Tweed Shire Council DRAFT Water Supply Asset Management Plan

Transcription

1 Tweed Shire Council DRAFT Water Supply Asset Management Plan April 2011

2 Version Control This Document is a live Council document and is subject to periodic review. The validity and currency of the document is critical in applying its content as it contains significant asset management and performance data that is real-time based. If you are reading this document leases check the version date below to make sure that the document is correct. Version Version Date Status V1 April 2011 Final Draft - Water Unit Submission to EMT V2 April 2011 Final Draft - Water Unit Submission to Council for Exhibition

3 Table of Contents 1 Introduction Background and Rationale for Council s Involvement Community Strategic Plan and Objectives Service Contribution to Community Outcomes Water Supply Principal Objectives Community Satisfaction with the Service Community Input Approach Levels of Service The Existing Situation Public Water Supply Systems Overall Condition of Assets Risk Management Maintenance and Operating Future Demand/Utilisation New Capital Expenditure Proposed Future Capital Works Programme How Growth Capital Works are to be Funded Other Capital Works Policies Renewals Capital Expenditure Funding the Annual Net Cost Licences/Property Designations The Supply of Water for Fire Fighting Purposes Integrated Water Cycle Management Demand Management Organisation and Management Service Delivery Options Standards and Guidelines Asset Management Processes, Systems and Data Management Quality Management Improvement Plan Contents i

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5 1 Introduction 1.1 Background and Rationale for Council s Involvement The NSW State Government has delegated to Local Government the responsibility for provision of water supply services for NSW country towns. The statutory framework for provision of this service by Councils is provided by the Local Government Act Community Strategic Plan and Objectives Council s Vision for the Tweed Shire Area as a basis for the Tweed Community Strategic Plan 2011/2021 is: The Tweed will be recognised for its desirable lifestyle, strong community, unique character, and environment and the opportunities its residents enjoy. with a mission statement of: Working with the community and partners, provide leadership in facilitating and delivering services that manage growth sustainably, create opportunity and enhance the value of our civic and natural assets for this and future generations. A key objective of the Strategic Plan under the theme Civic Leadership which applies to Council s water supply service is: Water Supply Objective (1.3.3): To properly manage and maintain existing and future assets based on principles of equity and sustainability. A key objective of the Strategic Plan under the theme Supporting Community Life which applies to Council s water supply service is: Water Supply Objective (2.3.2): To provide a secure, high quality and reliable drinking water supply service which meets health and environment requirements and projected demand. A key objective of the Strategic Plan under the theme Caring for the Environment which applies to Council s water supply service is: Water Supply Objective (4.3.1): To manage water resources sustainability and minimise impact on the environment by achieving more integration of water supply, wastewater and stormwater services. Page 1

6 1.3 Service Contribution to Community Outcomes The Community Strategic Plan outcomes to which the water supply service primarily relates are shown in Table 1. Table 1 Community Outcomes Community Outcome How the Water Supply Service Contributes Civic Leadership Responsible and transparent decision making to set the overall direction and long-term goals for the Shire. By ensuring water supply services are provided within a strategic business planning framework. By ensuring legislative requirements are met in delivering the service. By ensuring community input is provided for and its expectations and capacity to pay are considered in setting levels of service. By ensuring assets are properly managed within an a whole of life cycle cost approach Supporting Community Life People are healthy, safe, connected and in harmony with the natural environment, to retain and improve the quality of community life. By ensuring high quality reliable water supply services are provided for urban properties and systems are properly managed, maintained and monitored. By ensuring fire fighting capacity is available for urban properties Strengthening The Economy The region s economic base is strengthened and diversified in a way that complements the Tweed s environmental and social values. By ensuring aadequately located and pressured connections for fire fighting are provided. By ensuring the water supply service is cost effective. By ensuring a long-term perspective is incorporated into the management and planning decisions for current and future service. By ensuring water supply contingencies are provided for in the service as appropriate. By ensuring that the service can meet sustainable growth projections. Caring For The Environment Council and community value, respect and actively participate in the care and management of the natural environment. By managing the extractions of fresh water to minimise the detrimental effects on the natural environment. By ensuring the water supply service considers and addresses issues related to the environment. By achieving more integration of water and water supply services. By promoting water cycle education Page 2

