This document was prepared by Palmerston North City Council, City Networks, Water and Waste Services Division. Name Signature Date

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1 This Asset Management Plan (AMP) is based on the best information available at the time of compilation in November Council decision making both with regard to programmes that are implemented and the timing of the programmes in the context of the Year Plan has yet to be finalised. The programmes in this AMP have been used as a planning tool to inform the 10 Year Plan planning process. The authoritative programme of work that Council plans to implement will be that in the adopted Year Plan following formal public consultation. This document was prepared by Palmerston North City Council, City Networks, Water and Waste Services Division. Name Signature Date Prepared by: Natasha Hickmott, PNCC Nov 2017 Reviewed by: Phil Walker Jan 2018 External Peer Review by: AECOM Mar 2018 Approved for Issue by: Version No. Reason for Amendment Date D PEER REVIEW FEEDBACK INCORPORATED April 2018 PNCC Reference No: Water & Waste Division Palmerston North City Council l Private Bag l Palmerston North P: +64 (6) l F: +64 (6) l

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3 Contents Executive Summary... i 1 Overview Purpose of This Plan Relationship with Other Plans AMP Review Process Changes to AMP Since Navigating the AMP The Activity Activity Description Activity Rationale Key Relationships LGA Section 17A Review Significant Negative Effects of the Activity Waste to Landfill Gas Emissions from Closed Landfills & Handling Facilities Leachate & Stormwater Discharges Windblown Recycling Materials Significant Changes to the Activity Strategic Environment Internal Strategic Context Council Vision, Goals & Strategic Direction Eco-City Strategy, the Waste Plan and the Sustainable City Practices Plan External Strategic Context Statutory & Regulatory Requirements & Standards Local Bylaws Standards & Specifications Asset Management Policy & Strategy Asset Management Policy Asset Management Strategy Levels of Service Introduction Community Input & Decision Making Process Communication of Levels of Service & Performance Measures Current and Future Levels of Service & Performance Measures Customer Segmentation & Target Outcomes Key Performance Indicators Future Changes to Levels of Service Service Level Gaps... 33

4 5 Growth and Demand Future Demand Drivers Growth Projections Population Growth National Policy Statement Urban Development Capacity Household Growth Residential Development Type Residential Growth Strategy Industrial Growth Strategy Office and Retailing (Commercial) Land Use Strategy Rural Residential Strategy Other factors influencing demand and consumption projection or patterns Demand Management Sensitivity to Demand Changes Climate Change Impact on Demand Assets & Lifecycle Management Overview of the Rubbish & Recycling Assets Asset Grouping Replacement Cost Asset Condition & Performance Grading The Awapuni Resource Recovery Park Assets Materials Recovery Facility & Associated Infrastructure The Awapuni Closed Landfill Organic & Green Waste Handling & Composting Facilities Landfill Gas Collection & Utilisation System Weighbridge & Weighbridge Kiosk Awapuni Recycling Drop-Off Point Quarry Site for Metal Extraction (Currently Licensed) Leased Sites Mountain Bike Jumps Park (Refer to Recreation & Community Facilities AMP) The Ashhurst Closed Landfill Assets Description & Attributes Condition, Capacity & Performance of Assets The Transfer Station & Recycling Drop-off Facility Assets Ashhurst Transfer Station Closed Bunnythorpe Transfer Station Ferguson Street RDOP The Kerbside Collection Assets Kerbside Rubbish Collection Assets Kerbside Recycling Collection Assets... 71

5 6.6 Public Space Rubbish and Recycling Bins Activity Management Support Services Programme Increases in Services (Operating Programmes) Asset Systems Database Infor Public Sector (IPS) Operation & Maintenance of Assets Overview Operation & Maintenance Strategies Operation & Maintenance Costs Operation of Rubbish and Recycling Assets Maintenance of Rubbish and Recycling Assets Operation & Maintenance Programme Delivery of Programme Renewal of Assets Overview Renewal Strategies Long Term Renewal Profile Renewal Programme Delivery of Programme Development of Assets Overview Development Strategies Non asset programmes Development Programme Programmes to Support Growth Level of Service Programmes Regulatory Programme Delivery of Programme Disposal of Assets Key AMP Improvement Projects Relating to Asset Lifecycle Management Risks & Resilience Corporate Risk Management Framework Risk Management Policy Strategic risks Operational Risks Project Risks Risk Management Hierarchy Asset Criticality Resilience Risk Management Process Activity Risk Management Approach for the Rubbish and Recycling Activity... 95

6 7.2.2 Role of Activity as a Lifeline Utility Critical Assets Resilience Sources of Risk Reference Documents Key Risks to the Rubbish & Recycling Activity Operational Failure Asset Failure Project & Planning Risks Natural Disasters Events & Incidents Resilience of Infrastructure to Natural Disaster Introduction Seismic Hazard Interdependencies Risk Management Strategy Risk Management Programme Civil Defence Preparedness Emergency Events Emergency Response Plan Business Continuity Plan Recovery Lifeline Utilities Coordination Risks & Resilience Improvement Plan Sustainability Eco City Strategy Key Sustainability Issues Climate Change Initiatives Approach Taken in This Plan Product Stewardship Financial Projections & Trends Long Term Financial Forecasts Trends in Thirty Year Forecast Asset Valuation Confidence Levels Reliability of Financial Forecasts Maintenance & Renewal Forecasts Development Forecasts Effects of Uncertainty of Financial Forecasts Funding policy Operation & Maintenance Capital Renewal

7 Capital Development Development Contributions Assumptions Asset Ownership & Provision of Service Population Growth Residential Growth Industrial Growth Retail Growth Rural-Residential Growth Levels of Service Construction Costs Maintenance & Operational Costs Inflation Depreciation Vested Assets Service Potential Asset Lives Natural Disasters Council Policy Interest Rate Continuous Improvement Overview Programme Planning and Implementation Project Status Development Works Planning Residential Growth and Industrial Growth Planning (refer to Section 5) Demand Projections (refer to AMP Section 5) Risk and Resilience (refer to AMP Section 7) Council Strategies (refer to AMP Section 3) Renewal Works Planning Condition Data Operations and Maintenance Operations and Maintenance Strategy Internal Service Level Agreements Market Comparability Procedure Asset Information Data Quality Processes Asset Management Plan Improvement Asset Management Resources Loss of Key AM Knowledge Skill Gaps

8 11.9 Levels of Service Review AMP Improvement Plan (2017) Appendices Appendix A. Appendix B. Appendix C. Appendix D. Appendix E. Appendix F. Appendix G. Appendix H. Appendix I. Appendix J. Glossary Requirements of the LGA 2002 Activity Performance Measures Risk Analysis Framework & Register 30 Year Financial Forecasts Asset Lives Asset Condition & Performance Grading Management and Reliability of Data Six Year Asset Renewal Programme Final Peer Review Report

9 Table of Figures Figure 1: Planning and Processes Relationship within Council... 3 Figure 2: Overview of the Asset Management Plan Sections... 5 Figure 3: Rubbish & Recycling Kerbside Collection Areas... 8 Figure 4: Materials Recovery Facility... 9 Figure 5: Schematic of the Rubbish & Recycling Activity Figure 6: Replacement Value of PNCC Rubbish & Recycling Assets Figure 7: Map showing location of proposed residential development Figure 8: Map of NEIZ Infrastructure Roll Out Figure 9: Map of Existing Industrial Zone at Longburn Figure 10: Map of Spatial Extent of the Business Zones Figure 11: Council s Rubbish & Recycling Kerbside Collection Trends Figure 12: Council s Rubbish Bag Sale Trends Figure 13: Entrance to the Awapuni Resource Recovery Park Figure 14: Materials Recovery Facility Building Figure 15: Materials Recovery Facility Figure 16: Awapuni Closed Landfill Site Figure 17: Example of Landscaping at the Awapuni Resource Recovery Park Figure 18: Weighbridge & Weighbridge Kiosk Figure 19: Awapuni RDOP Glass Recycling Figure 20: Ashhurst Transfer Station Figure 21: Ashhurst Recycling Facility Figure 22: Closed Bunnythorpe Transfer Station Figure 23: Ferguson Street Recycling Centre or RDOP Figure 24: Age Profile of Recycling Wheelie Bins & Glass Crates (as at 30 June 2017) Figure 25: Recycling Wheelie Bins & Glass Recycling Crates Figure 26: Field Inspector Screen Shot Figure 27: IPS Screen Shot Figure 28: Rubbish & Recycling Operations & Maintenance Staff Figure 29: 50 Year Renewal Expenditure Profile Based on Expected Asset Life Figure 30: Risk Management Hierarchy Figure 31: Risk Management Process (AS/NZS ISO 31000:2009) Figure 32: Thirty Year Operation & Maintenance Expenditure Forecast Figure 33: Thirty Year Projected Renewals Expenditure Figure 34: Thirty Year Projected New Capital Expenditure

10 Table of Tables Table 1: Rubbish & Recycling Usage Data... 9 Table 2: Activity Linkages to City Goals Table 3: Proposed Changes to the Activity Table 4: Rubbish & Recycling Activity contribution to City Goals Table 5: Matters raised at Councillor LoS Workshop Table 6: LoS actions from Strategy Plans Table 7: Customer Level of Service, Performance Measures & Targets Table 8: Future Changes to Levels of Service Table 9: Population Projection for Palmerston North Table 10: Household Projection for Palmerston North Table 11: Residential Development Type Table 12: The staging and timing of residential greenfield areas Table 13: Replacement Costs of the Rubbish & Recycling Assets as at 30 June Table 14: MRF Plant & Equipment Detail Table 15: Glass Processing Facility Table 16: Condition & Performance of the MRF Assets Table 17: Awapuni Closed Landfill Infrastructure Detail Table 18: Condition & Performance of the Awapuni Closed Landfill Assets Table 19: Annual Compost Input Quantities Table 20: Condition & Performance of the Compost Assets Table 21: Landfill Gas Collection System Table 22: Condition & Performance of the Landfill Gas System Table 23: Condition & Performance of the Weighbridge Assets Table 24: Condition & Performance of the Awapuni Recycling Drop-off Point Assets Table 25: Condition & Performance of Leased Assets Table 26: Condition & Performance of the Ashhurst Transfer Station Assets Table 27: Condition & Performance of the Bunnythorpe Transfer Station Assets Table 28: Condition & Performance of the Ferguson Street RDOP Assets Table 29: Recycling Wheelie Bins & Glass Crates Quantities (30 June 2017) Table 30: Condition & Performance of the Kerbside Recycling Collection Assets Table 31: Activity Management Programme Forecast for First Five Years Table 32: Data Accuracy & Completeness Table 33: Operations & Maintenance Forecast Expenditure (Next Five Years) Table 34: Operations & Maintenance Forecast for Next Five Years Table 35: Life Expectancy of Rubbish & Recycling Activity Assets Table 36: Renewal Expenditure Five Year Forecast Table 37: Development Programme Forecast Expenditure Table 38: Operational Risks Table 39: Resilience Definitions Table 40: Critical Assets Table 41: Key Operational Risks... 98

11 Table 42: Key Asset Failure Risks Table 43: Key Project & Planning Risks Table 44: Other Events & Incidents Table 45: Resilience to Seismic Hazard Table 46: Utility Services that the Rubbish & Recycling Activity Depends on for Continuity of Service100 Table 47: Utility Services that Depend on the Rubbish & Recycling Activity Table 48: Risk Management Programme for Closed Awapuni Landfill Table 49: Key Drivers of Sustainable City Strategy Table 50: Asset Valuation for Rubbish & Recycling Assets Table 51: Asset Data Confidence Level Grading System Table 52: Rubbish & Recycling Asset Data Confidence Level Table 53: Palmerston North City Council 3 year AM Improvement Programme Table 54: Condition Grading Criteria for Rubbish & Recycling Assets Table 55: Performance Grading Criteria for Rubbish & Recycling Assets

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13 Executive Summary EXECUTIVE SUMMARY Purpose of this Plan The purpose of this asset management plan (AMP) is to demonstrate how the Rubbish and Recycling Assets are being managed so as to deliver Rubbish and Recycling to meet the agreed levels of service for existing and future users in the most cost effective way. A green waste drop off and processing service; A small rubbish transfer station at Ashhurst; Three recycling drop off points (RDOP); Maintenance and after care of the former Awapuni Landfill; Methane gas harvesting for energy generation from the closed Awapuni landfill; Provision of organic composting services utilising household and commercial green waste Behaviour change, community engagement and policy development to achieve waste minimisation and reduction The assets that contribute to providing these services are: Asset type Quantity Wheelie Bins 30,177 Glass Crates 30,621 Materials Recovery Facility 1 Awapuni Resource Recovery Park (which includes the Awapuni Closed Landfill) 1 Figure A: Recycling Wheelie Bin & Glass Recycling Crate The AMP covers a period from 1 July 2018 to 30 June 2048, with a particular focus on work programmes over the next five years. It informs the Council s 2018/28 10 Year Plan and 30 Year Infrastructure Strategy and contributes to meeting Council s identified strategic outcomes. Activity & Assets The services that are provided to the community through the Rubbish and Recycling Assets are as follows: A weekly kerbside household rubbish collection and disposal service; A weekly kerbside household recycling collection and processing service; Ashhurst Transfer Station 1 Ashhurst Closed Landfill 1 Bunnythorpe Closed Transfer Station These assets have a replacement value of $26.4 Million. Asset Condition & Performance The wheelie bins were issued in 2010 and while around 0.5% of the bins are replaced due to damage or loss on an annual basis, the assumed renewal profile for the bins has been revised to reflect the longer life expectancy of the bins. The Materials Recovery Facility (MRF) was constructed in 2010 to support the introduction 1 i

