Tahi reduction in 2030 and assuming the Hicks Rd water take is not renewed.

Figure 24:Consent Allocation Post 2030

Cambridge The Cambridge water supply scheme comprises three main networks; Karapiro Village, Cambridge North and Cambridge South. Fonterra Hautapu is also supplied on a buffered, restricted commercial basis. Water is supplied on an unrestricted basis to the urban residential areas of Cambridge and Karapiro Village.

The Cambridge South reticulation has a small emergency connection to Pukerimu which is unmetered and normally closed. Water for the Cambridge and Karapiro scheme is sourced from two locations: ▪ Lake Karapiro – Karapiro Water Treatment Plant (WTP) ▪ Waikato River – Alpha St WTP

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Te Awamutu The Te Awamutu water supply area comprises two reticulation zones; the Te Awamutu township and Pirongia. There are rural connections off the treated trunk main prior to Pirongia into Te Awamutu. There is an emergency connection (100mm pipeline) to Kihikihi from the Te Awamutu supply which is normally closed. Fonterra Te Awamutu is supplied through this scheme.

Water for the Te Awamutu scheme is sourced from two locations: ▪ Surface water take from the Mangauika Stream treated at the Te Tahi WTP ▪ Groundwater bore treated at Frontier Road WTP

One of the primary issues identified in the 2014 District Wide Water Supply Strategy was the required reduction in abstraction from the Mangauika Stream from 2030. The proposed solution was to transfer some of the resource consent from Karapiro to the existing Parallel Rd WTP (serving Ohaupo/Pukerimu), increase the size of this WTP and implement a new pipeline from Parallel Rd to the Taylors Hill reservoir which is underway and expected to be operational in 2021.

Kihikihi The Kihikihi water supply scheme consists only of the Kihikihi township and is sourced by groundwater bores. At times water aesthetic quality can be poor leading to complaints. A 100mm water supply main between Kihikihi and Te Awamutu provides resilience of supply and mitigation in emergency situations, however flow constraints mean pressures and flows are predominately weak/low.

Pukerimu The Pukerimu water supply area services the Ohaupo township and the Pukerimu rural area. Water is abstracted from the Waikato River and pumped 3.5km to the water treatment plant at Parallel Road.

There are two different parts to the network: ▪ An unrestricted basis to the township of Ohaupo – pressurised on demand system ▪ A restricted basis to: o The boundary of the Mystery Creek Event Centre o Hamilton Airport and Titanium Park at up to 600m3/day o 616 rural properties located within the Pukerimu rural water supply area (variable amounts allocated) most of these customers have private tanks

Each restricted connection is required to provide 24-hour storage within their property (as per Waipā DC Water Supply Bylaw). Originally, the supply was designed as a rural water supply, and construction standards, and the materials used, were not of a residential reticulation standard. Over time, WDC has replaced critical parts of the network with new pipes, constructed to a higher design standard.

Raw, non-drinking, irrigation water is supplied to 20 rural properties between the Waikato River raw water intake and the Parallel Road WTP 3.5km away. Current consumption of raw water is relatively low; however, the raw water allocation is significant (should it be taken up it could be in the order of 110 L/s).

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4.2 Water Supply Schematics

4.2.1. Cambridge and Pukerimu Figure 25: Cambridge and Pukerimu Current

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4.2.2. Te Awamutu Figure 26: Te Awamutu

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4.2.3. Kihikihi Figure 27: Kihikihi

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4.3 Key Asset Statistics

4.3.1. Asset Summary An overview of the assets associated with the Water Treatment & Supply service as at the last valuation is shown in Table 25. The data has been sourced from Assetfinda, our Asset Information Management System.

Table 25: Summary of Water Treatment & Supply Assets (30/06/2019) Asset Description Unit Quantity Replacement Cost ODRC* Pipe Bridges Qty 6 $432,869 $238,019 Connections Qty 15,586 $19,353,526 $12,728,018 Hydrants Qty 1,877 $5,249,969.00 $2,056,725.76 Water Meter Qty 15,528 $3,281,486.14 $2,353,785.98 Monitors Qty 184 $1,485,178 $1,042,374 Pipes m 607,338 $135,940,034 $73,334,895 Pump Stations Qty 11 $1,958,798 $779,570 Reservoirs Qty 17 $16,246,471 $10,150,034 Treatment Plants Qty 7 $37,919,575 $22,050,060 Valves Qty 4,224 $7,362,904 $4,029,320 Totals $232,578,110 $131,819,044 *Optimised Depreciated Replacement Cost

4.3.2. Profile of Our Piped Assets The overall age distribution of WDC’s water supply pipes, as shown in Figure 28 shows Waipa’s significant network growth in the last 40-50 years.

Figure 28: Age Distribution of Water Supply Pipes

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The most common material types of water supply pipe materials, as per Figure 29, are asbestos cement (AC) and variants of polyethylene (PE) and polyvinyl chloride (PVC). These are a reflection of the periods of infrastructure construction seen in Waipa.

Figure 29: Distribution of Water Supply Pipe Material Types

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4.3.3. Asset Valuations Asset valuations are undertaken bi-annually, with a fair value assessment completed in the alternate years. Where the fair value assessment indicates a significant shift in values a full valuation will be carried out. The 2019 valuation was undertaken by Tonkin & Taylor in conjunction with AON. The effective date of the valuation was the 30 June 2019.

Key Valuation Methodology The key valuation methodology points are:

▪ The calculation of an asset’s remaining life takes into account the condition rating where such a rating is available. ▪ Using deterioration curves developed by the valuer appropriate adjustments to asset remaining lives are made where the combination of asset age and condition varies from the deterioration curve profile. ▪ Where significant numbers of assets are shown to be exceeding or failing to reach their BL by noticeable margins and the distribution of variance is outside industry norm patterns BLs are reviewed to determine whether an adjustment is appropriate.

Where assets have passed their expected life they are given an adjustment to give them a minimum of 3 year RL. The effect of this approach is a significant spike in renewal early in the profile in asset groups with a significant number of assets still in use but past their BL.

Key Valuation Changes The key changes coming out of the last valuation are detailed in Table 26. The overall value of the Water Supply Infrastructure assets has increased by 17.2% since 2017, with annual depreciation rising by 6.5% over the same period.

Table 26: Key Valuation Changes Asset Group % GRC Comments / Changes since 2017 16.9% increase in GRC is partly due to 4.3% increase in pipe lengths (25,148m) and Pipes 58% the rest due to an increase in adopted unit rates. 54.1% increase in GRC is partly due to 49.9% increase in number of plant assets (725 nos) and partly due to increase in replacement cost of plant assets. Plant assets are specialised in nature and vary in asset type. Inflation rate (CGPI) applied to various asset type within a Treatment Plant, varies from 0% to 11.3% was applied to 2017 replacement cost. In 2018, a condition assessment on 4 treatment plants were carried Treatment 16% out by Waipa DC and in the process it was found that a significant amount of assets Plants that were not captured in the system and they were rectified. In addition, action was taken to refine the componentisation of the assets to better reflect life and performance of the asset, which results in the splitting of an existing asset into new components. In some cases, the ‘split assets’ were considered discovered assets with no impact on an existing asset.

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4.4 Critical Assets

4.4.1. Assessment of Criticality Identifying and managing our critical assets is important to ensure that we have a reliable and resilient service which is managed in a sustainable and economic way. This information is used to prioritise our condition assessments, preventative maintenance and renewal programmes to meet the required levels of service.

Previously criticality was assessed and scored based on diameter only; a more recent study was conducted to revise criticality information for pipe reticulation. The purpose of the study was to achieve the following improvements to the existing criticality scores:

▪ Provide a documented framework for applying criticality score to network assets; ▪ Align the criticality scores with the consequence thresholds outlined in WDC’s activity management plans (for three waters); ▪ Standardise the criticality scores across the three waters activities, so that the criticality scores could be compared between activities; and, ▪ Allow a sound decision-based approach to be applied for all water treatment and disposal assets across the district.

By utilising the newly adopted criticality assessment tool (obtained 2019), sound operational and capital expenditure decisions can be made based on the principles of Table 27. Further details on the criticality assessment criteria are provide in Appendix D3.

Table 27: Criticality Scores and Descriptions Score Name Described as 1 Very High Disaster with potential to lead business failure 2 High Critical event, which will be endured with proper management 3 Medium Significant event, which can be managed under normal circumstances Event with consequences, which can be readily absorbed, but which requires management 4 Low effort to minimise the impact 5 Very Low Not worth worrying about. Existing controls and procedures will cope with the event

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4.4.2. Our Critical Asset Types The asset types in Table 28 are asset types that are deemed critical, the reasoning is also provided.

Table 28: Critical Asset Types System Asset Type Why is this Asset Critical? Component These assets are our facilities that are constructed to meet New Zealand drinking water standards. During summer when consumption is increased Treatment the plants become more critical as if there are any plant failures at this Treatment Plants Plant time, they may impact on our ability to supply water. At all times the treatment plants are highly critical as a failure of treatment processes could result in an outbreak of disease. The amount of storage that we have meets the requirements for drinking water standards, if a reservoir was to fail we would be unable to meet Reservoirs these standards and as a consequence, we may have a contamination Storage event, or run out of water. The majority of our reservoirs rely on pumps to distribute water into the Pumps reticulation, without these pumps disruption to supply or reduction in pressure would be felt by all customers serviced by the reservoir. Our trunk/bulk and ring main feeds reservoirs and the network, if these Trunk mains & valves were to fail interruptions to supply or reduction in pressure would be felt by all customers within the District. Reticulation Pipes that provide water to our significant customers such as the hospital Pipes & valves and high use commercial customers are considered to be critical. Our fire hydrants must be operational at all times to ensure that they are Fire Hydrants available for fire fighting.

It may be noted that fire hydrants are deemed critical even though the majority of pipes they are connected to aren’t. The reasoning behind this is poor performance of a pipe, such as leaking, has less severe consequences than poor performance of a hydrant, i.e. not opening to fight a fire. Failure of a pipe is obvious and can be quickly fixed while you might not know if a hydrant has failed until it is needed which is too late.

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4.5 The Condition and Performance of Our Assets

4.5.1. How We Assess the Condition of Our Assets Condition information is gathered through routine condition assessment programmes. While some of our assets are physically checked to determine their condition, we can never check every last asset for condition. There are assumptions made for the condition scoring of the vast majority of our assets based on the age of each asset and the condition of similar assets that have been physically checked. Knowledge of asset condition helps inform the understanding of the current state of the network and the individual assets within that network. That understanding supports the following decision making processes:

▪ Identify where immediate reactive maintenance or renewals are required ▪ Optimise proactive maintenance programmes, as assets age the requirements for proactive maintenance may increase ▪ Determine the remaining life of the asset and programme its replacement ▪ Combine with criticality to yield risk-based decision making

Asset condition is recorded using a five point scale as detailed in Table 29.

Table 29: Asset Condition Ratings for pipes and connections. Expected Condition Remaining Score Name Impact on Maintenance Impact on Renewals Assessment Useful Life (% of BL) New or Excellent Normal maintenance is Do Nothing - Continue with 1 Excellent 65%-100% Condition required Status Quo Continue with Status Quo - Minor maintenance may be 2 Good Minor Defects Only 40% - 65% Maintain & Operate required differently Maintain & Operate Moderate Increase in maintenance may 3 Average 25% - 40% differently- Major repair, Deterioration be required rehabilitate Significant 4 Poor 5% - 25% May require replacement Major repair, rehabilitate Deterioration Very Virtually May require immediate 5 0% - 5% Rehab unlikely/Replace Poor Unserviceable replacement

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4.5.2. The Condition of Our Assets

Pipe Bridges : 24% Our pipe bridge assets are spilt into 4 asset work groups, namely 35% Average fittings, structures, bridges and pipes. There is a total of 17 pipe Excellent bridge assets. As at 2016, we have sufficient condition assessment Good information to be confident in our assessment. Future condition

41% assessment is programmed for 2021 as some assets (e.g. Fittings ) have an average 79% useful life consumed.

Connections : 8% Excellent 10% Connection leaks make up the majority of reported failures. There 1% Good are a large number of galvanised steel connections that are prone to 14% Average leaks from pinhole leaks, leakage at toby, meter and tapping band 67% Poor joints, as they age. The extent of the number of galvanised Very Poor connections is unknown, however it is likely that they mirror when AC mains were installed as it was common to use galvanised pipe during that period. AC mains represents approx. 25% by length of the mains which suggests about 25% of the connections are likely to be galvanised.

The majority of pipes are in good condition. However steel pipes, and PVC pipes in the Pukerimu scheme, are generally in poor condition. Pipes are condition assessed through annual leak detection surveys, pipe cut-outs and sampling. Connections, are normally replaced with the reticulation pipe. We also carry out connection renewals when we replace water meters.

Hydrants: Excellent 27% The condition of each fire hydrant is required to be assessed at least 36% Good every 5 (five) years. The condition of the fire hydrants ,box, lid, Average marking and cat eye are assessed using the guide in Table 70, Poor Appendix D4. Upon inspections, the water colour will provide an 17% Very Poor indication of the internal hydrant and feed pipeline condition and 13% 7% rust-coloured sediments in the water will indicate internal corrosion/tuberculation likely to impair operation.

1% 8% Water Meters: 1% Excellent 2% Good Water meters can be damaged and deteriorate with age, thus Average producing inaccurate readings. Inaccurate readings will give Poor misleading information regarding water usage, make leak detection 88% Very Poor difficult, and result in lost revenue for the system.

A qualitative condition assessment based on the remaining life of these assets shows that 90% of our meters (meter head and manifold) are in an excellent and good. This assessment needs to be read with caution as it does not take into consideration the physical condition of the box and lid, the performance of the asset or its maintenance history.

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Network Pipes: 8% Excellent 11% 72% of the networks pipes are in excellent and good condition. Good However steel pipes, and PVC pipes in the Pukerimu scheme, are 9% Average 55% generally in poor condition. Poor 17% Very Poor We undertake an ongoing comprehensive condition assessment programme for the network pipes and consequently have collected reliable condition data for these pipes through data cleansing, leak detection surveys, pipe cut- outs and sampling. Pipes known to cause condition and performance in the network include cast iron (CI) , asbestos cement (AC) and galvanised steel (GS).

Booster Pump Stations: Excellent 4% Water Pump Stations are inspected during the assessment process 15% 28% Good to provide a condition grade for all of the various components.

9% Average Poor 62% of the various asset types at the pump stations are in good and 10% Very Poor excellent condition due to regular inspection, refurbishment, 34% replacements and ad hoc maintenance, with 24% in either poor or Unknown very poor condition. A total of 4% are not yet scored and can be assumed to be in an excellent condition as they were installed between 2016 and 2017.

Reservoirs : Excellent 6% Condition assessments were undertaken on all reservoirs by Opus in 17% Good 2013 and a proposed renewals plan undertaken by Beca in July 2019. 40% Average The condition and knowledge of the assets within our reservoirs is 5% 4% Poor not as good as they should be in terms of both information capture Very Poor and frequency. 28% Unknown A qualitative condition assessment based on remaining life of our assets, which shows that 68% of our assets are in an excellent and good condition. This assessment needs to be read with caution as it does not take into consideration the physical condition, the performance of the asset or its maintenance history.

Treatment Plants: While work has been undertaken on condition assessment of our treatment plant assets, it is not yet at a point where we can be confident of the results produced. Significant work is still required in this area. The condition and knowledge of the assets within our treatment plants is not as good as they should be in terms of both information capture and frequency.

Condition assessment is generally carried out by operators. GHD recently assessed asset condition at Karapiro WTP as part of the WTP upgrade.

4.5.3. How We Assess the Performance of Our Assets The performance of the water supply assets is assessed, to a large degree, on the quality of the water delivered to customers, the risk of contamination and the reliability/age relationship of the asset

The Ministry of Health grades the source water, treatment plant, and the distribution network to

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determine the risk of contamination to the water supply and the schemes are operated according to the Drinking-water Standards for New Zealand (DWSNZ). The water quality that the plants are able to achieve varies across the schemes.

Network We measure the performance of our network assets by: ▪ The amount of water lost within the network, due to leaks ▪ Our ability to provide pressure and flow suitable for fire fighting ▪ Pressure and flow at point of supply to the customer

We also have developed network models to assess performance issues and the results are factored into renewal programmes.

Fire Hydrants Under the Code of Practice for Firefighting Water Supplies hydrants should be tested every five years.

Treatment Plants The Performance of our treatment plants can be measured in terms of its capacity to meet peak demand and the quality of water produced.

4.5.4. The Performance of Our Assets

Treatment Plants Table 30 shows the current design capacities for the treatment plants along with the average and peak production figures. The assets within the treatment plant are responsible for producing high quality water. Performance of our plant is considered to be consistently meeting requirements.

Table 30: Water Treatment Plant Capacity & Production (2018/19*)

Treatment Design Capacity Peak Production Average Production Plant (m3/day) (m3/day) % Capacity (m3/day) % Capacity Alpha St 3,000 2,431 81% 397 13% Frontier Rd 2,010** 1886 94% 626 31% Karapiro (including 17,280 14,289 83% 8,809 51% upgrade) Te Tahi 14,000 9,888 71% 7,110 51% Rolleston St 3,300 1,520 46% 1,082 33% Parallel Rd 6,000*** 4,926 82% 2,951 49% (*Waipa District Water Management Plan 2019 ECM 10391354) **Frontier Rd consent renewed at 2,020 max for 60 day period per annum, 1,200 daily take maximum. Consent until 2049 ***Pukerimu scheme operating capacity is 5,000m3/day

Fire Hydrants Testing of fire hydrants has been inconsistent and we cannot currently confirm what percentage of our hydrants are compliant with the code of practice.

Pipe Bridges There are no current issues with the performance of pipe bridges.

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Valves There is little information on the performance of the valves. There is no programme for the periodical checking of valves, those checks that done are ad hoc and typically prior to shutdowns. Connections Performance of connections is reduced by internal rust in galvanised pipes.

Flow Monitors There is little information on the performance of the monitors. They are not periodically checked for performance, checks only being done when an issue is apparent.

Reticulation - General In 2013 Opus International developed a master plan in regards to the water supply networks district wide. These master plan documents, the Waipa 2050 growth strategy, and the District Wide Water Strategy have enabled a comprehensive understanding of the performance of the water supply network to be developed and documented. The following points were identified in the master plan documents and remain unaddressed.

Reticulation - Te Awamutu ▪ Currently there are some low pressure issues in the south of the reticulation. Currently there are a number of fire flow non-compliance areas in the south and east of the network, based on the fire flow requirements assumed in this analysis ▪ Current flow velocities, headloss and water age are within the specified limits and are acceptable ▪ The future demands are expected to be twice the current demands with significant additional industrial demands. Supply to Kihikihi would put extra stress on the existing system, especially in the south. The future demands would overload the existing reticulation and sources. ▪ The expected growth would result in additional fire flow and low pressure issues and would require new reticulation to service the greenfield areas.

Refer to the District Water Supply Strategy (ECM 6744953) and Waipa District Council Three Waters Masterplan (Beca, 2020) ECM 10385789 for details.

Reticulation - Cambridge ▪ Currently there are a number of fireflow noncompliance areas throughout the reticulation, based on the fireflow requirements assumed in this analysis ▪ The required fireflows used in this analysis are subject to revision and confirmation of the standards required to be met, and consideration of the sprinkler requirements ▪ The future demands are expected to be twice the current demands, with significant growth expected in the areas immediately surrounding town and increased industrial demands to the north. They would overload the existing reticulation and sources ▪ Current storage is of sufficient volume; however it is concentrated at Karapiro. Additional storage is needed in the medium term (5000 m³) and can be integrated with an alternative source. The location of this new reservoir has not been resolved yet, however placing it to the north would be advantageous. A further 8000 m³ is needed long term which could be located to the north to service the anticipated industrial demands around Hautapu ▪ If a new reservoir is built at Karapiro, it would need to be at the same elevation as the existing reservoirs to deliver future demands.

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▪ If the expected growth was serviced with the existing reticulation it would result in significant low pressure issues and insufficient flow to the Hautapu reservoir. It requires new reticulation to service the growth areas.

4.6 Asset Management Information System The Asset Management Information System (AMIS) refers to the software, hardware and associated processes used to record, display, and analyse the asset data essential for effective AM. Waipa DC’s AMIS is shown in Appendix D5.

The financial asset register for Wastewater is FinanceOne, WDC’s financial package. This holds the assets financial data along with some asset attribute data. A dedicated AMIS (Assetfinda) holds asset attribute, spatial and financial data and is used to support daily asset management activities.

The spatial data is displayed on Intramaps by the GIS team using the corporate GIS software QGIS. For the manipulation of the spatial data in Assetfinda QGIS is used as the mapping interface.

With no electronic interface between Assetfinda and FinanceOne the two systems, data has to be double entered and periodic reconciliations carried out to ensure the common elements of the data sets remain identical.

AssetFinda is the Services source of ‘truth’. All maintenance and condition inspection of our assets are recorded in AssetFinda. AssetFinda is also used to generate the renewal programs, though this is only based on remaining useful life. Therefore the asset planning engineers or project engineers need to incorporate other factors such as criticality from the generated renewal programs. The scheduled maintenance is also been generated through Assetfinda.

Spatially some of the historic connections, pipes and nodes are not snapped to each other. We are currently in the process of snapping these assets.

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4.7 Asset Data Confidence This section provides an assessment of the accuracy, and corresponding confidence levels in the asset data. The Confidence Grades have been assessed using the grading system detailed Appendix D1.

5.6.1 Confidence Grades Table 31 provides an assessment of the confidence in, and the accuracy of the asset data supporting the AMP. Definitions for the confidence grades are given in Appendix D1.

Table 31: Data Confidence Level Confidence Asset Data Comment Grade Data reconciled between F1 and GIS. Asset valuation includes a sample field Asset Quantity A-B validation of asset quantity as part of the revaluation process for 3 Waters. Asset Type A-B As above. Material type data is reliable; it is acknowledged that data on older in-ground assets is often based on historic records which may not be as accurate as Asset Material B more recent data. Material type is reasonably assessed 2% of material type requires validation base on criticality. Location of above ground asset is highly reliable, for in-ground assets this drops to reliable as data on older assets is often based on historic plans which Asset Location A-B may not be as accurate as more recent plans. Valves, hydrants aren’t snapped to the water mains. Depths are generally assumed, water mains not laid to grade but max/min Asset Depth C depths. Depths obtained from As Built Economic lives not yet adequately assessed to soil types 33% of pipe can be Soil Types C affected by soil. There is reasonable confidence in asset ages. We recently have undertaken Asset Age A-B the valuation for the 3 water assets and have adjusted the base life based on the asset condition and the asset remaining lives. Programmed condition assessments are being undertaken and results Asset Condition B incorporated into AssetFinda. The extent of coverage varies across asset types based on levels of importance and ease accessibility for assessment. Network models have been developed to assess performance issues and are Asset Performance C factored into renewal programmes. Costs are reviewed at each valuation with the valuers reviewing recent local Unit Costs B contract rates, industry norms and inflation rates to determine appropriate unit rates. Now well established and supported by local knowledge. Lacks the formal Deterioration Rates C recording that an AM system provides. Consistent with industry averages.

No significant changes have been to the rating since the 2018 LTP/AMP. The changes that have been made have been the Asset Quantity and Asset Age which have been changed from B to an A-B. This has been done as a result of the three water valuation 2019 where the 3 water assets has revalued based on the data from finance one and AssetFinda. The base life and the unit cost was adjusted as a part of the revaluation.

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5 Risk Management

This section looks at risk that may affect the ongoing delivery of the service, with a focus on risk identification, critical assets and resilience.

5.1 Risk Assessment Waipa District Council’s risk management is guided by the organisational Risk Management Policy (February 2019, ECM: 9969536). This provides a systematic approach to identifying opportunities to minimise threats and maximise opportunities, and ensuring our strategic goals and objectives are achieved.

Each of Council’s service units maintains a risk register The key risks are detailed in Table 32 and are taken from the Risk Register in Appendix E. Key risks are those where after current mitigation the risk rating remains High or greater.