7 1.4 Water Supply Principal Objectives Council s principal objectives for the provision of water supply services are: to provide water supply services within a strategic business planning framework to meet legislative requirement including licence requirements regarding surface and ground water supply extraction conditions to provide additional system capacity to meet sustainable growth projections to efficiently and sustainably operate the water supply systems to provide an equitable, responsive and cost effective water supply service to provide a high quality, reliable and sufficient water supply service to promote water cycle education including conservation and reuse to manage assets on a whole of life cycle cost basis to ensure the on-going effective provision of water supply services to put in place a sound management regime for all matters relating to the provision of the water supply service Council has several roles with respect to water supply services: to co-ordinate the setting of community outcomes for water supply services to monitor and report the progress that is being made towards achievement of those outcomes to provide water supply services to the urban community to properly manage the water supply assets to ensure that all customers are provided with safe and adequate water supplies to ensure that fire hydrants are installed in the reticulated areas, and that they are maintained and charged with water Council services the main urban communities of the Shire. Council works with the wider rural community to promote the use of alternative water supply systems such as rainwater tanks, groundwater sources and recycled water. 1.5 Community Satisfaction with the Service Council has undertaken an extensive community engagement campaign via several means to inform the community and encourage public input into the Community Strategic Plan 2011/2021. The plan states that submissions called for Council to focus on its core roles and Council will respond with a rigorous program to manage and maintain council assets. Leading issues conveyed through an online survey, forums and in written submissions related to the provision of water supply and wastewater services included: Restrictions on population growth Decisions based on sustainability Listen to / act upon community feedback Transparency in consultation / decision making Water management, including rain water tanks Opposition to dams Protect waterways Protect biodiversity. Page 3

8 Independent research conducted by phone survey of 300 residents also provided a sample of opinion which reflects the wider views of the Tweed community. Survey participants indicated the most important issues confronting the Tweed included, amongst others: Quality water supply, wastewater and garbage services Protecting its natural attributes / biodiversity Other related results were: Water supply, wastewater and garbage services rated an average 8/10 in importance and 7/10 on how well they were being provided. 13% indicated water supply and wastewater services were one of three areas important enough to warrant allocating more money (within a limited budget). In contrast, it was found that the same percentage chose to cut allocations from these areas in preference to other areas. 1.6 Community Input Approach Council endeavours to accommodate the interests of stakeholders and will involve them in the decision process at a level in the accordance with the Council s Consultation Policy and as required by statute. Comment and community review is received as part of Council s consultation in preparing the 4 year delivery programme for water services. Individual strategies and policy will be publically exhibited for comment as part of their preparation. 2 Levels of Service The key water supply levels of service attributes that Council desires to be measured against are: environment sustainability and efficiency of service delivery quality of water supplied reliability, availability and adequacy of the water supply systems including ability of reticulation to provide water for fire fighting purposes system capacity to accommodate growth affordability to customers responsive, effective and equitable service to customers meeting legislative requirements The following table details customer s expectations for the water supply service and Council s service indicators and target levels. The information is grouped under service attributes for the quadruple bottom line categories of environment, social/cultural, economic and governance. Page 4

9 Quadruple Bottom Line Service Attributes Table 2 Water Supply Levels of Service Customer Expectations Water Level of Service Indicator Target Less than 180 kwh per 1000 connected assessments Sustainable Energy consumption Less than 160 net tonnes CO2-equivalents of GHG emissions per 1000 connected assessments Environment (protecting the environment) Efficient Potential environmental will be identified and properly managed by Council in providing and managing the service. Percentage of unaccounted for water. Average annual residential water supplied (kl/property) Average annual residential water supplied (L/p/day) Average annual water supplied (L/p/day) Less than 10% of annual treated water production volume. 180 kl/year 180 L/p/day 300 L/p/day Percent increase in annual volume of water extracted Less than percent increase in population growth % of extracted water treated and delivered to system Greater than 95% Quality Connected properties will receive good quality drinking water delivered under pressure, which is clear and has no obvious taste or smell. Percent of time treated water supplied to ADWG. Number of water quality complaints Number of moderate / major water public health incidents. 100% of the time. Less than 3 per 1,000 connected assessments per year Nil Unplanned interruption time. Service to 95% restored in less than 5 hours. Notified Planned interruption time. Service to 95% restored in less than 12 hours. Social/cultural) (supporting community life) Reliable Connected properties can be assured of a continuous supply. Number of unplanned interruptions. Number of water main failures. Number of water service connection failures. Less than 35 per 1000 connected assessments per year. Less than 10 breaks per 100 km of mains per year. Less than 10 breaks per 1000 connected assessments per year. Available Sufficient Properties designated rateable to water supply are able to connect to the system. Council will provide a water supply service of sufficient capacity Percent of time water restrictions applying. 0% Residential water services installed in 7 working days of application 100% Percent of properties meeting a minimum flow of 4.5 L/min and pressure of 200 kpa at the property boundary 100% Maximum water pressure at the property boundary of 750 kpa. 100% Page 5