14 Executive Summary of the wheelie bin service for the collection of the recycling. The MRF was modified in 2012, with a further modification in 2017 to the infeed. The facility is in average condition, various capital programmes have been developed to maintain the MRF. The MRF is housed inside a steel framed and clad shed constructed in The buildings are in good condition. Some minor refurbishment will be required on the interior within the next 2 years. The former Awapuni landfill was closed at the end of January 2007 and is located within the Awapuni Resource Recovery Park. Resource consents remain operative until The appearance of the site has improved since closure and is now considered to be good. Ongoing capping, top soiling, grassing and planting are expected to continually improve the appearance of the landfill. The Awapuni Resource Recovery Park has various assets from sealed and unsealed roads, the weighbridge, landfill gas collection, the recycling drop off point, several sites are currently tenanted offering a range of services promoting diversion of materials, and the organic and greenwaste handling and composting facilities. These are in average condition, there are several capital programmes that have been developed to enhance and maintain the assets. The weighbridge kiosk is in poor condition and due for replacement in 2018/2019. Programmes have been developed in the AMP to address issues with Awapuni and Ashhurst Recycling Drop off Points, and the Ferguson Street Recycling Centre. The Ashhurst Closed landfill is in average condition, with some fencing renewals required within the next few years. The Ashhurst transfer station is in good condition, with the kiosk replaced in 2014, safety barriers installed in 2017 and the site was resurfaced in early The Strategic Environment Asset management planning is undertaken within both an internal and external strategic environment. Internal Strategic Environment The internal strategic environment is set by the Council s desired outcomes underpinned by its Vision of Small city benefits, big city ambition.. Council has developed a range of Strategy Plans for each of its 5 strategic goals: Goal 1: An innovative and growing city. Goal 2: A creative and exciting city. Goal 3: A connective and safe community. Goal 4: An eco-city. Goal 5: A driven and enabling council. Of particular interest to this AMP are the City development Strategy and the Eco-City Strategy. Under each of these strategies a number of specific Strategy Plans have been developed, the following being of relevance to this AMP: City Development Strategy Infrastructure Plan Eco-City Strategy Waste Plan and Sustainable City Practices Plan The Infrastructure Plan sets expectations that infrastructure to deliver rubbish and recycling services will be available when development occurs. As most infrastructure is modular this is achievable for a wide variety of growth rates. The Waste and Sustainable City Practices Plans set out specific interventions that will contribute to both Council and the city reaching defined carbon, energy and waste reduction targets. This includes the goal of Council reaching net zero carbon emissions within the early years of the plan. External Strategic Environment The external strategic environment is also of relevance in that the performance of the Rubbish and Recycling Services delivered under this AMP is governed by legislative obligations. The key obligations include the Local Government Act 2002, The Waste Minimisation Act 2008, The Resource ii

15 Executive Summary Management Act 1991 and the Health and Safety at work Act The purpose of the Waste Minimisation Act 2008 is to encourage waste minimisation and decrease waste disposal to landfill. A key part of this act is that Council prepares and regularly reviews a Waste Management and Minimisation Plan. Council s current plan is due for review shortly. AMP Response to the Strategic Context The approach taken in the AMP is to encourage a range of strategies including: reducing the generation of waste at source changing the nature of the waste generated to reduce its impact or increase the ease of recycling or re-use incentivising residents and commercial service users to do the right thing with their waste Council is implementing a range of measures to support this three pronged approach including: working with commercial business to reduce waste generation or switch to alternative products e.g. compostable containers offering services to non-residential properties to divert waste from the landfill e.g. Kerbside Recycling, Commercial Food Waste Service investigating opportunities to extend the range of services available to divert waste from landfill Specific issues focussed on for the period and addressed in this plan are: A trial kerbside food waste collection service Extending the options available to nonresidential properties to join the kerbside recycling service meets the needs of many user groups including: Residential; Rural residential; Rural; CBD; Commercial/Industrial/CBD; and Public areas. LOS service measures included in Council s 10 Year Plan include the number of bags or bins collected on the stated day as well as compliance with resource consents. The AMP also sets out both customer and technical levels of services in the areas of quality, accessibility, responsiveness and sustainability together with target KPIs so that performance can be measured in these areas. The benefits of addressing these problems and the consequences of not addressing them are outlined in the AMP. Levels of Service Customers This plan supports Council managing waste in an environmentally responsible manner and maximising the amount of waste diverted from landfill. A range of services are provided that iii

16 Executive Summary Future Demand The future demand for Rubbish and Recycling services in the city will be driven by: Population & household growth Changes in waste disposal volumes, composition and presentation, based on customer expectations, environmental, cultural and economic drivers; Changes in service type and delivery model approved by Council to respond to community expectations and Legislative changes. This AMP is based on following a specific Palmerston North high population growth population scenario for years 1 10 that equates to 1.0% annum growth and then a medium growth scenario for years that gives an overall population growth of 0.6% p.a. over 30 years. The main areas targeted to provide for residential growth are Whakarongo in the short term and City West in the longer term supported by other smaller developments. The demand for services is to be met through a combination of managing existing assets, upgrading existing assets and providing the kerbside services to new properties within the serviced collection area. Other demand drivers that inform this AMP are: Retail Strategy (because of potential impact on Rubbish and Recycling production); Rural residential strategy (because of potential impact on Rubbish and Recycling production); Usage trends; Environmental drivers (e.g. more effective resource recovery, etc.); and Technological advancements. Lifecycle Management Rubbish and Recycling Assets are managed so as to meet the required levels of service while minimising costs on a whole of life basis. Important consideration in managing the rubbish and recycling services in combination with other assets include: Ensuring the collection vehicle assets whether owned or leased are able to provide for the changing and expanding range of services Ensuring Council has contracts for the marketing of commodities and disposal of residual waste which aligns with the duration of the Council s strategies The recent introduction of China s National Sword Policy which has resulted in lower prices for commodities, increased quality requirements and in some cases no market for some commodities Council continues to review the appropriate model and structure for service delivery to ensure every opportunity to taken to optimise the cost of operating and maintaining the service Operations and Maintenance Plan The recycling collection and processing costs are expected to increase gradually over the AMP period in response to the steady increase in the number of properties serviced. However a number of innovations are being deployed which are expected to provide opportunities for long term reductions in collection costs. These include: deployment of new bin tracking technology to identify authentic bin use and reduce illegal bin presentation and theft deployment of smart compacting bins to replace multiple static bins and optimise collection frequency active enforcement of illegal dumping and household waste disposal in the public space Provision has been included for the renewal of key resource consents for the closed Awapuni Landfill and other resource consents held by the activity. Additional funds have been allocated to meet the requirements of the Waste Minimisation Act to undertake regular Waste Assessments on the City s waste streams. Rubbish collection and disposal remains reasonably constant, assuming the current volume of rubbish collected and current disposal costs at Bonny Glen Landfill. iv

17 Executive Summary Total 30 year operating forecast $189M (on average $6.3M p.a.) Renewals Plan Provision is made for renewal and rehabilitation of some assets as they come to the end of their functional life. It includes the standard distribution replacement profile assumed for the replacement of recycling wheelie bins and crates. The re-profiling of the bin renewal programme has significantly reduced renewal costs in the short term. Further reviews of this programme will be undertaken on a regular basis given the significant impact of this programme on rates costs. A focus of the renewals plan in the first five years is to undertake critical maintenance and deferred renewal work at the Materials Recovery Facility (MRF) where the recycling collected from the kerbside service and the recycling drop off points (RDOP s) is taken for processing. In addition there is some key renewal work to be undertaken at the Awapuni Resource Recovery Park including replacement of the weighbridge kiosk, security upgrades, and administration building renewals and drainage and hard stand infrastructure around the wider MRF site. Total 30 yr Renewal forecast - $17.7M (On average $0.6M p.a) Financial Summary The following graphs show the projected operating and capital expenditure associated with the management and development of the assets as set out in the O&M, Renewals and Development Plans Annual expenditure is shown annually for the first 10 years and then in 5 yearly bands for years of the plan. Forecasts are shown as present day costs (uninflated). Operations and Maintenance Millions $8 $6 $4 $2 $0 Renewals Operational Expenditure Rubbish & Recycling Average Annual in 5 year bands I I I I I I Development Plan The focus of the development plan includes a range of enhancements to protect the investment in assets and mitigate the effects of the activity on the environment. Key initiatives include increased security at the Awapuni Resource Recovery Park, a new wash down bay, and investment to upgrade and standardised the recycling drop off point (RDOPs) infrastructure to deliver more efficient collection and processing of recycling. Additional capital investment is programmed to reduce the cost of collection of public space rubbish bins including the roll-out of smart compacting bins. Total 30 year Development forecast $3.3M Capital Development Financial forecasts are based on generally good asset information although extrapolation v

18 Executive Summary of information has been used in some places. Projects in the first few years are more fully scoped than in later years. Risk & Resilience Critical assets are those assets which have the highest consequences in terms of disruption to service and financial, environmental, and social cost should they fail. For the Rubbish and Recycling Activity, the only asset in this category is the closed Awapuni landfill, which is assessed as medium criticality. Key risks identified for the activity as a whole are: Inadequate Service Level Agreement management; Non-compliance with legislation (e.g. Waste Minimisation Act) and legal requirements; Diminishing funding allocation; Leachate and landfill; Building or structure failure; discharges from closed Plant, equipment, or operations failure; Lack of skilled staff; Failure to deliver on projects and programmes; Inadequate asset management; Ineffective strategic planning; and Inadequate communications and public relations management. Mitigation measures to address these risks are covered in this plan. Data Management and Reliability The quality and completeness of the rubbish and recycling asset data is considered average given it is based on historical capture of asset data at the time of construction or acquisition of the assets. A significant portion of the assets is represented by the household recycling bins. The expected life of the average bin has been reviewed and substantially revised as many bins are lasting longer than expected. above ground and buried. Further work is ongoing to complete condition assessments of the mechanical assets to develop a more robust renewal programme and enable tendering of a maintenance contract for the facility. Further initiatives are planned to improve the quality of asset data and its condition. Continuous Improvement Asset management processes and practices are continually being assessed and improved in order to provide more cost effective asset management. The priority improvement tasks for the next 3 years are as follows: Capital renewal and development project planning further development of processes to take into account a sustainable development approach Review demand projections on an on-going basis consistent with Council s Residential Growth Strategy Asset information on-going development of asset systems and collection and analysis of data to meet all asset management needs. Resource planning to ensure the recruitment, retention and development of sufficient and suitably qualified staff. Conclusion This AMP sets out programmes for operating, maintaining, renewal and development of the Rubbish and Recycling Activity over the next 30 years that will ensure the required level of service is delivered to the community, the service potential of the asset is maintained for future generations, and growth of the City is provided for. Significant investment has been made in updating and improvement of the asset register for the assets located at the Awapuni site both vi

19 Section 1 Overview 1 Overview 1.1 Purpose of This Plan This AMP is the basis for the Rubbish and Recycling Activity planning. management is to: The objective of asset Deliver the required level of service to existing and future customers in the most cost-effective way. In this context the specific objectives for the AMP are: To define the services to be provided, the target service standards that Council aims to achieve, and the measures used to monitor the performance of the Rubbish and Recycling Activity. To translate Council s Strategic Vision and Goals into activity strategies and action plans, that aligns to National and Regional policies and strategies. The plan identifies forward works programmes based on strategic outcomes sought and financial forecasts required to meet agreed service levels and cater for growth. To demonstrate responsible management of the Rubbish and Recycling Activity infrastructure to stakeholders, ensuring that public funds are optimally applied to deliver cost effective services to meet customer expectations. To document current asset management practices used by PNCC based on clear evidence as part of a sustainable and optimised lifecycle management strategy for the Rubbish and Recycling Activity infrastructure, and identify actions planned to enhance management performance. To comply with the requirements of relevant legislation. The key outputs of this AMP are input into the Year Plan process, which will be the subject of a special public consultative procedure. The intention of this AMP is to set out how Council manages Rubbish and Recycling Activity assets and services in a way that is appropriate for a readership including elected members of the Council, executive management, interest groups, and business partners associated with the management of the Rubbish and Recycling Activity, along with interested members of the community. It covers the services that are provided from ownership and management of the associated assets. This AMP covers a period of 30 years commencing 1 July Operational, maintenance, and renewal programmes for the first 3 years are generally well defined with reasonable certainty of being implemented to budget as planned. Beyond this period, work programmes are generally based on projected trends and demands and there is less certainty with respect to scope and timing of the projects. All expenditure forecasts are based on unit costs as at 1 July Relationship with Other Plans AMPs are a key component of the Council planning process, linking with the following plans and documents: 10 Year Plan: A plan required by the Local Government Act (2002) to cover a period of at least 10 years and provide a long-term focus for the decisions and activities of the Council. This AMP contains key information about the Council s activities, assets, levels of service and cost of providing services. This AMP provides key inputs to the Year Plan. 1

20 Section 1 Overview Annual Budget: Provides the programmes and funding plan for each year of the 10 Year Plan including reporting on variances. District Plan: The District Plan gives effect to four land-use strategies through the City Planning Framework that covers residential, industrial, commercial, and rural residential development. The strategies establish the best use of land and direct where private sector investment should occur based on several land use zones. AMPs give support to the strategies and link into the 10 Year Plan for funding of infrastructure. Contracts and Service Level Agreements: The service levels, strategies, and information requirements contained in AMPs are translated into contract specifications, internal service level agreements, and reporting requirements. Bylaws, standards and policies: These tools for asset creation and subsequent management are needed to support AM tactics. Palmerston North Waste Management and Minimisation Plan 2012 (WMMP): The WMMP defines the Council s areas of strategic focus, aims, and objectives with respect to waste management and minimisation. It sets out the actions required to achieve these areas of focus, framed around the community goal of diverting 75% of waste by Palmerston North Waste Management and Minimisation Bylaw 2016: The purpose of the bylaw is to: Protect and promote public health and safety by regulating the collection and disposal of waste and diverted material; Promote effective, efficient and safe collection, transportation, management, and storage and disposal of waste and diverted material; Regulate and monitor waste and diverted material operators within the City through a licencing process, to support Council s WMMP. Council s Significance and Engagement Policy: This policy guides the Council s engagement process. New Zealand Waste Strategy 2002: The Strategy sets national targets for waste minimisation activities for local authorities. This strategy needs realignment with the Waste Management and Minimisation Plan strategies and objectives. Revenue and Financing Policy: Outlines how operating and capital expenditure will be funded. Figure 1 depicts the relationship between the various processes and levels of planning within the Council required to deliver on Council s vision and goals. 2