Table 32: Key Risks (from Risk Register) Risk Key Risk Existing Controls Further Action Rating

Physical Asset Risks ▪ Standard operating ▪ Document and Reservoir Leak - Catastrophic Failure High procedures programme regular ▪ Incident Management Plan inspections Service Delivery Risks ▪ Standard operating ▪ Review scale of procedures chemical usage and ▪ Water Safety Plans for each Microbiological or chemical scope appropriate High area contamination – Extensive Impact responses at ▪ Telemetry is in place and operational and sends alarms for action to on management levels. call operations staff ▪ Review Incident ▪ Standard operating Management Plans procedures ▪ Review Standard Power Failure High ▪ Incident Management Plan operating procedures ▪ Mobile Generators ▪ Evaluate ability to ▪ Storage utilise mobile generators Management Risk 3rd party agreements approved ▪ Put in place processes ▪ No processes/controls in without implications being High and formalised place understood agreements ▪ Panel of consultants used ▪ Develop a succession Lack of available technical skills in the when required to provide High planning, cadetship or industry specialist knowledge not graduate programme available in-house Planning Risks ▪ Update supply-demand ▪ Continue to monitor Reduction in consented water take balance regularly and the potential effect of Extreme volumes monitor potential changes changes to consents to consent and update the supply-

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Risk Key Risk Existing Controls Further Action Rating demand balance as required. Water yields from new resource ▪ Incorporate risk into High ▪ None developments fall below projections WTP upgrades ▪ Review demand annually with large customers (Fonterra). ▪ Monitor growth patterns in comparison to the allowance ▪ Continue existing Demand forecast are too low Very High in forecasting. controls ▪ Actively monitor how demand changes following the introduction of metering and demand management initiatives. ▪ Review demand annually with large customers (Fonterra). ▪ Continue existing Demand forecast are too high High ▪ Monitor growth patterns in controls comparison to the allowance in forecasting. ▪ Policies, strategies, and plans incorporate ▪ Ensure regular contingencies for managing involvement and the impact of changes awareness of New statutory requirements , plans ▪ Water supply strategy High regulatory/statutory and policies ▪ Waipa 2050 forums to ensure any ▪ LTP Projects updates are effectively ▪ Regional Infrastructure planned for Technical Specifications (RITS) ▪ Continue to monitor ▪ Water Supply Bylaw the potential effect of Insufficient supplies to meet demand ▪ Defined Water Supply Areas changes to consents High (Only Te Tahi Supply) ▪ LTP projects (alternate and update the supply- supplies) demand balance as required. ▪ Demand Management/restrictions Climate change – more frequent ▪ Infringement notices fines ▪ Continue existing droughts, depletion in source of High ▪ Good growth cell controls supply development planning ▪ Water supply strategy ▪ Demand Management/restrictions Climate change – more intense storm ▪ Infringement notices fines ▪ Continue existing events, degradation of source of High ▪ Good growth cell controls supply development planning ▪ Water supply strategy

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5.2 Water Treatment and Supply Resilience Approach As a provider of essential services, WDC must be able to continue to deliver essential services during and following incidents or emergencies that effect WDC and/or the wider community. To achieve this requires a combination of Resilience and Business Continuity Planning.

5.2.1. Resilience – Water Treatment and Supply Service Resilience is the ability of the service to survive events, in particular the ability to mitigate/limit the impact of events through its ability to: ▪ withstand disruption; ▪ absorb disturbances; ▪ continue to act effectively in a crisis; ▪ adapt to changing conditions such as growth and social demand changes; ▪ in relation to both physical assets and organisational resources and processes.

Measures to improve the resilience of WDC’s services are incorporated into capital projects and ongoing operational improvements. The service’s key resilience issues are listed in Table 33.

Table 33: Key Resilience Issues Resilience Area Issues ▪ No earthquake resilience studies have been completed on our existing treatment plant buildings and structures. Earthquake resilience ▪ An earthquake resilience study has been completed on our existing reservoirs and found that seismic strengthening or renewal is required ▪ Reservoir capacity is limited, and is concentrated at a few places, rather than Reservoir Capacity distributed around the network. ▪ Reconfigure water bulk mains connecting reservoirs to create a dedicated treatment plant/reservoir network and create water zones ▪ Increase renewals expenditure to reduce renewal backlog and subsequently reduce the number of unplanned network interruptions ▪ Increase the programme to assess the condition of critical assets and seismic Operational resilience resilience. Renewals programmes could then be optimised to target assets which are most critical to delivering the service and to increase the resilience of the network ▪ Undertaking planned maintenance programme, ie: pipe flushing, hydrant testing, valve exercising etc.

5.2.2. Business Continuity Planning – Water Treatment and Supply Service Business continuity plans identify how services can continue to be delivered following failures as a result of an event. Typically they will identify the critical service nodes and ways these can potentially fail along with processes and work-arounds to ensure services can be recovered. To ensure a consistent approach to Business Continuity Planning WDC has an organisational wide Business Resilience Policy (July 2019, ECM: 10093074). The service’s key business continuity issues are listed in Table 34.

Table 34: Key Business Continuity Issues Resilience Area Issues Nothing has been identified

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5.3 Climate Change The main issues for the Waikato region are predicted to be an increase in drought frequency in summer and autumn, more extreme weather events (heavy rainfall events) and sea level rise for coastal areas27. Consideration may also be needed to be given to secondary effects, such as the migration to New Zealand of people displaced by the effects of climate change from affected coastal areas.

5.3.1. Climate Change Response (Zero Carbon) Amendment Act 2019 The Climate Change Response (Zero Carbon) Amendment Act was enacted in November 2019. The Act provides a framework for the development of climate change policies which contribute to the Paris Agreement (to limit the global average temperature increase to 1.5° Celsius above pre- industrial levels) and allow New Zealand to prepare for, and adapt to, the effects of climate change.

Key changes in the Act are: ▪ new domestic greenhouse gas emissions reduction targets for 2030 and 2050 ▪ a system of emissions budgets to act as stepping stones towards the long-term target ▪ requirements for the Government to develop and implement policies for climate change adaptation and mitigation ▪ establishment of a new, independent Climate Change Commission to provide expert advice and monitor progress towards long-term goals.

This legislation will likely affect how WDC operates and maintains its services and how WDC implements capital works.

5.3.2. Waipa District Council and Climate Change Council engaged CH2M Beca Ltd to produce a Climate Change report (ECM 2763617) in May 2013. While the report focused on the impact of climate change on the 3 water services the overview element is appropriate to all service areas.

The report identifies that the indications are that the Waipa District is likely to be hotter on average, experience more extreme events (heavy rainfall and droughts) but may have little change in average annual rainfall. Sea level change is also a potential climate change issue but is not directly applicable to the Waipa District.

5.3.3. Key Issues Arising From Climate Change The service’s key climate change issues are listed in Table 35

Table 35: Key Business Climate Change Issues Key Business Climate Details of Issue Change Issues ▪ Current network and treatment plant energy efficiency/carbon foot printing Energy Efficiency and unknown. Carbon Foot Printing ▪ Current performance not meeting corporate policy objectives

27 Obtained from Waikato Reginal Council at: https://www.waikatoregion.govt.nz/environment/air/climate-change/

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5.4 Three Waters Master Plan 2020 The actions and projects proposed in the Waipa District Three Waters Masterplan, Beca, May 2020 seek to address the physical asset, service delivery and planning risks described in Table 36 while improving resilience and mitigating the effects of climate change over the medium to long term.

Table 36 Master Plan Risks and Proposed Mitigation Key Issues/Risks Proposed Mitigation ▪ Storage - sufficient reservoir capacity is currently ▪ Protect public health by providing additional available. Reservoir condition or performance is poor reservoir storage to meet 24hrs storage of peak for some assets, with risks identified with respect to day demand; and renew existing reservoirs in contamination, seismic resilience and operability. poor condition or with seismic performance by Insufficient future capacity is forecast as a result of 2050 growth in demand ▪ Treatment capacity - there is sufficient water treatment capacity available within each scheme ▪ Investigate a pipeline from Parallel Rd Water once the Parallel Rd WTP upgrade and pipeline to Te Treatment Plant to Cambridge to increase Awamutu is commissioned. Further treatment resilience capacity is required for all schemes to service growth. ▪ Provide staged additional water treatment plant ▪ Climate change - the potential implications of climate capacity for Te Awamutu and Cambridge to meet change on the supply / demand balance are not well growth needs understood. Potential future effects include ▪ Continue metering, targeted leak detection and increased demand due to warmer weather and education to manage demand population growth, combined with reduced water availability as a result of source restrictions ▪ Water quality – Kihikihi experiences issues with aesthetic water quality related to manganese in the groundwater source. During summer algal blooms ▪ Provide improved water quality at Kihikihi can cause taste and odour issues in the Te Tahi supply ▪ Consent allocation - The implications of the minimum residual flow requirement at Te Tahi are very severe water restrictions during dry summers. The reduction in the Te Tahi consent from 2030 will reduce the water available for Te Awamutu and Pirongia which is offset by the transfer of water from ▪ Continue to plan for anticipated reduction in Te Parallel Rd WTP. There is sufficient water allocation Tahi water take from 2030 and additional water available to meet future peak demand in Kihikihi and allocation required post 2040 Pukerimu. Future peak day demand exceeds allocation available in the Te Awamutu and Cambridge schemes around 2040. The ‘low demand season’ and ‘annual’ supply consent constraints should still allow sufficient water allocation to meet projected demand.

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Key Issues/Risks Proposed Mitigation ▪ Pressure - some areas of Cambridge currently suffer from low pressure. Fire flow standards are not met at either Cambridge or Te Awamutu. High user demands are significant for Cambridge and Te Awamutu e.g. seasonal demands from Fonterra impact on the network and system operation. The network layout and zoning is not optimised. Future growth may result in large areas of the Cambridge and Te Awamutu networks with low pressures and high head ▪ Implement network upgrades so new loss developments do not impact current water supply ▪ Network resilience – the current configuration of the pressure and flow for existing areas. Address networks limit operational resilience and ability to areas with poor water pressure by 2050 control pressure and leakage ▪ Data - only one year of metered data is available – data for several years is required to determine revised demand patterns. The forecast is based on reasonable levels of consumption which are consistent with other metered supplies in New Zealand. ▪ Renewals/upgrades - interactions between renewals and pipe capacity upgrades need to be determined

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5.5 Our Future Programmes to Address Risk

5.5.1. Projects to Deliver on Risk Reduction Table 37 shows the capital projects required over the next 10 years to reduce risk. Details of the methodology used to determine the priority of projects is provided in Appendix F1.

Table 37: New and Upgraded Services and Assets Projects - Risk Driven

Driver: Risk Issue28 Project Name Project Number Key Risks From Risk Register ▪ None ▪ Key Resilience Issues ▪ None ▪ Key Business Continuity Issues ▪ None ▪ Key Climate Change Issues ▪ Current network and treatment plant energy efficiency/carbon foot printing unknown. ▪ Energy Efficiency on Pump Stations and Treatment Plants Study - ▪ Current performance not meeting corporate policy objectives

28 Significant Risk issues, as identified in Table 32, Table 33, Table 34, and Table 35 to be addressed by projects

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5.5.2. BAU Changes to Deliver on Risk Reduction Risk issues can also be addressed in some cases through changes to BAU practices rather than a project. Planned changes to BAU to address risk issues are detailed in Table 38.

Table 38: BAU Changes – Risk Driven Additional Driver: Risk Issue BAU Change Objective Benefits Costs - Opex Key Risks From Risk Register Develop a succession planning, cadetship or graduate ▪ To maintain resources with appropriate technical skills in ▪ Resource with appropriate technical skills are available Lack of available technical skills in the industry Unknown programme Waipa District Council ▪ Cost reduction by engaging less external resources Investigate implementing ITP (inspection and test plan) ▪ Maintained level of service Reservoir Leak - Catastrophic Failure checklist and requirement for all connections and WW pipe ▪ Mitigate the risk of catastrophic reservoir failure $0 ▪ Customer satisfaction installation(s) as part of contract or maintenance works Microbiological or chemical contamination – Extensive Review scale of chemical usage and scope appropriate ▪ Mitigate the risk of extensive microbiological or chemical ▪ Maintained level of service $0 Impact responses at operational and management levels contamination ▪ Customer satisfaction Investigate critical network and treatment processes reliant ▪ Mitigate the risk of power failure by providing back up ▪ Maintained level of service Power Failure on providers, incorporate back up/alternate supplies into $0 generation to critical assets ▪ Customer satisfaction capital works 3rd party agreements approved without implications being ▪ Expected base life of the assets are met Put in place process and formalised agreements ▪ Formalised process and agreed outcomes $0 understood ▪ Cost effective renewal and maintenance programme Update supply-demand balance regularly and monitor ▪ Understand supply demand balance and monitor for ▪ Maintained level of service Reduction in consented water take volumes $0 potential changes to consent consent changes ▪ Customer satisfaction Water yields from new resource developments fall below ▪ Mitigate the risk of any future resource development ▪ Maintained level of service $0 projections N/A at this stage yielding below requirements ▪ Customer satisfaction Review demand annually with large customers (Fonterra). Demand forecasts too low Monitor growth patterns in comparison to the allowance in ▪ Maintained level of service forecasting. ▪ Provide accurate demand forecasts to enable ▪ Customer satisfaction $0 appropriate infrastructure planning Actively monitor how demand changes following the ▪ Cost effective service delivery Demand forecasts too high introduction of metering and demand management initiatives Ensure regular involvement and awareness of regulatory/statutory forums to ensure any updates are effectively planned for Policies, strategies, and plans incorporate contingencies for ▪ Compliance with regulatory bodies and consents New statutory requirements , plans and policies managing the impact of changes ▪ Prevent non-compliance $0 ▪ Compliance with internal policies and plans Water supply strategy Waipa 2050 LTP Projects Regional Infrastructure Technical Specifications (RITS) Policies, strategies, and plans incorporate contingencies for managing the impact of changes Water supply strategy ▪ Maintained level of service Insufficient supplies to meet demand (Only Te Tahi Supply) ▪ Provide adequate supply levels to meet demand $0 Waipa 2050 ▪ Customer satisfaction LTP Projects Regional Infrastructure Technical Specifications (RITS) Poor infrastructure handed over after private development Review/update formal service level agreements as and ▪ To enhance better quality of assets for those vested to ▪ Expected base life of the assets are met $0 and capital works when required Council from private development and capital works ▪ Cost effective renewal and maintenance programme ▪ Accurate asset planning based on improved accuracy Asset information including condition and performance data Tolerate and continuous improvement through the Asset ▪ To improve accuracy and confidence level of data and confidence level in data $0 not available or inaccurate (including vested assets) Management Improvement Programme. recorded in Assetfinda ▪ Better understanding of assets

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Additional Driver: Risk Issue BAU Change Objective Benefits Costs - Opex Ensure Council databases for asset management meet business requirements Improve consultants data submission process

Identify issues to maintain agreed level of services in this ▪ To allocate enough funding to keep the agreed level of ▪ Maintained level of service Inability to fund agreed service levels To be scoped AMP and submit project proposal accordingly service ▪ Customer satisfaction

Provide resources to manage communication and engagement in the event of drought. Demand Management/restrictions ▪ To utilise the water resource in the most efficient and ▪ Reduction in customer complaints To be scoped Climate change – more frequent droughts, depletion in Infringement notices fines effective manner ▪ Compliance with resource consent requirements. source of supply Good growth cell development planning Water supply strategy Corporate change driven by the strategy team ▪ Unknown ▪ Unknown Unknown Key Resilience Issues No earthquake resilience studies have been completed on ▪ Identify critical pump stations and treatment plants ▪ Maintained level of service our existing treatment plant buildings and structures or Treatment plants and pump stations resilience upgrades requiring resilience upgrades ▪ Reduced risk to assets during seismic event $0 reservoirs. ▪ Maintained level of service Existing reservoir capacity is limited and existing locales Investigate reservoir options, including storage locations, ▪ Identify future sites for reservoirs and evaluate existing ▪ Customer satisfaction require evaluating for future suitability risks and potential barriers to future development. sites for renewal and upgrade options $0 ▪ Provide resilience to the network supply Key Business Continuity Issues No Issues Identified Key Climate Change Issues No Issues Identified

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5.5.3. Resource Needs to Deliver on Risk Reduction As the size of the network and the treatment plants, reservoirs, pump stations and other significant network assets increases, the number of staff and associated resourcing required to operate and maintain the service will also increase. The increase in staff and resources are not directly proportional to growth, and so regular assessment of the resourcing requirement will be required.

This was incorporated into the Water Services structure review in June 2020. Refer to Appendix G. for an outline of the previous and new structures.

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6 Managing Our Services and Assets

This section outlines what is planned in order to manage and operate the service and assets to the agreed levels of service while optimising lifecycle costs.

6.1 Operating and Maintaining our Services and Assets Routine operations and maintenance are the regular day to day activities necessary for the delivery of the service and to keep assets operating. This includes instances where portions of the asset fail and need immediate repair to ensure continuity of service.

6.1.1. Operating and Maintenance Trends Operations and maintenance costs have steadily risen over the last 10 years (Figure 30), this reflects the increasing size of the network and the increasing volumes of water being treated. As new parts of the network are commissioned and put into service they are added to operations and maintenance schedules.

In 2016/17 the service incurred additional operational costs associated with the decision to bring forward the 3-year staged project to install district wide water meters. The project was completed in 1 year and subsequently, interest costs were higher and brought forward. Trade waste charges for the discharge of the treatment plant at Karapiro were also commenced, increasing operational costs on an ongoing basis.

Figure 30: Historic Operating and Maintenance Costs

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6.1.2. Our Approach to Operations Operational activities ensure optimum utilisation of the services and assets, and therefore service potential is achieved, operations also helps ensure the delivery of the required LOS.

Operations – General Weekly Operational Meetings are held and cover the following items: ▪ Health & Safety issues ▪ Level of compliance with resource consents ▪ Plant Performance ▪ Public Health – Odour complaints, spills, and related operational issues ▪ Performance of Pumping Stations

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There is a staff member on call for water treatment 24/7. There is also another staff member on call for wastewater treatment. These two staff members support each other as necessary. The Network Team Leader is also available if needed. Telemetry is used to alert the staff members on call of an issue in the system.

There are also 2 fitters on call 24/7, one each for the Cambridge and Te Awamutu areas. The Senior Reticulation Operator and Network Engineer are also available if needed. These staff members respond to customer requests through the call centre.

Operations – Network Reticulation The reticulation delivers potable water to consumers via a network of pressure mains. Pressure and flows are monitored by telemetry.

▪ Valves are to be inspected and tested based on tier criticality as listed below, scouring of scour valves will be as programmed on an as required basis. o Criticality A valves every six months o Criticality B valves every year o All other criticality level valves every five years

▪ Hydrants are tested as per SNZ PAS 4509:2008 (New Zealand fire service firefighting water supplies code of practice) on a five yearly cycle (refer ECM 6519845, Section G4).

▪ Other programmed work includes: o Flushing of dead end lines o Backflow preventive maintenance

Operations – Network Reservoirs All reservoirs have telemetry associated with their filling levels, and have alarms associated with their storage levels, Table 39 outlines these levels and alerts for those not directly associated with a Treatment Plant.

Table 39: Reservoir Operating Levels (as at October 2019) Low Empty Alarm Capacity Close valve Open Valve Supply Area Reservoir Level or Low Level (m3) (Stop filling) (Start filling) Alarm Alarm Taylors Hill #1 4800 90-97% 70-90% 30% N/A Te Awamutu Taylors Hill #2 2900 90-97% 70-90% 30% N/A Frontier Road 6000 80%-90% 80%-90% 21% N/A Both Reservoirs (One level 600 + Kihikihi 90% 80% 15% 2% Transducer)* 1000 Ohaupo 800 97% 90% 40% N/A Pukerimu Cox Road 800 97% 90% 50% N/A Airport / Titanium Park Titanium Park 1000 88% 92% 50% N/A Cambridge Karapiro Village 50 90% 75% 35% 20% Cambridge / Karapiro Watkins Road ** 3000 3.20m 3.10m 1.00m 0.95m Hautapu 2000 95% 85% 15% 2% * Both Reservoirs at Kihikihi Water Treatment Plant utilise the one level transducer. ** Watkins Road Reservoir is not measure as a % for level alarms; rather it is measured by metres (Bladder Reservoir).

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By ensuring the maximum volume of water is available from the reservoirs, the network is able to maintain pressure and flows when it is necessary to draw from the reservoirs at a rate greater than they are being filled. All reservoirs are automated and linked by telemetry to a server located in the main council offices in Te Awamutu. This telemetry allows operational data from all the reservoirs to be monitored in one location. This data can be accessed by staff at the various treatment plant sites as well as via the on call laptop. Alerts are sent to the staff phones.

Timber Reservoir tanks have their roofs inspected by Waipa District council staff every six months. This is required as timber tanks are very sensitive to roof integrity and the associated risk of contamination of the water. There is an improvement plan to develop a document that staff undertaking the inspection can report on componentised condition, and this data will be recorded in Assetfinda.

Operations – Network Booster Pumps All pumps are automated and linked by telemetry to the main council offices in Te Awamutu. This telemetry allows operational data from all the pump stations to be monitored in one location.

Operations – Intakes, Bores and Treatment Plants With the exception of Alpha Street, all the treatment plants are operated full time. Alpha Street is operated during the high demand summer period to ensure treatment capacity can meet demand. Typically Alpha Street is bought on-line October/November and is shut down in March/April. The precise timings are dependent upon water demand levels. The operating parameters for the treatment plants are summarised below in Table 40.

Table 40: Treatment Plant Operation Minimum Scheme Treatment Plant Operating Hours Operating Months Operating Staff* Cambridge / Karapiro Alpha Street 24/7 Oct/Nov – Mar/Apr 0.33 Cambridge / Karapiro Karapiro 24/7 All Year 0.33 Pukerimu Parallel Road 24/7 All Year 0.33 Pirongia / Te Awamutu Te Tahi 24/7 All Year 0.33 Kihikihi Rolleston Street 24/7 All Year 0.33 Pirongia / Te Awamutu Frontier Road 24/7 All Year 0.33 *3 operators manage the 6 treatment plants

Treatment plant manuals have been developed by external consultants since the last major upgrades. These contain a plant overview, a description of the plant assets and information to help staff with the control, operation and monitoring of the plants. These manuals are always under review and it is the responsibility of the Networks Team Leader to ensure up to date manuals are available and they are updated whenever significant new works are carried out at the plants.

Water intakes and treatment plants are checked daily by the water treatment plant operators. Site specific daily record sheets are used to record and monitor the performance of the treatment plants, which are a part of the Water Treatment plant software.).

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Operations – Emergency Reponses

Microbiological or Chemical Contamination: Incident management plans exist but exercises need to be undertaken to ensure that staff are trained and can react appropriately at the time of a real incident. This can be undertaken in-house using the compliance team, there are also very good external contractors who can run larger incident events if necessary.

Power Outages: Due to interdependencies between the power supply and water supply, the ability for WDC to maintain Water Supply is at risk during prolonged power outages. To enable water supply systems to continue to operate during both planned and unplanned power outages, on site generators are installed at Te Tahi Water Treatment Plant, Rolleston Street (Kihikihi) Water Treatment Plant and at the Hicks Road Treatment Station (Chlorination), along with a generator associated with the Ohaupo Reservoir Pumps. There are an additional 2 mobile generators available.

Operations – Consent Monitoring: Currently consent monitoring is undertaken by the Resource Consent Compliance Officer. Testing is scheduled and reviewed by the Resource Consent Compliance Officer and transgression forms are sent to the WTP operators, Network Supervisor and Network Team Leader following any breaches of the consent. These forms record issues, cause and actions to be taken. They are also reported on monthly in the Planning and Compliance Monthly Report.

The Council is currently working on using Water Outlook software for Treatment Plant management to auto generate reports, which is expected to greatly simplify reporting.

Operations – Water Modelling: The use of modelling software for water management purposes is now standard practice in the industry. Modelling software ensures optimum performance of existing reticulation network and identifies areas of infiltration, surcharging and restricted capacity. This aids in operational optimisation and strategic planning.

Operational water models have already been developed by WSP for the reticulation networks as part of an overall three waters model building programme. These models have been calibrated and found to be suitable for use. The next stage of the model development is to give staff training in the model capability and then conduct a peer review. Once the models are peer reviewed they will require regular maintenance to keep them up to date. There will also be a regular cost associated with actually running the scenarios as required as well.

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6.1.3. Our Approach to Maintenance

Maintenance – General Maintenance helps ensure the assets reach expected life, as well as ensuring the delivery of the required LOS. Maintenance activities include: ▪ Reactive maintenance ▪ Pro-Active (Preventative & predictive/condition driven) maintenance ▪ Condition assessments ▪ Analysis and reporting of asset condition.

Maintenance – Pro-Active versus Reactive Maintenance is programmed in two ways:

▪ Reactive maintenance o This is unplanned work that needs to be completed quickly to ensure LOS are not compromised. Reactive maintenance is normally undertaken in response to a customer service request or asset failure, with the response times varying dependent on the severity of the problem and its potential impact. o Reactive maintenance is usually adopted as a least cost strategy for non-critical assets and where consequences of failure are low. ▪ Proactive maintenance o This is planned work carried out at regular intervals to ensure performance (preventative maintenance) and to prevent failure (predictive/condition driven maintenance). This approach is adopted for critical assets where consequences of failure are high.

Maintenance is scheduled and recorded in the asset management system, AssetFinda. There are operations and maintenance manuals for water and wastewater treatment plants.

Currently there is more reactive maintenance compared to proactive maintenance. WDC is aware of the benefits of moving toward more proactive maintenance activity (e.g. a more reliable service, extended asset life) and plans are in place to switch to pro-active as the primary form of maintenance. It is also acknowledged that there will always be some level of reactive maintenance.

