Strategic Plans for Water and Sanitation City of Cape Town

Transcription

1 Strategic Plans for Water and Sanitation City of Cape Town Presenter: Jaco de Bruyn Head: Integrated Planning, Strategy & Information Management Date: 14 May 2013

2 SUMMARY How do we run the business within given Operating boundaries? How do we respond to challenge? Strategic and Integrated planning linking the City s Vision and Strategic Focus Areas to our own Measurement against a Balanced Scorecard Risk-based approach to resource allocation Strong attention to customer, stakeholder and staff Staying financially viable, balancing 1 st world city development with social indigent responsibility Ensuring adequate water resources for future Environment impact: Reduce demand, prevent pollution, reduce energy consumption Efficiencies: Professional staff and Technology

3 VISION & MISSION CITY 5 PILLAR FOUNDATION Caring, Opportunity, Inclusive, Safe, Well-run City DEPT VISION To be a beacon in Africa for the provision of Water and Sanitation services DEPT MISSION We pledge to achieve our vision by creating a centre of excellence in Water and Sanitation Department through: Optimizing resources Implementing environmentally-sustainable interventions Continuous improvement and Knowledge management Good governance

4 VALUES Underpinning Mission Statement INTEGRITY: highest level of ethics and fairness in all interactions RESPECT for all opinions and beliefs - employees as well as customers/ stakeholders CUSTOMER FOCUS: Meet customers needs with excellent service They are reason for existence Environment as silent equal customer Business model and relationship based on TRUST. TRANSPARENCY: Operate safely, openly, honestly. Transparency defined by customers and stakeholders. PROFESSIONAL: Use the right competencies to find appropriate solutions enriched with compassion, innovation, sustainability, cost-effectiveness, accountability and excellence.

5 Legislation/Standards Business Operating Boundaries Water & Sanitation Business Limited Resources Customer Satisfaction

6 HOW TO WE RESPOND? Balance Scorecard, Measured performance : Adopted American Society of Waterworks Model; Risk-based Approach to resource allocation; Alignment with IDP priorities

7 IDP, BUSINESS FOCUS AREAS & RISK MANAGEMENT IDP SFA SFA VS. BUSINESS W FOCUS & S AREA BUDGET RISK DRIVERS REGISTER An Opportunity City Employee and Leadership Development Infrastructure Stability Water Resource Adequacy Product Quality Human Capacity Constraints Ageing Infrastructure Security of water supply Safe City Community Sustainability Pollution Risk A Caring City Consumer Satisfaction Quality of service risk; Meeting sanitation demands An Inclusive City Operational Optimisation Stakeholder Management and Support Internal control risk Well-Run City Financial Viability Business Financial Risk Operational Resilience PROGRAMS/PROJECTS PERFORMANCE INDICATORS

8 STRATEGIC PLANNING IN DEPT + Top-down: participation in IDP and City-wide initiatives eg. Provincial Working group, Urbanisation Framework, SDF, Growth Management Strategy, DC Levy policy development Formalised in Policies, strategies, GIS plans and the SDBIP Bottoms up: Annual Strategy sessions organised by Director: participation from trench-face staff invited via briefing sessions and suggestion box, resulting in Proposed updates of Vision/Mission/Objectives A Strategic Grid grouped by the Department s Strategic Objectives (4), broken down to individual Action Plans (239)

9 STRATEGIC GRID FRAMEWORK High-level objectives only become effective if Cascaded down to Real Interventions & programmes, Funded action plans and projects with Individual responsibility

10 STRATEGIC GRID INTENT/OBJECTIVES STRATEGIC INTENT CUSTOMER SATISFACTION AND GOOD STAKEHOLDER RELATIONSHIPS ENVIRONMENTAL SUSTAINABILITY OBJECTIVE Ensure uninterrupted provision of quality services Improve quality of service; Introduce backyarders program Create jobs through EPWP; Support City Economic development by adequate provision of services. Reduce pollution from non-compliant effluent; Reduce surcharges from sewers; Reduce reliance on Eskom power.

11 STRATEGIC GRID INTENT/OBJECTIVES.. STRATEGIC INTENT OPTIMISING RESOURCE UTILISATION GOOD GOVERNANCE OBJECTIVE Reach 95% staff complement; Improve productivity; Improve staff morale; Use available staff capacity effectively; Improve working environment; Establish most effective and efficient delivery mechanism; Use Budget Effectively; Efficient utilisation of water. Safeguard the Health and Safety of employees; Ensure sound professionalism; Improve communication within and outside the organisation; Ensure City assets are well maintained; Comply with SCM legislation.