10 Quadruple Bottom Line Social/cultural) (supporting community life Economic (strengthening the economy) Service Attributes Sufficient Capacity Affordable Customer Expectations Water Level of Service Indicator Target Council will provide a water supply service of sufficient capacity Water will be provided (and appropriately located) for fire fighting. Council will provide a water supply service sufficient to meet planned demand. The service is being provided at a reasonable cost. Percent of properties meeting design flow and pressure as determined from the current land use zoning density and Council's publicised design criteria Minimum flow and water pressure at hydrant for fire fighting 100% Planned annual capital expenditure for growth. Greater than 85% Annual bill based on 200 kl/annum will be comparable across region and metropolitan centres 11 L/min. at 150 kpa (residential). 20 L/min. at 150 kpa (commercial, industrial, high rise). No more than10% annual increase Responsive Information and requests in relation to the service and complaints will be dealt with properly and in a timely manner. Notification time for planned interruptions to affected connected assessments. Availability of information on problems with water supply 48 hrs Information on problem provided on Council s Service Centre line within 30 mins. Governance (civic leadership) Equitable Customers are treated equally with charges fairly calculated and applied. A user pays system is implemented (fixed service charge and pay for each kilolitre of water used) Annual review and adoption of user pays tariff charges Compliant Council meets its legislative requirements. Number of occurrences where legislative requirements are not met Nil breaches Effective Customers satisfied with the level of service provided. Number of water supply system customer requests Less than 30 per 1000 connected assessments Page 6

11 3 The Existing Situation 3.1 Public Water Supply Systems Tweed Shire Council owns and operates water supply systems in three discrete areas - Tweed District, Uki and Tyalgum. The treatment plants servicing the Tweed District and Uki areas comply with the requirements of the Australian Drinking Water Quality Guidelines. The Tyalgum plant is to be upgraded to meet these requirements. Urban assessments are serviced with a connection to their respective water supply system. At present Council has no plans to supply a water service to any of the Shire rural areas, which typically rely on rainwater tanks. Key water supply statistics are provided in Table 3 and the age and material profiles for reticulation and trunk main pipelines in Figures 1 and 2 Table 3 Water Supply Statistics Permanent population supplied 73,534 Number of residential connections 32,284 Number of non-residential connections 1,976 Raw water transfer mains length 3 km Reticulation mains length 505 km Trunk mains length 185 km Total length of water mains 693 km Pumping stations - potable and non-potable 27 Number of service reservoirs 41 Volume Treated (2009/10) 10,550 ML/yr Figure 1 Water Pipeline Age Profile Page 7

12 Figure 2 Water Pipeline Material Profile (by % of total Length) 3.2 Overall Condition of Assets Pipeline Assets Council has developed a systematic documented process for condition grading and assessment of the likelihood of failure for pipeline assets based on visual observations of pipe structural condition and performance history data (e.g. main breaks). Where this information is not available a coarse condition grade is determined from age and material type. Likelihood of failure in conjunction with consequence of failure derived from spatial information determines the overall risk - from low to extreme. The risk together with hydraulic capacity drives the development and implementation of maintenance and improvement programmes, including: Water main renewals and rehabilitation Critical water mains condition assessment Repairs to water mains as necessary Water supply system augmentation works to increase capacity to meet peak demand days, fire fighting flow requirements etc. Page 8

13 Figure 3 Water Pipeline Condition Profile (by % of total Length) Non-pipeline Assets Figure 4 Water Pumping Stations Overall Condition Profile Page 9

14 Figure 5 Reservoirs Overall Condition Profile Figure 6 Water Treatment Plants Overall Condition Profile 3.3 Risk Management Council has recently adopted an Enterprise Risk Management Framework consisting of a Risk Management Policy and accompanying Risk Management Plan in accordance with AS/NZS 4360:1999 Risk Management. The associated documents establish the standards, systems and processes for evaluating and managing risk across Council and are adopted by the Water Unit to assess the risks to the water supply business function. An analysis of the risks to the business functions has been undertaken in accordance with Council s likelihood and consequence risk rating process, with the addition of the consequence criteria Public Health. Key risk categories considered were: Environmental Health and Safety Strategic Fraud / Corruption Financial Staffing Operational Activities Legal / Compliance Reputational Public Safety and Well Being Page 10

15 The overall risk assessment comprised an evaluation of the effectiveness of single or multiple controls to reduce the level of each risk. Action plans are required to be prepared for where the remaining residual risks rating are still categorised as extreme, very high and high. Business Continuity Management Council has developed a suite of priority Business Continuity Plans to respond to possible disruptions to vital water supply functions from a range of threats. Each plan documents business contingency arrangements and procedures. These are intended to enable Council to respond to an event that lasts for an unacceptable period of time and be able to return to performing its critical functions as soon as possible after the interruption event. The priority plans were identified via a risk evaluation of the possible key threats to critical water supply functions according to Council s risk evaluation protocol. The high level risks for which continuity plans have been developed to date are major contamination of the raw water or treated water supplies, prolonged drought, major flood and tsunami. The individual plans feed into Council s Corporate Risk Management Plan as a control measure of an inherent risk. Council intends to prepare the balance of individual continuity plans in priority order of risk rating. Page 11