21 Section 1 Overview COUNCIL VISION & GOALS Community & Stakeholder Consultation STRATEGIC PLANNING e.g. Council s strategic direction & 10 Year Plan Long term programmes (5-30yrs) TACTICAL PLANNING e.g. Asset Management Plans Medium term programmes (2-5yrs) OPERATIONAL PLANNING e.g. Annual Budget Annual Budget Programme Monitoring & Review Figure 1: Planning and Processes Relationship within Council 1.3 AMP Review Process This asset management plan (AMP) review has been a 12 month project undertaken by Council s asset management (AM) team, led by the Special Projects Manager, covering all Palmerston North City Council (PNCC/Council) AMPs. Linkages were established early in the process with other Council planning teams, including the Year Plan team, strategic planning, and corporate finance teams, to ensure an integrated approach to consistency of information and assumptions across the organisation. The stages of the review have been as follows: Assessment of Council s strategic direction as it has developed over the period February August 2017 to determine the asset implications of delivering the community outcomes that the Council is seeking and developing programmes accordingly. Level of service review to determine what level of service the Council considered affordable and what changes are required. The Councillors were informed about current levels of service and workshopped the issues and options at a workshop (building from current levels of service, incorporating the ONRC customer levels of service, and presenting the issues and options to Councillors workshop (23 March 2017)). Assessment of growth and demand projections to determine future rubbish collection and recycling requirements. Review of critical assets and key risks, assessment of critical asset resilience to natural hazards and interdependencies, review of risk management strategies, and updating of risk management programmes. Preparation and review of AMP budget forecasts to inform the 10 Year Plan (July Nov 2017). Internal Peer Review and finalisation of AMPs (Jan 2018). External peer review (February 2018). 3

22 Section 1 Overview Formal reporting of AMPs to the Council. Any variations between the respective AMPs and the Year Plan will be the subject of a report to Council following adoption of the 10 Year Plan in June This AMP has been prepared as a team effort by officers dedicated to and trained in AM planning. This team has been supervised and the AMP internally reviewed by professional Council staff having over 10 years experience in preparing AMPs. An external peer review has been undertaken by AECOM Ltd. 1.4 Changes to AMP Since 2014 Asset management is a process of continuous improvement, contiguous with development of, and changes to, Council s strategic environment, and improved knowledge of asset condition and performance to achieve agreed levels of service. Key changes to the AMP since 2014 are as follows: Development of capital new and operational programmes to align with Council s new Vision Small city benefits, Big city ambitions and associated goals and strategies and the outcomes that the Council is seeking to achieve. (Section 3) Adjustments to the levels of service to be delivered to the community through level of service review and development of Council s strategy plans. (Section 4) Revised schedule of development works for growth for both residential and industrial growth arising out of a higher population growth projection - a high growth scenario for years 1-10 and a medium growth scenario for years This requires infrastructure for a greater number of households over 30 years than previously planned. (Section 5) Reassessment of demand for services as a result of higher population and household projections. (Section 5) Updating of the risk and resilience section. (Section 7) Improvements to asset management processes, particularly the introduction of the Programme Planning and Implementation process. This is to ensure that the programmes in this plan are supported by more robust information. 1.5 Navigating the AMP This AMP comprises a series of logical steps that sequentially and collectively build the framework for sustainable asset management for the activity it serves. The plan contains three main sections. It first describes what the plan is about and the activity it relates to. The second section is about the drivers that influence and set the direction for asset management. The third section describes out the level of service and strategic outcomes are achieved through managing and developing the assets. 4

23 Section 1 Overview AMP at a Glance (Executive Summary) Overview (Section 1.0) Purpose of AMP, relationship to other planning documents, AMP review processes & navigation The Activity (Section 2.0) Purpose, description & rational of activity, Custemers/Users, Key relationships for management of activity, significant changes and negative effects associated with activity. What the Plan is about Setting the scene The Strategic Environment (Section 3.0) Strategic context (internal & external) to determine key outcomes sought. Strategic assessment to identify problems and benefitrs within the overall strategic context & the outcomes desired. Levels of Service (Section 4.0) The review process followed and the qualities of the service that Council intends to deliver to the Community Growth & Demand (Section 5.0) The growth and demand factors impacting on the capacity and levels of service provided by the assets over 30 years Requirements Setting Strategic Direction Assets & Lifecycle Management (Section 6.0) Plans detailing how the assets are to be managed, operated, maintained, renewed and developed to provide the required level of service over the asset life. Risk and Resilience (Section 7.0) Risks identified that may affect the ongoing delivery of services from Council s infrastructure and resilience to natural disaster Sustainability (Section 8.0) Identification of key sustainability issues and linkage to Council s strategies Financial Projections (Section 9.0) Outlines the long-term (30yr) financial projections for operating, maintaining, renewing and developing the assets. Asset valuation and reliability of estimates. Asset Management and Strategic Response Assumptions (Section 10.0) Key assumptions used in developing asset lifecycle programmes and impact of variations from these assumptions Improvement Plan (Section 11.0) Initiatives to make improvements to asset management planning over the next 3 years and to inform the next AMP review Figure 2: Overview of the Asset Management Plan Sections 5

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25 Section 2 The Activity 2 The Activity This section sets out the services provided by the Rubbish and Recycling Activity including: A description of the assets used to deliver the activity; The rationale for Council involvement and ownership of assets; The significant negative effects of the activity; and The significant changes in the activity since the last AMP. 2.1 Activity Description The purpose of the Rubbish and Recycling Activity is to provide for the regular collection and disposal of rubbish and recyclables from households and businesses in the City. Council provides the following services within the Rubbish and Recycling Activity: A household rubbish collection and disposal service; A recycling collection and processing service; A green waste drop off and processing service; One small rubbish transfer stations (RTS); Three recycling drop off points (RDOP); Public space rubbish and recycling services; Maintenance and after care of the former Awapuni Landfill, Ashhurst Landfill and the Closed Bunnythorpe Transfer Station; and Support for various waste minimisation actions and initiatives. Kerbside bagged rubbish collection services are provided weekly to approximately 29,000 properties in the City, and to the CBD. Kerbside recycling collection services are provided weekly (alternating collection between wheelie bin for co-mingled recycling and crates for the collection of glass) to about 29,000 properties in the City, and to the CBD. The Rubbish and Recycling kerbside collection area is shown in Error! Reference source not found.. 7

26 Section 2 The Activity Figure 3: Rubbish & Recycling Kerbside Collection Areas 8

27 Section 2 The Activity The Council currently operates three recycling drop off facilities for those residents who are either not within the kerbside collection area, or have excess recycling. These facilities provide for paper, cardboard, plastics, metals, and glass recycling and are located at: Ferguson Street; Awapuni Resource Recovery Park; and Ashhurst Transfer Station. The Ferguson Street also accepts other items for recycling during work hours including household batteries at no charge, E-waste and child car seats for a small charge. A Materials Recovery Facility (MRF) has been established at the Awapuni Resource Recovery Park where sorting and processing of recyclables takes place. The MRF (container sort line) is shown in Figure 4 below. Figure 4: Materials Recovery Facility Composting of green and organic material also occurs at Awapuni. Harvesting of the closed Awapuni landfill gas and conversion to electrical energy forms part of this activity. Council owns and operates a small rubbish transfer station at Ashhurst; this facility provides controlled and conveniently located rubbish disposal for the public in areas that are outside the main urban parts of the City. Table 1 contains the Rubbish and Recycling usage data for the last three years. Table 1: Rubbish & Recycling Usage Data Kerbside Rubbish Collection Data Activity 2014/ / /2017 Rubbish Bags Issued [No.] 559, , ,000 Kerbside Rubbish Collection and Disposal [Tonnes] 3,627 3,507 3,409 Transfer Stations Collection and Disposal [Tonnes]

28 Section 2 The Activity Activity 2014/ / /2017 Illegal Dumping Collection and Disposal [Tonnes] No Data Kerbside Recycling Collection Data Co-mingled Kerbside Recycling Collection [Tonnes] 4,096 4,234 4,114 Co-mingled Recycling Drop Off Points [Tonnes] Glass Kerbside Recycling Collection [Tonnes] 1,660 1,704 1,437 Glass Recycling Drop Off Points [Tonnes] E-Waste Drop Off Data E-Waste Units [No.] 2,528 2,729 3,306 Compact Fluorescent Bulbs [No.] Batteries [Tonnes] The activity is complemented by waste minimisation and public education services, planning, policy development, and advocacy. One privately owned transfer station also operates in the City, at Matthews Avenue. The residual waste stream is taken out of the City to the Bonny Glen landfill via the private transfer station. A schematic of the Rubbish and Recycling Activity is shown in Figure 5 below. Figure 5: Schematic of the Rubbish & Recycling Activity The broad asset groups and their replacement values as at 30 June 2017 are shown in Figure 6 below. 1 Only part year data available 2 Commenced December

29 Section 2 The Activity Figure 6: Replacement Value of PNCC Rubbish & Recycling Assets 2.2 Activity Issues Limit of Influence As Council has exited the provision of landfill and transfer station services, Council is unable to influence a significant portion of the waste sector and particularly the private sector. This limits the extent to which Council can incentivise diversion. In the absence of a Council owned landfill Council is unable to leverage the revenue from operating a landfill to promote waste diversion through variable fees and charges. In the collection space, while Council provides both a rubbish bag and recycling collection service to all private households, private providers are able to offer a range of rubbish and green waste collection services to only those households willing to pay. Council is the only provider obligated to provide a service to all households. This results in revenue leakage to the private sector. In the recycling space, private providers are able to pick and choose the specific services they offer, selecting those where there is maximum revenue and least cost of delivery, Within this environment Council is left with the unenviable task of try to deliver commercial recycling at an affordable price without the benefit of the revenue from the highest value commodities. All these factors limit the extent to which Council can deliver on the waste diversion targets set in the Waste Management and Minimisation Plan Revenue Uncertainty The waste industry in New Zealand is subject to light handed regulation, with few if any national incentives to support waste minimisation and diversion. There is no national support for waste 11

30 Section 2 The Activity minimisation aside from voluntary compliance and a small funding stream coming from a $10 per tonne waste levy applied only to municipal wastes. Key challenges include: The large volume of non-municipal waste being disposed of to privately owned and unregulated landfills The lack of a national data reporting system to capture data on waste diversion The very low levies on waste to landfill currently set at $10/tonne compared to $50 to $100/tonne in overseas jurisdictions The highly volatile and unstable market for and price return to recyclables due to dependence on a small number of local re-processers and frequent requirement that product is exported to a third country for processing These issues have resulted in a situation where recycling of waste is dependent on high levels of user subsidy supported by low levels of revenue compounded further by the high cost of transporting recycled product around New Zealand and overseas. In the absence of any significant waste levy and any meaningful product stewardship obligation on manufacturers and generators of waste, the provision of the recycling service requires significant rating revenue. Under these circumstances New Zealand s waste generation rates are significantly higher and diversion from landfill to beneficial re-use significantly lower than in the majority of OECD countries. 2.3 Activity Rationale The Council provides waste and recycling services for the city in order to: Ensure the city s solid waste is adequately and affordably managed, Maximise the proportion of waste diverted from landfill (e.g. through recycling and composting). Manage hazardous waste in an environmentally responsible manner. Council s involvement in the activity and ownership of the associated assets is underpinned by: The Health Act 1956, which requires Council to provide sanitary works, the definition of which includes works for the collection and disposal of refuse; The Waste Minimisation Act 2008, the purpose of which is to encourage waste minimisation and a decrease in waste disposal. The Rubbish and Recycling Activity assets have been developed over many years by Council to serve the needs of the community. Council intends to continue with its present involvement in the Rubbish and Recycling Activity, and this AMP has been developed on the basis of continuing Council ownership of the assets. The assets comprising the Rubbish and Recycling Activity are not identified as strategic assets owned by Council. Table 2 contains a summary of how the services provided by the Rubbish and Recycling Activity contribute to the goals adopted by Council for the City. 12