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6.1.4. Maintenance – In Ground and Above Ground Assets

Table 41: Maintenance of In Ground and Above Ground Assets Asset Type Maintenance

In Ground Assets ▪ The asset condition information obtained from the condition assessments inspection Pipes (incl. is processed into Assetfinda, and any maintenance required is forwarded to the Connections) appropriate staff member. ▪ When a major pipe failure occurs, a section of the pipe is sent away for laboratory testing to determine the condition and remaining life of the pipe. ▪ Valves are only maintained by replacing leaking glands – otherwise they are run to Valves failure. Ad hoc valve exercising has been undertaken in the past and condition recorded in AssetFinda. ▪ The condition of each fire hydrant is required to be assessed at least every five years. New Zealand Fire Service Firefighting Water Supplies Code of Practice (SNZ PAS 4509:2008), describes what must be checked and in good working order as well as carrying out the required pressure and flow testing. Hydrants ▪ The asset condition information obtained from the condition assessments inspection is processed into Assetfinda, and any maintenance required is forwarded to the appropriate staff member. ▪ In 2020, WDC will implement a regular flushing programmes based on points indicated in the water supply model Above Ground Assets ▪ To avoid increasing the risk of LOS failure, scheduled shutdowns of reservoirs for maintenance must be done during periods of low demand, usually over the winter Reservoirs & Booster months. Reservoirs are inspected during these low demand periods and any cleaning Pumps and/or maintenance work is identified and programmed. If any cracks or other signs of structural failure are identified then an external structural engineer is called in to inspect the reservoir and recommend any necessary works. ▪ Routine maintenance is specified in the treatment plant O&M manuals and maintenance standards are recorded in these. Filter reconditioning and clarifier cleanouts are programmed during seasonal low demand periods. The regular calibration of the instrumentation equipment is required as outlined in NZDWS. The results and calibration certificates are stored in ECM in appropriate location folders and input into Water Outlook. Intakes, Bores and ▪ To avoid increasing the risk of LOS failure, scheduled shutdowns of element of the Treatment Plants treatment plants for maintenance must be done during periods of low demand, usually over the winter months. ▪ Advice from professional well drillers advise that bores such as ours should be worked over ( Pump and rising main removed, well casing flushed, screens inspected. Screen and riser pipework replacement as required, pump replacement/Overhaul as required) on a four yearly basis to ensure continuation of supply. Where redundancy exists through having two bores that can probably be pushed out to every six years without significant increases in risk.

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6.1.5. Our Operating and Maintenance Issues Based on the information in the sections above the significant operations and maintenance issues requiring addressing have been summarised in Table 42.

Table 42: Significant Operations and Maintenance Issues Significant O&M Issues Impact on Service

Lack of maintenance plan for water treatment buildings ▪ Deteriorating buildings create risk for maintaining water supply. Standard operating procedures are in place for pro- active maintenance but a formal maintenance schedule ▪ Increased risk of service outages due to asset failures is yet to be developed

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6.2 Future Programme to Deliver Operations and Maintenance

6.2.1. Projects to Deliver on Operations and Maintenance Based on the information in the Table 42 the significant operations and maintenance issues requiring addressing have been summarised in Table 43 along with the proposed projects to address those issues. These projects will be resourced internally.

Table 43: Projects - Operations and Maintenance Driven Driver: Operations and Maintenance Issue Project Name Project Number - - -

6.2.2. BAU Changes to Deliver on Operations and Maintenance Demand issues can also be addressed in some cases through changes to BAU practices rather than a project. Those BAU changes can be such changes as increasing service availability or a reduction in response times to address a LOS gap. Planned changes to BAU to address LOS issues are detailed in Table 44. This project will be resourced internally.

Table 44: BAU Changes– Operations and Maintenance Driven Additional Costs Driver: Operations and Maintenance Issue BAU Change Objective Benefits - Opex ▪ Operations Depots are currently leased, but are no Leased Operations Depots require review of existing ▪ Hygienic, fit for purpose operations facility. Operations Depot Upgrade investigation longer fit for purpose, investigation needs to be To be scoped arrangements ▪ Reduced risk of contamination of fittings in storage. undertaken for options for new depots. Lack of maintenance plan for buildings at treatment plants ▪ To ensure buildings at water treatment plants and pump ▪ Reduced risk of building failures which will result in Water Building Maintenance $0 and pump stations stations maintain their serviceability service outages at treatment plants and pump stations No formalised pro-active maintenance plan has been ▪ Reduced risk of asset failures which will result in service Water Proactive Maintenance ▪ To ensure assets are proactively maintained $0 developed outages

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6.2.3. Existing Operations and Maintenance Activities to be Continued As well addressing the identified issues existing operations and maintenance activities need to be continued to ensure the desired services continue to be delivered. Those activities are summarised in Table 45 and Table 46.

Table 45: Operations and Maintenance Activities to be Continued Existing Operations and Maintenance Activity to be Continued Objective Benefits Total 10 Yr Cost Opex 350000 - Water Treatment & Supply General ▪ Training, salaries and other overhead costs ▪ Staff are available to run the activity $116,030,555 350401 - Te Tahi Treatment Plant ▪ Production of Potable water that meets the DWSNZ $2,932,728 350402 – Te Awamutu Reticulation ▪ Delivery of water to end users $3,138,857 350403 - Te Awamutu Reservoirs ▪ Water is stored to provide resilience in the asset. $238,270 350404 - Te Awamutu Boosters ▪ Pressure Levels of Service are maintained $162,310 350405 - Cambridge Reticulation ▪ Delivery of water to end users $3,411,127 350406 - Cambridge Reservoir ▪ Water is stored to provide resilience in the asset. $465,050 350407 - Cambridge Boosters ▪ Pressure Levels of Service are maintained $67,140 350408 - Karapiro Reservoir ▪ Water is stored to provide resilience in the asset. $68,040 350409 - Karapiro Treatment Plant ▪ Production of Potable water that meets the DWSNZ $6,567,716 350410 - Kihikihi Reservoir ▪ Water is stored to provide resilience in the asset. $72,760 350411 - Kihikihi Reticulation ▪ Delivery of water to end users ▪ Community outcomes are achieved. $449,164 ▪ Legislative requirements are met 350412 - Kihikihi Treatment Plant ▪ Production of Potable water that meets the DWSNZ ▪ Levels of Service are achieved $932,205 350413 - Parallel Road incls Pukerimu Intake ▪ Production of Potable water that meets the DWSNZ $8,183,442 350414 - Pirongia Reticulation ▪ Delivery of water to end users $418,376 350415 - Pukerimu Boosters ▪ Pressure Levels of Service are maintained $315,820 350416 - Pukerimu Reservoirs ▪ Water is stored to provide resilience in the asset. $143,500 350417 - Pukerimu Reticulation ▪ Delivery of water to end users $902,600 350418 - Hicks Road Springs ▪ Production of Potable water that meets the DWSNZ $43,320 350420 - Alpha St Treatment Plant ▪ Production of Potable water that meets the DWSNZ $2,818,961 350421 - Meter Reading ▪ Correct charging of customers for services $2,238,400 350424 - Water Service Planning and Design ▪ Forward planning of Service Delivery -$1,200 350425 - Frontier Rd Reservoir ▪ Water is stored to provide resilience in the asset. $565,240

Table 46: Projects - Operations and Maintenance Ongoing BAU Projects Total 10 Yr Cost Total 10 Yr Cost Project Project Name Capex Opex Number ▪ DW Leak & Condition Investigation $1,980,000 PR1860 ▪ Smart Water $1,157,700 PR1989 ▪ Demand Management Campaign $2,295,000 PR2076

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6.2.4. Resource Needs to Deliver on Operations and Maintenance In many cases a project or BAU change will require a resourcing change to enable their implementation and ongoing delivery. A brief summary on the impacts on the services resourcing needs resulting from the planned project and BAU changes is provided below.

As the size of the network and the treatment plants, reservoirs, pump stations and other significant network assets increases, the number of staff and associated resourcing required to operate and maintain the service will also increase. The increase in staff and resources are not directly proportional to growth, and so regular assessment of the resourcing requirement will be required.

This was incorporated into the Water Services structure review in June 2020. Refer to Appendix G. for an outline of the previous and new structures.

6.3 Operations and Maintenance Future Costs Requirements Taking into account the projects, BAU changes, and continued activities identified in the previous sections the required operating expenditure for the next 10 year LTP is shown in Figure 31. Note that any operational funding impacts directly related to addressing LOS, Growth or Risk are included covered within the relevant sections and are not included here.

Figure 31: 10 Year Required Operating Expenditure

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6.4 Renewing the Assets

6.4.1. Renewal Trends Over the last 10 years the cost of renewals has been increasing, as assets installed in the 1950s and 60s reach the end of their life and upgrades, which contain some renewals component, are required to cater for growth.

6.4.2. How Renewal Needs Are Identified Adopted remaining life, criticality, and condition profiles of the water supply system are used to determine the forward renewal programme.

6.4.3. Renewal Decision Making Process Asset Management Renewals Decision-Tree policy (November 2017) provides guidelines regarding asset renewals, in particular renewal triggers, renewal deferral, and renewal standards. This policy is due for review in November 2020.

The policy provides the following approach: ▪ High criticality assets renewed prior to asset failure ▪ Low criticality assets renewed at the time of failure ▪ Where the ongoing O&M costs reach the point at which renewal is more cost effective ▪ Renewals will be on a ‘like for like’ basis, or the nearest modern equivalent. Exceptions to this are: o renewals as part of an approved upgrade to cater for growth/change in demand o upgrade is required to adapt to climate change and/or provide greater service resilience o an existing asset has surplus capacity and a lower standard replacement will provide the required LOS without increasing whole of life costs or risks. o renewal to a higher standard will result in a lower overall whole of life cost. o a different standard is required to meet any relevant legislative requirements

AMIS Generated Renewal Forecast This is the forecast automatically generated by the AMIS (Assetfinda) and is based on asset age. That forecast is then further refine into a renewal plan (see below).

Refinement of Renewal Forecast into Renewal Plans Preparation of renewal plans are a joint effort between WDC asset planning and operations staff. Assets with higher criticality are renewed earlier in their projected lives than assets with lower criticality. Assets with very low criticality can be run to failure.

The time an asset is likely to fail is assessed not just on the design life, but on condition and performance information where available for each asset, and the rate of condition deterioration of similar assets within the network.

Condition assessment and data cleansing efforts to date have produced renewal profiles that show a much lower rate of renewal than that shown by age alone. This is an ongoing iterative process carried out annually. The level of physical renewal works carried out historically has not shown significant negative effects on the overall level of service.

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Ongoing condition inspection programmes continue to further inform the renewal profiles, as Waipa DC has moved away from basing renewal projections purely on the age of the assets, towards incorporating condition, criticality, risk and age of assets to ensure that the network is maintained in the most cost efficient and effective manner.

Review of Renewal Plans due to Budget Constraints Should approved budgets be less than what is required, renewals will be re-prioritised based on the most critical assets being completed first.

Delivery Mechanism Asset renewals are generally completed by external contractors, as the work is often both seasonal and specialist, making in house delivery impractical.

6.4.4. Projection of Renewal Needs

AMIS Generated Renewal Forecast The AMIS (Assetfinda) generated renewal forecast is shown in Figure 32, this suggests the renewal requirements, based on the remaining life (derived from design life less age), should be significantly greater than currently programmed. The unsmoothed renewals forecast below shows a backlog in 2021/22 which represents assets which are still in service beyond their theoretical average design life. Figure 32: AMIS (Assetfinda) Generated Renewals Forecast (10 Year)

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Optimised Renewal Plan In practice, renewals are based on asset criticality, condition, performance and affordability (budgets) rather than average design life alone. Based on the figure below WDC should allow for approximately $6m to renew water assets annually. Actual available annual budgets vary between $2.5m and $3.5m. The effects on LOS are minimised by prioritising the renewal of critical and poorly performing assets.

Figure 33 shows the optimised renewal plan (annual and cumulative) for the next 10 years. Where at the end of the 10 year period the cumulative renewal forecast is greater than the cumulative renewal plan this is due to incorporation of costed estimates of Waipa’s above ground assets’ renewal costs.

Figure 33: Optimised Renewal Plan (Required Funding )

6.5 Future Programme to Deliver Renewals

6.5.1. Projects to Deliver on Renewal The renewals projects planned for the next 10 years are listed below. Costs, timeframes, and priority are summarised in Table 48 ( Page 113), while fuller detail of the projects including objectives and benefits are covered in Appendix F1.

Table 47: New and Upgraded Services and Assets Projects – Renewal Driven Project Name Project Number Above Ground Asset Renewals and Maintenance - non-Treatment Plant PR2411 Water Treatment Plant Renewals PR2334 District Wide Water Main Renewals PR2209 Water Meters - New and Replacement PR1901 TA Water Contn and Meter Renewals PR2462 Cambridge Water Contn and Meter Renewals PR2467

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6.5.2. Resource Needs to Deliver on Renewals As the size of the network and the treatment plants, reservoirs, pump stations and other significant network assets increases, the number of staff and associated resourcing required to operate and maintain the service will also increase. The increase in staff and resources are not directly proportional to growth, and so regular assessment of the resourcing requirement will be required.

This was incorporated into the Water Services structure review in June 2020. Refer to Appendix G. for an outline of the previous and new structures.

6.5.3. Longer Term Renewal Requirements (Years 11+) The previous sub-sections have concentrated on the renewals over the next 10 years. However it is also necessary to look beyond that 10 year horizon in order to identify longer term needs, these will be highlighted within Council’s 30 Infrastructure Strategy.

Figure 34 provides an unsmoothed renewals forecast for the period 2031/32 onwards which may include assets which are still in service beyond their theoretical average design life. The spikes seen in the Renewal Requirements between 2032-2034 are a reflection of the installation dates of Waipa DC’s water supply reticulation, largely installed in the 1960s-1980s. Replacement of these assets based upon age alone within this actual period is unlikely due to affordability and construction market availability.

As noted above, actual renewals are based on asset criticality, condition, performance and affordability (budgets) rather than average design life alone. Council will assess these assets prior to the end of their design lives. The effects on LOS are minimised by prioritising the renewal of critical and poorly performing assets.

Figure 34: Renewals - Years 2031/32+

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6.6 Upgrading and Creating New Services and Assets This section covers the upgrading and creation of services and assets to increase service capacity to ensure predetermined levels of service can be met as demand changes and/or to meet changes in the desired LOS. Service Improvement can occur simultaneously with asset renewal.

6.6.1. Upgrades and New Services and Assets Historic Trends Increases in the areas of service are planned where required to support the growth cells identified in Waipa’s growth strategy. No increases in the services provided are planned.

Significant investment in upgrade has been required over the last 10 years to provide for new growth, as of 2021 much of the major Treatment Plant and Trunk Main Upgrades will have been completed, and costs will return to a more normal level.

6.6.2. Our Approach to Upgrades and New Services and Assets

How We Justify Upgrades and New Services and Assets Prior to upgrading and creating services and assets it is critical to ascertain that the issue(s) being addressed is genuine and significant enough to warrant action and that the proposed action is appropriate. The AM Policy sets out the steps to achieve this. These are implemented through the Business Case process:

Upgrades and New Services go through a rigorous gated planning process to determine the need of the asset or service consisting of; ▪ A Project Proposal which defines the objectives, benefits, future implications and need of that asset or service ▪ A Business Case demonstrating the project is feasible and clearly outlines the cost, risks and resources to deliver the need to upgrade or install an asset or service

If the desired asset or service is approved following these two processes, a Project Implementation Plan is created to define the scope, quality, time, budget, risk and benefits of the asset or service implementation.

How We Prioritise Upgrades and New Services and Assets Detail on Project Prioritisation can be found in Appendix F1.

Our Focus For Upgrades and New Services and Assets Creation & Acquisition objectives will be to:

▪ Fully facilitate and service growth ▪ Achieve and maintain compliance with Drinking Water standards ▪ Achieve and maintain compliance with Levels of Service ▪ Ensure legal and environmental obligations are achieved by effectively mitigating risks.

These objectives will be delivered through the design, acquisition and installation of required water infrastructure.

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6.7 New and Upgraded Services and Assets - Future Cost Requirements The costs of the planned upgrades and new services and assets over the next 10 years are shown in Figure 35 (Capex) and Figure 36 (Opex). Details of the projects and resourcing driving the costs shown in the chart below can be found in Section 6.8 and Table 48 (Page113).

Figure 35: New and Upgraded Services and Assets Required Funding (Capex)

Figure 36: New and Upgraded Services and Assets Required Funding (Opex)

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6.8 Project Programme to Deliver Solutions for the Water Supply

6.8.1. Project Programme to Deliver Solutions for Water Supply - Levels of Service Key level of service issues for WDC’s water supply network are: pressure, water quality security, water extraction and capacity for firefighting and storage. Proposed network improvements include: a strategic review of the three waters business; SCADA and telemetry upgrades to improve reliability in monitoring performance and compliance; drinking water compliance and plan updates; modelling and master plan updates; the installation of a bulk water station to service tanker customers; creation of water supply zones to improve monitoring and operation of supply; and pipeline upgrades to improve pressure to meet customer LOS and firefighting standards.

Proposed LOS improvements specific to the water treatment plants include: a study to understand current energy use and identify opportunities to increase efficiency; a study to review processes to optimise water production and to improve/prevent taste and odour issues at Te Tahi water treatment plant. WDC has investigated the origin of dirty water complaints in Kihikihi, which are believed to be linked to iron and manganese in the source water. Further improvements to address Kihikihi water supply quality issues will be carried out as part of above ground and WTP renewal projects and consider alternative options for provision of water supply to the area. These issues are currently monitored and addressed by flushing of bores and/or pipes.

6.8.2. Project Programme to Deliver Solutions for Water Supply - Growth (Demand) Drivers which influence water supply demand include customer expectations, population growth, changes in settlement patterns and demographics, legislation and environmental factors such as climate change.

Significant investment is proposed to upgrade existing reservoir condition and increase storage capacity across the district. This is due to proposed growth demand, recent changes in seismic design standards (following and Kaikoura earthquakes); and to provide sufficient firefighting supplies.

Network projects are proposed to service growth cells in Cambridge and Te Awamutu over the next 10 years. New trunkmains and upgrades are proposed to: provide additional capacity to Ohaupo township and to service Titanium Park area near the airport and to connect the Frontier Road area to the Pirongia Road area in Te Awamutu.

Water treatment capacity upgrades are proposed at Parallel Rd WTP (underway since 2019) and Alpha St WTP (from 2023) to meet future demand in Te Awamutu and Cambridge.

6.8.3. Project Programme to Deliver Solutions for Water Supply - Renewals Some of the LOS and growth projects mentioned above have a significant renewal component, e.g. proposed reservoirs upgrades across the district. Specific renewal projects are proposed over the next 10 years for all assets based on current performance and condition.

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6.8.4. Project Programme to Deliver Solutions for Water Supply Table 48 lists the proposed projects to maintain and improve the water supply service from 2021 to 2031. Refer to Appendix F1 for more details about the timing, cost allocation, objectives and expected benefits of each project. Some projects address multiple drivers (LOS, growth and renewals) and the risks associated with managing the service but the key project driver is identified in the first column of the table.

Table 48: Water Supply Projects (Growth, LOS and Renewal)

Project Capital Costs Operational Costs Capital Key Driver Project Name Priority Total Capital Total Operational Number Growth LoS Renewal Growth LoS Renewal Timeframe LOS - Strategic Review of 3 Waters Business High $0 $0 $0 $0 $300,000 $0 $0 $300,000 - LOS PR2419 Water SCADA & Telemetry Upgrade High $0 $860,200 $1,009,800 $0 $1,620,000 $0 $1,870,000 $1,620,000 21/22 - 23/24 LOS - Energy Efficiency on Pump Stations and Treatment Plants Study High $0 $0 $0 $0 $150,000 $0 $0 $150,000 - LOS PR2514 Drinking Water Supporting Plans (Review and Update) High $0 $0 $0 $0 $382,800 $0 $0 $382,800 - LOS PR1858 Drinking Water Compliance High $0 $0 $0 $0 $550,000 $0 $0 $550,000 - LOS PR2160 Te Tahi - Treatment Operation Optimisation Study High $0 $0 $0 $0 $60,000 $0 $0 $60,000 - LOS PR1496 Bulk Water Stations High $0 $155,000 $0 $0 $64,000 $0 $155,000 $64,000 21/22 - 22/23 LOS PR1500 District Wide Water Modelling and Masterplanning Updates High $0 $1,242,300 $0 $0 $375,000 $0 $1,242,300 $375,000 21/22 - 30/31 LOS PR1553 District Wide Water Zone Identification High $0 $792,300 $0 $0 $0 $0 $792,300 $0 21/22 - 24/25 LOS PR2024 Te Awamutu Fire & Water Level of Service Upgrades High $0 $665,084 $0 $0 $307,500 $0 $665,084 $307,500 21/22 - 23/24 LOS PR2028 Cambridge Fire & Water Level of Service Upgrades High $0 $3,510,987 $0 $0 $639,568 $0 $3,510,987 $639,568 21/22 - 24/25 LOS PR2048 Standby Generators for Treatment Plants High $0 $248,260 $0 $0 $0 $0 $248,260 $0 21/22 LOS PR2415 Pukerimu Water Supply - Upgrade Supply to Airport and Ohaupo High $0 $4,879,263 $0 $0 $110,500 $0 $4,879,263 $110,500 23/24 - 25/26 LOS PR2571 Pukerimu Water Supply - Feasability Study High $10,000 $90,000 $0 $0 $0 $0 $100,000 $0 22/23 LOS PR2572 Pukerimu Water Supply - Pipework Parallel Rd to Titanium High $996,792 $8,971,130 $0 $0 $0 $0 $9,967,922 $0 26/27 - 27/28

Growth PR2019 Cambridge North Water Provision High $156,250 $0 $0 $0 $2,502 $0 $156,250 $2,502 21/22 Growth PR2302 Cambridge Water Reticulation Growth - C2 & C3 High $3,675,000 $0 $0 $0 $8,500,000 $0 $3,675,000 $8,500,000 21/22 - 30/31 Growth PR2303 Cambridge Water Reticulation Growth - C1 High $2,099,624 $0 $0 $0 $54,167 $0 $2,099,624 $54,167 21/22 - 28/29 Growth PR2410 C10 (BIL) Water Reticulation Provision (2021 - 2026) High $1,472,500 $0 $0 $0 $148,334 $0 $1,472,500 $148,334 21/22 - 23/24 Cambridge North to Hautapu Pipeline and C8. C9 and Existing Growth PR2027 High $6,284,000 $0 $0 $0 $100,000 $0 $6,284,000 $100,000 21/22 - 25/26 Hautapu Industrial Area Growth Provision Growth - C4 Water Reticulation provision (2028) High $1,393,940 $0 $0 $87,500 $0 $0 $1,393,940 $87,500 24/25 - 25/26 T6 St Leger Water and Kihikihi Provisions for Growth, LOS and Growth PR2271 High $4,061,356 $778,890 $723,255 $0 $17,500 $0 $5,563,502 $17,500 23/24 - 30/31 Renewals Te Awamutu CBD Rising Mains - (New Pipe for LOS and Growth) Growth PR2546 High $1,993,353 $1,993,353 $0 $0 $0 $0 $3,986,706 $0 21/22 - 23/24 (2021) Growth - Cambridge Growth Cell Facilitation Works - Water Provision (2021) High $5,871,357 $0 $374,767 $0 $32,000 $0 $6,246,124 $32,000 21/22 - 25/26 Fairview Road Water Main - (Capacity Increase for Renewal and Growth PR2532 High $0 $1,280,526 $602,600 $0 $18,000 $0 $1,883,126 $18,000 21/22 - 23/24 LOS) (2021) Growth PR2547 New Reservoir Renewals and Capacity Upgrades High $8,920,000 $0 $35,680,000 $120,000 $0 $480,000 $44,600,000 $600,000 21/22 - 30/31 Growth PR2020 Alpha Street Water Treatment Plant Renewal & Capacity Upgrade High $3,450,000 $3,450,000 $0 $63,500 $12,700 $1,193,800 $6,900,000 $1,270,000 23/24 - 26/27 Growth - Parallel Road Water Treatment Plant Upgrade High $1,255,500 $94,500 $0 $100,000 $400,000 $0 $1,350,000 $500,000 26/27 - 27/28 Growth PR2109 Frontier Rd to Taylors Hill Trunk Main High $1,044,732 $1,044,732 $0 $0 $90,000 $0 $2,089,464 $90,000 21/22 Rising Main from Frontier Road to Pirongia Road (Capacity Increase Growth - High $1,813,687 $1,813,687 $0 $0 $18,000 $0 $3,627,374 $18,000 22/23 - 23/24 for LOS and Growth)

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Project Capital Costs Operational Costs Capital Key Driver Project Name Priority Total Capital Total Operational Number Growth LoS Renewal Growth LoS Renewal Timeframe Above Ground Asset Renewals and Maintenance - non-Treatment Renewals PR2411 High $0 $0 $661,400 $0 $0 $123,000 $661,400 $123,000 21/22 - 30/31 Plant Renewals PR2334 Water Treatment Plant Renewals High $0 $0 $1,250,000 $0 $0 $125,000 $1,250,000 $125,000 21/22 - 30/31 Renewals PR2209 District Wide Water Main Renewals High $0 $0 $36,211,619 $0 $0 $1,000,000 $36,211,619 $1,000,000 21/22 - 30/31 Renewals PR1901 Water Meters - New and Replacement High $0 $0 $465,000 $0 $0 $40,000 $465,000 $40,000 21/22 - 30/31 Renewals PR2462 TA Water Contn and Meter Renewals High $0 $0 $1,500,000 $0 $0 $0 $1,500,000 $0 21/22 - 30/31 Renewals PR2467 Cambridge Water Contn and Meter Renewals High $0 $0 $1,500,000 $0 $0 $0 $1,500,000 $0 21/22 - 30/31

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6.9 Longer Term Projects - Years 11+ Figure 37 shows the significant investment Waipa DC will need to fund water supply beyond the Long Term Plan’s 10-year planning horizon. The spike in the first 5 years is largely a result of growth projections within the district and the infrastructure required to support that growth and maintain current levels of service.