16 4 Maintenance and Operating Approach The water supply assets of Council are owned and operated by the Operations Section of the Water Unit in accordance with established policies and procedures. Each of the water supply system assets is maintained and operated to a standard to ensure: the standard of the asset does not decline below a level at which the standard of service can be achieved the appropriate level of service is maintained the consumers get value for money A maintenance management strategy based on a Reliability Centred Approach and associated plan has been developed for the water supply systems. The maintenance strategy and plan is being implemented through the implementation of computerised maintenance management and geographical information systems. The estimated cost of operations and maintenance for the next ten years is shown in Table 4 and Figure 7 following. These costs exclude support costs - management, engineering and supervision, interest expenses and payroll tax. The significant increase in operating costs for pump stations is primarily related to an allowance in the predicted increases in electricity costs and the high level of treatment being provided. Other costs have been increased to allow for the CPI increase and anticipated growth. Figure 7 Operation and Maintenance Expenditure Proposed 2011/ /21 (excludes support costs) Page 12

17 Table 4 Operation and Maintenance Costs 2011/ /21 ($000 s) (excluding support costs) Dams and Weirs Operation Maintenance Mains Maintenance 1,377 1,403 1,430 1,458 1,485 1,514 1,543 1,573 1,603 1,634 Reservoirs Operation Maintenance Pumping Stations Operation (excl. energy) Energy 1,064 1,192 1,335 1,495 1,674 1,875 2,100 2,352 2,634 2,951 Maintenance Treatment Operation (excl chemical) 1,000 1,041 1,085 1,131 1,179 1,232 1,287 1,346 1,407 1,474 Chemical Maintenance Other Operation Maintenance Water Purchase Total Annual Operations & Maintenance 6,633 6,594 6,895 7,218 7,565 7,942 8,347 8,787 9,263 9,782 Page 13

18 5 Future Demand/Utilisation The historical growth in connected properties is shown in the figure below. Figure 8 Water - Properties Connected Council recognises that future demands for water supply services will be influenced by: Population growth and demographics Changes in community expectations Industrial demand Technological change Changes in legislation Integrated Water Cycle Management initiatives. Technological change has the ability to impact on the demand for a service. These changes can reduce or increase the demand for water supply infrastructure. Relevant examples are: household water saving devices such as dual flush toilets, low-flow shower heads and front-loading washing machines which reduce water demand use of rain water tanks for some internal household use greywater re-use schemes Similarly, technological advances can have an effect on the cost of maintenance and operation of assets. Relevant examples are: advances in treatment process may make further quality improvements cost effective, but will likely raise overall costs of service advances in effluent treatment may enable greater use of effluent and stormwater in the place of potable water will increase overall cost of service improvements in pump efficiency and network design will decrease power consumption material improvements increase the base lives of assets advances in water leakage detection Page 14

19 The potential impact of these technologies is currently unquantifiable, so no direct allowances have been made for them in this Plan. 6 New Capital Expenditure 6.1 Proposed Future Capital Works Programme New works are those works that create a new asset that did not previously exist, or works that upgrade or improve an existing asset beyond its existing capacity. They result from growth or changes to levels of service. Assets may also be created at no direct cost to Council (i.e. reticulation in subdivisional developments). The creation of new assets is approached differently depending on whether it is an urban or industrial development, within or adjacent to an existing water supply system, or whether it is the introduction of a new system into a previously un-serviced area. Development within, or adjacent to existing water supply systems is typically driven by a developer subdividing land. These developments are guided and controlled by zoning and development control plan rules, administered under the Environmental Planning and Assessment Act. As part of the development consent process, the design of all water supply assets which will be vested to the Council, are checked against Council Development Standards. Expenditure on proposed new and upgrade capital works (excluding developer provided assets) over the next 10 years is shown as follows. Figure 9 CAPEX New and Upgrade Works Expenditure Proposed 2011/ / How Growth Capital Works are to be Funded Council funds the cost of the growth component of new capital works by the recoupment of developer contributions collected for such works and raising loans to cover cash flow requirements. Developers pay a contribution levied as part of the Development Application process, for the capacity taken up by the development. The Water Development Serving Plan (DSP) sets out the growth-related works to be funded by developer contributions and the associated charges per Equivalent Tenement (ET). Additional works, not identified in the DSP have to be funded by the developer directly and work within the development site is to be funded and constructed by the developer to Council s standards. The 2011/12 developer charge payable is $11,020 per ET and is increased annually by CPI and is fully reviewed every 5 years. Page 15