31 Section 2 The Activity Table 2: Activity Linkages to City Goals Goals Goal 1 An innovative and growing city Goal 2 A creative and exciting city Goal 3 - A connected and safe community Goal 4 - An eco city Goal 5 - A driven and enabling council Activity Contribution Development and ongoing review of the Council s Waste Management and Minimisation Plan. Provision of funding to enhance waste minimisation awareness and initiatives. Provision of the recycling service, green waste separation and composting all facilitate reduction of waste disposal to landfill. Promotion and provision of services to facilitate recycling and waste minimisation at events in City, and at Council facilities. Provision of rubbish services for the protection of public health. Promotion and provision of recycling and waste re-use facilities to reduce the quantity of virgin material required to create new products e.g. bottles and plastic containers. Promotion of waste reduction and diversion to reduce greenhouse gas emissions Capture greenhouse gas from the landfill to generate electricity to operate the wastewater treatment plant Adoption of digital transformation technology where appropriate to enable more efficient operation and provide better customer service including RFID bin tagging and smart compacting bins. The key goals that relate to the Rubbish and Recycling activity are Goals 1 and 3. expanded on in Section 3 The Strategic Environment. These are 2.4 Key Relationships Council has overall responsibility for public waste management services in the City. This includes setting policy, service standards, ensuring the required outcomes are achieved as efficiently as possible, and quality assurance. In providing the Rubbish and Recycling Activity, the Council works with a number of key business partners, including contractors, consultants, and specialist service providers. City Enterprises has service level agreements with City Networks to provide the kerbside Rubbish and Recycling collection, recycling processing, composting operations, transfer station operations, public space rubbish, and recycling operations and maintenance of the closed Awapuni Landfill and Awapuni Resource Recovery Park. The Ministry of Health has statutory responsibility for public health issues in New Zealand, including health related aspects of waste management services. Council is required to consult with the Medical Officer of Health over the content of Waste Management and Minimisation Plans. Horizons Regional Council has an environmental regulatory and monitoring role under the Resource Management Act that includes the management of resource consents issued for the discharge of contaminants (e.g. odours, leachate, dust). Horizons, under the One Plan has the objective of working with City and District Councils to: Implement various waste reduction initiatives; Provide regionally consistent messages and information about waste issues; Develop a generic waste educational package for schools; Investigate economic instruments to reduce the amount of waste generated; Collate waste data for the region and set regional goals; 13

32 Section 2 The Activity Develop a regionally consistent recording system for contaminated sites and taking direct responsibility for a region-wide agrichemical collection; and Improving information requirements for resource consent applications for discharges to land, air and water. The Ministry for the Environment (MfE) is the Government's principal adviser on the environment in New Zealand, and on international matters that affect the environment. Its focus is on providing: Environmental management systems, including laws, regulations, and national environmental standards; National direction through national policy statements and strategies; Guidance and training on best practice; and Information about the health of the environment. In respect of waste management, the MfE is responsible for coordinating and providing guidance on implementation of the Waste Minimisation Act 2008, including product stewardship, application of the waste disposal levy, funding from the waste minimisation fund, and guiding and monitoring local authorities in terms of meeting their responsibilities under the Waste Minimisation Act Palmerston North adjoins areas administered by Manawatū District, Horowhenua District, and Tararua District Councils. Although there are no Rubbish and Recycling services provided to or received from other Councils, the Council maintains relationships with corresponding staff of the other Councils to facilitate the exchange of information, management practices, and to facilitate a joint approach to Rubbish and Recycling services where this is beneficial. Other external stakeholders in the public waste management activity are: The Palmerston North community, including citizens, ratepayers and individual users of the services; Community and cultural groups; and Visitors to Palmerston North. 2.5 LGA Section 17A Review Under section 17A of the Local Government Act Local Authorities are required to review the cost effectiveness of their arrangements for meeting the needs of their communities for good quality local infrastructure, public services and regulatory functions. This review requirement includes considering options for the governance, funding and delivery of infrastructure and services. In June 2016 the Council completed a review of the rubbish and recycling activity. The review considered a range of alternative delivery models for the activity including partial and full contracting out of services to private contractors. Officers presented information to Council that supported the view that most of the services were being provided at a market competitive cost by Council s in-house contractor. The exception to this was the recycling collection and processing facility, which has a higher cost associated with the significant capital charge being recovered for the Awapuni Materials Recovery Facility. The facility is designed to handle significantly greater volumes of recycling materials as it was hoped it would become a regional provider. Officers have indicated that approaches have been made by several local Councils to utilise the facility and discussions are on-going. Overall Council confirmed that the services are being provided in a cost effective and efficient manner and concluded that no change in the existing contracting arrangement was justified. 14

33 Section 2 The Activity 2.6 Significant Negative Effects of the Activity Waste to Landfill Landfilling of rubbish presents a significant adverse effect on the receiving environment. Council has set goals through its Waste Management and Minimisation Plan 2012 (WMMP) to divert 75% of the waste that is currently buried in landfills and clean fill sites to beneficial uses of waste. The WMMP outlines strategies that Council can implement to meet this target Gas Emissions from Closed Landfills & Handling Facilities Decomposition of organic material placed in the landfill over time generates various gases including methane, ammonia, hydrogen sulphide, and nitrogen, which are released into the atmosphere. A grid of collection wells has been established on the closed Awapuni landfill, with the collected gas being used for energy generation. This greatly reduces release of environmentally harmful emissions. An odour control programme is in place at the Awapuni site to combat the impacts of malodour transgressing the site boundaries Leachate & Stormwater Discharges Leachates discharging from the landfill and sediment eroding off the landfill can result in degradation of the environment if they are not contained. Mitigation of these effects is through a system of leachate and stormwater collection and return to the wastewater treatment plant. In addition, extensive groundwater monitoring for potentially toxic substances is required in accordance with the operative resource consent Windblown Recycling Materials Paper and other lightweight recycling material are prone to wind displacement, particularly at the exposed Awapuni site. A perimeter fence is in place to intercept windblown materials and is periodically cleaned to maintain the visual presentation of the site. 2.7 Significant Changes to the Activity There have been several changes in the Rubbish and Recycling Activity since the 2014 AMP. The kerbside rubbish collection and disposal is funded through a user pays system, whereby the purchase cost of PNCC Official Rubbish Bags cover the costs of collection and disposal. The price charged for the rubbish bags was reduced as at 1 July 2017 by 10 cents per bag. Additionally, Council entered into supply agreements to formalise the arrangements between the Council and the retailers for the purchase and resale of Council s official rubbish bags. The agreement provides for the setting of a maximum price. The purpose of the agreements is to ensure the provision of rubbish collection and disposal at an affordable cost. A new long term contract of 10 years duration for the disposal of rubbish to the Bonny Glen Landfill was secured and signed in early This contract provides certainty for a long term agreement for the disposal of rubbish to landfill. 15

34 Section 2 The Activity The management and planning for rubbish and recycling bins in the public space will be included in the Rubbish and Recycling activity, effective 1 July The responsibility has been moved from the roading activity and the parks activity to allow for better coordination of the management of the rubbish and recycling bins in the public space. It is intended through standardisation, rationalisation and investment in smart bin technology to significantly reduce the cost for delivering this service. Programmes to manage and service these have been developed and are included in this AMP. The recycling wheelie bin and crate services have been extended to new urban growth areas, and as a result of requests from areas not currently serviced. In an effort to combat recycling contamination in the wheelie bins, the strike system (first introduced in November 2012) will be relaunched as at 1 July 2018 whereby wheelie bins containing significant contamination or contamination that is offensive will be stickered with a strike notice notifying the resident of the contaminated items that need to be removed from the wheelie bin before it can be collected. The range of items accepted at the Ferguson Street Recycling Centre during office hours for recycling has been increased following a successful trial to include post-consumer batteries at no cost and child car seats at a cost of $5 per seat. An online A-Z interactive tool was launched in June 2017 to help residents recycle and dispose of their items correctly. The activity faces ever more challenges around securing revenue and markets for the processed product. Recent changes in the international market for recycled plastic are resulting in significantly higher costs and challenging thinking around the net benefit of recycling. Table 3 contains the main anticipated changes to the activity over the next few years. Table 3: Proposed Changes to the Activity Proposed Changes Community Impact Cost Impact Review funding kerbside rubbish collection funding policy to consider rating for collection costs Continued focus on awareness Introduction of a product stewardship scheme Install RFID tags on recycling wheelie bins Rationalise Placement and Collection of Public Space Rubbish & Recycling Upgrade and Standardise Recycling Drop Off Points Implement a Kerbside Organics Trial Reduced bag price and increase in compliance with doing the right thing with rubbish. Growing community awareness of the impact of waste and noticeable change in behaviour.. Some products currently accepted for recycling for a fee may be able to disposed of for free. Consequences of stealing or misappropriating bins will become a cost for the user.. Change in the location and placement of rubbish and recycling in the public space and reduced frequency of collection. Improved service clarity and wider range of options for drop off of recycling outside collections. Demonstrate the potential benefit to the community of the collection of organics from the kerbside. Potential rates increase, but cost of rubbish bags will be reduced. Overall community costs for the disposal of rubbish may decrease. Small rates increase. Rates Neutral. However, user pays fees may be waived on certain products considered for mandatory product stewardship. Rates increase to fund purchase of RFID tags and associated equipment, however expected decrease in operational costs due to reduced replacement of lost wheelie bins. Significant reduction in the cost of providing rubbish services in the public space. Small rates increase. Small rates increase. 16

35 Section 3 Strategic Environment 3 Strategic Environment This section sets out the strategic environment within which the rubbish and recycling activity is managed under the following areas of: Internal Strategic Context Statutory and Regulatory Requirements AM Policy and Strategy 3.1 Internal Strategic Context Council Vision, Goals & Strategic Direction The Council Vision for Palmerston North is: Small city benefits, Big city ambition. Supported by 5 strategic goals: Goal 1: An innovative and growing city. Goal 2: A creative and exciting city. Goal 3: A connected and safe community. Goal 4: An eco-city. Goal 5: A driven and enabling Council. To achieve the vision and goals, the Council has developed a number of strategies each with specific priorities and associated strategy plans (including actions that link to specific programmes). The Plans most relevant to this AMP are highlighted in Table 4 below. Table 4: Rubbish & Recycling Activity contribution to City Goals City Goals City Strategies Priorities Strategy Plans Innovative and Growing City City Development Strategy Create and enable opportunities for employment and growth Provide infrastructure to enable growth and a transport system that links people and opportunities District plan Housing and future development Strategic partnerships Urban design Built heritage Infrastructure Parking 17

36 Section 3 Strategic Environment City Goals City Strategies Priorities Strategy Plans An eco-city Eco City Strategy Respect and enhance the mauri of the Manawatū River Work with the community to reduce carbon emissions Regenerate native biodiversity Invest in infrastructure that serves to protect, enhance and preserve our environment Use our legislative powers and policies to ensure that urban development is sustainable now and into the future Educate the community, in particular, property owners, on the benefits of investing in sustainable building design and green buildings Demonstrate leadership and best practice by developing and implementing an environmental sustainability plan for the Council Biodiversity Three Waters Waste Energy Sustainable Practices Plan Underpinning the city s vision, goals, strategies and plans are the following strategic themes that guide the way in which the outcomes and actions are delivered: Smart city practices use smart systems, processes and tools. Sustainable practices embed sustainable design and behaviours. Iwi partnerships work collaboratively with iwi partners. Strategic Partnerships work collaboratively with key strategic partners. The Rubbish and Recycling Activity supports Council achieving its strategic goals through the strategy plans identified in Table 4 as follows: Eco-City Strategy, the Waste Plan and the Sustainable City Practices Plan To fulfil the vision of small city benefits, big city ambition the Council has adopted five goals. The Eco- City Strategy was developed to achieve Goal 4: An eco-city, while the Waste Plan and the Sustainable City Practices Plan shows how the Council will contribute to achieving this goal in its provision of rubbish and recycling services. The priorities under the Eco City Strategy are: Invest in infrastructure that serves to protect, enhance, and preserve the environment. Use Council s legislative powers and policies to ensure urban development is sustainable now and into the future. Demonstrate leadership and best practice by developing and implementing an environmental sustainability plan for the Council, Council-run events, and facilities. The Waste Plan and the Sustainable Practices Plan is set to achieve these goals through the following actions: Waste Plan Provide a kerbside solid waste collection service: partially funded through rates. Provide a kerbside recycling collection service: fully funded through rates. Provide recycling drop-off points at Ashhurst, Ferguson St, and Awapuni, including solid waste at Ashhurst. Provide a greenwaste drop-off collection service at Ashhurst and Awapuni, for a small fee, and an E-waste, compact fluorescents, and batteries collection service at Ferguson St, for a fee. Deliver public rubbish and recycling services in parks, roads, and other public spaces. 18

37 Section 3 Strategic Environment Deliver rubbish and recycling services to new residential and commercial properties. Operate the Materials Recovery Facility (MRF) at Awapuni. Manage the closed municipal landfills (Awapuni and Ashhurst). Provide composting operation at Awapuni. Provide commercial services for food, recycling, and glass: funded from user charges. Investigate asset management for the rubbish and recycling activity. Trial providing a kerbside organics collection service. Sustainable Practices Plan Foster waste reduction and more sustainable waste management behaviours across the city, including requiring all events on Council land and/or funded by Council to use 100% recyclable or compostable materials. Work actively with community and business partners to change existing practices to deliver more sustainable outcomes which reduce resource use and waste on an on-going basis. Extend scope of behaviour change programme to foster sustainable practices within the three waters and waste area. 3.2 External Strategic Context Statutory & Regulatory Requirements & Standards The key legislation relating to the management of the Rubbish and Recycling Activity is listed below. The statutory requirements provide Council with a minimum level of service standard and have been reflected in the levels of service shown in Section 4. Council is currently complying with all legislative requirements: Local Government Act 2002 which defines the purpose of local government as enabling local decision-making and action by and on behalf of communities and to meet the current and future needs of communities for good-quality local public services and performance of regulatory functions in a way that is most cost effective for households and business. The Local Government Act 2002 Amendment Act 2014 introduced a number of new measures. Of particular relevance, the amended Act: Changes what development contributions can be used for; Introduces new requirements for infrastructure strategies and asset management planning; and Requires disclosure of risk management arrangements for physical assets in annual reports. Waste Minimisation Act 2008 The purpose of the Waste Minimisation Act is to encourage waste minimisation and a decrease in waste disposal in order to; Protect the environment from harm; and Provide environmental, social, economic and cultural benefits. The Act achieves this by: Allowing for product stewardship schemes; Provision for applying a waste disposal levy; Setting out the responsibilities of Territorial Authorities in relation to waste management and minimisation; 19