12 STRATEGIC GRID INTENT/OBJECTIVES.. STRATEGIC INTENT CONTINUOUS IMPROVEMENT & KNOWLEDGE MANAGEMENT FINANCIAL SUSTAINABILITY INFRASTRUCTURE STABILITY WATER RESOURCE ADEQUACY EMPLOYEE AND LEADERSHIP DEVELOPMENT BROAD OBJECTIVES Improve and retain institutional knowledge; Encourage innovation and creativity; Improve operational efficiencies and effectiveness. Ensure adequate liquidity, revenue protection and budget breakeven. Ensure timely maintenance, replacement, upgrading and infrastructure expansion Ensure availability of water resources(with a diverse mix) for the City Develop and retain skilled and competent staff;

13 STRATEGIES FOR SERVICES TO ALL Adequate water resources to meet demand Spreading the water resource risk, reducing over-dependency on one source (currently 98% surface water, rainfall dependant) Infrastructure availability and stability Efficient and effective operation of existing infrastructure skills training plus automation of certain processes Quality monitoring of potable water and effluent Extension of services to Informal Settlements Backyarder programme Financial sustainability - efficient metering, reducing water losses, prioritizing capital investment, Water Management Devices Free Basic Services and Indigent Policy Free kl/mth all households, additional 10.5 kl/mth Indigent households

14 CHALLENGES TO SERVICES FOR ALL MAIN CHALLENGE IN INFORMAL SETTLEMENTS Very high density - no space On private land not allowed permanent infrastructure On unusable land eg. servitudes, flood plains High growth and distribution unpredictable Information - highly dynamic and unreliable Vandalism and theft FORMAL SECTOR CHALLENGES Funding for resource and infrastructure Vandalism of meters

15 CUSTOMER SATISFACTION: BASIC WATER & SANITATION CAUSE Informal Settlements backlogs INTERVENTION Provide services depending on availability of space and servitudes; Pilot technologies choice; Janitorial Service; Staff Capacity enhancement; Backyard Dwellings Pilots on council rented stock (Langa, Factreton and Hanover Park); Service extension to Council owned properties Formulate W&S policy for the backyarders on private land;

16 PLANS FOR SERVICES TO ALL INFORMAL SECTOR Five year Informal Settlement Services Plan addressing backlogs sanitation biggest challenge Coordinating with Housing Programmes Innovative methods and technologies Awareness campaigns, partnerships with Communities Balance funding for new services vs maintenance FORMAL SECTOR Integrated Master planning of infrastructure 10 year requirements (with other Departments in line with City strategies) WC/WDM Smart metering Sustainable funding

17 BACKYARD SETTLEMENT PROGRAMME Extend basic services to all backyard dwellers Housing backlog cannot be met soon with new housing Means of boosting densification Not subject to sharing of landlord free allocation as before Increases local load on existing infrastructure but slows down provision of new greenfield infrastructure Integrated programme driven by Human Settlement Directorate Scope: Municipal Rental stock backyard structures

18 BACKYARD SETTLEMENT PROGRAMME Basic Services Improvement and Access : Water, Pre cast concrete toilet structure with tap, Pre paid electricity to each dwelling In fill Housing Planning and Development (Sites identified in Hanover Park) Door to door Survey in 3 Pilot areas Land Use Management : Split Zoning Management : Matrix Management/ Inter- Departmental Rehabilitation Bulk and ageing infrastructure Job Creation : Part of EPWP Funding : USDG and EFF

19 ENSURING ADEQUATE WATER RESOURCES Demand may outstrip supply by 2019 (depending on WC/WDM success) - another source must be in place Working closely with the Department of Water Affairs in prioritizing the next source Options include Voëlvlei off-river dam raising, waste water reclamation; desalination, Lourens river dam, Table Mountain Group Aquifer (ground water), Stenbras dam raising Feasibility study for desalination underway and that for wastewater reclamation will commence soon Not neglecting smaller sources of spring-water usage, rainwater harvesting

20 INCREASE BULK WATER SECURITY OF SUPPLY CAUSE Water Sources INTERVENTION TMG aquifer pilots Desalination studies; Water Reclaimation (treated effluent re-use); Bulk Infrastructure Upgrade &BWAS Water demand management initiatives; Studies Spring water / Rain water Harvesting / Voëlvlei (DWA) DWA initiatives / incentive based regulation approach (Blue and Green Drop High quality level of operations, maintenance and staffing requirements).