20 6.3 Other Capital Works Policies Other key financial policies relating to water supply capital programming and expenditure are listed below. The repayment period for all new loans will generally be 20 years except for shorter life assets. Council regularly reviews its current loan portfolio to determine whether savings can be made. The new capital expenditure forecasts for the next ten years are indicative only and will be updated on a rolling basis. The capital forecasts that are presented cannot be interpreted to mean that the associated work will always be undertaken as the whole Plan is subject to change, primarily as a result of changes in the rate of growth and where the growth is occurring. Except in the event of there being a serious environmental or health issue (in which case Council may instigate action), extensions and new water supply systems will only be considered if: Page 16 More than 80% of affected residents support the scheme; and they, and/ or sub-dividers and developers are prepared to pay the full cost to implement the scheme; and they are responsible for and maintain and meet all annual costs of operating the system along with meeting ongoing legislative and licence requirements imposed by state government authorities and Council Council may consider maintaining the scheme and meeting the annual costs if the systems were constructed to Council s standards, the annual costs are comparable to current costs per connection and all properties pay all of the annual access and users charges as applicable. 7 Renewals Capital Expenditure Renewal expenditure is major work that does not increase the asset s design capacity but restores, rehabilitates, replaces or renews an existing asset to its original capacity. Work over and above restoring an asset to original capacity is classified as new works expenditure. Assets are considered for renewal: as they near the end of their effective working life where the cost of maintenance becomes uneconomical if the levels of service are not being met when the risk of failure of critical assets is sufficiently high Renewal decisions are based on the cost effectiveness of renewing the asset and the assessment of the acceptability of the risk of asset failure. Renewal decisions are supported by records of failures (including main breaks), work carried out, annual maintenance and repair reports and staff knowledge of the systems. In addition, the theoretical life expectancies of asset components have been used for the purpose of financial projections. The monitoring of asset reliability as part of planned maintenance, various inspections, operational activity and the investigation of customer complaints identifies non-performing assets. Indicators of non-performing assets include: structural failure repeated asset failure loss of hydraulic performance ineffective and/ or uneconomic operation insufficient treatment excessive energy consumption The cost of renewal capital works is estimated to total approximately $30 million over the next ten years. The cost of renewal work is funded from operational revenue through a provision for the annual depreciation of wastewater assets. Council s aim is to preserve the service potential capacity of all of its water supply assets on a continuous basis. A significant number of these renewals projects will be incorporated with new capital

21 projects or in conjunction with road works undertaken by Council, to provide for increased capacity to cater for the projected growth in the Shire. Figure 10 CAPEX Renewal Expenditure Proposed 2011/ / Funding the Annual Net Cost Water supply pricing for customers are in accordance with NSW Office of Water guidelines. Residential properties pay a uniform annual access charge. Business Assessments pay the water access charge based on the residential charge multiplied by the ratio of the cross sectional area of their water meter compared to a minimum 20mm size. All water used as measured by Council s water meter at each property is charged to each consumer. This volumetric charge is on a per kilolitre basis and includes a step price increase for residential properties (excess water charge). The projected total annual costs (excluding depreciation) and the proposed method of funding for the next ten years, is indicated in Figure 11 as follows. Page 17

22 Figure 11 Summary of Forecast Cash Flow 2011/ /21 ($000 s) 9 Licences/Property Designations A very important aspect of the water supply function is in ensuring that the Shire s natural water sources are managed responsibly. Surface water licences from the NSW Office of Water for the abstraction of natural water are held by Council for the operation of all water supply systems. These usually stipulate the quantity of the water allowed and a maximum rate for its extraction. A licence from the Department of Environment, Climate Change and Water is held that stipulates the allowable quantity and quality of discharge of wastewater from the Bray Park water treatment plant. 10 The Supply of Water for Fire Fighting Purposes The reticulated systems provide for fire fighting with the use of fire hydrants. Council does not permit public water systems that cannot be supplied by gravity from the local service reservoir to meet fire fighting requirements as set out by Council s design specification D11 as it references the Water Reticulation Code of Australia. Some high areas may also be serviced by an on-demand pressure booster system. Systematic testing of fire hydrants is carried out and a program of hydrant repairs/replacements is in place for those hydrants not meeting minimum flow or pressure requirements. 11 Integrated Water Cycle Management Council is required to develop and implement an Integrated Water Cycle Management Strategy (IWCM). IWCM is the integrated management of the water supply, wastewater and stormwater services within a whole of catchment strategic framework and provides a long term focus on their integrated delivery. A goal of the strategy is to reduce where possible surface and ground water source extractions by appropriate substitution of effluent, stormwater and rainwater tanks along with the implementation of demand management initiatives. Council has prepared a Context Study and Strategy Report in order to define the catchment, water resource and urban issues faced and to outline a broad strategy for the future. From the report Council adopted a range of IWCM Strategy actions, in December 2006, which have been regularly reviewed and updated in February 2009 and in January 2011 which are listed below. Page 18