38 Section 3 Strategic Environment Allows for offences and enforcement; Setting out requirements for reporting and auditing; Setting up a Waste Advisory Board; and Requires Council to promote effective waste management and minimisation in its district, and to prepare and review (at no more than 6-yearly intervals) a waste management and minimisation plan (the next review is due in 2018/19). Health Act 1956 Under Section 23 of the Health Act every local authority has a general responsibility to improve, promote and protect public health within its district. This involves identifying potential health risks and ensuring that these risks are managed to within acceptable levels. This responsibility extends to waste management disposal (services provided both by Council and privately) because of the importance of waste management disposal systems to public health. Resource Management Act 1991, which requires Council to: Sustain the potential of natural and physical resources to meet the reasonable foreseeable needs of future generation; Comply with the District and Regional Plan; To avoid, remedy, or mitigate any adverse effect on the environment; and Take into account the principles of the Treaty of Waitangi in exercising functions and powers under the Act relating to the use, development, and protection of natural and physical resources. Health and Safety at Work Act 2015 sets out the principles, duties, and rights in relation to workplace health and safety. The Transit NZ Guidelines Code of Practice for Temporary Traffic Management and the Local Road Supplement are the recognised standards for maintenance and construction works on legal road. Health and Safety at Work (Hazardous Substances) Regulations 2017 aims at reducing the number of deaths and injuries caused by hazardous substances in the workplace. Health and Safety at Work (Asbestos) Amendment Regulations 2017 is designed to protect as many people as possible from exposure to asbestos fibres. Building Act 2004, which sets minimum standards for buildings and facilities and requires Councils to produce Project Information Memoranda (PIM's) and building Warrants of Fitness. Public Works Act 1981 prescribes processes to enable the acquisition of land for the completion of construction works by Council. Public Bodies Contracts Act 1959, which confers on a local authority similar powers to enter contracts as enjoyed by corporate bodies or natural persons. Public Bodies Contracts Act 1959, which confers on a local authority similar powers to enter contracts as enjoyed by corporate bodies or natural persons. Construction Contracts Act 2002 sets requirements for payment provisions for construction contracts and dispute resolution. Local Government Official Information and Meetings Act 1987 sets requirements concerning disclosure of information. Civil Defence and Emergency Management Act 2002 provides for a coordinated approach to the planning and preparation for emergencies and for response and recovery in the event of an emergency Local Bylaws Palmerston North Waste Management and Minimisation Bylaw The purpose of the bylaw is to: 20

39 Section 3 Strategic Environment Protect and promote public health and safety by regulating the collection and disposal of waste and diverted material; Promote effective, efficient, and safe collection, transportation, management, and storage and disposal of waste and diverted material; and Regulate and monitor waste and diverted material operators within the City through a licencing process, to support Council s WMMP Standards & Specifications The standards and specifications for all works to rubbish and recycling assets reflect the best current technologies, national standards and legislative requirements. All rubbish and recycling assets are operated, maintained and built in accordance with the: Landfill Management Plan; Emergency plan; Relevant NZ standards for materials and drain laying; NZS 6101 Classification of Hazardous Areas ; NZ S4404: 1981 Code of Practice for Urban Land Subdivision; The New Zealand Building Code; New Zealand Transport Agency Guidelines Working on the Road ; Electrical Regulations 1993; Approved safety plan; This Asset Management Plan; Service Level Agreements; PNCC Building and Civil Engineering Contract Administration Manual; PNCC Engineering Standard for Subdivisions; PNCC Emergency Management Plans; PNCC Contract Management Procedures; PNCC Management Team Policy; and Other processes and procedures not defined in this document. The standards will be updated regularly to incorporate relevant experiences and changes in best practice. 3.3 Asset Management Policy & Strategy Asset Management Policy AM Policy Asset are managed so as to meet the asset management objectives set out below by applying the AM Strategy. Objectives To have a consistent approach across all asset classes within the Council. AMPs reflect the strategic direction of the Council (including the financial strategy). To manage the assets in a sustainable manner in order to deliver the required level of service to the present and future generations. 21

40 Section 3 Strategic Environment Assets are managed cost effectively in accordance with sound risk management, environmental management practice, and statutory and regulatory requirements. That there is continual improvement of asset management practice in the organisation. To have up to date AMPs that reflect a multidisciplinary approach across the organisation to inform the 10 Year Plan process. That asset management performance can be demonstrated to the Council and community. That AM Policy and Strategy is approved by Management Team and that AMPs are adopted by the Council to inform the 10 Year Plan Asset Management Strategy AM Strategy This Asset Management Strategy sets out the approach to organising and practising asset management so as to achieve the asset management objectives for the different AM inputs as set out below. Planning strategy 30 Year Infrastructure Strategy A 30 year Infrastructure Strategy will be completed as part of the 10 Year Plan process and will reflect the Council s vision and strategy and provide a combined view of the asset programmes that are required to achieve this. It will show a clear linkage between the strategies and the programmes required to achieve the strategies. The Strategy will reflect the decisions made by the Council through the 10 Year Plan process. Asset Management Plans AMPs will be reviewed at 3 yearly intervals to align with the 10 Year Plan planning process and cover a 30 year planning period. AMPs will reflect the strategic and financial direction of the Council and be integrated with other Council planning documents. Differences to AMP programmes and those approved in the 10 Year Plan will be reported to the Council together with the asset and service implications. There will be further development of the concept of maintaining the AMP as a living document that more accurately reflects the current policies and decisions of the Council. Levels of Service A review of the Levels of Service (LoS) that is to be provided will be undertaken in conjunction with the AMP review to reflect any changes that Council may wish to make. The review will be informed by community satisfaction and submissions received over the previous 3 years, and Council direction. Engagement with the community on options will be undertaken for specific significant projects as they arise, in accordance with the Council s Community Engagement Strategy. The review will inform the levels of service adopted by the Council. Capital New Planning Capital works planning will be based on a sound understanding of the need and timing for the asset, based on demand forecasts and implementation of Council s strategic and financial direction. Documentation will be provided for justification of each programme. 22

41 Section 3 Strategic Environment Programme estimating will incorporate full project costs to complete the asset, identify full life cycle costs, and risks associated with the programme. The need for works to accommodate growth will be reviewed on an annual basis to take into account any changes to the anticipated growth rates or other demand drivers. Capital Renewal Planning Renewal planning will be based on a sound understanding of the condition and performance of the asset and aim to maintain the current overall service potential of the asset. The renewal programme will also aim to smooth out where possible the financial impact from year to year. Maintenance and Operational Planning Maintenance and operational planning will be reviewed on an annual basis, but with particular focus at the AMP review as to whether the most cost effective delivery mechanisms are in place. This will also take account of any Council direction arising out of the LGA 17A reviews. Service agreements with contractors will contain performance measures consistent with the AMP and Activity Key Performance Indicators (KPIs) to achieve alignment from the operational level to the 10 Year Plan KPIs. Demand forecasts Demand forecasts will take into account population, household and economic growth projections, social and demographic data, technological advances, and other relevant data. Demand management Demand management options will also be considered when planning to meet growth and to ensure projects qualify for any external financial assistance. Optimised decision making ODM techniques will be used for decisions related to significant projects. Risk & Resilience Risk exposure will be managed through: An annual review of the risk management plan, and implementing risk mitigation measures where risk exposure is incompatible with corporate risk policy. Undertaking performance and condition monitoring of critical assets. Resilience of Council s critical assets to natural hazards will be assessed and programmes prepared to mitigate risk to an acceptable level. Information systems Data collection programmes (condition, asset performance, registers, and service performance) will be closely aligned to the nature and scale of the assets and to tracking achievement of service targets. Asset management system functionality will be progressively developed to meet the requirements of advanced asset management planning. 23

42 Section 3 Strategic Environment Asset Revaluation Asset revaluation will be undertaken in conjunction with City Corporate staff on a 3 yearly timeframe. Continuous Improvement An improvement programme will be included with each AMP review, setting out the areas of improvement required to practices, systems, processes, and plans in the following 3 years, with identified tasks and budgets. This will be part of the ongoing improvement programme in the City Networks Unit. Organisational Capacity and Development Adequate resources will be allocated to asset management to ensure that asset management practices can be undertaken to meet the requirement for robust asset management plans and work programmes. Asset management capabilities will be developed to practice advanced asset management techniques. Monitoring & reporting on level of service performance measures. Those level of service measures that are adopted by the Council as KPIs will be reported through quarterly Annual Budget reports. Other LoS performance measures will be reported quarterly to the City Networks Executive Team (CNET). 24

43 Section 4 Levels of Service 4 Levels of Service This section defines the level of service or the qualities of the service that the Council intends to deliver and the measures used to monitor this. The adopted levels of service are used to define the programmes to achieve the Council s strategic goals and are based on user expectations and statutory requirements. 4.1 Introduction A key objective of this AMP is to match the level of service provided by the asset with the expectations of the users of the service. This requires a clear understanding of user needs and preferences. The levels of service defined in this section will be used: To inform users of the proposed type and level of service to be offered. As a focus for the AM strategies developed to deliver the required level of service. As a measure of the effectiveness of this AMP. To identify the costs and benefits of the services offered. To enable users to assess the suitability, affordability and equity of the services offered. Levels of service for the Rubbish and Recycling activity are based on: Strategic goals (See Section 3.1.1) - These provide guidelines for the scope of current and future services offered, the manner of service delivery and defines specific levels of service which the organisation wishes to achieve. Statutory requirements/environmental standards (See Section 3.2.1) - Regulations, Acts and Council By-Laws that impact on the way assets are managed (i.e. resource consents, building regulations, health and safety legislation). These requirements set the minimum level of service that must be provided. Community engagement and feedback (See Section 4.2) - Information gained over the last 3 years on LoS from specific consultation, customer service requests, Annual Budget submissions and community surveys. The adopted levels of service indicators and measures presented in Appendix C have been grouped into two categories: Customer performance measures: These are measures of the overall activity, covering the aspects of service that are of most interest to the community and community satisfaction indicators. They include the government mandated non-financial performance measures to be included in the Year Plan. Some of the customer performance measures presented in Section are included in the 10 Year Plan and publicly reported against in each Annual Report. Technical performance measures: These are additional measures adopted to ensure that the customer performance measures are robustly achieved. They are used as a management tool and measured and reported internally. 4.2 Community Input & Decision Making Process The levels of service upon which this plan is based have been derived from an on-going process of community consultation and consideration of LoS options by the Council over a significant period of time. 25

44 Section 4 Levels of Service During 2005, an extensive LoS review was undertaken which engaged with a broad cross-section of the community to understand how well existing services were meeting user needs and what improvements were desired for the future. Specifically the review set out to ascertain views on: The current levels of service provided by the Council. The desired future LoS. Aspects of the services by which the quality of the services can be assessed. At that time, a greater user focus was introduced to the measures. This was reflected by having statements of the service provided to each of the key user groups and performance measures that reflected the user view of the services provided. Subsequently LoS reviews have been undertaken for each AMP review, in which information about LoS received from the community through local, Communitrak surveys, service requests, and Annual Budget submissions has been presented to the Council in order to inform any changes that it may wish to make to the LoS delivered to the community. Generally, only minor adjustments have been made since For this AMP, LoS workshops were held with Councillors over March Information about the current LoS, together with community feedback, was presented to the Councillors. Councillors were asked to: Consider whether the current LoS was about right and what changes, if any, were required Give direction on some specific LoS issues important to the activity Generally, the Councillors considered the LoS to be about right. However, the following LoS matters were raised during the workshop and are taken account of in this AMP as indicated in Table 5. Table 5: Matters raised at Councillor LoS Workshop Matters raised at Councillor LoS workshops 23/24 March Enhancement of waste minimisation opportunities Enhancement of waste minimisation and sustainability practices within the community Incorporate a 40L (smaller) rubbish bag option to provide an alternative to the current 60L bag disposal method for households that generate less waste How these are included in this AMP A programme to investigate options to divert more material from landfill through the introduction of new services and initiatives. A programme to fund the Behaviour Change and Education Coordinator role. Officers are preparing tender documents to include a 40L Bag Option. As part of the development of Council s strategic direction a number of Strategy Plans were developed during July and August Some of the actions set out in these Strategy Plans have level of service implications for this AMP. These are shown in Table 6. Table 6: LoS actions from Strategy Plans LoS actions arising from Council Strategy Plans July August 2017 Specific initiatives in respect of the rubbish and recycling activity as captured in the Waste Plan How these are included in this AMP Day to day / ongoing actions to achieve the purpose Provide a kerbside recycling collection service: fully funded through rates Provide recycling drop-off points at Ashhurst, Ferguson St, and Awapuni, including residual waste at Ashhurst Provide a greenwaste drop-off collection service at Ashhurst and Awapuni, for a small fee, and an E-waste, compact fluorescents and batteries collection service at Ferguson St, for a fee. Deliver public rubbish and recycling services in parks, roads, and other public spaces Deliver rubbish and recycling services to new residential and commercial properties 26