21 ASSET LIFECYCLE PLANNING Timely asset creation Replacement and upgrading Asset maintenance Asset management Primary level Asset Management plans in place Pipeline and pump station condition assessment a priority over next 2-3 years, to be used to refine replacement plans

22 CUSTOMER SATISFACTION THROUGH INFRASTRUCTURE STABILISATION CAUSE Urbanisation / Densification / New Developments INTERVENTION New Infrastructure investment / capacity expansion according to the Master Plan; Upgrading WWTP capacities; Servitude Management; Ageing Infrastructure Develop & implement Infrastructure Asset Management Policies and Plans; Upgrading / Replacement of Assets; Training of staff valve controls; Material selection;

23 WATER LOSS REDUCTION STRATEGY Adapted SABS 0306:1999 and IWA standard: NRW Volume and %, categorised losses rather than UAW% Detail action plans being developed and implemented for reduction of Technical losses (Pipe bursts, Leakage, Treatment losses, System losses) Apparent losses (illegal connections, metering inefficiencies, unmetered authorised consumption, unauthorised consumption, Billing/accounting, meter reading) Water balance reporting currently at City level, broken down into Treatment and Reticulation processes only 23

24 WATER SUPPLY ZONES, DMA S System has 187 water supply zones Prioritized programme by highest suspected loss: Redefining and isolating zones, links and isolating valves, operating rules Enabling zonal measurement: new zone meters and data loggers Division into further DMA s In parallel with Pressure Reduction Zone installation where feasible IWA reporting will be taken down to Districts, Zones and DMA s over next 2-3 years 24

25 IWA Table (2011/12) Authorised Consumption million m3/annum Billed Authorised Consumption million m3/annum Billed metered consumption million m3/annum Billed unmetered consumption 0 million m3/annum Revenue Water million m3/annum System Volume Input million m3/annum Water Losses Unbilled Authorised Consumption million m3/annum Apparent Losses million m3/annum Unbilled Metered Consumption million m3/annum Unbilled Unmetered Consumption 2.13 million m3/annum Unauthorised Consumption 3.30 million m3/annum Customer Meter Inaccuracies million m3/annum Non Revenue Water million m3/annum million m3/annum Leakage on Transmission and Distribution Mains million m3/annum (20.5% of Input Volume) (15.8% of Input Volume) Real Losses million m3/annum Leakage on Overflows at Storage Tanks 0.32 million m3/annum Leakage on Service Connections up to point of customer meter Neglible 25

26 GOAL A NON REVENUE REDUCTION Description 2010/ /12 Target(2015/ (Baseline) 16) Water Losses 19.8% 15.3% <15% Apparent Losses (Unbilled Unauthorised Consumption) Intervention 7% 6.3% 4% - Meter replacement program - Meter Audits and data clean-up Unauthorised Consumption 1.0% 1% 1% Conforms to International benchmarks. Water Audits would be useful in reduce and maintaining Customer Meter Inaccuracies 6.0% 5.3% 3%-4% - Water Audits - Meter age analysis/audits Meter replacement Program Real Losses 12.8% 9.3% 8%-9% GOAL D Leakage on Transmission and Distribution Mains Leakage on Overflows at Storage Tanks Leakage on Service Connections Unbilled Authorised Consumption 12.71% 9.18% 8%-9% -Pressure Management -Leak Detection -Pipe Replacement 0.05% 0.10% - Monitor and respond to concerns proactive maintenance and on demand maintenance/repairs. Negligible Negligible - - NRW 23.4% 20.5% <20% 3.61% 5.15% 2%-3% Metering and monitoring and pro-active maintenance SAP clean up Apparent Losses (Unbilled 7% 6% 3-4% As stated in Goal A

27 WC/WDM STRATEGY - ALL INITIATIVES, 10 YR REQUIREMENT BUDGET 10 YR INITIATIVE CAPITAL R1 890 M Pressure management Pipe replacement Treated effluent reuse Zone metering, logging Water meter replacement OPERATING R668 M Retrofit plumbing and leak repair Community engagement, Awareness campaigns Water management device/ Smart metering Leak Detection Feasibility studies/ research Infrastructure condition assessment Pipe, Valve, PRV maintenance Meter Audits 27

28 SAVINGS Since (by 2012/13) million m 3 /annum Additional potential Cumulative (by 2020/21) 28

29 Impact of WC/WDM Initiatives Reduced from 3.38% to 2.88% Additional Resource Required by 2017 HWR at 3.38% (2016) LWR at 2% (2019) Reduced from 2% to 1.40% Additional Resources Required by