23 Table 6 IWCM Strategy Action Plan (as updated Feb. 2011) Item Action Develop Quality Management Plan Develop Environmental Management Plan Overarching Strategies and Plans Implement Asset Management Plans Implement WSUD and ESD Principles Liaise with proponents of developments to promote WSUD and ESD Implement Water Education and Training Adopt Demand Management Implementation Plan Adopt Drought Management Implementation Plan Develop Risk Based Water Quality Management Plan Urban Water Develop and Implement Leakage Reduction Program Determine preferred option for the augmentation of the water supply Procure upgraded WTP at Tyalgum Investigate and determine requirement for upgrading the WTP at Uki Urban Wastewater Optimise existing wastewater infrastructure Determine options for augmentation of the wastewater Infrastructure Maximise water recycling (effluent reuse) opportunities Urban Stormwater Review Urban Stormwater Quality Management Plan Update Development Design Specification D7 Stormwater Quality Identify targeted retrofit program for retention/treatment hotspots Catchment Management Review On-site Sewage Management Strategy Develop Drinking Water Catchment Management Plan 11.1 Demand Management Water Supply demand management aims to modify customer demands for services (quality, quantity, pressure and reliability) such that water is conserved in order to: promote water conservation optimise utilisation/performance of existing assets reduce or defer the need for new assets meet Council s and Government strategic objectives (including social, environmental and political) deliver a more sustainable service respond to customer needs The residential consumption rate for all Tweed systems was an average 201 L/p/day in 2007/08, 205 L/p/day in 2008/09 and 197 L/p/day in 2009/10. Council s 2013 residential target is 180 L/p/day with a whole of shire usage target of 300 L/p/day. Page 19

24 Council has implemented restrictions on the Tweed District system to limit demand only once since the construction of the Clarrie Hall Dam in 1983, during the 2002/03 drought. Ideally, Council aims not to introduce harsh restrictions on the water supply in the future other than during prolonged drought or for emergency purposes. Water loss management is a component of a Demand Management Programme. Unaccounted for water which comprises illegal consumption, system leakage and under-registration of meters was approximately 12 to 15% of the overall water produced for the 3 years 2007/08 to 2009/10. This is relatively high compared to the present target of 10% (and 7% long term). A Demand Management Program is a key element in Council s IWCM Strategy. In response, Council is now undertaking an Implementation Plan for recommendations developed as part of the Demand Management Strategy. This strategy is underway in stages, focusing firstly on residential and secondly on non-residential water use. A fulltime Demand Management Program leader is employed whose primary role is to implement the recommendations. The main project elements being implemented for the Demand Management Strategy over a 3-year timeframe are listed below. It is envisaged that a number of activities will continue on an ongoing basis, remaining an integral part of Council s Integrated Water Cycle Management Strategy. DMS Program Planning Performance Tracking Framework Water Billing Process Residential Retrofits and Rebates Rainwater Tank Program Top 20 Water Users Non-Residential Program Council Audits Training of TSC Staff Open Space Irrigation Guidelines Water Efficient Garden Policy Unaccounted for Water Other Major Water Users Top 100 Permanent Water Restrictions Recycled Water Projects Leakage Reduction Program Water Sensitive Urban Design/ESD. Water conservation is presently enforced by the following: All new dwellings must contain six litre/three litre dual flush toilet cisterns and shower heads that deliver less than 9 litres/minute. Any replacement toilets or shower heads must also comply with these requirements. Council encourages: Installation of water efficient shower roses, low volume washing machines and dishwashers. A new residential home retrofit and rebate scheme for water efficient shower heads is being developed and implemented. Approximately 50% of all households have participated in past showerhead programs so this new program will target those households yet to take part. Collection of stormwater for garden irrigation and drip irrigation systems to deliver water to the plant roots and minimise runoff. Installation of a rainwater tank connected to external uses, toilet flushing and cold water to washing machines is proposed in all new and existing development areas. Council s target is for 100% of new single dwellings to have a minimum 5,000 L rainwater tank connected to a minimum 160 m 2 roof area. Appropriately sized tanks connecting 80% to 90% of the roof area are recommended for multi dwellings and other buildings. Rainwater tanks supplement the bulk water supply and reduce the intensity and frequency of stormwater runoff from urban areas. Page 20

25 The take-up of rainwater tanks in response to Council s new policy will be monitored with a view to offering a rebate if it is warranted. The NSW Government rebate on rainwater tanks is due to finish on 30 June Council will liaise with the Department of Planning to resolve any differences between Council s rainwater tank policy and the State Government s BASIX requirements for development. 12 Organisation and Management Council s structure provides for four (4) divisions with clearly defined responsibilities and functions shown below. Table 7 Function / Responsibility of Council Divisions Division Technology and Corporate Services Function / Responsibility Finance, Revenue and Customer Service, Corporate Governance, Information Technology, Human Resources Planning and Regulation Development Assessment, Planning Reforms, Development Engineering, Regulatory Services, Building and Environment Health Community and Natural Resources Water, Community and Cultural Services, Natural Resource Management, Waste Management, Entomology and Administration Engineering and Operations Design, Works, Contracts, Planning and Infrastructure, Recreation The structure also includes Business and Economic Development and Communications and Marketing units. The Water Unit is within the Community and Natural Resources Division and is responsible for the Water Supply and Wastewater functions of Council. Page 21

26 Table 8 Function / Responsibility of Community and Natural Resources Division Water Community and Natural Resources Community and Cultural Services Natural Resource Management Waste Management Entomology Administration Function / Responsibility Water Supply Function, Wastewater Function, Mechanical & Electrical Services, Laboratory Services and Water Cycle Education Art gallery, Museum, Cultural, Community Waterways, Coastal, Biodiversity, Sustainability and Sustainable Agriculture Waste, Environment Education and Landfill Insects and Native Animals Administrative and Secretary Support Figure 12 Organisational Chart - Community and Natural Resources Division Page 22