45 Section 4 Levels of Service LoS actions arising from Council Strategy Plans July August 2017 How these are included in this AMP Operate the Materials Recovery Facility (MRF) at Awapuni Manage the closed municipal landfills (Awapuni and Ashhurst) Provide composting operation at Awapuni Provide commercial services for food, recycling, and glass: funded from user charges Specific programmes to achieve the purpose (with specific start and finish dates) Investigate providing a polystyrene recycling service (by 2019) Trial programme providing for the recycling of mattresses (by 2019) Review the procurement and purchasing policies in Council to reduce waste (by 2020) Investigate establishing a new drop-off site for recycling and green waste in the north-west of the city to service urban growth (by 2019) Investigate providing receiving and disposal options for liquid hazardous waste (by 2019) Smart City Practices Introduce RFID monitoring of kerbside recycling collection services to better manage the assets, and monitor presentation and participation rates. Utilise GPS tracking of trucks to allow for route optimisation. Incorporate electric trucks to fleet and monitor performance. Trial smart compacting bin technology to assess options to deliver more for less Sustainable Practices Composting services which divert greenwaste from landfill, and provide a revenue stream for Council. Work towards zero-waste events, as outlined in the Sustainable Practices Plan. Iwi Partnerships Work with iwi and other regional partners to investigate culturally sensitive management approaches, including biosolid disposal options. Support the implementation of the national Para Kore programme in the region, facilitating zerowaste strategies for marae. Strategic Partnerships Specific Measures of Success Work with other public institutions to trial food waste management systems. Work with commercial sector to improve recycling rates. Decrease in per capita gross waste tonnages collected from Kerbside Increase in per capita gross recycling tonnages collected from Kerbside Increase in per capita gross tonnage of recycling deposited at recycling drop of points Increase in volume of compost produced and sold from Awapuni 4.3 Communication of Levels of Service & Performance Measures Council s adopted levels of service and key performance measures will be publicly communicated through the Year Plan consultation document. 4.4 Current and Future Levels of Service & Performance Measures Customer Segmentation & Target Outcomes Users of the Rubbish and Recycling Services have been segmented by broad customer type. Residential Kerbside services are offered to all residential properties within the urban area of Palmerston North and in Linton, Ashhurst, Bunnythorpe, Longburn, and limited rural residential areas. Rubbish collection is offered on an opt-in basis with users purchasing rubbish bags. The collection trucks drive the entire 27

46 Section 4 Levels of Service rubbish collection route each week and collect bags only from those properties that have placed prepurchased bags at the kerbside before 7:30 am on the nominated collection day. Private rubbish collection services are available, and some residential customers choose to use those services instead of the Council bag system. Kerbside recycling services are funded through targeted rates to all residential and some rural residential properties within the nominated collection routes. Properties receiving the service have received an 80L or 240L wheelie bin for co-mingled recycling and a 40L crate for the collection of glass. Rural Residential Rubbish collection and recycling services are offered to some rural residential properties on the same basis as for residential. Extensions to the area serviced may be made in future if sufficient property owners from within an area seek the service. Rural No kerbside collection services are offered to rural properties. Rural properties are reliant on private providers for rubbish disposal services. Recycling drop off points and rubbish transfer stations are available for use by anyone choosing to use them. CBD Rubbish and recycling services are available on an opt-in, opt-out basis in the CBD, comprising a once weekly recycling and rubbish collection service. Commercial/Industrial/Institutional All commercial rubbish collection is carried out by the private sector. No formal arrangements exist for the collection of commercial recycling and food waste. City Enterprises does enter into specific contracts with some commercial entities for the collection and processing of recyclables and food waste. Some large institutional users have private recycling collections which are delivered to the MRF for processing. Public Areas Litter bins and limited recycling bins are placed in public areas and parks for use by the general public. The following services are provided by Council to all ratepayers across the city through the public rubbish and recycling targeted rate: A transfer station is operated twice weekly at Ashhurst, which incorporates collection of recyclables and separation of green waste. Council operates recycling drop-off facilities at Ferguson Street and at the Awapuni closed landfill site. Land owned by Council at Awapuni is leased to others for quarrying, concrete batching, and asphalt production. Sites on the Awapuni landfill are leased to businesses undertaking waste minimisation activities. Council operate a series of wells and pipelines to collect landfill gas used in the on-site generation of electricity at the closed landfill site. A green waste receiving, processing, and composting operation is undertaken at the Awapuni landfill site. 28

47 Section 4 Levels of Service Maintenance of the former Awapuni Landfill to meet obligations of the various resource consents held relating to the impacts of the closed landfill. Response to incidents of illegal dumping. Promotion of Waste Minimisation through public education Key Performance Indicators Target levels of service for the rubbish and recycling activity are shown in Table 7. Details of how the performance measures are monitored and assessed can be found in Appendix C. 29

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49 Section 4 Levels of Service Table 7: Customer Level of Service, Performance Measures & Targets Key Service Criteria User Group (e.g. All, commercial, residential, pedestrians etc.) Customer Level of Service Customer Performance Measure Current Performance Future Performance Targets 2018/ / / Quality Residential users Council provides rubbish & recycling collection services which meet the expectations of the community Goal 1, 2 and 5 Residents are satisfied with the quality of Council s rubbish and recycling collection services. 92% At least 85% At least 85% At least 85% At least 85% Reliability & Accessibility Residential users & commercial users Council provides a reliable Rubbish and Recycling service. Goal 1 and 5 Rubbish and recycling placed in the Council s official receptacles is collected on the stated days % 98% 98% 98% 98% Council responds to request for service in a prompt and efficient way. RFS are resolved within specified timeframes 89.2% 90% 90% 90% 90% Goal 1 and 5 All residents Council provides drop off rubbish and recycling services as advised on Councils Website Goal 1, 3 and 5 Green waste disposal facilities are available and open for the stated hours. Disposal facilities are available and open for the stated hours. 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Recycling drop off facilities are available and open for the stated hours. 100% 100% 100% 100% 100% Sustainability All residents Council disposes of waste in an efficient and sustainable way. Goal 1 and 4 Contamination of recycling received at MRF remains at industry standards. 10% 12% 12% 12% 12% Council promotes and implements effective waste management strategies Goal 1, 4 and 5 Waste tonnages per capita remain steady or reduce New Measure 17/ Waste Assessment 545 kg/capita 545 kg/capita 545 kg/capita 540 kg/capita 549 kg/capita 31

50 Section 4 Levels of Service Key Service Criteria User Group (e.g. All, commercial, residential, pedestrians etc.) Customer Level of Service Customer Performance Measure Current Performance Future Performance Targets 2018/ / / Waste diverted per capita remains steady or increases New Measure 17/ Waste Assessment 360 kg/capita 360 kg/capita 360 kg/capita 365 kg/capita 354 kg/capita Council monitors incidences of illegal dumping in the City. Goal 4 and 5 Number of reported incidences of illegal dumping per annum reduces. New Measure 16/17 Total Reported Incidents 1, Quantity of illegal dumping collected decreases. New Measure 16/17 69 Tonnes Collected Compliance with resource consents for the Rubbish and Recycling Activity Goal 4 and 5 Number of abatement notices Number of Infringements issued Number of enforcement orders. Number of convictions received by the Council in relation to resource consents Council maintains and develops Rubbish and Recycling services to meet current and future needs. Goal 1, 4 and 5 A 30-year asset management plan is in place for the Rubbish and Recycling activity. Plan in place Plan in place (key projects from the plan will also be outlined) Plan in place (key projects from the plan will also be outlined) Plan reviewed (key projects from the plan will also be outlined) Plan in place & reviewed three-yearly (key projects from the plan will also be outlined) Financial Management All residents The Council manages its Rubbish and Recycling activity in a financially sustainable way. Goal 1 and 5 Annual work programmes achieved within budget. 100% 100% 100% 100% 100% Note: Number of properties assumed to be 28,000 Goal 1 An innovative and growing city: Goal 2 A creative and exciting city: Goal 3 A connective and safe community: Goal 4 An eco-city: Goal 5 A driven and enabling Council 32

51 Section 4 Levels of Service 4.5 Future Changes to Levels of Service The anticipated changes to the current levels of service over the next thirty years are: Table 8: Future Changes to Levels of Service Future Changes to Current Level of Service and Impact on the Community and Costs Proposed Changes Community Impact Cost Impact Increase range of products accepted at Ferguson Street for recycling Subsidise current user pays recycling initiatives Investigating opportunities to maximise waste diversion from landfill Development of recycling infrastructure Increased range of services available for diversion of waste. Increased accessibility to all members of the community to divert waste from landfill. Increasing opportunities to reduce waste to landfill. Increase visibility and accessibility to divert waste from landfill. User pays offset by households reduction in waste disposal costs. Minor rates increase. Rates increase to cover investigative costs and increased costs in providing the services. Rates increase. Increase landfill charges Increasing waste disposal costs. Increasing costs. As market conditions change, it is expected there will be the need to change the list of products accepted into the Council s wheelie bins for recycling. Plastic shopping bags have not been permitted in wheelie bins since 29 June Council already accepts e-waste in partnership with a specialist electronic waste recycling company. E-waste is accepted on a fee paying basis from the public. Until changes to product stewardship laws are enacted, it is anticipated that the range of user pays recycling products accepted by PNCC will change. Landfill pricing changes will continue to impact user demand for waste minimisation services over waste disposal. Council s kerbside bagged refuse collection service caters for low volume waste producers, and is complementary to the kerbside recycling collection service. Pricing of the bag collection service through the bag price is an incentive to greater use of the free kerbside recycling collection service, offset by the relative cost of alternative, commercial kerbside refuse collection services Service Level Gaps Generally, the expected level of service is being provided, however, there are a number of areas where the performance of the existing assets needs to be improved and the level of service extended: The recycling drop off infrastructure requires redevelopment to standardise the experience for consumers and realise significant savings in servicing costs, minimising contamination and illegal dumping incidences as well as improve security for users. Investment in the public space rubbish and recycling bins is required to rationalise the location and design of bins to meet consumer needs and allow for reduced delivery costs through smart technology which allows collection to be optimised. Providing for a wide range of recycling service options which better meet the needs of large commercial and residential institutions and address the space constraints of inner city residential and commercial customers 33

52 Section 4 Levels of Service Extend recycling services to all residential and commercial ratepayers across the city, to provide consistent delivery of services and spread the cost over all user groups with the aim of further lifting waste diversion. 4.6 Key AMP Improvement Projects Relating to LoS For the key AMP improvement projects relating to Growth and Demand refer to Section 11 which follows: Section Development works planning (demand/los). Section Level of Service Review. 34

53 Section 5 Growth and Demand 5 Growth and Demand This section sets out the factors impacting the management and development of the assets to meet the requirements of growth and other demands place on the rubbish and recycling assets as follows: Future demand drivers; Growth projections; Growth trends; Land-use strategies (residential, industrial, retail and rural-residential); Consumption and use patterns; Demand management strategies; and Climate change impacts on demand. 5.1 Future Demand Drivers The future demand for rubbish and recycling services in the city will be driven by: Growth and population the increase population and urban development will increase the demand for the services provided; Greater level of uptake by the commercial sector; and Changes in government policy (i.e. Waste Levy/Product Stewardship). 5.2 Growth Projections Palmerston North is growing, and the Council has strong aspirations to accelerate growth and prosperity for the city. Council s strategic priorities are set out in Council s City Development Strategy, which drives the projects and programmes that the Council intends to implement. For planning purposes, the Council has decided to assume high growth projections for years 1-10 and a medium growth projection for years This is greater than what was assumed for the 2014 AMP, which was based on Statistics New Zealand medium growth projections adjusted for the local Palmerston North situation. The high growth projections for the first ten years gives more weight to the average annual gain from net migration and assumes a general long-term upward trend in inward migration than is accounted for in the Statistics NZ projections. The projections being used by the Council for the first 10 years are similar to the Statistics NZ high growth projections Population Growth The latest population projections for Palmerston North through to 2043 were published by Statistics NZ in December These suggest a declining rate of population growth over the projection period, with a population projection of 102,4003 in 2048 for the medium growth projection. This compares with a projected population of 105,100 by 2046, which was the basis for planning in the 2014 AMP, with an average annual growth of 0.6%. However, because of the recent increase in inward migration trends, 3 Based on Statistics NZ 2016 population projection with estimated projection between 2043 &

54 Section 5 Growth and Demand Council is adopting a higher population projection than Statistics NZ medium growth in the first 10 years. The projection for five year periods through to 2048 is shown in Table 9. Table 9: Population Projection for Palmerston North Population projection for Palmerston North (September 2017) Average annual change Period ended Population count Number of people Rate of change (%) , ,700 1, % ,700 1, % , % , % , % , % , % 10-year projection % 20-year projection % 30-year projection % National Policy Statement Urban Development Capacity The National Policy Statement Urban Development Capacity (NPS-UDC) requires that the Council has 3 years supply of land ready to be developed with existing infrastructure (short term). It must also have 10 years of land zoned with infrastructure in its 10 Year Plan (medium term), and 30 years of land identified for growth with identified infrastructure in its 30 year Infrastructure Strategy (long term). It must also provide an additional margin of land and infrastructure over and above the projected demand of at least 20% in the short and medium term, and 15% in the long term. For planning purposes, these additional margins have been added into the additional household numbers in Table 10. It is assumed that by adopting the high growth scenario for , it includes the additional 20%. The 20% margin has been added to the period, and a 15% margin to the period Household Growth The most recent household projections were published by Statistics NZ in December 2015 and are to An update to these projections is due to be published in December Council estimates have been made for changes in the period 2038 and Projected average annual household growth is not expected to slow to the same extend as the population growth rate because the average size of households is expected to reduce, primarily due to the aging population and an increase in the number of single person households. The numbers of households are shown in Table10. This table also include the additional margin required for land development in the NPS-UDC, and allow the numbers to be reconciled with the capacity being planned for in growth areas. 36