Figure 37: Significant Costs Years 11+

6.10 Stopping Services and Disposing of Assets

6.10.1. Stopping Services No services are being reduced or stopped during the period of this AMP.

6.10.2. Disposing of Assets Disposal recognises that there are activities and costs associated with the disposal of assets which have reached the end of their useful life. In some situations a residual value exists for the asset and revenue can result from that assets disposal.

Assets are generally identified for disposal as a result of upgrade or renewal of existing assets. As part of the “as built” recognition / capitalisation process any surplus / redundant assets are identified and removed from the asset database and any residual costs adjusted in the financial system.

There are no plans to dispose or cease to maintain any significant portions of the water supply network. Some sections of pipe may become redundant during renewal or upgrade works. In this cases the asset will be either abandoned in situ or dug up and removed.

WDC is in the process of supplying the Hicks Road water supply scheme via the newly upgraded Karāpiro Water Treatment Plant. WDC will seek to transfer the water allocation at Hicks Springs to the Karāpiro water supply take.

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7 Financial Summary

This section contains the financial requirements to deliver on the asset and service programmes identified within this plan, along with other key financial information.

7.1 Financial Requirements – What We Need

7.1.1. Funding Requirements – Summary A summary of the Capex and Opex funding identified as being required is shown in Figure 38. This covers all the costs identified as being required to operate the service previously to the desired service levels. Figure 38: Required Funding – Summary

Planned capital expenditure is projected to increase due to upcoming WTP upgrades, extension of the network to service development areas and additional expenditure on reservoir upgrades to improve water security and resilience. Operational expenditure is project to increase with upgraded and new infrastructure.

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7.1.2. Opex Funding Requirements The Opex funding required, split by driver is shown in Figure 39.

Figure 39: Required Opex Funding – Split By Driver

The required funding for Opex is projected to increase largely due to increased resourcing and compliance requirements and network length and additional infrastructure associated with growth.

7.1.3. Capex Funding Requirements The Capex funding required, split by driver is shown in Figure 40.

Figure 40: Required Funding - Capex

Renewals proposed are a mix of network replacements and inputs from recently carried out structural and condition assessments of reservoirs. These assessments have shown that considerable investment is required to replace and improve resilience in WDC’s bulk water storage.

Proposed LOS expenditure are part of capital upgrades to treatment plants, networks and reservoirs, particularly the Pukerimu supply (Ohaupo and airport) and upgrades in Cambridge and Te Awamutu to meet firefighting LOS. These costs are reflected in the peaks shown from 2023-2025.

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7.2 Funding Strategy Assets are capitalised in both Assetfinda and Finance1 databases. The two databases can be reconciled where necessary to ensure the databases match.

Finance1 have a capitalisation cut off value of $500 (meaning no assets less than $500 will be added to Finance1). Assetfinda does not have such a value – all assets are captured.

The funding is either rates funded or loan funded.

The operational and capital expenditure is forecast at the beginning of the year and tracked against the forecast. Monthly reviews of the forecasts are undertaken to ensure they remain current, applicable and to highlight any anomalies.

The figures in this section show several peaks and troughs in terms of financial expenditure. In reality these peaks and troughs will be smoothed out as much as possible by either moving projects forward or back in the work programme to ensure an even spend over time.

7.3 Assumptions Behind Financial Forecasts The key assumptions and the associated risks relating to the financial forecasts are detailed in Table 49. These are taken from the Assumptions section of the LTP document.

Table 49: Key Assumptions and Related Risks Assumption Risk Price level changes increase significantly from those used in preparing the work programmes The cost of future projects included in this and associated budgets. Higher costs could result plan will be consistent with the Business and in additional funding being required to maintain Inflation Rates Economic Research Limited (BERL) ‘mid- the existing levels of service. Higher costs relating scenario’ projections for the local to capital expenditure could result in higher debt government sector. levels and increased operating costs from interest expense leading to increases in rates. Interest rates will increase significantly from the rates used in preparing this plan which would Interest rates will track in line with the increase costs for Council. This could have an Interest Rates projections prepared by our financial impact on rates increases, future borrowing advisors. requirements, and on our ability to deliver the agreed work programmes. Our land and buildings will be revalued If actual valuations are different to that every three years, our roads and three predicted, we will need to reflect this in our waters will be revalued every second year, Statement of Financial Position. There will be and investment properties will be revalued Asset Costs impact on the level of depreciation in the annually and the valuations will be Statement of Comprehensive Revenue and consistent with the Business and Economic Expense and funding through rates and user fees Research Limited inflated values outlined in and charges. our Inflation assumption

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Assumption Risk Actual asset lives are shorter than expected resulting in unbudgeted remedial maintenance costs and/or earlier than expected asset renewal. The useful lives of assets are revised as part A service failure may also occur if the asset of the cyclical revaluation process for each unexpectedly fails. Early renewal of assets will Asset Lives asset class where infrastructure assets are also result in a shortfall in the depreciation normally revalued two yearly and buildings funded to “replace” the asset. every three years. Actual asset lives may be longer than expected. This could result in funding of unnecessary renewal budgets. Growth projection data is based on the 2016 projections for all the territorial authorities If future growth varies significantly from our of the Waikato by the National Institute of assumptions, our ability to fund and deliver the Demographic and Economic Analysis agreed work programmes in a timely manner is (NIDEA) of the University of Waikato (UoW), likely to be seriously affected. Should actual which were also used for the 2018-28 Long growth be less than forecast, a risk is we build Growth & Term Plan. Waipa District Council is infrastructure without being able to recover costs Demand continuing to use the ‘medium’ projection quickly via Development Contribution revenue. (rather than low or high) as the best fit Should growth be higher than expected, there is projection to accommodate the short term both a construction inflation risk and a risk that ups and downs of the property development we will struggle to procure resource to deliver cycle, and to help take into account some of against demand.. the unknown future effects of the Covid-19 pandemic. No significant emergency events (natural disasters) affecting our district will occur during the period of this plan, that cannot be funded out of the budgetary provisions No significant or met by insurance arrangements. That A significant emergency event occurs during the emergency 60% of the costs associated with damage to period which Council cannot afford to fund event Council’s underground infrastructure assets within the current budgets from a significant emergency event, will be provided by the Government for the portion of the cost of damage in excess of $10 million. That Council will be able to maintain its level of service during a global crisis or pandemic, with sufficient systems and procedures in The effect of a crisis or pandemic on the council Global crisis or place to ensure business continuity, and that will be greater than assumed, and levels of pandemic Council will be able to adequately resource service will be significantly affected. and support any Emergency Management response in the event of a global crisis or pandemic.

For details of the inflation and interest rates see Appendix H1 and Appendix H2.

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7.4 Financial Forecasts Confidence The confidence levels in the Financial Forecasts are shown in Table 50. The Confidence Grades have been assessed using the IIMM 2015 grading systems (see Appendix H3 for details). The overall data confidence level is ‘B’ or reliable.

Table 50: Financial Forecast Confidence Level % Total Confidence Activity Justification Budget Grade Needs Based on well-established work history and costs Opex B with costs established from well-defined 24.8% contracts Projected from age based assessment and local Renewals B knowledge, supported from some condition 33.5% assessment of assets approaching renewal Capital LOS B 23.0% Expenditure Capital Expenditure relating to growth has been Growth B well established with clear links to Growth 18.7% Strategy Documents Overall B -

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 8 AM Improvement

8 AM Improvement

This section summarises the level of current and desired Activity Management (AM) practices along with a programme to deliver and monitor improvements.

8.1 AM Maturity A maturity assessment system was developed by the DIA based on the IIMM 201529 to help organisations understand current practices and the gap to desired practices.

For assessment of AM maturity each AM activity area is individually assessed, Table 51 lists the AM activity areas. A score (from 0 to 100) is given for each asset management area based on the current status, that score is then used to determine the maturity rating as per Diagram 3. Scores are typically discussed and agreed at onsite workshops with the independent assessors and require rationale and evidence to support them.

Table 51: Asset Management Maturity - AM Activity Areas AM Activity Area AM Policy Development Level of Service & Performance Management Understanding Requirements Demand Forecasting Asset Register Data Asset Condition Decision Making Risk Management Lifecycle Planning Operational Planning Capital Works Planning Financial and Funding Strategies AM Teams AM Plans Management Systems AM Enablers Information Systems Service Delivery Mechanisms Improvement Planning

Diagram 3: Asset Management Maturity Index Scoring

Aware Basic Core Intermediate Advanced

0-20 21-40 41-60 61-80 81-100

29 International Infrastructure Management Manual 2015, Table 2.1.2, Page 2/7

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8.1.1. Our AM Maturity The level to which WDC aims to operate its Asset Management System and undertakes AM activities is specified in Council’s Asset Management Policy.

For Water Treatment & Supply the desired level is set at Intermediate overall. It is acknowledged that within an activity area the appropriate AM practices may differ between both asset groups and AM area; a lower or higher AM approach being more appropriate depending on that asset groups risk level and value. The desired levels are shown along with that currently being achieved30 in Figure 41. Figure 41: AM Maturity Levels – Desired and Achieved

30 The AM level currently being achieved has been taken from the Tonkin & Taylor report Asset Management Gap Analysis and Improvement Projects (ECM 7375504).

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8.2 Improvements We Achieved Table 52 summarises the improvement items identified in the 2018 AMP and notes progress to date against those improvements.

Table 52: Summary of Previous Improvement Items and Progress to Date Improvement Original Carry AM Activity Area Previous Improvement Item Progress to date Type31 Timeframe Forward? Limited asset condition available for most asset groups resulting in Remaining Improvement Some Improvements Ongoing Yes Lives calculations and renewal profiling that have lower confidence levels. BAU made Improvement Some Improvements Inadequate condition data for Treatment Plant assets Ongoing Yes Project made Improvement Some Improvements Inadequate condition data for Reservoir assets Ongoing Yes Understanding BAU made Requirements Improvement Some Improvements Pipe bridge audit required to improve data confidence 2018-2020 Yes Project made Improvement Some Improvements Pipe Bridge Condition data required Ongoing Yes BAU made Improvement Some Improvements Hydrant condition data required Ongoing Yes BAU made Improvement Lifecycle Planning There is no Business Continuity Plan specific to Water Supply 2018-2020 No Progress Yes Project AM Enablers Review of Procurement Strategy BAU 2019/20 Completed No

31 See 8.4.3 for explanation of improvement types.

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8.3 Asset Management Planning Review – KPMG Audit In late 2019, KPMG carried out an internal audit of Council’s asset management planning frameworks and systems. Overall WDC was rated as “Developing”. While the review found some good practices and a genuine desire for improvement in each activity area assessed, overall they assessed that WDC’s asset management planning is limited by:

▪ an ineffective approach to governance ▪ persistent resource shortages and staff churn ▪ an absence of a documented asset management framework ▪ teams operating varied approaches of differing efficiency and effectiveness, and generating different outcomes.

A number of actions were suggested to improve asset management and better embed it into WDC’s activities. These include executive group leadership, a single point of accountability and a documented asset management framework and system.

To address the report’s findings an Activity Management Planning: Organisational Improvement Project Control Group (PCG) has been established. The intention is that this PCG will demonstrate leadership, formulate vision, and champion the development, implementation, and continuous improvement of a formalised activity management framework across the organisation. That framework will support clear governance and a consistent approach to activity management planning to maximise efficiency, effectiveness, consistency, and sustainability of outcomes. As addressing these shortfalls will be done at a corporate level further details such as any projects and costs are not covered within the individual AMPs.

8.4 Our Improvement Programme

8.4.1. Identifying Our Improvement Needs Improvement needs are identified in several ways. These are detailed below: ▪ Staff knowledge of and feedback on AM issues ▪ Issues arising from the AMP peer review32 ▪ Improvement projects identified by Tonkin & Taylor Ltd33 to reduce the gap between current and desired AM practices.

8.4.2. Prioritising Our Improvement Needs Identified improvements have been given one of three prioritisation rankings (High, Medium or Low); the prioritisation takes into account the merits of each item in relation to: ▪ Addressing the largest gaps in AM planning first ▪ Level of risk associated with the issue the project is intended to address ▪ Degree to which efficiencies can be gained through undertaking complimentary improvement projects at the same time; both within this service area and across service units where similar improvements are required ▪ Projects which represented ‘low hanging fruit’

32 Tonkin & Taylor (2020), Review of Draft Asset Management Plans (ECM 10363132) 33 Tonkin & Taylor (2017), Asset Management Gap Analysis and Improvement Projects (ECM 7375504).

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8.4.3. Approach to Delivering Improvements The improvement items are split into 2 response types: ▪ Improvement – BAU o The action will be delivered through a through a BAU change ▪ Improvement – Project o The action will be delivered through a specific improvement project

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8.4.4. Future Programme of Improvements Table 53 details the actions proposed for improving the accuracy and confidence of the services AM.

Table 53: Proposed Improvement Programme Maturity Improvement Additional Improvement Item Priority36 Timeframe Category34 Type35 Costs - Opex Develop an AM skills matrix and a training programme to close gaps for Improvement BAU AM Teams High 2021/22 To be scoped field staff to unit manager. District Wide Leak and Condition Investigation: To enable the programmed Improvement Project Medium Ongoing $1,707,630 renewals plan to be scheduled Condition Assessment and Maintenance of Exposed pipes on Bridge Improvement BAU Asset High 2021/22 To be scoped Structures Condition Improvement BAU Within Implement condition assessment schedule: Expected to include inspection Medium 2021/22 existing of structures, plant assets, and more proactive inspection of critical pipes budgets Improvement BAU Within Develop the use of asset maintenance sheets (or works orders) for all High 2023/24 existing Asset Register actions impacting asset data budgets Data Undertake formal criticality assessment of treatment plant assets Improvement BAU High 2023/24 To be scoped Develop forward works coordination in the road corridor to avoid wasted Improvement BAU Capital Works money and damage to reputation from poorly timed works on the same Low 2025/26 To be scoped Planning section of road. District wide water modelling and master planning updates and Improvement Project maintenance: To inform the scope and timing of infrastructure required to High Ongoing $1,617,300 Decision manage growth, LOS and renewals Making Improvement BAU Within Optimise planned maintenance programmes Medium 2023/24 existing budgets

34 See Table 51 for further detail on maturity category 35 See 8.4.3 for explanation of improvement types. 36 See 8.4.2 for explanation of priorities

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Maturity Improvement Additional Improvement Item Priority36 Timeframe Category34 Type35 Costs - Opex Renewals Strategy Improvement BAU Medium 2022/23 To be scoped Demand Improvement BAU 2021/22 to Demand Management Plan/Data Improvements High To be scoped Forecasting 2022/23 District Wide Water Zone Identification for the district's water supplies (in Improvement Project 2021/22 to High $792,300 Level of line with district wide water supply strategy) 2024/25 Service & Performance Update Water and Sanitary Services Assessment (WASSA): Review of public Improvement Project To be scoped, Management health issues for water services and non-reticulated systems as part of High 2022/23 Council-wide wider WASSA update document Te Tahi - Treatment Operation Optimisation Study: To optimise the existing Improvement Project High 2021/22 $60,000 plant post resource consent reduced flow Changes to processes i.e. Resource consent condition, SCADA process Improvement BAU High Ongoing Unknown Operations Depot Upgrade investigation: Assess existing arrangements and Improvement BAU Medium 2021/22 To be scoped alternative options for future location of depot Energy Efficiency on Pump Stations and Treatment Plants Study: Energy Improvement Project efficiency review and carbon base lining of treatment plants and major High 2021/22 $150,000 pump stations Improvement BAU Within Develop ability to differentiate operational reactive and proactive Operational Medium 2022/23 existing maintenance. Planning budgets Develop planned maintenance programmes: Develop reticulation Improvement BAU Within maintenance schedules and document treatment plant maintenance, Medium 2021/22 existing including how activities are scheduled (WaterOutlook or AssetFinda). budgets Improvement BAU Within Document critical processes High 2022/23 existing budgets Improvement BAU Within Document non-critical processes Medium 2027/28 existing budgets Risk Improvement Project Drinking Water Supporting Plans (Review and Update) High Ongoing $382,800 Management

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Maturity Improvement Additional Improvement Item Priority36 Timeframe Category34 Type35 Costs - Opex Create Procurement Strategy: Supplier Agreements - Preferred panel of Improvement BAU Medium 2022/23 To be scoped contractor and supplier Third Party Agreements: Put in place process and formalised agreements Improvement Project Medium Ongoing To be scoped New statutory requirements, plans and policies: Ensure regular Improvement BAU Within involvement and awareness of regulatory/statutory forums so that any High Ongoing existing updates are effectively planned for budgets Develop business continuity plans for water services Improvement BAU High 2021/22 To be scoped Improvement BAU Within Improve relationship with lifelines group: Assess current level of Medium 2021/22 existing engagement and put actions in place to address any shortcomings. budgets

8.4.5. Monitoring and Review An Improvement Programme progress update will be provided to the Activity Management Planning – Organisational Improvement PCG at a frequency to be decided. This will be the responsibility of the Strategic Planning and Asset Team Leader. Each improvement project or initiative will have a role responsible assigned with target dates for completion, budgetary and resource requirements.

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Impact of LTP Funding Provision

Water Treatment & Supply Activity Management Plan 2021

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 9 Impact of LTP Funding Provision

9 Impact of LTP Funding Provision

This section summarises the level of funding allocated to the service in the LTP and, where that is less than desired the impact of that upon the service.

9.1 LTP Financial Landscape

One of the challenges in the development of the 2021-31 LTP has been ensuring affordability. The following factors are driving the challenges around affordability:

▪ Significant forecast decline in non-rates revenue due to the impacts of COVID-19. ▪ Increased risk of reduced growth with consequential reduction in growth related revenue. ▪ Due to COVID-19 experts are forecasting significant negative economic and social impacts on the communities of Waipa with years 1 to 3 of the LTP likely to be when we experience the most significant impacts of the economic recession. Given this we need to keep rates as low as possible in Years 1 to 3. ▪ There are new regulatory compliance standards that have imposed significant additional costs on Council. ▪ The district has experienced significant growth, much higher than that forecast in the 2018-28 LTP. Consequently growth spend in 20/21 has been much higher than planned which has exacerbating Council’s debt to revenue issue.

Early financial modelling for the 2021-31 LTP indicated a capital works programme that would: ▪ Push debt to unaffordable levels. ▪ Raise Council’s debt to revenue ratio significantly above Waipa District Council’s approved level, and indeed above what are considered to be acceptable levels. ▪ Generate high levels of rate increases.

To address these issues Council has taken the following actions: ▪ Review of Council’s debt to revenue ratio with a proposed increase to 250% to accommodate a rational capital works programme whilst staying within prudent limits. ▪ Review of the proposed capital works across all activity areas with a particular focus on: o High costs projects o Discretionary projects o Reviewing the timing of projects

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9.2 Required Funding and LTP Funding Provision Comparison

The following pair of charts (Figure 42 and Figure 43) show the required Opex and Capex funding (as identified in the main body of this document) alongside the funding allocated to the service in the 2021 LTP.

Figure 42: Required Funding and LTP Budgeted Funding – Opex

The chart above comprises business as usual opex, operational projects and operational costs associated with capex. Opex budgets have been reduced resulting in a gap between the funding required and budgeted. There is an increased risk that existing levels of service will not be met. A component of the opex budget reduction is the removal of the operational costs associated with capital. Should growth cells not funded in the Long Term Plan be progressed privately, Council will need to increase opex budgets to allow for operating and maintaining the infrastructure when it is vested to Council.

Figure 43: Required Funding and LTP Budgeted Funding - Capex

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The chart shows overall that there is a gap between the funding required and the budgeted LTP funding. A reduction in capital budget has been acknowledged, meaning there is greater risk that the projects will cost more than currently budgeted for. Large differentials between the funding required and capital funding budgeted in 2022-2026 are growth cells, where infrastructure has not been funded through the LTP. There has also been an overall 40% reduction in capital renewal investment.

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 9 Impact of LTP Funding Provision 9.3 Projects – Reduced Funding and/or Delayed Projects funded within the 10 year window of the 2021 LTP but which have been funded at a reduced level to that requested and /or have been delayed are listed in Table 54. The table also provides commentary on the impact on the service, including any increase in risks, associated with the reduced funding and/or delay. Table 54: Reduced Funding and/or Delayed

Project Required Funding 2021 LTP Funding % Timing Project Name Impact On Service Number (Capex & Opex) (Capex & Opex) Decrease Delay

PR2419 Water SCADA & Telemetry Upgrade $3,490,000 $2,680,000 23% - These projects have been funded via the central government water reform economic Drinking Water Supporting Plans (Review and Delayed stimulus funding over the period November PR2514 $382,800 $221,100 42% Update) 3 Yrs 2020 – March 2022. After this period, Waipa will continue to fund these projects as per Delayed PR1858 Drinking Water Compliance $550,000 $375,000 32% the Long Term Plan. 1 Yrs PR1553 District Wide Water Zone Identification $792,300 $633,840 20% - PR2024 Te Awamutu Fire & Water Level of Service Upgrades $972,584 $892,419 8% - PR2028 Cambridge Fire & Water Level of Service Upgrades $4,150,555 $3,626,289 13% - Pukerimu Water Supply - Upgrade Supply to Airport The capital expenditure budget has been PR2415 $4,989,763 $4,013,911 20% - and Ohaupo reduced from what was included in the Master Plan by accepting a wider range of PR2571 Pukerimu Water Supply - Feasibility Study $100,000 $80,000 20% - uncertainty around project costs. This means Pukerimu Water Supply - Pipework Parallel Rd to PR2572 $9,967,922 $7,974,338 20% - there is a greater risk of projects costing Titanium more than budgeted. If this was to occur, PR2019 Cambridge North Water Provision $158,752 $125,000 21% - then the projects will need to be reprioritised to fit within the overall programme budget. PR2302 Cambridge Water Reticulation Growth - C2 & C3 $12,175,000 $1,968,500 84% - That means some capital projects may be PR2303 Cambridge Water Reticulation Growth - C1 $2,153,791 $763,334 65% - delayed, rescoped or additional capital PR2410 C10 (BIL) Water Reticulation Provision (2021 - 2026) $1,620,834 $768,334 53% - expenditure budget allocated via the Annual Plan process. Cambridge North to Hautapu Pipeline and C8. C9 and PR2027 $6,384,000 $5,127,200 20% - Existing Hautapu Industrial Area Growth Provision Te Awamutu CBD Rising Mains - (New Pipe for LOS PR2546 $3,986,706 $3,207,365 20% - and Growth) (2021)

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 9 Impact of LTP Funding Provision

Project Required Funding 2021 LTP Funding % Timing Project Name Impact On Service Number (Capex & Opex) (Capex & Opex) Decrease Delay Fairview Road Water Main - (Capacity Increase for PR2532 $1,901,126 $1,515,501 20% - Renewal and LOS) (2021) Alpha Street Water Treatment Plant Renewal & Delayed PR2020 $8,170,000 $6,760,000 17% Capacity Upgrade 6 Yrs The 2021 AMPs indicated that $144m would be required to provide for planned renewals PR2547 New Reservoir Renewals and Capacity Upgrades $45,200,000 $28,194,031 38% - of three waters services over the next 10 years. Following a review, with affordability and risk appetite in mind, the proposed budget was reduced by more than 40% to $85m. Although this is less than what was Above Ground Asset Renewals and Maintenance - included in the AMP it is still more than what PR2411 $784,400 $381,600 51% - non-Treatment Plant was budgeted in the last LTP. Council will implement a more targeted approach to renewals which will prioritise activity based on asset criticality, condition, performance and affordability (budgets) PR2334 Water Treatment Plant Renewals $1,375,000 $1,006,400 27% - rather than average design life alone. The effects on LoS are minimised by prioritising the renewal of critical and poorly performing assets. The targeting of renewals does mean Council PR2209 District Wide Water Main Renewals $37,211,619 $26,238,603 29% - is accepting more risk that failures may occur. However, this risk is somewhat mitigated by the relatively young age of the overall infrastructure, Council’s programme of monitoring asset condition and the likely time before the increased LoS in response to PR1901 Water Meters - New and Replacement $505,000 $404,310 20% - climate change will be necessary. The costs of the renewals are not being avoided but deferred until they are necessary.