27 The Manager, Water has the responsibility for the delivery of the Water Supply function. Key positions and responsibilities within the Unit are: Strategic and Assets Engineer o Strategic business planning, including determining customer service levels, risk management, pricing and Policy o Asset management including development of asset renewals and replacement programs o Develop and maintain policies and standards o Coordinate development of forward Capital Works programs o Coordinate development of Unit s systems and procedures Capital Works Engineer o Coordination and effective and timely implementation of the water and wastewater capital works program. Operations Engineer o Operation and maintenance of Council s water and wastewater systems to meet levels of service required by Government, Council and the community Laboratory Coordinator o Operate the Council s Water Quality laboratory Mechanical and Electrical Coordinator o Provide Mechanical and Electrical Services to support operations, maintenance and capital work activities o Develop and maintain policy and standards Business Accountant o Financial management of the water supply and wastewater activities Service Delivery Options Council has a number of options available for the delivery of water supply services to the community. The options and status include: Full service contract Full in-house service provision Contracting out part of the services Sharing of resources with Councils or Government Departments Private public partnerships Councils utilises a combination of maintaining an in-house capability for core activities and contacting out parts of the service provision for specialist consulting, construction services, which includes knowledge transfer for staff training and up skilling and for dealing with varying workloads. In delivering the service the role of the asset manager (as the agent of Council) must be retained in house which comprises of: establishing and identifying the actual cost of owning and operating assets aligning the cost of assets with the organisation s business or service direction reducing the recurrent costs of asset ownership without impacting on the business or service level requirements maximising the utilisation of current and future assets to avoid unnecessary capital expenditure maintaining a lifecycle approach to the strategic planning and management of the assets and facilities establishing transparency and accountability for the costs associated with the ownership and management of assets providing effective processes, procedures, information management tools and procurement strategies to enable the effective delivery of services. Page 23

28 12.2 Standards and Guidelines Council standards and specifications for the construction of assets will reflect the best current technologies, national standards and legislative requirements. All new water supply assets constructed by or for Council or acquired from subdivision developments will be constructed in accordance with the latest edition of the relevant standard, updated regularly to incorporate relevant experiences and changes in best practice. Development standards will form the technical basis of all renewal contracts. In evaluating renewal options the life cycle costs will be considered in the interests of minimising the total long-term costs while still meeting the required levels of service. The standardisation in designs and specifications will be considered in the interests of facilitating replacement and operational simplicity and effectiveness, and where beneficial to Council may be adopted. 13 Asset Management Processes, Systems and Data Management The majority of the components of the piped network including as-built data are listed in electronic format in an up to date GIS spatial software system. Each component has been given a unique identifier which indicates the scheme and type of component. The remaining components are shown on the drawings issued at the time each scheme was constructed, electronic spreadsheets or on hard copy scanned records. The Delivery Programme addresses the areas of required improvement for the activities listed in Table 9 for asset management processes, information systems and data management. Table 9 Asset Management Processes, Systems and Data - Activities Process System Data Demand Analysis Asset Registers Asset Classification Level of Service Financial System Asset identification Knowledge of Assets Condition Assessment Accounting/ Economics Maintenance Management Contract Management Customer Enquiries Asset Attributes, Textual Data Asset Attributes, Spatial Data Historical Condition and Performance Data Risk Management Work Planning Maintenance Data Operations Risk Management Future Prediction Data Maintenance Performance Monitoring Optimised Life Cycle Strategy Design, Project Management Asset Utilisation Quality Assurance/ Continuous Improvement Optimised Renewal Strategy Forward Works Programme Integration of Systems Plans and Records GIS SCADA Network modelling Life Cycle Costs Water Quality Page 24

29 13.1 Quality Management Although an overarching Quality Management Plan has not been developed for the water supply service, a number of prepared and implemented plans and strategies exist that address many of the elements that would be included in such a plan. They are aimed at improving and providing consistent performance of the water supply service, resulting in improved customer and stakeholder satisfaction. The status of Quality Management for particular water activities is summarised in Table 10. Table 10 Status of Quality Management Activity Quality Status Water Activity Management Plan Prepared in 2007 and to be updated by July Asset Management Monitoring of service levels via customer work request system. Obtained from planned and reactive maintenance. Proactive condition assessment of trunk mains. Maintenance Management Strategy and implementation via computerised maintenance management system (MEX). Operations Management Manuals document procedures and information. Pipeline Renewals Planning based on risk analysis (AssetPlan). Non Pipeline Renewals Planning based on risk analysis (Assetic is proposed). Valuations Methodology documented and recently updated in July Assetic is corporate asset register, new additions annually and full revaluation 4 yearly. Levels of Service Statements documented and currently under review. Reflects community desires through public consultation (service level review). Risk Management Risk analysis and controls documented and annually reviewed in accordance with Council s Risk Management Processes. Documented Business Continuity planning for priority risks Knowledge Management System (KMS) Documented Water Unit knowledge system, including library, plan register and operations and maintenance manuals. Policies Development Draft documented policies currently being reviewed and finalised. Performance Reporting Corporate, NWI & Government compliance reporting undertaken and comprehensive data management systems to be developed. 14 Improvement Plan Ongoing monitoring, review and updating of this plan is undertaken to improve the quality of asset management planning and accuracy of the financial projections. This process uses improved knowledge of customer expectations and enhanced asset management processes, systems and data to optimise decisionmaking, review outputs, develop strategies and extend the planning horizon. The priority asset related improvement actions over the next 4 years considered to be the most important for delivery of the water supply service and thus included in Council s Delivery Programme are listed in Table 11. Page 25