55 Section 5 Growth and Demand Table 10: Household Projection for Palmerston North Households projection for Palmerston North (September 2017) Average annual change Period ended Households Number of households Rate of change (%) , , % , % , % , % , % , % , % 10-year projection % 20-year projection % 30-year projection % Residential Development Type Housing preference trends have changed over time since Council began reporting on residential growth in In 2004, greenfield development made up 61% of development, infill was 27%, and rural residential was 12%. Based on recent housing preference trends and experience of preferences during times of high growth, distribution of dwelling types is based on the following. The table household numbers include the margin for the requirements of the NPS-UDC. Table 11: Residential Development Type Period Household per annum Greenfield Infill Rural Total % 33% 12% 4, % 38% 12% 2, % 38% 12% 1,890 9, Residential Growth Strategy The Residential Growth Strategy is outlined within the Council s City Development Strategy. Council s main role is to make sure land and infrastructure are available to accommodate growth and provide market choice, while responding to changing demographics. The private sector provides new housing in Palmerston North. Council will work closely with developers to co-create new housing opportunities, such as the proposed Hokowhitu Residential Area at Centennial Drive. Council has revised the District Plan to provide more housing choices. Over the past 20 years, the main forms of housing development have been greenfield, infill subdivision, and lifestyle blocks. Greenfield housing typically occurs at the edge of the city on large sections, with recent development at Kelvin Grove and Aokautere. Infill housing creates new smaller sections among existing housing, with recent development in Hokowhitu, and the central city and hospital areas. Lifestyle blocks provide 37

56 Section 5 Growth and Demand a housing choice in rural areas, with recent development on the foothills of the Tararua Ranges, and elevated land north-east of the city. Other housing choices now allowed under the District Plan include multi-unit developments and minor dwellings. Multi-unit developments are encouraged close to the city and suburban centres, where there is ready pedestrian access to services and facilities. Minor dwellings are aimed at meeting the demand for small, good quality, and affordable rental accommodation. The planning framework enables apartments in or near the city centre, including as part of a mixed-use development. Council will actively identify opportunities and reduce barriers to city centre living and brownfield development, including transitioning Roxburgh Crescent from industrial to residential. The demand for infill housing is expected to continue and enter areas west of the city. Lifestyle blocks are directed away from productive land and need to have their own infrastructure. Council wants land for new greenfield housing at Whakarongo brought to the market quickly. Council will work closely with landowners and promote Council-owned land at Whakarongo to help meet housing demand. To release pressure and meet updated growth projections, land at City West identified for medium to long-term greenfield housing will need to be released earlier. The most suitable land for early release is the area bound by the Mangaone Stream, Te Wanaka Road, and Pioneer Highway (the Racecourse land), which will need to be rezoned. The interests of private developers at the outer edge of City West could affect the cost-effective and efficient provision of network infrastructure. Council needs to work with the major landowner in this area to better understand the infrastructure options and timing of the rezoning. Substantial greenfield housing capacity remains at Aokautere, but plans for developing the remaining residential land are unclear. Council will develop a structure plan with the major landowners to guide future development. Council needs to connect the end of Pacific Drive with existing roads in the Turitea Valley. As well as the Hokowhitu Residential Area, Council will work with landowners at Napier Road and Flygers Line, where small greenfield additions can be made without the need for substantial new infrastructure. A revised plan is needed to develop affordable and first homes at Ashhurst, taking into account detailed flood investigations of land north-west of the village. The growth areas identified with assumed timescale for greenfield development are shown in Table 12. This shows how the projected demands on greenfield development will be met in the short, medium, and long term. Table 12 also shows the number of lots expected to be provided in each area. The locations are shown spatially on Figure 7. Table 12: The staging and timing of residential greenfield areas Greenfield Development Areas Location Lots Years 1-5 Years 6-10 Years Years Years Aokautere 759 Ashhurst 88 Kelvin Grove 264 Whakarongo 500 Hokowhitu 130 Flygers Line 150 Napier Road 50 Ashhurst Future 250 Zoned Land Short to Medium Term Rezoning 38

57 Section 5 Growth and Demand Greenfield Development Areas Location Lots Years 1-5 Years 6-10 Years Years Years Racecourse 220 Aokautere Extensions 400 Pioneer City West 800 Medium to Long Term Rezoning City West (less Racecourse & Pioneer City West) 1680 The location of these areas is shown on the following map. Figure 7: Map showing location of proposed residential development 39

58 Section 5 Growth and Demand 5.4 Industrial Growth Strategy The strategy prioritises industrial growth: In the short to medium term at the North East Industrial Zone (NEIZ) and the recently rezoned Extension Area for large floor plate transport, warehousing and logistics activities. Longburn is viewed as a suitable location for wet industry. North East Industrial Zone The NEIZ (86 ha) was rezoned in As at March 2017, 46 ha is developed or purchased for development and not available to the market. Since 2004 the annual uptake of land at the NEIZ is approximately 3.5 ha. It is anticipated that the annual uptake of land in the NEIZ will exceed 3.5 ha in the next 3 years. NEIZ Extension Area The 126 ha NEIZ Extension will be sufficient to meet the growth of large floor plate industrial activity over the next 20 to 30 years. Forecasting the market s timing around sizable investment decisions for large format transport and logistics activity is problematic, particularly when the nature of investment is lumpy, and Council is seeking to forecast the investment profile over a 20 to 30 year time-period. Infrastructure Roll-Out and Staging For the purposes of infrastructure roll-out, Figure 8 below shows the expected progress of development in the Extension Area. From Council s perspective it would be more cost effective to start providing infrastructure in the area shown in stage 1. It is envisaged the land fronting the Roberts and Richardsons Line corner / intersection will first to be developed. Figure 8: Map of NEIZ Infrastructure Roll Out 40

59 Section 5 Growth and Demand Longburn Longburn remains the preferred option for the development of wet industry given its connection and proximity to the wastewater treatment plant. Council s infrastructure funding priorities for industrial growth in the short to medium term remain at the NEIZ and Extension Area. Figure 9 shows the extent of the existing industrial zone at Longburn. Longburn: Sub-Optimal Infrastructure and Pressure to Rezone Additional Industrial Land Council is coming under pressure to rezone additional land in the Works Road area of Longburn. Part of the existing Works Road industrial area is serviced by private infrastructure that does not meet Council s engineering standards and Council is unwilling to approve rezoning of additional industrial land that is reliant on sub-optimal private infrastructure. Braeburn Industrial Area Figure 9: Map of Existing Industrial Zone at Longburn Plan Change 15F rezoned a 33ha extension to the existing Longburn Dairy Manufacturing Site (LDMS) in The rezoned land is identified as the Braeburn Industrial Area (BIA). The purpose of the BIA is to primarily provide for dairy related industrial activities to support the ongoing operational and growth needs of Fonterra s existing LDMS. It is envisaged the BIA will remain in the single ownership of Fonterra and is not for the purpose of meeting the wider industrial land needs of the City. 5.5 Office and Retailing (Commercial) Land Use Strategy The Council s centres based strategy seeks to keep commercial activity centred in the core of the city and to avoid the dispersion of this activity to the periphery of the urban area particularly in the city s Industrial Zones. This strategy is given effect to through the District Plan hierarchy of business zones as follows: Inner Business Zone (IBZ). 41

60 Section 5 Growth and Demand Outer Business Zone (OBZ). Fringe Business Zone (FBZ). Local Business Zone (LBZ). The IBZ is the zone where planning for infrastructure is most critical. The IBZ seeks to provide a high amenity, connected, and pedestrian focused city centre that meets the business, social, and cultural needs of the community. IBZ development looks to leverage off public investment and, in most cases, will utilise public on-street parking. City Centre Streetscape Plan (CCSP): Any planned works in the IBZ need to align with the outcomes sought by the City Centre Street Scape Plan. The Plan sets out the future design direction for the streets and spaces in the city centre. The CCSP is guided by a number of Council strategies, including the Urban Design Strategy, the City Centre Framework and the Street Design Manual. Importantly, the scope of the CCSP extends to streetscape upgrades including carriageway, parking, footpaths, hard and soft landscape, as well as Palmerston North's urban and inter-regional bus terminals. To achieve the outcomes sought by the CCSP any infrastructure project will need to be informed by a multi-disciplinary team working in collaboration. OBZ development is more self-sufficient than IBZ development and is required to provide on-site parking. FBZ development is large format retailing and is also required to provide on-site parking. LBZ development provides local amenities and is expected to provide on-site parking. All business development other than some LBZ development looks to leverage of existing infrastructure as it is effectively a form of brownfield development. Figure 10: Map of Spatial Extent of the Business Zones 5.6 Rural Residential Strategy The District Plan discourages lifestyle blocks and further fragmentation of productive farmland. This land is a scarce resource and represents a significant economic opportunity for future generations, as identified in the regional growth study. It is also a valuable resource for sustainable local food production. Substantial capacity for lifestyle blocks is provided on the foothills of the Tararua ranges to ensure they remain a legitimate housing choice in the City. 42

61 Section 5 Growth and Demand The provision of urban services, in particular reticulated services, is discouraged in rural areas. The provision of reticulated services in rural areas is an inefficient form of infrastructure investment. It also blurs the lines between rural and urban development, and leads to confusion about future development opportunities. Many landowners see the provision of urban services as legitimising further intensification, while others see it is undermining the specific rural amenity they sought out. Careful implementation of the new District Plan rural subdivision provisions is essential. 5.7 Other factors influencing demand and consumption projection or patterns Figure 11 shows usage patterns based on recycling and residual waste tonnages since July The notable increase in glass and mixed recycling tonnages from July 2010 coincides with introduction of the weekly kerbside recycling collection service using wheelie bins and crates. A further increase in glass recycling occurred when the kerbside sorting was introduced, which resulted in improved recovery rates in February The residual waste to landfill figures correspond to just the Council bagged kerbside collection service. Commercial rubbish collection represents a much larger proportion of the total waste stream. Anecdotal information is that rubbish to landfill reduced significantly for commercial rubbish collection arrangements following introduction of the Council s kerbside recycling collection service in July The same trend is not reflected in Council s bagged refuse collection tonnages, which is more closely aligned with the lower end of the residual waste producer profile. Figure 11: Council s Rubbish & Recycling Kerbside Collection Trends Figure 12 shows the trends in rubbish bags sales and bag prices. The drop in sales from 2009/10 to 2010/11 was due to the benefits of introducing the kerbside recycling collection service using wheelie bins and crates. From July 2012, the rubbish collection has been self-funded. The increased price has corresponded with a drop in the usage of the service, as seen in the significant decrease in rubbish bag sales in July Note that just prior to the two price rises, there have been spikes in bag sales 43

62 Section 5 Growth and Demand by several of the large supermarkets. The spike in October 2011 has possibly masked the decrease in the service, which is more likely to have occurred from July 2011, as indicated by the decrease in waste to landfill in Figure 11 above. Figure 12: Council s Rubbish Bag Sale Trends 5.8 Demand Management Council recognises that waste can be a valuable commodity. Council encourages waste diversion through the promotion of waste minimisation initiatives. Council provides recycling services, green waste drop off facilities, E-waste recycling, and public awareness of waste minimisation through education programmes. Council developed and adopted a Waste Management and Minimisation Plan (WMMP) 2012, which sets a community target to divert 75% of waste from landfill. The WMMP is intended to influence total waste diversion from landfill by implementing actions aimed at encouraging waste minimisation and beneficial re-use instead of waste disposal. A revision of the WMMP is scheduled to be completed in 2018 following completion of a city wide waste assessment. The revised WMMP will seek to set a meaningful target for waste diversion and beneficial reuse based on the influence Council has over the entire waste stream Sensitivity to Demand Changes The generation of waste is closely aligned to the level of economic activity. For the last two years there has been a significant spike in economic activity as measured by residential and commercial development. As property development and construction activity are significant sources of waste, it is expected that total waste volumes will have grown. Aside from some increases in greenwaste drop off volumes and glass recycling, overall volumes of recycling material diversion have been fairly static for the last few years. 44

63 Section 5 Growth and Demand There is current surplus capacity at the materials recovery facility (MRF) where the recyclables are processed as the MRF can process typical weekly volumes of recyclables collected from Palmerston North city in 3.5 days per week. This provides an opportunity for the facility to process significant increases in recyclable volumes which might be received by increasing diversion and take-up within the city and processing of recyclables from other councils in the region. The Rubbish and Recycling kerbside collection routes were reviewed in This review made allowance for future growth in the Whakarongo area by providing capacity to extend the collection day in that area over time Climate Change Impact on Demand The projected impacts of climate change are likely to become more noticeable towards the end of the planning period of this AMP and have greatest relevance to water supply, wastewater, and stormwater assets. The New Zealand Climate Change Office has released a report on the impacts of the changing climate in New Zealand which concludes: Higher temperatures, more in the North Island than the South, (but still likely to be less than the global average). Rising sea levels. More frequent extreme weather events such as droughts (especially in the east of New Zealand) and floods. A change in rainfall patterns - higher rainfall in the west and less in the east. The Ministry of Environment has predicted impacts of a moderate rate of climate change for the Manawatū-Wanganui region including changes in average temperature, sea level rise, and rainfall patterns. In general, Manawatū-Wanganui, like much of the west coast of New Zealand, is likely to become warmer and wetter. Climate scientists estimate that average temperatures in Manawatū-Wanganui could be up to 3 C warmer over the next years. This compares to a temperature increase in New Zealand during the last century of about 0.7 C. Potential impacts of climate change on the rubbish and recycling activity are likely to be the higher costs arising from adoption of mitigation measures and higher costs associated with operating of the landfill including: increases in the cost of carbon offset charges adding to the cost of disposing of residual waste higher rainfall volumes resulting in greater leachate and contaminated stormwater volumes being generated at the privately owned landfill which require treatment and disposal. The additional costs will be seen in higher landfill charges to PNCC for residual waste disposal 45