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 9 Impact of LTP Funding Provision 9.4 Projects - Unfunded Proposed projects which have not been funded at all within the 10 year window of the 2021 LTP are identified in Table 55. The table also provides commentary on the impact on the service, including any increase in risks, associated with the reduction in funding for the projects.

Table 55: Projects – Unfunded

Project Required Funding Project Name Impact On Service Number (Capex & Opex) - Strategic Review of 3 Waters Business $300,000 The studies which remain unfunded as part of the Long Term Plan will allow us time Energy Efficiency on Pump Stations and Treatment Plants - $150,000 to align ourselves with central government priorities and obtain further information Study for these projects. PR2160 Te Tahi - Treatment Operation Optimisation Study $60,000 There is a health and safety issue at the existing bulk water station in Te Awamutu PR1496 Bulk Water Stations $219,000 that will not be addressed. Council will continue to monitor the situation and if required, request funding through the Annual Plan. - C4 Water Reticulation provision (2028) $1,481,440 T6 St Leger Water and Kihikihi Provisions for Growth, LOS and As the Long Term Plan does not provide funding for water infrastructure within PR2271 $5,581,002 Renewals these growth cells, the cost of this will have to be met by developers if and when Cambridge Growth Cell Facilitation Works - Water Provision the growth cell progresses within the next 10 years. - $6,278,124 (2021) Council has invested significantly in Parallel Road WTP, with an increased scope to - Parallel Road Water Treatment Plant Upgrade $1,850,000 allow for future growth in the upgrade in 2020/21. This will mitigate the risk to the service (originally proposed for year 7 of the LTP). There is an increased risk to existing levels of service in urban areas of Te Awamutu PR2109 Frontier Rd to Taylors Hill Trunk Main $2,179,464 associated with this project not being funded. Rising Main from Frontier Road to Pirongia Road (Capacity Existing pressure issues targeted to be resolved will remain and growth may - $3,645,374 Increase for LOS and Growth) exacerbate these further.

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021

Appendices

Water Treatment & Supply Activity Management Plan 2021

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Appendices

Appendix A - Planning & Regulatory Framework: Supporting Information ...... 138 Appendix B – Levels of Service: Supporting Information ...... 140 B1 Our Past Performance – Performance Measures Results ...... 140 B2 Benchmarking With Comparable Councils ...... 143 B3 Establishing Our Future Levels of Service ...... 147 B4 Choosing Performance Measures ...... 148 B5 Technical Performance Measures and Future Targets ...... 150 B6 Three Waters Masterplan - Proposed Future Changes to Performance Measures – Review of Existing Measures ...... 151 Appendix C – Managing Demand: Supporting Information ...... 153 C1 Population Growth Projections by Area (2013-base projections) ...... 153 C2 Population Projections – Refinement for Three Waters Master Plan ...... 154 C3 Waipa District Water Management Plan – Executive Summary ...... 155 C4 Water Restriction Alert Levels ...... 158 Appendix D – The Assets We Own: Supporting Information ...... 159 D1 Water Supply Schematics - Cambridge and Pukerimu Historic ...... 159 D2 Asset Data Reliability Confidence Grades ...... 160 D3 Asset Criticality ...... 161 D4 Asset Condition ...... 165 D5 Waipa DC’s Asset Management Information System ...... 166 Appendix E – Risk Management: Supporting Information ...... 167 E1 Risk Register Guidance ...... 167 E2 Risk Register ...... 171 Appendix F – Managing Our Services & Assets: Supporting Information ...... 181 F1 Total Project Programme 2021 – 2031 ...... 181 F2 Projects – Business Case References ...... 187 Appendix G – Resourcing Requirements: Supporting Information ...... 189 G1 Resourcing Requirements ...... 189 Appendix H – Financial Summary: Supporting Information ...... 191 H1 Inflation Rates ...... 191 H2 Interest Rates ...... 191 H3 Forecast Reliability Confidence Grades ...... 192

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix A - Planning & Regulatory Framework: Supporting Information

Appendix A - Planning & Regulatory Framework: Supporting Information

A1 Local Government Act – Local Government Role The Local Government Act and its relevance to the Wastewater Treatment and Disposal Service and the need for good activity/asset planning are detailed below:

The purpose of local government as defined in Part 2 of the LGA is as follows:

10 Purpose of local government (1) The purpose of local government is— (a) to enable democratic local decision-making and action by, and on behalf of, communities; and (b) to promote the social, economic, environmental, and cultural well-being of communities in the present and for the future.

Therefore Council is required to ensure that all infrastructure and services are delivered in a way that promotes social, economic, environmental, and cultural well-being for both current and future users.

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A2 Legislative Requirements – Water Treatment & Supply Specific

Table 56: Water Treatment and Supply Specific Legislation Legislation Impact Upon Council Activity Local Government Act 2002 - Water and Sanitary Assessment Requires local authorities to assess water and other sanitary services. (Sect 125) Aims to protect public health by improving the quality of drinking-water Health Act 1956 provided to communities. The amendments to the Health Act put a greater duty of care on Councils and increase the duty of care to ensure the provision of wholesome water. The main points that will impact on levels of service are: ▪ 69S – Duty of suppliers in relation to provision of DW ▪ 69T – Duties where risk to water is actual or foreseeable ▪ 69U – Duty to take reasonable steps to contribute to protection Health (Drinking Water) of source DW Amendment Act 2007 ▪ 69V – Duty to take all practicable steps to comply with DW Standards ▪ 69W – Duty to take reasonable steps to supply wholesome DW ▪ 69X – Duties in relation to new water sources ▪ 69Y – Duty to monitor DW ▪ 69Z – Duty to prepare and implement a public health risk management plan. National Policy Statement for Councils and their communities are required to set freshwater objectives and Freshwater Management water quality and quantity limits in their regional plans. National Environmental Requirement to improve drinking water management by ensuring that Standards: Sources of Drinking catchments are included in the management of drinking water. Water Drinking Water Standard for This makes it a requirement to take all practicable steps to comply with DW New Zealand 2005: revised in Standards plus a large number of related responsibilities. 2008 SNZ – PAS 4509:2008 New This code of practice allows the territorial authorities to establish the quantity Zealand Fire Service Firefighting of water required for firefighting purposes. Water Supplies Code of Practice Waikato Regional Policy These provide an overview of resource management issues in the Waikato Statement and Waikato Regional region and impact upon the water take consents. Plan

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix B – Levels of Service

Appendix B – Levels of Service: Supporting Information

B1 Our Past Performance – Performance Measures Results

Table 57: Water Supply Prior Years’ Performance Results Results for The Service We Provide (LOS) How we measure success 2019/20 2017/18 2018/19 2019/20 Target Alpha Street C C C C Frontier Road C C C C Water Treatment Plants Karapiro C C C C – compliance with bacteriological criteria Parallel Road C C C C Rolleston Street C C C C Te Tahi C C C C Alpha Street C C C C The extent to which the The community is provided with local authority’s drinking Frontier Road C C C C safe and wholesome drinking water supply complies Water Treatment Plants Karapiro C C C C water within specified areas in a with the drinking-water – compliance with way that is most cost-effective Parallel Road C C C C standards. 37 protozoal criteria Rolleston Street C C C C Te Tahi C NC C C Cambridge C C C NC Kihikihi C C NC C Network zones – Maungatautari C C compliance Ohaupo C C C C Pirongia C C C C

37 Full wording of mandatory measure is: The extent to which the local authority’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 (protozoal compliance criteria).

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Results for The Service We Provide (LOS) How we measure success 2019/20 2017/18 2018/19 2019/20 Target Pukerimu Rural C C C NC Te Awamutu C C C NC Attendance for urgent call-out from the time of 2 hours 0.37 0.38 0.60 notification. (hours)39 Median response time Resolution of urgent call-outs from the time of 6 hours 1.5 1.35 1.72 for call-outs in response notification (hours).40 to a fault or unplanned The community is provided with interruption to the Attendance for non-urgent call-outs from the time of 41 2 days 0.95 0.91 0.74 safe and wholesome drinking network.38 notification (days) water within specified areas in a Resolution of non-urgent call-outs from the time of 10 days 1.03 1.00 0.80 way that is most cost-effective notification (days)42 The total number of complaints received about any of the following: Drinking water clarity, taste, odour, pressure or flow, continuity of supply, and the 20 9.4 8.2 7.85 response to any of these issues43 Provide water suitable for domestic use, and to have at least 20m of head available in urban areas. Pressure refers to the minimum water pressure the 7.85 customer can expect at the boundary of the property. Cambridge & Karapiro <12% 14% 17% 4% The percentage of real The supply and demand are water loss from the Te Awamutu & Pirongia <12% 6% 12% 10% managed to ensure prudent use networked reticulation of water Kihikihi <20% 14% 26% 15% system.44 Ohaupo & Pukerimu <20% 9% 20% 19%

38 Full wording of mandatory measure is: Where the local authority attends a call-out in response to a fault or unplanned interruption to its networked reticulation system, the following median response time measured. 39 Full wording of mandatory measure is: Attendance for urgent call-outs: from the time the local authority receives notification to the time that service personnel reach the site. 40 Full wording of mandatory measure is: Resolution of urgent call-outs: from the time the local authority receives notification to the time service personnel confirm resolution of the fault or interruption. 41 Full wording of mandatory measure is: Attendance for non-urgent call-outs: from the time the local authority receives notification to the time that service personnel reach the site. 42 Full wording of mandatory measure is: Resolution of non-urgent call-outs: from the time the local authority receives notification to the time service personnel confirm resolution of the fault or interruption. 43 Full wording of the mandatory measure is: The total number of complaints received by the local authority about any of the following (expressed per 1000 connections to the local authority’s networked reticulation system): Drinking water clarity, drinking water quality, drinking water taste, drinking water odour, drinking water pressure or flow, continuity of supply, the local authority’s response to any of these issues. 44 Full wording of the mandatory measure is: The percentage of real water loss from the local authority’s networked reticulation system. Note these results are from pre 2013/2014.

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Results for The Service We Provide (LOS) How we measure success 2019/20 2017/18 2018/19 2019/20 Target Cambridge & Karapiro 190 211 219 195 The average consumption of drinking Te Awamutu & Pirongia 190 218 196 164 water per day per Kihikihi 200 233 158 174 resident.45 Ohaupo & Pukerimu 185 164 152 197

45 Full wording of the mandatory measure is: The average consumption of drinking water per day per resident within the territorial authority district.

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix B – Levels of Service

B2 Benchmarking With Comparable Councils The Water New Zealand National Performance Review (NPR) provides an overview of how New Zealand’s water providers are performing on an annual basis. Waipa has been classified as a medium sized service provider, servicing between 20,000 and 90,000 connections to water and wastewater services, (i.e. a property with both water and wastewater services would be counted as two), as per the 2018-19 Waipa District Council NPR report (ECM 10119729).

The NPR compares water providers across a range of measures, and the following performance markers were highlighted in the summary of the document:

Table 58: NPR Performance Results 2018/19 Performance Measures to celebrate Performance Measures requiring reflection ▪ The volume of water supplied to Waipa’s network is ▪ Average daily residential water use has risen from lower in 2018/19 than five years ago despite 65% 190.7 litres/person/day in 2016/17 to 249.7 growth in serviced properties litres/person/day in 2018/19. ▪ Waipa’s reported water losses have declined over ▪ 77.86% of Waipa’s water supply pipelines had not two thirds in the last four years from 360 been assigned a second grading, the second largest litres/connection/day of current annual real losses in amount of ungraded network of medium size water 2015/16 to 114.5 litres/connection/day in 2018/19 suppliers. ▪ The time taken to attend and resolve non-urgent faults to water supply system was amongst the fastest of all medium size water suppliers: ▪ On average water supply faults in Waipa were ▪ The New Zealand Fire Service Firefighting Water attended in 0.91 hours and resolved in 1 hour, Supplies Code of Practice specifies all fire hydrants compared with averages of 5.13 and 20.17 hours for must be inspected and flushed every five years by an similar size organisations. approved tester. In the last five years only 9% of ▪ Urgent water supply fault attendance times were Waipa’s hydrants had been tested. also above average. In Waipa these were attended in 0.4 hours and resolved in 1.35 hours compared with averages of 0.45 and 2.22 hours. ▪ Waipa regarded most of its data to be highly reliable ▪ Data gaps were noted in the area of energy or reliable consumption of our water supply system

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Table 59: NPR Performance Results 2018/19 Medium water provider: Performance Measurement Waipa District Council Group median Overview Percentage of population connected to water supply 80.48% 82.28% network Water serviced properties per kilometre of pipe 29.54 29.13 Customer Focus Water supply complaints per 1000 properties serviced 8.7 8.2 Non-urgent water supply fault attendance times 5.23 0.91 (hours) Non-urgent water supply fault resolution times (hours) 20.17 1 Urgent water supply fault attendance times (in hours) 0.45 0.40 Urgent water supply fault resolution times (in hours) 2.22 1.35 Average annual residential charges for 200m3 of water $443 $405 use ($/year) Economic Sustainability Annual water supply revenue per property connected $538.72 $614.41 to the network Water supply operational expenditure per property $275.28 $315.02 Water supply capital expenditure per property $246.78 $154.73 Reliability Unplanned water supply interruptions per 1000 8.2 7.0 properties serviced Average age of water pipelines (years) 33.82 26.67 Resource Efficiency Average daily residential water use (Litres/person/day) 287.0 249.8 Resilience Average number of days storage in water reservoirs 1.057 1.171 Average level of water in reservoirs 82.91% 90%

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Figure 44: Boil Water Notices 2018/19 NPR

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Figure 45: Unplanned Water Supply interruptions 2018/19 NPR

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix B – Levels of Service

B3 Establishing Our Future Levels of Service The high-level direction on desired levels of service for the 2021-31 LTP period was confirmed with Council in a series of workshops during June and July 2019. The desired direction is shown in Diagram 4.

Diagram 4: Levels of Service – Desired Direction Water Treatment & Supply

2017 LOS 2017 Direction 2019 LOS 2019 Direction Service Area Performance from Councillors Performance from Councillors

Water extraction and No change to desired LOS treatment

On demand supply to No change to desired LOS towns and villages

Restricted supply to some No change to desired LOS rural areas

Maintenance of plants and No change to desired LOS networks

Key Direction From Councillors

No change to desired LOS Decrease desired LOS Increase desired LOS

Actual LOS Performance LOS below desired level At Current desired level Below desired level but being increased

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B4 Choosing Performance Measures Performance measures were chosen which gave an indication of how we are performing in relation to the level of service. Performance measures which were chosen had to be measurable in order to be able to measure and report on performance in relation to LOS. Table 60 and Table 61 summarise the performance measures chosen and the justification used.

Table 60: Choosing Performance Measures – Customer How we measure success Why is this a good measure Water Treatment Plants – compliance with The extent to which the bacteriological criteria This mandatory measure informs ratepayers and local authority’s drinking consumers on whether the water supplied is safe to Water Treatment Plants – water supply complies drink. The New Zealand Drinking Water Standards, compliance with protozoal with the drinking-water monitored by the Ministry of Health, provide a criteria standards. recognised standard for public safety. Network zones – compliance Attendance for urgent call- out from the time of notification. (hours) Resolution of urgent call-outs Households and businesses rely heavily on water, so it’s Median response time for from the time of notification important that we provide a timely response when call-outs in response to a (hours). something goes wrong. This mandatory measure shows fault or unplanned Attendance for non-urgent how quickly Council attends to urgent problems with interruption to the network. call-outs from the time of the water supply. notification (days) Resolution of non-urgent call- outs from the time of notification (days) The number of complaints provides an indication of the The total number of complaints received about any of the quality of the service provided. This mandatory measure following: Drinking water clarity, taste, odour, pressure or provides information on issues with a water supply and flow, continuity of supply, and the response to any of these issues on how satisfied customers are with the way in which Council responds to requests to fix problems The percentage of real water loss from the networked This mandatory measure provides information on the reticulation system. actual consumption behaviours of our residents. The average consumption of drinking water per day per This mandatory measure provides information on the resident. actual consumption behaviours of our residents.

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Table 61: Choosing Performance Measures – Technical How we measure success Why is this a good measure Water flow and pressure is available for its intended use. Water pressure is a term used to describe the flow strength of water through a pipe or other type of channel. The pressure of water depends on its flow. The Minimum water pressure the customer can expect at more water being pushed through a pipe, the more the boundary of the property pressure there will be naturally. Many of our domestic customers would prefer high water pressure, as this can provide nicer showers. However high water pressure can also be a major cause of leaks, pipe damage (both private and public) and wasted water. The New Zealand Fire Service Fire Fighting Water Supplies Code of Practice (SNZ PAS 4509:2008) sets out Fire Supply to FW 2 level in Urban Areas as per the New what constitutes a sufficient minimum supply of water Zealand Fire Service Firefighting Water Supplies Code of pressure and volume for firefighting in the district. The Practice code supports Council’s requirements under the Local Government Act, in which we are required to install hydrants and keep them charged.

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B5 Technical Performance Measures and Future Targets

Table 62: Technical Performance Measures and Future Targets

Result for Performance Target The Service We Provide How we measure success 2019/20 2021/22 2022/23 2023/24 2024-31 The community is provided Minimum water pressure the customer can expect at the boundary of the Not Measured 20m 20m 20m 20m with safe and wholesome property drinking water within Fire Supply to FW 2 level in Urban Areas as per the New Zealand Fire Service FW2 FW2 FW2 FW2 specified areas in a way that is Not Measured most cost-effective Firefighting Water Supplies Code of Practice Achieved Achieved Achieved Achieved

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B6 Three Waters Masterplan - Proposed Future Changes to Performance Measures – Review of Existing Measures The Waipa District Council Three Waters Masterplan (Beca, 2020) reviewed Council’s existing performance measures against industry best practice and similar local authorities. Table 63 reviews each performance measures and outlines any recommended changes or additions.

Table 63: Review of Performance Measures Existing Measures Recommended changes/ additions Comments Water Loss The percentage of real water loss from the local authority’s networked ▪ Mandatory - no change Customer Percentage ▪ Maintain as %ge as easier for customers to understand until DIA adopts an reticulation system ▪ DIA may move to an Infrastructure Leakage Index (ILI) measure in the (%) of real water loss ILI approach. Targets between: 12% and 20% future Water loss expressed using international terminology Technical ▪ Loss reduction and benchmarking – ILI and CARL - managing pressure ▪ Infrastructure Leakage Index (ILI) – Initial Target of 3 ▪ Bulk and universal water metering improves the water balance Demand vs Capacity provides the quickest wins. ▪ ▪ Review when updated water balance is available. management Current Annual Real Losses (CARL) litres per connection per day – Target ▪ WDC setting up water demand management areas (WDMAs) 185-250 Demand/Average Consumption Average consumption of drinking water per day per resident (litres) (gross ▪ Update targets and design basis when revised water balance available and ▪ To be updated with the results of universal metering Customer pcc) move to a domestic pcc target with the improved data ▪ Targets need to be locked in as part of the LTP process 185 to 200 l/person / day ▪ Update design basis when revised water balance available and move to a Average residential consumption of drinking water (litres) per day per resident ▪ Water metering improves the water balance Technical domestic pcc target with the improved data within the city boundaries ▪ Review when updated water balance is available. ▪ Set customer demand reduction targets Compliance Customer The extent to which Council's drinking water supply complies with Part 4 and ▪ No change – mandatory DWSNZ 5 of DWSNZ ▪ Prepare and maintain Water Safety Plans to identify, address and mitigate Technical key risks. DW supply log credit Water treatment plant achievement of required log credits ▪ No change, achieve minimum required log credits as required by DWSNZ ▪ Meet the requirements of our Water Safety Plans to avoid the risk of failure compliance ▪ Consider 4 log at new WTPs Customer Satisfaction The total number of complaints received by Council about any of the Customer following, per 1000 connections to the Council’s networked reticulation Water Quality and system: Mandatory – no change pressure Clarity, taste, odour Pressure or flow, continuity of supply The extent to which Council’s drinking water supply complies with the drinking water standards in respect to: Set targets according to DWSNZ ▪ Maximum turbidity levels Technical ▪ Chlorine levels – Target min. 0.2mg/l Water Quality and Design Basis: pressure Provide water suitable for domestic use ▪ Aim for less than 40m of variation in pressure over day. ▪ 20m head required by RITS ▪ Max operating pressure of 60m and <80m Minimum water pressure at the boundary of a property: ▪ Review opportunities for increasing the performance measure for existing ▪ Max reticulation head loss of 5m / km ▪ 20m for greenfield developments properties to 20m head and identify infrastructure required to achieve this ▪ Max trunk head loss of 3m / km ▪ Max velocity of 2.4 m/s Response Times Median response time for call-outs in response to a fault or unplanned Customer ▪ Not affected by masterplan interruption to the network. Targets set by WDC ▪ No change. The number of unplanned interruptions to service Technical ▪ Targets need to be reviewed as part of the wider LTP performance measure Target < 240 district wide reviews

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Existing Measures Recommended changes/ additions Comments Fire Flow Customer % of fire hydrants tested annually that meet the NZ Fire Service Code of Fire hydrant testing ▪ No change Practice

Meet the requirements of the most up to date Code of Practice, which sets ▪ Use the models to assess fire flow compliance against the Code of Practice Technical the minimum flow rates and pressure that must be obtainable from fire ▪ No change. in existing areas and identify infrastructure required to comply with the hydrants (FH). Code of Practice. Seismic Resilience Improve the level of community preparedness and awareness of risks through Customer the roll out of the CDEM education plan. As Per Civil Defence Emergency ▪ No change Not affected by masterplan Management Act, 2002 ▪ Importance levels refer to structures. Recommend WDC consider using %Annual Probability of Exceedance for pipelines with serviceability limit ▪ For non-structures it is more technically correct to refer to a seismic event state (SLS) as per NZS1170 part 5: ▪ Adopting a SLS for the seismic event links the seismic design to a level of For 50 year seismic design life: service ▪ IL 1 is 1/100 APE Technical Build to importance level (IL) as defined by the building code NZ ▪ Existing assets – recommend WDC identify critical assets and assess seismic ▪ IL 2 is 1/500 APE resilience ▪ IL 3 is 1/1,000 APE ▪ New assets – recommend WDC consider seismic resilience requirements on ▪ IL 4 is 1/2,500 APE a case by case basis referring to existing assets ▪ SLS 1 – small period of loss of service ▪ SLS 2 – continuous service

9.4.1. Three Waters Masterplan - Proposed Future Changes to Performance Measures – Additional Measures The Waipa District Council Three Waters Masterplan (Beca, 2020) recommended that Council consider measuring the following additional performance measures (Table 64) to improve the water supply activity.

Table 64: Proposed Additional Performance Measures Proposeds Measures Justification for Inclusion ▪ Council does not currently have a measure related to the frequency of drought restrictions. With the move to universal metering, customers may expect an Customer Frequency of Drought Restrictions improved level of service. Any potential approach could be finalised based on the results of the water balance work (to be completed in 2020). ▪ An example of a measure is: to only implement restrictions greater than Alert Level 1 or 2 in a summer that is drier than a 1 in 10 year drought event ▪ Reservoir storage capacity is one of Council’s key options for maintaining a resilient water supply under some events. The Masterplan has used the following design basis: Reservoir Capacity o Storage available per scheme must be greater than average day demand for peak week or month plus diurnal variation o Design storage and conveyance for a maximum water age of 48 hours ▪ The masterplan has identified the timing, location and need for additional storage. Technical ▪ Aesthetic performance measures (taste/odour and colour) are recommended to be adopted to address water quality issues. To reduce the potential for these Aesthetic Performance Measures issues, the design basis of new reticulation should minimise changes in flow direction. Council may also benefit from recording water quality issues and complaints geospatially on maps to better identify problem areas. ▪ Energy costs are increasing and measuring energy efficiency is becoming increasingly useful, for example it may help to determine the benefits of upgrading Energy Efficiency larger pumps or VSDs. Council may wish to consider recording the energy used per m3 processed at each water treatment plant to develop a baseline for future projects. This information can be used to set energy efficiency targets.

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix C– Managing Demand: Supporting Information

Appendix C – Managing Demand: Supporting Information

C1 Population Growth Projections by Area (2013-base projections) Figure 46 shows the projections for population for the district split into the towns and villages, and the remainder of the district. Figure 47 shows the projected increase in population as a percentage of the 2013 number. In terms of increase both as a percentage and in real terms Cambridge’s growth projected to be far greater than that for any other area.