30 Table 11 Future Key Improvement Actions Programme Water Supply Ref. No. Delivery Programme Key Actions (Strategies) and Operational Key Actions Responsibility Improve Water Supply And Wastewater Quality Management Systems Manager, Water Financial Year 2011/ / / / Review And Enhance Existing Quality Processes And Develop Quality Management Plans Manager, Water Improve Water Supply And Wastewater Environmental Management Systems Manager, Water Review and enhance existing Environmental Processes and Develop an Environmental Management Plan Manager, Water Development And Implement Energy Management Improvements Manager, Water Update Water Supply And Wastewater Strategic Business Plan Manager, Water Update Strategic Business Plans Manager, Water Develop Water Supply And Wastewater Risk Management Action Plans Manager, Water Develop And Implement Action Plans For High Risks Asset Engineer Refine Business Continuity (Emergency Response) Plans Operations Engineer Deliver Improvement Actions Identified In The Business Continuity Plans Operations Engineer Develop And Enhance Water Supply And Wastewater Knowledge And Data Management Systems Manager, Water Implementation Of Maintenance Management Asset Engineer Develop Critical Spares Register Asset Engineer Asset Enhancement, Asset Valuation, Depreciation And Predictive Modelling Asset Engineer Plant, Network Control And Telemetry Systems Strategic & Assets Engineer Development Of Electronic Plant Log Sheets Treatment Plant Engineer Develop Water Quality Data To Meet Reporting Requirements Including Geographical & Sectoral Descriptors Treatment Plant Engineer Develop And Enhance Water Supply And Wastewater Policy And Procedure Manager, Water Develop Policy encompassing connections, metering, easements, water carriers, backflow prevention, watermain extensions, rain water tanks, protection of and access to sewer mains, caravan dumping points, private pumping stations, limits of responsibility for sewer connection, wastewater treatment buffer zones, sewer main extensions, drainage diagrams, inspections and rectification and planting near sewers Operations Engineer Page 24

31 Ref. No. Delivery Programme Key Actions (Strategies) and Operational Key Actions Responsibility Develop And Enhance Water Supply And Wastewater Reporting Systems And Processes Manager, Water Financial Year 2011/ / / / Implementation Of Customer Request System Asset Engineer Implement Bureau Of Meteorology Reporting & WWTP Rain Gauge Upgrade Program Asset Engineer Improve Systems And Complete National Water Initiative And NSW Office Of Water Reporting Asset Engineer Review Water Supply And Wastewater Revenue Policy Manager, Water Implement Quarterly Billing Cycle And Enhanced Processes Operations Engineer Review Water Supply And Wastewater Strategic Supporting Plans Manager, Water yearly Review of Development Servicing Plan Strategic & Assets Engineer yearly Review of Long-Term Financial Plan Manager, Water yearly Review of Workforce Plan Manager, Water yearly Review of Levels Of Service Statements, Performance Measures And Targets Manager, Water Review Water Supply And Wastewater Development Policy And Standards Manager, Water Review And Update Development Control Plan Including Design Criteria And Standards Strategic & Assets Engineer Deliver Demand Management Strategy Manager, Water Implement Demand Management Actions And Priorities Manager, Water Implement Performance Tracking Framework For Demand Management Strategy Demand Mgt Plan Leader Develop And Promote A Permanent Water Saving Measures Demand Mgt Plan Leader Update and Promote Rainwater Tank Policy Demand Mgt Plan Leader Collaboratively Work With Top 20 Water Users To Reduce Water Consumption (Non-Residential Program) Demand Mgt Plan Leader Audit Council Properties And Undertake Internal Water Conservation Education Program Demand Mgt Plan Leader Develop And Adopt Open Space Irrigation Policy And Guidelines And Promote And Implement Education Program Demand Mgt Plan Leader Page Collaboratively Work With Other Major Water Users (Top 100) Demand Mgt Plan Leader Advocate To Government To Amend BASIX To Allow Council Minimum 5kl Rainwater Tanks Demand Mgt Plan Leader