Executive summary .......................................................................................................................... 8 Financial summary ................................................................................................................................................. 10 Purpose of the activity management plan ........................................................................................ 11 Plan limitations ....................................................................................................................................................... 11 Plan framework ...................................................................................................................................................... 12 Activity description ........................................................................................................................... 13 Purpose of this Plan .............................................................................................................................................. 13 What we do ............................................................................................................................................................. 13 Urban and rural areas serviced by public water supplies ............................................................................. 13 Rural areas and isolated towns ........................................................................................................................ 14 Why we do it ........................................................................................................................................................... 16 Objectives of the water supply activity .......................................................................................................... 16 Strategic considerations .................................................................................................................... 16 Community outcomes (and community board outcomes where applicable) ............................................... 16 Strategic Priorities............................................................................................................................. 20 Strategic context ..................................................................................................................................................... 21 Representation framework ............................................................................................................................... 21 Key risks, issues and assumptions for the activity ........................................................................................ 21 Key issues and risks for the next ten years .................................................................................................... 21 Key Risks and issues for the next ten years ................................................................................................... 24 Issues ................................................................................................................................................................... 26 Regulatory considerations ..................................................................................................................................... 28 Three waters reforms ........................................................................................................................................ 30 Demand management strategies .......................................................................................................................... 31 Predicting future demand for the service ...................................................................................................... 31 Implications of growth/demand ..................................................................................................................... 33 Demand management strategies ..................................................................................................................... 33 Plans programmed to meet growth/demand changes ................................................................................. 36 Sustainability....................................................................................................................................................... 36 Social and cultural ............................................................................................................................................. 36 Environmental ................................................................................................................................................... 36 Economic and financial .................................................................................................................................... 37 Key projects ............................................................................................................................................................ 37 Our levels of service .......................................................................................................................... 39 Levels of service, performance measures and targets ....................................................................................... 39 Changes to the performance framework ....................................................................................................... 40 Plans programmed to meet the levels of service ............................................................................................... 41 Three waters review and Havelock North inquiry ....................................................................................... 41 Fluoridation ........................................................................................................................................................ 42 Activity and asset management ........................................................................................................ 43 Overview of management..................................................................................................................................... 43 Overview of the water supply assets .............................................................................................................. 43 Approach to operations and maintenance ..................................................................................................... 49 Approach to renewals ....................................................................................................................................... 53 Capital investment strategy – LOS and demand .......................................................................................... 59 Capital investment trends and forecasts – LOS and demand ..................................................................... 59 Community board area context ........................................................................................................................... 61 Asset management improvement ........................................................................................................................ 61 Progress against previous asset management improvement programme ................................................. 61 Assessing current and desired asset management practices ........................................................................ 63 Financial summary ........................................................................................................................... 65 10 year financial forecast ....................................................................................................................................... 65 Financial forecast summary .................................................................................................................................. 67 Summary of key financial assumptions ............................................................................................................... 67 Valuation approach ................................................................................................................................................ 68 Funding Principles ................................................................................................................................................. 68 Fees and charges .................................................................................................................................................... 69 Appendix - scheme plans .................................................................................................................. 70 Introduction ....................................................................................................................................................... 70 Description ......................................................................................................................................................... 70 Asset condition, capacity and performance ................................................................................................... 70 Appendix A: Duncraigen Rural Water Supply................................................................................................... 72 Description 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