30 Impact of WC/WDM Initiatives Reduced from 3.38% to 2.40% Additional Resource Required by 2019 HWR at 3.38% (2016) LWR at 2% (2019) Reduced from 2% to 1.00% Additional Resources Required by

31 REDUCING POLLUTION FROM SEWAGE DISCHARGE, PREVENTING INFRASTRUCTURE DAMAGE By-law awareness promotion especially to BUS/COMM sector Promoting use of Pre-treatment facility installations at source costsaving through recycling Approval of fines for the wastewater & industrial effluent by-law Peace Officer training & appointment for all Inspectors to issue spot fines, institute legal action (Criminal Procedure Act), amend by-law Surcharge tariff also serves as punitive measure where allowable limits exceeded Pilot installation of automated pollution monitoring technology for more efficient compliance monitoring & enforcement 31

32 REDUCE POLLUTION RISK CAUSE INTERVENTION Sewage overflows Sewer pipe replacement Reduce storm-water ingress; Manhole covers replacement Condition Assessment CCTV; Sewer pipe upgrade; Education Awareness; Servitude management; Pump station upgrade; Sewer grade lines reviews WWTW legacy design upgrades Sludge Disposal Upgrade sludge management facilities; Alternative methods of sludge disposal

33 REDUCING POLLUTION OF WATER BODIES & CATCHMENTS Awareness promotion Pollution investigation projects, as per SLA with Catchment, Stormwater & River Management branch Random inspections of storm-water outlets in industrial areas Enforcement, Issuing of spot fines relating to storm-water management by-law 33

34 CITY INTEGRATED PLANNING Depends on interdepartmental cooperation and data standardisation Spatial plan is GIS-based to translate strategies in IDP to specific potential recipients of services Mapping of Infrastructure capacity shortfalls (requires good Master Planning / Hydraulic models as informant) Mapping of planned capital infrastructure Matching to planned/estimated housing needs (City and private sector) in order to prioritise Overlay service sector maps to get integrated view 34

35 ENSURE OPERATIONAL EFFICIENCY, FINANCIAL VIABILITY CAUSE Inefficient Processes/ Inappropriate working environment Collection of cash / Revenue generation requirement / Growth in subsidised demand / Price Elasticity / Rising Energy Costs INTERVENTION Implementation of ISO First level response Centralised accommodation Regional Depots; Depot rehabilitation/maintenance WMD / Smart metering Increase in debt actions Revenue Protection Purification of data Meter readability Meter Audits Waste to Energy / Hydro-Electricity

36 Capacity Constraints: WWTW 36

37 CAPITAL BUDGET LARGER PROJECTS 37

38 Example: Northern Area Sewer Northern Area Sewer Budget: R 125 million 38

39 BUILDING PROFESSIONAL STAFF Programme of building in-house skills - Engineers versus project coordinators, Career paths created Skills transfer included in contracts with consultants working on current projects: Hydraulic modelling and Integrated Master Planning: update current city-wide model (Includes water balance, conceptual planning, development applications) = FIRST IN SA DIMS information system update real-time time series reporting to all desktops = FIRST IN SA Pressure management zones (*) Design of infrastructure (*) Multi-skilling/ diversification Training to enable Professional Registration 39

40 PROJECT PRIORITISATION MODEL Developed to quantify priority of investment (capital and operating projects) Spreadsheet model, considering in 4 main focus areas: Project why, what, where, when Strategic linkages (IDP, IMP, WSDP, AMP) Risk Register Legal (commitments) Ecomonic benefits (catchment households, litres/household, indigent %, jobs created) 20 year lifecycle costs (capital, operating impact) Project Gantt & readiness Financial benefit (NPV/Cost, IRR) 40

41 PROJECT PRIORITISATION MODEL.. Multi-criterion decision analysis model yielding a project score out of 10 Projects compete within baskets that each get a proportion of funding: Capex or Opex Investment category Capacity = new Continuity = replace, refurbish Capability = institutional efficiency Risk Category Aligns with new SAP Project module under development Side benefit of encouraging better project planning & definition 41

42 SMART METERING Previous successful initiatives: AMR pilot (2 100 meters, 3 types of suburbs) Water Management Devices (widely used, very effective for WDM, prevention of bad debt, limitation of leaks) Current tender issued for award 2013, to encourage development of Smart meter combining the best of all previous incl. Prepayment 42

43 Thank You! 43