Figure 46: Projected Population by Area (2016 Projections)

Figure 47: Projected Increase (%) in Population by Area (2016 Projections)

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C2 Population Projections – Refinement for Three Waters Master Plan As part of the Waipa District Council (WDC) Three Waters Master Plan Project, ultimate growth projections and population forecasting has been undertaken to feed into the master planning process.

The population projections developed are aligned to other population forecasts such as Waipa 2050 and other organisations. However, there is a significant difference in that this projection focuses on the “connected” population serviced by wastewater and water infrastructure. The basis of this projection is therefore to estimate the current connected population, with the projected population forecasts at 2025, 2035 and 2050.

Industrial and commercial areas are a significant input for the wastewater and water modelling, therefore these areas are provided in the projection.

The projection encompasses the major growth areas that occur within the Waipa District, including: ▪ Cambridge (including Leamington, Hautapu, Pukerimu, Karapiro) ▪ Te Awamutu (including Kihikihi) ▪ Ohaupo ▪ Pirongia

The full report detailing the projections and the methodology and assumptions behind them can be found in ECM 10081404.

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C3 Waipa District Water Management Plan – Executive Summary The full Waipa District Water Management Plan, including drought management plan is available in ECM 10387772.

Executive Summary

Waipa District Council (WDC) began its water demand management planning journey in 2010 when it prepared its first water conservation and demand management plan to serve as a road map for the future. This developed a better understanding of historical water demand and presented a high-level evaluation of the most relevant future water demand management measures for each scheme. The history of water management planning in each scheme is briefly described below.

• WDC’s first water conservation and demand management plan was prepared in 2010 for the Te Awamutu water supply scheme to support the water take renewal resource consent application. An updated Water Management Plan (WMP) was prepared in 2016 incorporating all requirements of the amended Section 8.1.2.2 of the Proposed Waikato Regional Plan arising out of Variation 6 (RPV6). • The provisions relevant to water allocation introduced by RPV6 became operative in April 2012. • The Kihikihi WMP was first issued in May 2013 and updated in 2017. • The Cambridge and Pukerimu WMPs were issued in May 2013 and this combined District WMP is their first update.

This Waipa District WMP combines water management planning for each of the Waipa District’s four water supply schemes into one volume. This District WMP covers all of the information required in a WMP by the Waikato Regional Plan. Preparing a WMP also assists Council to meet its statutory responsibility to demonstrate that its water supply infrastructure is efficient and effective under Section 10 of the Local Government Act (LGA) 2002 (2017).

WDC has made significant progress on water demand management since previous versions of the scheme level WMPs. WDC’s most significant capital investment was the completion of universal water metering by 2017/2018 with the introduction of volumetric charging for all customers from 1 July 2018. The demand analysis presented in this WMP highlights the water savings achieved as a result of universal water metering and WDC’s other initiatives.

WDC are dedicated to water demand management and have a permanent staff person in the Water Demand Management Officer role to monitor network demand and provide public education and awareness campaigns throughout the district. Council staff actively manage peak summer demands by implementing water restrictions. This is undertaken in conjunction with the Waikato sub-region Smart Water Campaign run by the Shared Services (website http://www.smartwater.org.nz/). WDC is a member of the Smart Water Campaign, along with Hamilton City Council.

WDC staff prepare annual water balances for each scheme to analyse water demand trends and the estimated volume of non-revenue water and leakage. The water balance calculations also provide the annual non-financial performance measures that are a reporting requirement.

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Universal water metering and volumetric pricing have been a success in reducing bulk average and peak demands and annual average residential consumption. Residential customers showed a reduction in average annual water consumption from 2017/18 (universal metering but no volumetric charging) to 2018/19 (universal metering but no volumetric charging) of -15% for Te Awamutu, -17% for Cambridge and -22% for Kihikihi. The unmetered residential consumption was combined with the unknown water loss volume in the annual water balances carried out prior to 2017/18, therefore it is not possible to accurately estimate the full percentage reduction due to universal metering (i.e. the difference between 2016/17 and 2018/19 residential consumption).

The population supplied with water was estimated for each scheme and is uncertain due to the delays in release of the 2018 Census results. Based on the population assumptions, all schemes either met or only slightly exceeded the 2018 Long Term Plan (LTP) performance target for per capita consumption. Te Awamutu, Cambridge and Pukerimu had a target of <190 L/capita/day for 2018/19 and the estimates were 177, 192 and 162 L/capita/day respectively. Kihikihi had a target of <200 L/capita/day for 2018/19 and the estimate was 202 L/capita/day. The per capita consumption figures are highly dependent on the estimate for household occupancy and should improve in accuracy after the 2018 Census results are released.

The 2018/19 results for WDC show that Long Term Plan (LTP) performance targets were met or only slightly exceeded in each all schemes for residential water use per capita per day, and

All schemes except for Cambridge met their LTP performance targets for total network loss as a percentage of water supplied. Te Awamutu and Cambridge had a target of <12% for 2018/19 and the estimates were 9% and 14% respectively. Kihikihi and Pukerimu had a target of <20% for 2018/19 and the estimates were 14% and 18% respectively.

It has been recognised for many years that percentages are unsuitable for assessing the management of real losses as they are strongly influenced by the consumption of water in each individual system, and variations in that consumption. If a water utility reduces water loss, but the consumption reduces to a greater extent, then the water loss figure as percentage of production may increase rather than decrease.

There are two alternative performance measures for water loss promoted by the 2010 Water NZ Water Loss Guidelines and reported on in the annual Water NZ National Performance Review report:

1. The Infrastructure Leakage Index provides an overview of leakage management at the current average operating pressure (calculated by dividing the current level of leakage by the theoretical unavoidable annual level of leakage or UARL) and is recommended for metric benchmarking between supplies; and 2. The water loss volume expressed in L/connection/day or m³/km/day (depending on service connection density) is preferable for process benchmarking and target setting.

Te Awamutu, Cambridge and had estimated 2018/19 leakage of 115, 201 and 146 L/connection/day. Pukerimu is a rural scheme with a low service connection density and its 2018/19 leakage estimate was 3.6 m³/km/day.

The 2018/19 ILI estimates for the Te Awamutu, Kihikihi and Pukerimu water supply schemes were all around or slightly below 2 which places them amongst the best performers in the 2017/18 Water

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NZ National Performance Review dataset. District Council is the only council to outperform Te Awamutu, Kihikihi and Pukerimu. The Cambridge water supply scheme had a higher ILI estimate of 4.3 which places it in the bottom third of the 2017/18 Water NZ National Performance Review dataset. Leakage reduction is a priority for the Cambridge water supply scheme and this is recognised by WDC with its investment in decommissioning the Hicks Road transmission pipeline.

In summary, WDC is currently achieving successful water demand management through the following activities: 1. Universal water metering and volumetric pricing implemented from 1 July 2018. 2. Public education through the Smart Water Campaign and related initiatives led by the WDC Water Demand Management Officer and the Shared Services Smart Water Coordinator. 3. Restriction and metering of rural properties. 4. Trialling of innovative leakage investigation technology using both Data Logging/Analysis and Thermal UAV Drone Survey techniques. 5. Provision of a water audit service to assist customers with higher than usual water consumption and above-ground leaks (such as from water troughs on rural properties). 6. Developing an active leakage management plan including identifying opportunities for network pressure management. 7. Targeted water demand management for large non-residential customers 8. Asset management pipe renewals. 9. Water network modelling. 10. Shared development of a Sub-Regional Three Waters Strategy. 11. Shared development of a Sub Regional Water Management Plan Strategic Overview document. 12. Participation in the Sub Regional water management best practice workshops to share information within the three partner Councils, and to learn from best practices nationally and internationally.

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C4 Water Restriction Alert Levels Water restrictions are applied during the summer months to reduce peak day demands. The alert levels are detailed in the Drought Management Plan in Appendix E and summarised in Table 65. Summer restrictions were in place prior to 2010 with a blanket restriction allowing sprinkler systems on alternate days only, from 1 December to 1 March each summer.

Table 65: Alert Levels for Water Restrictions for Residential Customers on Council Water Supply Alert level Restriction ▪ Sprinkler systems permitted between 6-8am and Level 1 ▪ “Use water sensibly” 6-8pm only. Hand-held hosing can be used anytime. ▪ Sprinkler systems permitted between 6-8am and Level 2 ▪ “Reduce non-essential water usage” 6-8pm on alternate days only. Hand-held hosing can be used anytime. ▪ Total ban on sprinklers – only hand held hosing Level 3 ▪ “Take all practical steps to reduce your water usage” permitted. ▪ Total ban on all outside water systems. Outside Level 4 ▪ “Reduce your water usage immediately” water use to be used for essential purposes only i.e. firefighting and emergency clean ups.

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix D – The Assets We Own: Supporting Information

Appendix D– The Assets We Own: Supporting Information

D1 Water Supply Schematics - Cambridge and Pukerimu Historic

Figure 48: Cambridge and Pukerimu Historic

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D2 Asset Data Reliability Confidence Grades The confidence levels for the asset data have been assessed using the IIMM 2015 grading systems detailed in Table 66. Table 66: Asset Confidence Grades Confidence Description Grade Highly Data based on sound records, procedures, investigations and analysis which is A Reliable properly documented and recognised as the best method of assessment. Data based on sound records, procedures, investigations and analysis which is properly documented, but has minor shortcomings. For example the data is old, B Reliable some documentation is missing and reliance is placed on unconfirmed reports or some extrapolation. Data based on sound records, procedures, investigations and analysis which is C Uncertain incomplete, unsupported, or extrapolated from a limited sample for which confidence grade A or B applies. Very Data is based on unconfirmed verbal reports and/or cursory inspection and D Uncertain analysis. E Unknown None or very little data held

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix D – The Assets We Own: Supporting Information

D3 Asset Criticality Waipa District Council Water Services team uses different criteria and weighting between pipe assets and above ground assets (including plants, pump stations, and reservoirs). The table which the criticality assessor is required to complete to calculate criticality scores of each pipe asset is shown below in Diagram 5. The calculator is a template set up in Microsoft Excel and provides for criticality scores in multiple categories and an overall criticality rating from them.

Diagram 5: Water Supply Pipe Criticality Assessment Tool

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Table 67 shows the categories and weightings used to calculate the criticality scores for pipe assets. Table 67: Pipe Asset Criticality Categories Max Category Name Description Criticality Huge financial loss. Significant over expenditure at organisational and output level, no capacity to adjust budget across the portfolio or no 1 Very High means to seek additional funding. 100% loss of Business Unit funding or Direct Cost >=$1m Major financial loss. Significant overrun at Organisational and output level, where management response requires significant additional 2 High funding, or termination or reduction of other initiatives. Possible 75% loss of Business Unit funding or Direct Cost >= $400k Financial Significant financial loss, up to 50% of budget funding for that asset type. 3 Medium Business Unit impact only, with some redistribution of existing budget or Direct Costs between $150k – $400k Some financial loss contained within Unit, 20% loss of budget for that 4 Low asset type. Minor over expenditure requiring monitoring and corrective action within existing budget or Direct Costs $10k – $150k Little or no financial loss, <5% impact on budget funding for that asset 5 Very Low type or Direct Costs < $5k Multiple public affected, debilitating injuries and fatalities or widespread 1 Very High medical attention required 2 High Extensive effects, injuries. Hospitalisation or single fatality. Public Significant effects needing management action. Medical treatment, but Health and 3 Medium no fatalities Safety Minor effects, injuries not requiring hospitalization. Potential of public 4 Low liability claim. 5 Very Low No injuries Concentrated public and political interest and major loss of public 1 Very High support. International media attention 2 High National media and political interest. Major inquiry Image and 3 Medium Isolated public interest. Regional media coverage. Small internal inquiry reputation Local issue, isolated concerns raised by interest groups. Local paper 4 Low coverage. 5 Very Low Minimal effect on public. Individual attention Major detrimental effects on community. Consequences would threaten 1 Very High survival of the service. Long-term sustained loss of service capability Loss of production capability. Consequences would threaten continued 2 High affective function of the service. Requires top-level management intervention Consequences could mean that the service is subjected to a significant Community 3 Medium performance review or a changed way of operating. 8 – 24 hrs of disrupted service and less than 50 households affected 4 – 8 hrs of disruption of services and less than 20 households affected. 4 Low Consequences affect efficiency or effectiveness of the service. Managed internally 4 hrs or less of disrupted services or affects only a small group of 5 Very Low customers. Negligible service impacts dealt with by routine operations

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix D – The Assets We Own: Supporting Information

Table 68 shows the categories and weightings which the criticality assessor to calculate the criticality scores for above ground assets. Table 69 shows the conditions of each criticality scores from the sum of weightings. Table 68: Above Ground Asset Criticality Categories Category Weighting Description 300 Multiple life threatening illnesses, injuries or fatalities. 225 Single life-threatening illness, injury or fatality. Health and Safety 150 An illness, injury requiring moderate medical care. 75 Health and safety monitoring required. 0 Standard health and safety procedures applied. Significant effects to business function with prolonged and significant 200 impact on levels of service. Major effects to business function with significant short term impact on 160 levels of service. Business Continuity Moderate effects to business function with moderate short term impact on 120 levels of service. 80 Minor effects to business function with minor impact on levels of service. Negligible effects to business function with insignificant impact on levels of 40 service. Significant breach of obligations (i.e. law, legislation, regulations, code, 150 consents etc.) with legal action and significant fines (> $100k). Serious breach of obligations ( i.e. law, legislation, regulations, code, 120 consents etc.) with legal action and major fines ($20k-$100k). Compliance and Moderate breach of obligations (i.e. law, legislation, regulations, code, 90 Regulatory consents etc.) with legal action and moderate level fine ($5k-$20k). Moderate breach of obligations (i.e. law, legislation, regulations, code, 60 consents etc.) with legal action and low level fine (<$5k). Minor breach of obligations (i.e. law, legislation, regulations, code, 30 consents etc.) with warning. Significant and wide spread adverse effects on living organisms and 125 environment by effluents, emissions, wastes, resource depletion, etc. Major but localised adverse effects on living organisms and environment 100 by effluents, emissions, wastes, resource depletion, etc. Moderate localised adverse effects on living organisms and environment Environmental 75 by effluents, emissions, wastes, resource depletion, etc. Minimal localised adverse effects on living organisms and environment by 50 effluents, emissions, wastes, resource depletion, etc. Negligible or no localised adverse effects on living organisms and 0 environment by effluents, emissions, wastes, resource depletion, etc. 150 Financial cost > $1M in any 12 month period. 100 Financial cost $150k - $1M in any 12 month period. Financial 60 Financial cost $50k - 150k in any 12 month period. 40 Financial cost $10k - 50k in any 12 month period. 10 Financial cost <$10k in any 12 month period.

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Category Weighting Description 75 Serious or sustained national media attention. 60 Short term national media attention. Reputation / Image 45 Short term local media attention. 30 Some minor public attention. 15 Minor internal interest. Significant and prolonged lack of internal staff capacity requiring additional 50 external resources. Significant level of uncertainty with supplier delivering in full, on time and to specification. Significant but short term lack of internal staff capacity requiring external 40 resources. High level of uncertainty with supplier delivering in full, on time and to specification. Moderate but short term lack of internal staff capacity, possible use of Resourcing 30 external resource. Moderate level of uncertainty with supplier delivering in full, on time and to specification. Internal staff capable but require monitoring and management. Some 20 level of uncertainty with supplier delivering in full, on time and to specification. Staff fully capable. Negligibly level of uncertainty with supplier delivering 0 in full, on time and to specification.

Table 69: Above Ground Asset Criticality Rules Criticality Scores Conditions 5 Sum of criticality weightings is greater than 799 4 Sum of criticality weightings is between 600 and 799 3 Sum of criticality weightings is between 400 and 599 2 Sum of criticality weightings is between 200 and 399 1 Sum of criticality weightings is between 0 and 199

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix D – The Assets We Own: Supporting Information

D4 Asset Condition The condition of the fire hydrants, box, lid, marking and cat eye are assessed using the guide in Table 70. Table 70: Hydrants Condition Assessment Guidance. % of Life Score Condition Condition Assessment Consumed Hydrant recently installed (<11 years old). Fully operational and accessible. 1 Excellent 0 - 34% Cover and surround in excellent condition (if applicable) Hydrant is generally 12 -22 years old. Sound physical condition with minor 2 Good deterioration and hydrant is accessible. 35 - 59% Cover and surround in sound condition (if applicable) Hydrant is generally 23 - 30 years old. Moderate deterioration evident but can be operated with additional force. Some discolour when operated, but water is clear after 10-20 seconds. 3 Average 60% - 74% Cover and surround showing some deterioration (if applicable). Debris around below-ground hydrant indicating the need for maintenance. Leaking around ball valve. Hydrant is generally 31 - 40 years old. Significant external deterioration evident and hydrant is very difficult to operate (and may not open fully). Internal corrosion/ tuberculation is impacting performance as evidence by significantly discoloured water and rust-coloured sediment in the water. 4 Poor 75% - 94% Condition of cover and surround indicates that major maintenance or repair is required (if applicable). Below ground hydrant not visible from surface as it is covered with debris. Evidence of water pooling in the pit. Hydrant is generally 41 - 50 years old. Major external deterioration/corrosion. Internal corrosion/ tuberculation is such that hydraulic performance is poor with 5 Very Poor 95 - 100% significant loss of flow and excessive rest-coloured sediment and fragments in the water. 41 - 50 YEARS AGE

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D5 Waipa DC’s Asset Management Information System

Diagram 6: Waipa DC’s Asset Management Information System

WDC Asset Management Information Systems, Inputs and Outputs • CAS data (Crash Data) • Maintenance Data (contractor provided) Key • ASF (capitalisation) • Condition Assessmnets AMIS Outputs Forward Works Plan Roading Asset Valuation Asset Attribute Data (annual) Future AMIS Outputs RAMM Reporting (to NZTA)

Capitalisation Data Software/ Forecasting (for AMP/LTP) Datebase Symphony Library Acquisition and Management Disposal Data System • Forwards Works Programme Data • Drainage (culverts & catchpits) • Footpaths • Bridges Library stock & loan data

Property Valuation Depreciation Staff, Contractor and FinanceOne Intramaps Public Access to Asset Data Financial Forecasting – Spatial & Atributes (for AMP/LTP) Property Acquisition and Disposal Data

• 3 Waters Asset Data • Parks and Reserves Data • Property Building Data (not actively managed) • Heritage Interpretation Assets & Art Collection Data

3 Waters Capitalisation Data Via ARF (Asset Renewal Forecasting Recognition Forms (for AMP/LTP) Assetfinda Work Orders, Contractor 3 Water Asset Valuation Asset Attribute Data Performance Monitoring, Compliance

Additions/Disposals from • Vested Assets – spatial and attribute data the Te Awamutu Museum Vernon • Condition assessments Trust Board Collection • CCTV and Log Sheets • Photos • Invoices Collection management • Maintenance data information • Property compliance data

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix E – Risk Management: Supporting Information

Appendix E – Risk Management: Supporting Information

E1 Risk Register Guidance The Operational risks associated with, or impacting upon, the Water Service are detailed in the Risk Register (Table 74, Page 171). This risk register lists the risk events, their severity and likelihood, and level of risk, along with current risk mitigation measures.

The mitigation measures are the mechanisms currently in place to reduce the Level of Risk associated with the risk event. Even with mitigation measures there will be some residual risk. This residual risk is analysed and if this risk is deemed to be still too high options to further reduce the risk are explored in this documents (Section 5). actions are recorded and managed as per the organisational risk process

The assessment of risks is done in alignment with the Council’s Organisational Risk Management Policy (ECM: 9969536). To assist in understanding the assessed ratings the relevant parts of the Likelihood, Consequence and Risk Level guidance form the policy have been replicated here (Table 72, Table 73, and Table 71).

Table 71: Risk Matrix and Risk Significance Levels Severity Rating Likelihood Rating 1 2 3 4 5 Minor Moderate Serious Major Severe AC Almost certain H H VH E E L Likely M H VH VH E P Possible L M H VH VH U Unlikely L M M H VH R Rare L L L M H

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Table 72: Likelihood of Occurrence OPERATIONAL LIKELIHOOD RATING LIKELIHOOD PERCENTAGE Probability of the risk occurring It is almost certain to occur in most circumstances in the next year. Almost certain AC >95% In relation to Health and Safety risks, definite probability, very limited or no controls. Has happened in the past and no compensating controls were implemented. Without additional controls the event is expected to occur in most circumstances. Is expected to occur again within a short period of time (likely to occur at least once in the next 3 months). The event will likely occur sometime in the next year. Likely L 75% - 95% In relation to Health and Safety risks, event will probably occur in most circumstances. Weak controls e.g. be careful. No auditing carried out to provide assurances. With existing controls in place this event will probably still occur with some certainty. Possibly occur sometime in the next year. Possible P 25% - 75% In relation to Health and Safety risks, event could occur in some circumstances. Minimal controls. Event has occurred in other Councils or industries with similar levels of controls in place. Is expected to occur within the next 1 - 2 years. Unlikely to occur in the next year. Unlikely U 5% - 25% In relation to Health and Safety risks, event could occur in some circumstances, however more likely through human error by not following the controls. Event has not occurred in the business, but could in some circumstances in the next 2 - 5 years. Would occur only in rare circumstances in the next year. Rare R 0% – 5% In relation to Health and Safety risks, event may occur in some exceptional circumstances e.g. serious assault. Improbably: a very small chance of events occurring that may be caused by events not previously seen or certain conditions. Despite effective controls being used an external event or uncontrollable event could occur.

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Table 73: Consequence Rating CONSEQUENCE RATING SOURCE OF RISK Minor Moderate Serious Major Severe 1 2 3 4 5 Event with consequences Manageable through routine which can be readily absorbed, Significant event which can be Critical event which can be procedures, unlikely to require Disaster with potential to lead High level rating definitions but which require managed under normal endured with proper specific application of to business failure management effort to circumstances management resources minimise the impact Medical Treatment injury. Restricted duties injury. Lost Time injury or illness. First Aid injury. Injury not Injury requiring short term Injuries requiring extended Health - Infrequent (monthly) Fatality or Permanent requiring medical treatment. medical treatment with some treatment. Health - Moderate contact with the hazard at very Disability. Health - Frequent Health and Safety Health - Infrequent contact lost time. Health - Frequent (weekly) contact with the high concentration. Frequent (daily) contact with the hazard with the hazard at low (daily) contact with the hazard hazard at moderate contact with the hazard at at very high concentration. concentration. at low concentration. concentration. moderate concentration. Critical impact on public confidence, resulting in Minor impact on public Some impact on public Governance, reputation, Major impact on public significant national media and No impact on public confidence and media confidence, reflected by local legislative compliance and confidence resulting in some Central Government attention confidence or media attention attention. May be some local media and community interest control national media coverage e.g. through an inquiry and/or coverage - not front page. in the Council’s performance appointment of a Commissioner Permanent damage requiring Serious damage of local Serious damage of regional Little or no impact on the Short-term or minor impact on ongoing remediation and Environment importance with possible importance with possible environment the environment monitoring with regulatory regulatory intervention regulatory intervention involvement Levels of service in significant Noticeable impact on long- Levels of service significantly decline across all outcome Temporary impact on long- term levels of service, being below expectations in one or categories. Widespread Negligible impact on outcomes term levels of service, with consistently below more outcome categories, negative commentary attracts Planning and strategy and handled within normal expectations in one or more limited community interest bringing significant negative Central Government attention operations outcome categories. Some and media attention community interest and community and media e.g. through an inquiry and/or media attention. attention appointment of a Commissioner. Loss or overrun of less than Loss or overrun of between Loss or overrun of between Loss or overrun of between Financial Organisation Loss or overrun of over $1m $100k $100-250k $250-500k $500k-$1m Projects 1% project budget overrun 2-5% project budget overrun 5-10% project budget overrun >10% project budget overrun >30% project budget overrun

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CONSEQUENCE RATING SOURCE OF RISK Minor Moderate Serious Major Severe 1 2 3 4 5 Loss or theft of Exploitation of application Compromise of user password USB/laptop/other device security flaws compromising Loss of infrastructure for an Information management Isolated equipment failure impacting the confidentiality compromising confidentiality. the confidentiality and extended period and integrity of data Loss of a core system for an integrity of data extended period. Temporary disruption in Disruption to a community for Disruption to a community for Operations and service Disruption affecting some Disruption to a community for servicing a small number of more than two hours or some more than a day or some areas delivery areas for less than a day more than a week customers areas for more than a day for more than two weeks Insignificant incident that Isolated damage not requiring Damage to property that Damage to property that Damage to property that Property and assets causes no disruption to relocation of services to an requires the relocation of some requires the relocation of all requires the relocation of all services alternative site services to an alternative site services for a short period services for an extended period

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix E – Risk Management: Supporting Information

E2 Risk Register Table 74: Risk Register – Water Consequence Mitigation

Inherent Risk Residual Risk

Further Action Description of Risk Event Risk Consequence Existing Controls Required

(mitigation strategies)

Likelihood Likelihood

Level of Level Risk of Level Risk

Consequence Consequence

Physical Asset Risks Simple localised ▪ H&S risks 1 AC H 1 L M No problem ▪ Disruption to service ▪ Standard operating procedures Complex localised event ▪ Dependency on storage or alternative pipes ▪ Water Safety Plans for each area within plant ▪ Restoration time may result in marginal available 2 L H ▪ Incident Management Plan 2 P M No and/or storage (<35%) reticulation ▪ CCTV Pipe Break or ▪ Local Contamination of supply Fitting Failure system ▪ Available Storage (network and Critical services ▪ Noncompliance with legislative/regulatory 4 P VH ▪ Ongoing monitoring of environmental impacts 3 U M No plant) impacted requirements ▪ Transgression of Drinking Water Standards NZ ▪ GIS on net ▪ Environmental damage ▪ Asset management and pipe replacement programme Extensive impact ▪ 3rd party property damage, water damage to 4 U H ▪ Approved materials list used to ensure appropriate pipe 3 U M No property. used in appropriate location ▪ Unexpected demand on human resources Simple localised 1 L M ▪ H&S Plan 1 P L problem ▪ H&S risks ▪ Standard operating procedures Complex ▪ Disruption to service - limited or complete loss of localised event flow ▪ Water Safety Plans for each area within plant Pump Failure 2 L H 2 P M No and/or ▪ Restoration time may result in marginal available ▪ Incident Management Plan storage (<35%) reticulation ▪ Dependency on storage or standby/alternative pumps system ▪ Water quality from plant (UV disinfection, chlorine that are able to be brought into service immediately Critical services levels or filtered water turbidity) is compromised 4 P VH ▪ Demand restrictions imposed 3 U M impacted

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▪ Noncompliance with legislative/regulatory ▪ Condition assessment requirements ▪ Stand by generator Extensive impact ▪ Transgression of Drinking Water Standards NZ 4 P VH 3 U M ▪ Certified maintenance staff ▪ Environmental damage ▪ Alternative supply, bottled/tanker Simple localised ▪ H&S risks 1 L M 1 P L problem ▪ Disruption to service ▪ Restoration time may result in marginal available storage (<35%) ▪ Standard operating procedures ▪ Noncompliance with legislative/regulatory requirements ▪ Water Safety Plans for each area SCADA, Controls Complex ▪ Transgression of Drinking Water Standards NZ ▪ Incident Management Plan No or Telemetry localised event within plant No Failure ▪ Infringement notices & fines 3 P H ▪ Dependency on storage P M and/or 2 ▪ Manual control and testing required reticulation ▪ Water quality from plant (UV disinfection, chlorine system levels or filtered water turbidity) is compromised ▪ Demand restrictions imposed ▪ Environmental damage ▪ Unexpected demand on human resources/Unable to demonstrate that water has been adequately treated at all times Simple localised ▪ H&S risks 1 P L 1 P L problem ▪ Standard operating procedures ▪ Dependency on alternative storage Complex ▪ Water Safety Plans for each area localised event ▪ Restoration time may result in marginal available within plant ▪ Incident Management Plan storage (<35%) 3 P H 2 P M Reservoir Leak and/or ▪ Ongoing monitoring of environmental impacts Demand restrictions imposed reticulation ▪ ▪ Off the shelf replacement liners system ▪ Environmental damage ▪ Incident Management Plan Yes: Document Catastrophic ▪ 3rd party property damage 5 R H ▪ Infringement notices, fines and prosecution 5 R H and programme failure ▪ Unexpected demand on human resources regular inspections ▪ H&S risks ▪ Incident Management Plan Vandalism and ▪ Disruption to service Simple localised ▪ Infringement notices, fines and prosecution Security Breach ▪ Manual control required 3 U M 2 U M No problem Causing Damage ▪ Security /Our sites are locked and fully fenced ▪ 3rd party property damage ▪ Intake areas are secure ▪ Unexpected demand on human resources Delivery Risks Simple localised ▪ H&S risks 2 P M ▪ Standard operating procedures 1 U L No problem

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Complex ▪ Disruption to service ▪ Water Safety Plans for each area localised event within plant ▪ Restoration time may result in marginal available ▪ Incident Management Plan storage (<35%) 3 P H 3 U M No and/or ▪ Dependency on storage reticulation ▪ Water quality from plant (UV disinfection, chlorine ▪ Boil water notices required to maintain consumer safety. system levels or filtered water turbidity) is compromised ▪ Infringement notices, fines and prosecution ▪ Quality of water delivered to storage safe to drink ▪ Adequate procurement policies are in place to ensure Microbiological but compromised for parameters that will be of resources are available (e.g. chlorine) or chemical concern to customers e.g. taste, odour, pH, high Contamination chlorine levels ▪ Telemetry is in place and sends alarms for action to on ▪ Noncompliance with legislative/regulatory call operations staff Extensive impact requirements 4 P VH 4 U H Yes ▪ Transgression of Drinking Water Standards NZ ▪ Infringement notices, fines and prosecution ▪ Environmental damage ▪ Unexpected demand on human resources ▪ Increased treatment costs, including Capital Gradual pollution of water sources investment to maintain quality of treated water 2 U M ▪ Maintain a review of raw water quality 2 U M No ▪ Possible inability to meet drinking water standards Simple localised 1 L M ▪ Standard operating procedures 1 P L No problem ▪ Disruption to service ▪ Incident Management Plan Complex localised event ▪ Treatment processes shut down ▪ Mobile Generators Power Failure within plant ▪ Dependency on storage 4 P VH ▪ Storage 3 P H and/or Disruption to service reticulation ▪ Restoration time may result in marginal available ▪ system storage (<35%) ▪ Treatment processes shut down Extensive impact 4 U H ▪ Backup Generator Permanent and mobile 3 U M No ▪ Project briefs developed for LTP which identify resource ▪ Project fails to deliver on objectives, cost requirements Inadequate project management input expectations not met 3 P H Renewal programme coordinated with maintenance and 2 U M No into significant projects ▪ ▪ Public reputation risk other renewal activities ▪ Communications Plan developed for significant projects

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▪ Environmental damage ▪ Reduced LOS ▪ Contract management procedures include QA checks and Sub-standard construction/repair work ▪ Reduced life of assets audits 3 P H 2 U M No – contract management inadequate ▪ H&S ▪ Communication of affordable standards to the community ▪ Poor reputation/public image ▪ 3rd party damage claims ▪ Reduced LOS ▪ Liquidated damages in place in all contracts ▪ Increased costs from delayed repairs ▪ Programme of work identified and tendered early in the Repair, renewal, maintenance work not ▪ 3rd party damage claims construction season programme/completed – Contractor ▪ Reduced safety performance 2 P M ▪ Packages of work developed to suit local market 2 P M No not performing conditions and spread risk ▪ Increased future funding requirements –deferred renewals ▪ Tendering procedures reviewed regularly to address issues ▪ Environmental damage ▪ Environmental damage ▪ Contract conditions drafted to include consent and bylaw Non-compliance with By-laws/consents ▪ Cost of investigations requirements by Contractors/Consultants engaged by ▪ Poor reputation/public image 3 P H ▪ Liaison meetings held with WRC 2 U M No Council ▪ Reduced safety ▪ Tendering procedures reviewed regularly to address issues ▪ Reduced LOS ▪ Asset failure ▪ Reduced asset life

▪ Increased costs ▪ Joint inspections undertaken when new vested assets Sub-standard vested assets ▪ Reduced LOS 2 P M received 2 U M No ▪ Increased renewal requirements ▪ Regional Infrastructure Technical Specifications (RITS) ▪ Negative network impacts ▪ Public reputation risk ▪ Network development in sub-optimal locations ▪ Unbudgeted capital improvements required to service developments ▪ Structure planning undertaken in some areas Inadequate development ▪ Delayed construction leads to sub-standard ▪ Proposed District Plan and Waipa 2050 3 P H 3 U M No processes/communication construction (outdated specifications) ▪ Consent processes well developed ▪ Environmental/asset damage during construction ▪ Regional Infrastructure Technical Specifications (RITS) ▪ LOS expectations raised by developer asset selection

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix E – Risk Management: Supporting Information

▪ Asset failure ▪ Reduced asset life ▪ Increased costs ▪ Asset management plan Asset condition not adequately ▪ Reduced LOS 3 P H ▪ Contract managers undertake asset condition inspections 2 P M No monitored ▪ Renewal programme inadequate ▪ Inspections completed by independent engineers ▪ Increased risk of injury/death ▪ Asset capacity exceeded without risks known/understood ▪ Meetings held with other utilities agencies ▪ New assets damaged by third party works ▪ Forward works programme shared with others Inadequate ▪ Increased costs to Council communication/coordination with 2 L H ▪ Require compliance with NZ Utilities Advisory Group 2 P M No planned works ▪ Reduced life of assets Code of Practice ▪ Public reputation risk ▪ Roading introducing requirements for “no-dig” areas after roading works completed Management Risks Yes: Put in place 3rd party agreements approved ▪ Increased/unexpected costs processes and 3 P H ▪ No processes/controls in place 3 P H without implications being understood ▪ Damage to assets formalised agreements ▪ Non-compliance with regulatory standards & regional consents ▪ Inability to strategically plan and respond to industry & regulatory changes ▪ HR systems in place to manage staff/resourcing ▪ Inability to maintain specified LOS requirements ▪ Greater H&S risks ▪ Technology systems maintained to address risk issues Insufficient human resources 3 P H 3 U M No ▪ Asset management processes not adequately (ECM, AssetFinda, GIS) maintained ▪ Panel of consultants used when required to balance work ▪ Inadequate/incorrect work programmes load needs developed ▪ Staff stress increased ▪ Programmes not delivered

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▪ Non-compliance with regulatory standards & regional consents ▪ Inability to strategically plan and respond to industry & regulatory changes ▪ Inability to maintain specified LOS Yes: Develop a succession Lack of available technical skills in the ▪ Greater H&S risks ▪ Panel of consultants used when required to provide planning, 3 P H 3 P H industry ▪ Asset management processes not adequately specialist knowledge not available in-house cadetship or maintained graduate programme ▪ Inadequate/incorrect work programmes developed ▪ Programmes not delivered ▪ Environmental damage

▪ Unable to access asset data in the field ▪ Business case developed where additional resources ▪ Not able to complete work programmes and needed achieve specified LOS ▪ IT needs assessment carried out when necessary Equipment/plant not available 1 L M 1 P L No ▪ Inadequate communication ▪ Trial or hire equipment to test if required ▪ Greater H&S risks ▪ IT continually scanning market for possible ▪ Environmental damage improvements ▪ Assets built incorrectly Wrong standards/specifications set ▪ Greater H&S risks ▪ Waipa Development Manual in place and reviewed and specified in documents/as-built ▪ Environmental damage 3 P H ▪ External expertise utilised in areas where needed 3 U M No information incorrect ▪ Non-compliance with regulatory standards & ▪ Regional Infrastructure Technical Specifications (RITS) regional consents ▪ Watch number of tenders received to assess market health/capacity

▪ Local market declines with reducing number of ▪ Maintain good relationships with existing suppliers quality contractors ▪ Programme of work identified and tendered early in the construction season Loss of/inadequate pool of suppliers ▪ Higher tender prices 3 U M 2 U M No ▪ Lower level of capability ▪ Packages of work developed to suit local market conditions and spread risk ▪ Loss of continuity and intellectual property ▪ Work competitively tendered in accordance with Waipa’s procurement policy and assessed in accordance with Waipa’s Procurement Strategy

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▪ Existing equipment becomes redundant ▪ Consideration given to ongoing viability when selecting Technological advancements ▪ Spare parts unavailable 2 P M 2 P M No new and replacement assets ▪ Product support unavailable ▪ Higher construction costs Costs increase at a higher rate than ▪ Programme flexibility maintained to accommodate any ▪ Higher operational costs 2 P M 2 U M No anticipated fluctuations ▪ Reduced programmes of work delivered ▪ Reducing levels of service as fit for purpose standards adopted ▪ Unable to service future growth ▪ Non-compliance with regulatory standards & regional consents ▪ Increased H&S risks ▪ Value for money interventions already in place for maintenance activities ▪ Environmental damage ▪ Involved in developing fit for purpose standards Reducing funding allocation without Possible asset redundancy ▪ 4 L VH 2 U M No adjusting level of service expectations ▪ Asset management plan in place to guide prudent ▪ Public reputation risk investment ▪ Communications to community dominates work ▪ Communication with Council to address any changes to time for staff levels of service and funding implications ▪ Maintenance effort not effective so renewals requirement increases ▪ Poor reputation/public image ▪ Budgets squeezed attempting to meet those expectations Planning Risks ▪ Reduction in water availability ▪ Inability to meet demand Continue to monitor the potential effect of changes to Reduction in Consented Water Take ▪ ▪ Water restrictions leading to poor 4 AC E Consents and update the supply-demand balance as 4 AC E Yes volumes reputation/public image required. ▪ Costs associated with locating and commissioning alternative sources ▪ Reduced accuracy of supply projections ▪ Inability to meet demand if actual supply falls ▪ Continue to monitor the stream flow at Te Tahi during short of projections Poor accuracy of supply-side data 3 P H dry periods. 3 U M No ▪ Water restrictions leading to poor ▪ Online stream monitoring reputation/public image ▪ Breach abstraction consent

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▪ Inability to meet demand Water yields from new resource ▪ Water restrictions leading to poor developments fall below projections reputation/public image 4 U H ▪ None 4 U H

▪ Costs associated with locating and commissioning further alternative sources

▪ Inability to meet demand ▪ Review demand annually with large customers ▪ Water restrictions leading to poor (Fonterra). reputation/public image ▪ Monitor growth patterns in comparison to the allowance Demand forecast are too low ▪ Unplanned costs to source and commission 4 P VH in forecasting. 4 P VH Yes increased supplies ▪ Actively monitor how demand changes following the ▪ Unplanned costs associated with reticulating to introduction of metering and demand management growth areas initiatives. ▪ Review demand annually with large customers (Fonterra). Demand forecast are too high ▪ Unnecessary capital costs incurred 3 L VH 3 P H Yes ▪ Monitor growth patterns in comparison to the allowance in forecasting.

▪ Unnecessary capital costs incurred in areas that do ▪ An allowance for connecting reticulation to each Growth occurs at different times and not develop development made in budget estimates. indifferent locations to that used for ▪ Unplanned costs associated with reticulating to 5 AC E ▪ Specific reticulation designs will be required for each 3 U M No water planning unplanned growth areas development, in conjunction with the development ▪ Disruption to network development plans layout when this is known. ▪ Increased capital costs ▪ Reduced LOS

▪ Increased operating costs ▪ Current policies, strategies, and plans are clearly Decisions made based on drivers ▪ Inability to increase water take to service/limits to articulated to decision makers outside of current polices, strategies, consents 3 P H ▪ Recommended decisions are clearly linked to policies, 3 U M No and plans ▪ Inefficiencies in network strategies, and plans to provide justification for those recommended decisions ▪ Constrain ability to manage assets and network long term ▪ Poor reputation/public image

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▪ Increased capital costs ▪ Reduced LOS ▪ Decisions to align with current policies, strategies, and ▪ Increased operating costs plans. ▪ Inability to increase water take to service/limits to Uninformed decisions due to ▪ Sub-Regional Three Waters Strategy (2011) provides consents 3 P H 3 U M No inadequate planning framework for decision making. ▪ Inefficiencies in network ▪ Asset Management team within Water Services ▪ Constrain ability to manage assets and network department to support cohesive planning long term ▪ Poor reputation/public image ▪ Insufficient planning undertaken to understand Inadequate asset future renewal need for agreed LOS, Audit non- compliance management/infrastructure strategy 3 P H ▪ OAG audits completed 3 U M No planning ▪ Sub optimal programmes delivered ▪ 30 year Infrastructure Strategy incorrect ▪ Increased capital costs Yes: Ensure regular ▪ Policies, strategies, and plans incorporate contingencies involvement and ▪ Increased operating costs for managing the impact of changes awareness of ▪ Inability to increase water take regulatory/statuto New statutory requirements , plans ▪ Water supply strategy 4 L VH 3 P H ry forums to and policies ▪ Constrain ability to manage assets and network ▪ Waipa 2050 ensure any long term ▪ LTP Projects updates are ▪ New/changed limits to discharges to receiving effectively planned ▪ Regional Infrastructure Technical Specifications (RITS) environments for ▪ Inability to re-establish the service after a disruption event ▪ Procedures for dealing with incidents are documented Insufficient incident management ▪ Poor reputation/public image 4 P VH ▪ Incident management plans are in place 3 U M No planning and business continuity plans ▪ Over reliance on key staff ▪ Incident management plans are tested regularly ▪ No planning to manage continuity of service to customers during/after events ▪ Water Restriction imposed resulting in: ▪ Loss of income ▪ Water Supply Bylaw Insufficient supplies to meet demand Yes : Water Supply ▪ Restrictions on growth 3 P H ▪ Defined Water Supply Areas 3 P H (Only Te Tahi Supply) Policy required ▪ Poor reputation/public image ▪ LTP projects (alternate supplies) ▪ Breach of consent Decline in commercial bulk water ▪ Loss of income 2 P M ▪ None 2 P M No demand ▪ Redundant infrastructure

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▪ Reduced security of supply ▪ Taste & odour issues ▪ Increased risk of network & plant damage ▪ Water restrictions leading to poor reputation/public image ▪ Demand Management/restrictions Climate change – more frequent ▪ Non-compliance with statutory requirements ▪ Infringement notices fines 3 P H 3 P H Yes droughts depletion in source of supply ▪ Environmental damage ▪ Good growth cell development planning ▪ Infringement notices fines ▪ Water supply strategy ▪ Reduced ability to carry out planned maintenance ▪ Reduced capital works ▪ Higher operational costs ▪ Revenue reduced ▪ Demand Management/restrictions

▪ Infringement notices fines Yes: Develop a Climate change – more intense storm ▪ Non-compliance with statutory requirements 3 P H ▪ Storage 3 P H Water Supply events, degradation of source of supply ▪ Inability to take water Policy ▪ Good growth cell development planning ▪ Water supply strategy

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix F – Managing Our Services & Assets

Appendix F – Managing Our Services & Assets: Supporting Information

F1 Total Project Programme 2021 – 2031

Key Project Capital Costs Operational Costs Total Total Capex Project Name Objectives Benefits Priority Driver Number Growth LoS Renewal Growth LoS Renewal Capital Opex Years ▪ Ability of Waipa District Council to fully participate in Regional/National reform to provide for: ▪ Safe, acceptable (taste, colour and smell) and reliable drinking water. ▪ Waipa is well informed and able to influence the Strategic Review of 3 reform process both locally and nationally LOS NF ▪ Better environmental performance from our water High $0 $0 $0 $0 $300,000 $0 $0 $300,000 - Waters Business services. ▪ Waipa can ensure the best outcome for the ▪ Efficient, sustainable, resilient and accountable community water services. ▪ Achieving these aims in ways our communities can afford. ▪ Existing SCADA & telemetry systems are outdated and no longer fit for purpose and need to be upgraded and maintained to keep the existing level of service. ▪ New equipment needs to be installed at new telemetry sites as they come on line. ▪ To provide an efficient, safe water supply that is suitable, both in terms of delivery and cost to the community.- No adverse environmental effects. ▪ Value for money. ▪ - Avoidance of severe short-term financial impacts Water SCADA & ▪ - Provision of adequate LOS for the community and 21/22 - LOS PR2419 ▪ Compliance with WRC resource consents and High $0 $860,200 $1,009,800 $0 $1,620,000 $0 $1,870,000 $1,620,000 Telemetry Upgrade Drinking Water Standards Benefit(s). developers 23/24 ▪ Ensuring consistent, safe and adequate water ▪ - Reduce maintenance requirements supply to our communities. ▪ Transferring information/data reliably to improve operations and future planning. ▪ Flow/Pressure data can be continuously monitored at near real-time. ▪ Early detection and warning systems can be developed to predict outages and issues. ▪ Reduce maintenance requirements and reactive works on the network. ▪ Increased energy efficiency at treatment plants and pump stations can be planned. ▪ Immediate improvements from audit are experienced, including improvements in ▪ To understand the current network and treatment management practices and maintenance. plant energy efficiency. ▪ Energy improvement process benefit are: ▪ Get a ‘snapshot’ of the process energy used over a Energy Efficiency on ▪ There is buy-in at all levels and includes structured short period of time. Pump Stations and plans and timelines. LOS NF ▪ Uncover a range of opportunities. High $0 $0 $0 $0 $150,000 $0 $0 $150,000 - Treatment Plants ▪ Improves management practices, systems and Study ▪ Understand recommendations to be implemented. behaviours. ▪ Develop an energy improvement process (as in ISO ▪ Makes end-users accountable and provides the 50001 – Energy management) to deliver long-term tools and processes required to enable them to solutions. meet their goals. ▪ Encourages continuous improvement and capability development both internally and externally.

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix F – Managing Our Services & Assets

Key Project Capital Costs Operational Costs Total Total Capex Project Name Objectives Benefits Priority Driver Number Growth LoS Renewal Growth LoS Renewal Capital Opex Years ▪ Water Safety Plan ▪ Ensure WDC water supply assets are proactively managed from a health-related risk point of view for its end users. ▪ Ensure the requirements of the Health Act 1956 and subsequent amendments are met. ▪ To meet the new requrements of the Ministry of Health New Zealand Drinking Water Safety Plan Drinking Water Framework.- Identify improvements that will ▪ Provide a healthy drinking water system with plans LOS PR2514 Supporting Plans provide public health benefits by reducing the risk High $0 $0 $0 $0 $382,800 $0 $0 $382,800 - that are up to date (Review and Update) of adverse health outcomes associated with poor drinking water quality. ▪ Water Incident Management Plan ▪ To provide a base reference for actions that need to be taken with regard to an incident or event impacting the delivery of agreed level of service. ▪ Water Contamination Prevention Plans ▪ Provide for protection of the source water, in particular current ground water sources ▪ Compliance with WRC resource consents and Drinking Water Standards. ▪ Compliance with legislative requirements and Drinking Water LOS PR1858 ▪ Reduced exposure to future regulatory changes and industry best practice. High $0 $0 $0 $0 $550,000 $0 $0 $550,000 - Compliance challenges. ▪ Meet required level of service. ▪ Allow for a lump sum to ensure we are meeting consents. ▪ Provide a safe and palatable water supply, meeting the required level of service in the Te Awamutu communities (supplied from the Te Tahi catchment ▪ Level of Service achieved, no CRM’s or customer Te Tahi - Treatment complaints. PR2160 - and WTP). LOS Operation ▪ Compliance with NZDWS. High $0 $0 $0 $0 $60,000 $0 $0 $60,000 - NF ▪ Manage taste and odour forming compounds that Optimisation Study generate adverse reaction from the community ▪ Optimised treatment process when less volume is supplied by the Te Tahi water supply. required ▪ Operate the treatment plant in a efficient and effective way with lower volumes of water. ▪ Reduces the health and safety risks to individual ▪ Assess the options for an alternative location for users and general public, PR1496 - the Te Awamutu bulk water station and undertake ▪ Reduces water wastage/loss, 21/22 - LOS Bulk Water Stations the physical works to install a new bulk water High $0 $155,000 $0 $0 $64,000 $0 $155,000 $64,000 NF ▪ Assists the supply of safe drinking water across the 22/23 station at an appropriate preferred location, district, ensuring compliance. ▪ Reduction in customer complaints. ▪ Understand the triggers and sensitivity's around future growth and project timing ▪ To inform our AMPs, the LTP, and the 30 year ▪ To ensure that the water network can be managed Infrastructure Strategy in an efficient and ▪ Increase in accuracy of the model ▪ sustainable manner District Wide Water ▪ To ensure water level of service is met ▪ To understand the current capacity and to Modelling and ▪ Promote effective hydraulic capacity to facilitate 21/22 - LOS PR1500 understand the requirements for growth cells and High $0 $1,242,300 $0 $0 $375,000 $0 $1,242,300 $375,000 Masterplanning growth 30/31 developments Updates ▪ Program work and prioritize work schedules and ▪ To plan and prepare for district growth renewals/replacements of existing network which ▪ To meet the LOS relating to the water network directly effects budgeting for capital works ▪ To inform the renewal programs ▪ The identification of areas of low pressure/flow ▪ A model that supports programming proactive maintenance schedules

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix F – Managing Our Services & Assets

Key Project Capital Costs Operational Costs Total Total Capex Project Name Objectives Benefits Priority Driver Number Growth LoS Renewal Growth LoS Renewal Capital Opex Years ▪ Consent compliance ▪ Compliance with Levels of Service. ▪ Compliance with Drinking Water Standard ▪ To identify and generate zones within the water ▪ Maintaining water pressures at acceptable and supply network constant levels. ▪ Improved consent compliance, ▪ Identification and reduction of water leakage. District Wide Water ▪ More efficient use of water and reduced leakage 21/22 - LOS PR1553 ▪ Security of supply to the reticulation as separate High $0 $792,300 $0 $0 $0 $0 $792,300 $0 Zone Identification ▪ Achievement of / increase Level of Service (LoS) and areas can be isolated. Reduces risk. 24/25 firefighting ability through targeted pressure and ▪ Allows smaller efficient pumps to be installed with flow management. smart control technology. ▪ Reduced operational/capital cost through active ▪ Reducing operational costs system management. ▪ Allows targeted firefighting- flow and pressure in problem areas. ▪ Ties into water supply strategy ▪ Reduced risk of serious loss of property and life. ▪ To have areas in the urban water supply area meet ▪ Compliance with minimum general fire standards. Te Awamutu Fire & minimum firefighting standards. ▪ Reduced reliance on alternative water supply in the 21/22 - LOS PR2024 Water Level of High $0 $665,084 $0 $0 $307,500 $0 $665,084 $307,500 ▪ Identify and clearly set out a works program to lift event of a fire. 23/24 Service Upgrades the performance of the under capacity and low ▪ Low water pressure areas addressed pressure mains in the Te Awamutu water network. ▪ Minimum Council LOS is achieved. ▪ Reduced risk of serious loss of property and life. ▪ To have areas in the urban water supply area meet ▪ Compliance with minimum general fire standards. Cambridge Fire & minimum firefighting standards. ▪ Reduced reliance on alternative water supply in the 21/22 - LOS PR2028 Water Level of High $0 $3,510,987 $0 $0 $639,568 $0 $3,510,987 $639,568 ▪ Identify and clearly set out a works program to lift event of a fire. 24/25 Service Upgrades the performance of the under capacity and low ▪ Low water pressure areas addressed pressure mains in the Cambridge water network. ▪ Minimum Council LOS is achieved. Standby Generators LOS PR2048 ▪ High $0 $248,260 $0 $0 $0 $0 $248,260 $0 21/22 for Treatment Plants ▪ Pukerimu Water Supply - 22/23 - LOS PR2415 Upgrade Supply to High $0 $4,979,263 $0 $0 $110,500 $0 $4,979,263 $110,500 ▪ Improves water supply and firefighting to Ohaupo 25/26 Airport and Ohaupo ▪ To facilitate growth at Titanium Park and airport as village. Pukerimu Water Supply - ▪ To facilitate growth whilst maintaining levels of LOS PR2571 required by the Development Agreement High $10,000 $90,000 $0 $0 $0 $0 $100,000 $0 22/23 Feasability Study ▪ To continue to provide level of service to residents service to present and future customers. Pukerimu Water Supply - within the Pukerimu networks ▪ Increased development. 26/27 - LOS PR2572 Pipework Parallel Rd to ▪ Network that is fit for purpose. High $996,792 $8,971,130 $0 $0 $0 $0 $9,967,922 $0 27/28 Titanium

▪ To complete the last small section of trunk main which has already been ▪ To facilitate growth in Cambridge whilst Cambridge North Water ▪ constructed. maintaining levels of service to present and future Growth PR2019 High $156,250 $0 $0 $0 $2,502 $0 $156,250 $2,502 21/22 Provision ▪ To continue to provide the agreed level of service to customers. Cambridge residents. ▪ Increased development. ▪ To allow further development of Cambridge, to align with Waipa 2050 and the District Plan. ▪ To facilitate growth in Cambridge whilst Cambridge Water ▪ To continue to provide level of service to Cambridge maintaining levels of service to present and future 21/22 - Growth PR2302 Reticulation Growth - C2 residents. High $3,675,000 $0 $0 $0 $8,500,000 $0 $3,675,000 $8,500,000 customers. 30/31 & C3 ▪ To allow further development of Cambridge, to align with Waipa 2050 and District Plan ▪ Increased development. ▪ To continue to provide level of service to Cambridge ▪ To facilitate growth in Cambridge whilst Cambridge Water maintaining levels of service to present and future 21/22 - Growth PR2303 residents. High $2,099,624 $0 $0 $0 $54,167 $0 $2,099,624 $54,167 Reticulation Growth - C1 ▪ To allow further development of Cambridge, to customers 28/29 align with Waipa 2050 and District Plan. ▪ Increased development. ▪ Proper development of the growth cell to maximise ▪ Support full development of the growth cell until all potential. C10 (BIL) Water lots have been built. ▪ Increased development. 21/22 - Growth PR2410 Reticulation Provision ▪ Allow for fair charging and cost recovery of the High $1,472,500 $0 $0 $0 $148,334 $0 $1,472,500 $148,334 ▪ LOS maintained for current and future residents. 23/24 (2021 - 2026) development cost. ▪ Allowance for appropriate resourcing and budgets ▪ Plan for and realise operational impact. for increased operational costs.

Waipa District Council 2021 Amp - Water Treatment & Supply Amp - Audit Jan 2020 Record Number: 7845799 Page 183 of 192

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix F – Managing Our Services & Assets

Key Project Capital Costs Operational Costs Total Total Capex Project Name Objectives Benefits Priority Driver Number Growth LoS Renewal Growth LoS Renewal Capital Opex Years ▪ Proper development of the growth cell to maximise ▪ Support full development of the growth cell until all potential. Cambridge North to lots have been built. ▪ Increased development. Hautapu Pipeline and ▪ LOS maintained for current and future residents.- ▪ Allow for fair charging and cost recovery of the 21/22 - Growth PR2027 C8. C9 and Existing Allowance for appropriate resourcing and budgets High $6,284,000 $0 $0 $0 $100,000 $0 $6,284,000 $100,000 development cost. 25/26 Hautapu Industrial Area ▪ Plan for and realise operational impact. for increased operational costs. Growth Provision ▪ Increase LOS and allow development of the ▪ Further development of existing area. existing neighbouring area industrial area. ▪ Infill to allow more efficient land use in the EHIA. ▪ Consistent LOS across neighbouring developments ▪ To continue to provide level of service to Cambridge ▪ To facilitate growth in Cambridge whilst C4 Water Reticulation maintaining levels of service to present and future 24/25 - Growth NF residents High $1,393,940 $0 $0 $87,500 $0 $0 $1,393,940 $87,500 provision (2028) ▪ To allow further development of Cambridge, to customers. 25/26 align with Waipa 2050 and District Plan ▪ Increased development. T6 St Leger Water and ▪ To continue to provide level of service to Kihikihi ▪ To facilitate growth in Te Awamutu whilst PR2271 - Kihikihi Provisions for maintaining levels of service to present and future 23/24 - Growth residents. High $4,061,356 $778,890 $723,255 $0 $17,500 $0 $5,563,502 $17,500 NF Growth, LOS and ▪ To allow further development of the T6 St Leger, to customers. 30/31 Renewals align with Waipa 2050 and District Plan. ▪ Increased development.

▪ To provide an efficient, safe water supply that is ▪ Ensuring consistent, safe and adequate water for suitable, both in terms of LOS and cost to the our communities community. ▪ Meet our Level of Service (LOS) agreements Te Awamutu CBD Rising ▪ Ensure most critical assets are upgraded as required ▪ Reduced disruption from unplanned service outage based on growth predictions condition, 21/22 - Growth PR2546 Mains - (New Pipe for ▪ Avoidance of severe short-term financial impacts High $1,993,353 $1,993,353 $0 $0 $0 $0 $3,986,706 $0 performance, and criticality. 23/24 LOS and Growth) (2021) through disruptions to supply - Promote To continue to provide level of service to Te ▪ community development and growth Awamutu residents ▪ Ensure that our supply is resilient to seismic To allow further development of Te Awamutu ▪ disturbance and water safety. township, to align with Waipa 2050 ▪ To provide an efficient, safe water supply that is suitable, both in terms of ▪ Ensuring consistent, safe and adequate water for ▪ existing LOS and cost to the community, even after our communities growth has occurred. ▪ Meet our Level of Service (LOS) agreements after Cambridge Growth Cell ▪ Ensure most critical assets are upgraded as required growth has occurred. - Reduced disruption from 21/22 - Growth NF Facilitation Works - High $5,871,357 $0 $374,767 $0 $32,000 $0 $6,246,124 $32,000 based on growth predictions condition, unplanned service outage 25/26 Water Provision (2021) performance, and criticality. ▪ Avoidance of severe short-term financial impacts ▪ To continue to provide level of service to Cambridge through disruptions to supply residents ▪ Promote community development and growth ▪ To allow further development of Cambridge township, to align with Waipa 2050 ▪ To provide an efficient, safe water supply that is ▪ Ensuring consistent, safe and adequate water for suitable, both in terms of LOS and cost to the our communities Fairview Road Water community. ▪ Meet our Level of Service (LOS) agreements Main - (Capacity 21/22 - Growth PR2532 ▪ Reduced disruption from unplanned service outage High $0 $1,280,526 $602,600 $0 $18,000 $0 $1,883,126 $18,000 Increase for Renewal ▪ Ensure most critical assets are upgraded as required 23/24 and LOS) (2021) based on condition, performance, and criticality. ▪ Avoidance of severe short-term financial impacts ▪ To continue to provide level of service to Te through disruptions to supply Awamutu residents ▪ Ensure that our supply is resilience to water safety. ▪ Ability of cells to grow as planned. ▪ Improve water supply resilience for the district. ▪ Increase security of supply to the network. New Reservoir Renewals ▪ Generate system flexibility for optimised operation ▪ Increased financial input into WDC. 21/22 - Growth PR2547 of the network. High $8,920,000 $0 $35,680,000 $120,000 $0 $480,000 $44,600,000 $600,000 and Capacity Upgrades ▪ LOS achieved. 30/31 ▪ Enable economic growth. ▪ Reduced environmental impact. ▪ Maintain LOS ▪ Health & Well being of community protected. ▪ Ability of cells to grow as planned. Alpha Street Water ▪ Improve water supply resilience for Cambridge. ▪ Increase security of supply to the network. Treatment Plant ▪ Increased financial input into WDC. 23/24 - Growth PR2020 ▪ Generate system flexibility for optimised operation High $3,450,000 $3,450,000 $0 $63,500 $12,700 $1,193,800 $6,900,000 $1,270,000 Renewal & Capacity of the network. ▪ LOS achieved. 26/27 Upgrade ▪ Enable economic growth. ▪ Reduced environmental impact. ▪ Health & Wellbeing of community protected.

2021 Amp - Water Treatment & Supply Amp - Audit Jan 2020 Waipa District Council Page 184 of 192 Record Number: 7845799

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix F – Managing Our Services & Assets

Key Project Capital Costs Operational Costs Total Total Capex Project Name Objectives Benefits Priority Driver Number Growth LoS Renewal Growth LoS Renewal Capital Opex Years ▪ Ability of cells to grow as planned. ▪ Improve water supply resilience for Pukerimu and ▪ Increase security of supply to the network. Parallel Road Water Te Awamutu. ▪ Increased financial input into WDC. 26/27 - Growth NF Treatment Plant ▪ Generate system flexibility for optimised operation High $1,255,500 $94,500 $0 $100,000 $400,000 $0 $1,350,000 $500,000 ▪ LOS achieved. 27/28 Upgrade of the network. ▪ Reduced environmental impact. ▪ Enable economic growth. ▪ Health & Wellbeing of community protected. ▪ Ability of cells to grow as planned. ▪ Improve water supply resilience for TA. ▪ Increase security of supply to the network. PR2109 - Frontier Rd to Taylors ▪ Increased financial input into WDC. Growth ▪ Generate system flexibility for optimised operation High $1,044,732 $1,044,732 $0 $0 $90,000 $0 $2,089,464 $90,000 21/22 NF Hill Trunk Main of the network. ▪ LOS achieved. ▪ Enable economic growth. ▪ Reduced environmental impact. ▪ Health & Wellbeing of community protected.

▪ To provide an efficient, safe water supply that is ▪ Ensuring consistent, safe and adequate water for suitable, both in terms of LOS and cost to the our communities community. Rising Main from ▪ Meet our Level of Service (LOS) agreements Frontier Road to ▪ Ensure most critical assets are upgraded as required ▪ Reduced disruption from unplanned service outage based on growth predictions condition, 22/23 - Growth NF Pirongia Road (Capacity ▪ Avoidance of severe short-term financial impacts High $1,813,687 $1,813,687 $0 $0 $18,000 $0 $3,627,374 $18,000 performance, and criticality. 23/24 Increase for LOS and through disruptions to supply ▪ To continue to provide level of service to Te Growth) ▪ Promote community development and growth Awamutu residents ▪ Ensure that our supply is resilience to seismic ▪ To allow further development of Te Awamutu disturbance and water safety. township, to align with Waipa 2050

▪ Compliance with WRC resource consents and Drinking Water Standards. ▪ Ensuring consistent, safe and adequate water supply to our communities. ▪ To provide an efficient, safe water supply that is suitable, both in terms of delivery and cost to the ▪ Meet our Level of Service (LOS) agreements. community. ▪ Reduced disruption from unplanned service outage. ▪ Ensure most critical assets are renewed as required ▪ Reduce maintenance requirements and reactive Above Ground Asset based on condition, performance and criticality. works on the network. Renewals and ▪ Reduce impacts of pressure fluctuation on the 21/22 - Renewal PR2411 ▪ Reduced water leakage through effective system High $0 $0 $661,400 $0 $0 $123,000 $661,400 $123,000 Maintenance - non- management and control. infrastructure. 30/31 Treatment Plant ▪ Minimise cost of proposed renewal programme ▪ Avoidance of severe short-term financial impacts while ensuring that the resultant network and through disruptions to supply. assets have enough flexibility to cope with outages. ▪ Promote community development and growth. ▪ No adverse environmental effects. ▪ Ensure network assets are functioning properly. ▪ Value for money, ensuring assets are well ▪ Ensure continuous compliance with Drinking Water maintained hence delaying future capital Standards and WRC Resource Consents. expenditure. ▪ Understand the condition of our assets, providing better and more varied options within the renewals profile. ▪ To provide an efficient, safe water supply that is ▪ Compliance with WRC resource consents and suitable, both in terms of delivery and cost to the Drinking Water Standards. community. ▪ Ensuring consistent, safe and adequate water ▪ Ensure most critical assets (Medium-Very High) are supply to our communities renewed as required based on condition, ▪ Meet our Level of Service (LOS) agreements performance, and criticality. ▪ Reduced disruption from unplanned service outage Water Treatment Plant 21/22 - Renewal PR2334 High $0 $0 $1,250,000 $0 $0 $125,000 $1,250,000 $125,000 Renewals ▪ Renew required infrastructure as determined by ▪ Reduce maintenance requirements and reactive 30/31 the asset information management system. works on at the plants ▪ Ensure legal and environmental obligations are ▪ Reduce impacts of pressure fluctuation on the achieved (resource consent). infrastructure ▪ To provide an efficient and cost effective renewal ▪ Avoidance of severe short-term financial impacts program that are suitable, both in terms of delivery through disruptions to supply and cost to the community. ▪ Promote community development and growth ▪ Ensure assets are renewed as prioritised based on remaining life, condition, performance, and criticality.

Waipa District Council 2021 Amp - Water Treatment & Supply Amp - Audit Jan 2020 Record Number: 7845799 Page 185 of 192

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix F – Managing Our Services & Assets

Key Project Capital Costs Operational Costs Total Total Capex Project Name Objectives Benefits Priority Driver Number Growth LoS Renewal Growth LoS Renewal Capital Opex Years

▪ Ensure assets are renewed as required based on ▪ Avoidance of severe short term financial impacts, condition, performance, and criticality. ▪ Assets are renewed prior to failure ▪ To provide an efficient, safe network that is ▪ Reduce maintenance requirements, suitable, both in terms of delivery and cost to the ▪ Reduce system leakage by an estimated 25% community. minimum, representing an annual saving estimated District Wide Water Reduced disruption from unplanned service outage 21/22 - Renewal PR2209 ▪ in the order of $100,000 to operational costs, High $0 $0 $36,211,619 $0 $0 $1,000,000 $36,211,619 $1,000,000 Main Renewals ▪ Reduced leaks and pressure issues due to degrading 30/31 ▪ Reduce inefficiencies of pressure fluctuations on infrastructure. the infrastructure by keeping distribution mains ▪ Minimise cost of proposed pipe renewal free of connections, programme while ensuring that the resultant pipe ▪ Reduced risk of breaching consented daily source network will have enough flexibility to cope with take. critical pipe outages. Water Meters - New and 21/22 - Renewal PR1901 High $0 $0 $465,000 $0 $0 $40,000 $465,000 $40,000 Replacement 30/31 ▪ Installation of new meters where replacement is ▪ Avoidance of severe short-term financial impacts, TA Water Contn and ▪ Provision of adequate LOS for the community and 21/22 - Renewal PR2462 required High $0 $0 $1,500,000 $0 $0 $0 $1,500,000 $0 Meter Renewals ▪ Minimise cost of proposed meter renewal program developers, 30/31 Cambridge Water Contn while ensuring devices are performing correctly. ▪ Reduce maintenance requirements, 21/22 - Renewal PR2467 High $0 $0 $1,500,000 $0 $0 $0 $1,500,000 $0 and Meter Renewals 30/31

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix F – Managing Our Services & Assets

F2 Projects – Business Case References

Table 75: Project Business Case Reference Numbers Project Business Case: Project Name Number EMC Doc ID - Strategic Review of 3 Waters Business 10372404 PR2419 Water SCADA & Telemetry Upgrade 10372407 - Energy Efficiency on Pump Stations and Treatment Plants Study 10360730 PR2514 Drinking Water Supporting Plans (Review and Update) 10373434 PR1858 Drinking Water Compliance 10115949 PR2160 Te Tahi - Treatment Operation Optimisation Study 10372641 PR1496 Bulk Water Stations 10374982 PR1500 District Wide Water Modelling and Masterplanning Updates 10377129 PR1553 District Wide Water Zone Identification 10115938 PR2024 Te Awamutu Fire & Water Level of Service Upgrades 10103328 PR2028 Cambridge Fire & Water Level of Service Upgrades 10108162 PR2048 Standby Generators for Treatment Plants - PR2415 Pukerimu Water Supply - Upgrade Supply to Airport and Ohaupo 10115365 PR2571 Pukerimu Water Supply - Feasability Study 10115365 PR2572 Pukerimu Water Supply - Pipework Parallel Rd to Titanium 10115365

PR2019 Cambridge North Water Provision 10378226 PR2302 Cambridge Water Reticulation Growth - C2 & C3 10115165 PR2303 Cambridge Water Reticulation Growth - C1 10115172 PR2410 C10 (BIL) Water Reticulation Provision (2021 - 2026) 10378237 Cambridge North to Hautapu Pipeline and C8. C9 and Existing Hautapu Industrial PR2027 10378714 Area Growth Provision - C4 Water Reticulation provision (2028) 10378493 PR2271 T6 St Leger Water and Kihikihi Provisions for Growth, LOS and Renewals 10115133 PR2546 Te Awamutu CBD Rising Mains - (New Pipe for LOS and Growth) (2021) 10393978 - Cambridge Growth Cell Facilitation Works - Water Provision (2021) 10395192 PR2532 Fairview Road Water Main - (Capacity Increase for Renewal and LOS) (2021) 10393947 PR2547 New Reservoir Renewals and Capacity Upgrades 10115793 PR2020 Alpha Street Water Treatment Plant Renewal & Capacity Upgrade 10377131 NF Parallel Road Water Treatment Plant Upgrade 10377132 PR2109 Frontier Rd to Taylors Hill Trunk Main 10114863 Rising Main from Frontier Road to Pirongia Road (Capacity Increase for LOS and - 10391901 Growth)

PR2411 Above Ground Asset Renewals and Maintenance - non-Treatment Plant 10109992 PR2334 Water Treatment Plant Renewals 10109984 PR2209 District Wide Water Main Renewals 10124918 PR1901 Water Meters - New and Replacement 10372408 PR2462 TA Water Contn and Meter Renewals 10372408

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Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix F – Managing Our Services & Assets

Project Business Case: Project Name Number EMC Doc ID PR2467 Cambridge Water Contn and Meter Renewals 10372408 Note: ECM reference numbers will relate to a Project Proposal for those projects that did not proceed to a full business case.

2021 Amp - Water Treatment & Supply Amp - Audit Jan 2020 Waipa District Council Page 188 of 192 Record Number: 7845799

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix G– Resourcing Requirements: Supporting Information

Appendix G – Resourcing Requirements: Supporting Information

G1 Resourcing Requirements The Waters Services team structure was reviewed in 2020. Previously, the Water Services team was split into three workstreams – Asset Management, Network, and Compliance – with a total of 36 approved roles (refer to Figure 49). All three workstreams relied heavily on external resource support, particularly the Network team. A new structure became effective in August 2020. The new structure (Figure 50), with the four functional activities of Strategic Planning & Asset Management, Project & Contract Management, Network, and Compliance & Improvement; each led by a Team Leader reporting to the Manager Water Services. Figure 49: Structure (prior to August 2020)

Waipa District Council 2021 Amp - Water Treatment & Supply Amp - Audit Jan 2020 Record Number: 7845799 Page 189 of 192

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix G– Resourcing Requirements: Supporting Information

Figure 50: Water Services Structure (effective August 2020)

Manager Water Services

Strategic Planning Project & Contract Compliance & Network Team & Asset Team Management Improvement Leader Leader Team Leader Team Leader

Senior Water Senior Wastewater Senior Asset Waters Strategic Senior Stormwater Engineering Project Engineer - Stormwater Compliance Officer Network Engineer Treatment Treatment Planning Engineer Planning Engineer Planning Engineer Assistant Water Services x4 Engineer - Water Services x3 Operator Operator

Senior Asset Wastewater Asset Planning Maintenance & Senior Reticulation Water Treatment Asset Coordinator Information Officer Technical Officer Treatment Technical Engineer Engineer Works Planner Operator Operator x3 -Water Services Operator x3

Asset Information Reticulation Pump Station Performance & Officer - Water Operator x6 Operator x 1/2 Process Officer Services x2

2021 Amp - Water Treatment & Supply Amp - Audit Jan 2020 Waipa District Council Page 190 of 192 Record Number: 7845799

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix H– Financial Summary: Supporting Information

Appendix H – Financial Summary: Supporting Information

H1 Inflation Rates Due to the levels of uncertainty caused by the Coivd-19 pandemic BERL prepared 3 scenarios for cost adjustors to be used by councils in their planning and project activities (ECM: 10476189). The three scenarios are:

▪ BERL mid–scenario – considered to be a likely outcome relevant to most ▪ Stalled rebuild scenario – where GDP and employment grow more slowly ▪ Faster rebuild scenario – where GDP and employment grow more rapidly.

Based on advice from Infometrics (ECM: 10476191) Waipa DC has selected the BERL mid-scenario as the most reasonable choice of cost adjustment for the 2021/2031 Long Term Plan. Table 76 details the inflation rates used in the preparation of budgets.

Table 76: BERL Price Adjusters Community Planning & Roading Water Salary Activities Regulation Year 1 2.0 Year 2 3.3 3.6 2.8 2.6 2.5 Year 3 3.2 2.7 2.6 2.4 3.0 Year 4 3.2 3.0 2.7 2.4 3.0 Year 5 3.3 3.2 2.7 2.5 3.0 Year 6 3.4 3.2 2.7 2.5 3.0 Year 7 3.5 3.7 2.9 2.6 3.0 Year 8 3.6 4.1 3.1 2.6 3.0 Year 9 3.8 4.3 3.2 2.7 3.0 Year 10 3.8 4.0 3.0 2.8 3.0

H2 Interest Rates The assumption is that there will be ready access to loan funds at competitive rates and interest rates will track in line with the projections prepared by our financial advisors. The interest rates used can be found in Table 77. Table 77: Interest Rates Year to June 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Bancorp Projected borrowing rate 1.28% 1.15% 1.12% 1.34% 1.49% 1.4% 1.65% 1.75% 2.2% 2.47% (includes margin)

Waipa District Council 2021 Amp - Water Treatment & Supply Amp - Audit Jan 2020 Record Number: 7845799 Page 191 of 192

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021 Appendix H– Financial Summary: Supporting Information

H3 Forecast Reliability Confidence Grades The confidence levels for the financial forecasting have been assessed using the IIMM 2015 grading systems detailed in Table 78.

Table 78: Confidence Grades Confidence Description Grade Highly Data based on sound records, procedures, investigations and analysis which is A Reliable properly documented and recognised as the best method of assessment. Data based on sound records, procedures, investigations and analysis which is properly documented, but has minor shortcomings. For example the data is old, B Reliable some documentation is missing and reliance is placed on unconfirmed reports or some extrapolation. Data based on sound records, procedures, investigations and analysis which is C Uncertain incomplete, unsupported, or extrapolated from a limited sample for which confidence grade A or B applies. Very Data is based on unconfirmed verbal reports and/or cursory inspection and D Uncertain analysis. E Unknown None or very little data held

2021 Amp - Water Treatment & Supply Amp - Audit Jan 2020 Waipa District Council Page 192 of 192 Record Number: 7845799

Document Set ID: 10545235 Version: 2, Version Date: 20/01/2021