64

65 Section 6 Assets & Lifecycle Management 6 Assets & Lifecycle Management This section provides the detail of the key asset components comprising the Rubbish and Recycling Activity, including a description of the assets, their condition, performance, and capacity, together with individual AM strategies for the maintenance, renewal, and development of these assets. 6.1 Overview of the Rubbish & Recycling Assets Asset Grouping The Rubbish and Recycling Activity assets comprise: The Awapuni Resource Recovery Park which includes: The Materials Recovery Facility (MRF) and other associated infrastructure; The Awapuni Closed Landfill, including roading, drainage, fencing, and other associated infrastructure; Composting operations; Landfill gas collection and utilisation system; Weighbridge; Recycling Drop Off Point; Quarry site for metal extraction (currently licensed); Other leased sites; and Mountain bike jumps park (Refer to Recreation and Community Facilities AMP). The Ashhurst Closed Landfill. The Closed Bunnythorpe Transfer Station and Recycling Drop Off Faciltity. Transfer Station and Recycling Drop Off Facilities: The Ashhurst Transfer Station and Recycling Drop Off Facility; and The Ferguson Street Recycling Centre. The Kerbside Collection Assets: Rubbish collection assets (collection vehicles), which are either leased or City Enterprises assets, and are excluded from this AMP; and The recycling wheelie bins and glass recycling crates, the collection vehicles are either leased or City Enterprises assets, and are excluded from this AMP. 47

66 Section 6 Assets & Lifecycle Management Replacement Cost Replacement costs of the Rubbish and Recycling Assets as at 30 June 2017 are shown in Table 13. Table 13: Replacement Costs of the Rubbish & Recycling Assets as at 30 June 2017 Description Replacement Cost Awapuni Resource Recovery Park (excluding MRF & Other Associated Infrastructure) $14,553,250 MRF & Other Associated Infrastructure $6,615,040 Ashhurst Closed Landfill $34,000 Ashhurst Transfer Station $208,950 Bunnythorpe Transfer Station $36,000 Portacom for E-Waste Recycling $10,000 Glass Recycling Bins $42,300 Recycling Wheelie Bins $3,337,030 Recycling Crates $1,541,950 Total $26,368, Asset Condition & Performance Grading Asset condition and performance is graded on a scale of 1 5 (excellent to poor) based on guidelines from the International Infrastructure Management Manual. Appendix G contains the asset condition and performance gradings adopted for the Rubbish and Recycling Activity. 6.2 The Awapuni Resource Recovery Park Assets The entrance to the Awapuni Resource Recovery Park, shown in Figure 13, is on Tip Road at the end of Maxwell s Line, Palmerston North. The Park is utilised for the composting of green and organics wastes as well as provided leased sites for a number of private recycling businesses. The Awapuni Resource Recovery Park opening hours are: Mondays Saturdays 7:30am 4:30 pm. Sundays and Public Holidays 12:00pm 4:00pm. Closed: Christmas Day, Good Friday and ANZAC until 1:00pm. The Awapuni Resource Recovery Park appearance is in average - good condition. Programmes have been developed to improve the overall condition and appearance of the park. Specific programmes to address landscaping have been included in this AMP. 48

67 Section 6 Assets & Lifecycle Management Figure 13: Entrance to the Awapuni Resource Recovery Park Materials Recovery Facility & Associated Infrastructure Description & Attributes This facility is the flagship of the Awapuni Resource Recovery Park and provides for: A recycling processing plant for paper, cardboard, plastics, steel, and aluminium; A separate processing plant for mixed colour glass; and A visitor s centre to allow for interactive sessions to be held with visitor groups to increase community awareness of sustainable development issues. The Materials Recovery Facility and associated infrastructure consists of the following: Asphalt sealed and fenced site; Steel building and adjacent office building; Materials recovery facility for processing paper, cardboard, plastics, steel, and aluminium; and Separate glass processing facility. The facility is located on top of the Awapuni closed landfill which has been clay capped. The centre is inside a chain linked fence compound of approximately 0.8 ha. The ground inside is either asphalted or landscaped. The area under the facility has been compacted using dynamic compaction and lined with a geo-membrane to prevent escape of methane gas. 49

68 Section 6 Assets & Lifecycle Management Figure 14: Materials Recovery Facility Building There are two buildings on the site (constructed in 2006); a steel framed and clad shed with a floor area of 2,129 m 2, and a single storey office and amenities building with a floor area of approximately 230 m 2 comprising four offices, a visitor and education centre, kitchen, toilets, and storeroom. In January 2012, a 340 m 2 addition was erected at the eastern end of the shed. The addition comprises two partial walls with a roof, the purpose being to provide an infeed storage area for the collected recyclables, in order to provide adequate cover from weather for the recyclables prior to processing. The steel framed and clad shed is 10 m high at the ridge line and 6.5 m high at the eaves. It has seven motorised, galvanised roller shutter vehicle access doors, 5 m wide x 5 m high. The floor inside the shed is a 150 mm thick concrete slab over a geo-membrane, which has been designed to prevent methane from percolating through the landfill materials and gathering in the shed. The western end of the shed (area 35 m x 30 m) is leased to OJI, who run a paper and cardboard baling operation from this site. OJI also occupy one of the offices in the office and amenities building. The eastern end of the shed is used by PNCC to house the MRF plant and equipment. The Materials Recovery Facility was substantially upgraded in 2010 shortly after the introduction of the kerbside recycling wheelie bin and glass crate collection service in July The 2010 upgrade replaced the previous manual sort facility. In January 2012, an upgrade was undertaken to the MRF to improve the operational efficiency. More recently the main infeed conveyor (C1) and feed hopper were replaced in 2017 to address inefficiencies with the supply of product into the factory. The infeed conveyor was replaced with two smaller incline conveyors and a metering wheel installed with an optical eye to control the flow of product into the factory. In 2016/2017, to address firefighting capacity concerns at the MRF, a new 525mm dedicated water main was installed from Maxwells Line through Tip Road up the MRF, with several fire hydrants at key locations to access the water main for firefighting purposes. A sprinkler system and associated pump shed was installed in the MRF Factory and administration block that utilises the new 525mm water main for water supply. 50

69 Section 6 Assets & Lifecycle Management The MRF (view of pre-sort and fines screen) is shown in Figure 15 below. Figure 15: Materials Recovery Facility The Materials Recovery Facility has been designed to process up to 4tph (tonnes per hour) of comingled recyclables (excluding glass) which have been collected from the kerbside recycling collection in Palmerston North. The co-mingled recyclables are separated into individual streams of fibre (paper and cardboard), plastics, steel, and aluminium by both mechanical and manual sorting processes. The co-mingled recyclables are delivered to the MRF and stored in the infeed storage area. A front end loader feeds the material onto the infeed conveyor (INFEED-CV). The infeed conveyor feeds the product onto the incline conveyor (C1) via a metering wheel. The two conveyors operate independently; the infeed conveyor is controlled by the metering wheel. The product is deposited (dropped) onto the metering wheel from the infeed conveyor; the metering wheel has an optical eye which controls the speed of the infeed conveyor. The metering wheel is designed to meter the material onto the C1 incline conveyor. The incline conveyor (C1) moves the product up into the main building to the pre-sort platform and onto the pre-sort conveyor (PRESORT-CV). Manual sorters remove any waste items which are not recyclable, large items, or items that may damage the paper screen. These items are placed in different chutes and collected in storage bins located under the pre-sort platform. Once the co-mingled recyclables have passed the pre-sort platform, the material drops onto the machinex fines screen; the fines screen removes any material which is less than 50mm in size. This is to remove any broken glass, small items and grit/fines etc. that may damage the moving parts of the MRF plant and equipment. The <50mm fines material is dropped onto conveyor FINES-CV, where an overhead belt magnet has been installed to capture smaller steel items passing through the fines screen. The steel is discharged into a storage bin which, when full, is transferred to the metal recycler located at the Awapuni Resource Recovery Park. The waste materials are then discharged into the fines waste bin. The material that passes over the fines screen then drops onto the Paper Screen (Star Screen) which separates the fibre (paper and cardboard) from the remaining recyclables (plastics, steel, and aluminium). The paper and cardboard passes over the top of the paper screen, while the other products pass through or roll off the bottom of the screen. 51

70 Section 6 Assets & Lifecycle Management Paper and cardboard which passes over the paper screen drops onto conveyor C5 and are then transferred onto the fibre process conveyor C6. Fibre (paper and cardboard) is checked and manually sorted for contamination. The contamination is placed down chutes or into the container storage cages. The paper and cardboard then drops into the paper storage area at the end of the fibre process conveyor, where it remains until it is transferred to the paper baling area run by OJI Fibre Solutions. Co-mingled Recyclables (plastics, steel, and aluminium) from the paper screen drop onto conveyor C2, which transfers the material onto conveyor C3 and up to conveyor C7, the co-mingled (container) process conveyor. The plastics are manually sorted into clear PET, clear HDPE, Janitorial, and mixed plastics. These plastics are handpicked from the conveyor and are thrown into their respective container storage cages. Two densifiers have been installed on top of the container storage cages to perforate the PET and HDPE bottles to increase the bale density and prevent the bales from popping open after baling due to air and heat expansion. Currently, Aluminium is manually sorted from the stream. Aluminium is handpicked by the manual sorters and placed down chutes and collected in storage bins located underneath the co-mingled process platform. An overhead belt magnet is suspended over conveyor C7 after the manual sort, to remove steel from the stream and discharges it into the steel storage cage. The rest of the stream discharges off the end of conveyor C7, where it is collected to be passed through the plant again before it is discharged to waste. The container storage cages are part of an automated baling system. Each cage is fitted with a slide gate, which is opened by an air actuator. The storage cages are positioned on each side of conveyor C8. Each product can be individually baled by discharging onto conveyor C8, which drops onto conveyor C9, and then into the baler (Compactor 80). The baled plastics are transferred by forklift to the outside storage area. Plastic commodities are tendered for sale on a regular basis. Waste bins located under the pre-sort platform, fibre process platform, and co-mingled process platform, are emptied as required by the forklift next to conveyor C. The waste is loaded manually by the front end loader and baled. Steel and aluminium collected in storage cages from the co-mingled process line are transferred to the metal recycler located at the Awapuni Resource Recovery Park. A Motor Control Centre (MCC) and Programmable Logic Controller (PLC) have been installed to control the MRF and are located at the plant entry from the main office. Emergency stop lanyards have been installed at all the sorting locations, and emergency stop buttons have been positioned around the plant for operator safety. The MRF plant and equipment are summarised in Table 14. There are various other items of plant and equipment which are required for the proper functioning of the MRF: Mobile Cages - Placed under the pre-sort, container sort, and fibre sort lines to contain sorted waste and recyclables for appropriate processing. Front end loader x 1 - Used to load incoming recyclables onto the in-feed conveyor. Also used to keep incoming recyclables tidy leased by City Enterprises. Forklift x 1 - Used to carry cage containers and baled material around the site leased by City Enterprises. 52

71 Section 6 Assets & Lifecycle Management Table 14: MRF Plant & Equipment Detail Item Description Function Supplier INFEED-CV Infeed Conveyor Transfer product to the inclined infeed conveyor (C1) via the metering whee.l Metering Wheel Metering Wheel Meter the incoming product onto the inclined infeed conveyor (C1). C1 Infeed Inclined Conveyor Transport materials into the main building and onto the pre-sort conveyor. Pre-sort Platform Pre-sort Platform Provides access to pre-sort conveyor, fines screen, fines conveyor, and paper screen. PRESORT-CV Pre-sort Conveyor Allow manual removal of plastic bags, non-recyclables, cardboard, and large contaminants. Machinex Fines Screen Fines Screen Mechanical removal of contamination <50mm dia. FINES-CV Fines Conveyor Conveys fines from the fines screen to a waste bin. ECS Eddy Current Separator 4 CP Paper Screen (Star Screen) C5 C6 Fibre Process Platform Container Storage Cages Fines Overhead Belt Magnet Paper Screen Screen Transfer Fibre out-feed horizontal conveyor Fibre Process Line Fibre Process Conveyor Fibre Process Platform Fibre Process Platform - 4 Fixed Container Storage Cages C2 Screen Transfer Comingled Out-feed Incline Conveyor C3 Co-mingled Process Line Inclined conveyor C7 Comingled Process Line Comingle Process Conveyor Co-mingled Process Platform Container Storage Cages Steinert Crossbelt Magnet ECS Eddy Current Separator 5 Co-mingled Process Platform Co-mingled Process Platform - 5 Fixed Container Storage Cages Overhead Belt Magnet Eddy Current Machine Mechanical sorting of ferrous metal (steel) containers (tins, cans, and lids). Mechanical separation of paper and cardboard from the containers (plastics, steel, and aluminium). Transport fibre (paper and cardboard) from the paper screen to the fibre process line. Allow manual sorting of various types of paper and card and removal of contamination. Provides access to fibre process conveyor to allow manual sorting. Container Storage Cages to contain sorted recyclables. Transport plastics, steel and aluminium from the paper screen to the co-mingled process line. Transports plastics, steel and aluminium up and onto the co-mingled process conveyor. Allow manual sorting of various classes of plastic, steel and aluminium. Provides access to co-mingled process conveyor to allow manual sorting. Container Storage Cages to contain sorted recyclables. Mechanical sorting of ferrous metal (steel) containers (tins & cans). Mechanical sorting of other metallic containers (aluminium cans). Ashhurst Engineering (AEC) (2010) Modified 2017 by MJ Custom MJ Custom (2017) AEC (2010) Modified 2017 by MJ Custom RDT Scarlett (2012) RDT Scarlett (2012) RDT Scarlett (2012) RDT Scarlett (2012) Pioneer Recycling (2010) Pioneer Recycling (from CP Manufacturing) (2010) AEC (2010) AEC (2010) AEC (2010) AEC (2010) AEC (2010) AEC (2010) AEC (2010) AEC (2010) AEC (2010) RDT Scarlett (2012) Pioneer Recycling (2010) 4 The overhead belt magnet installed on the fines conveyor has been sourced from the ECS Eddy Current Separator originally installed in Surplus not currently used 53

72 Section 6 Assets & Lifecycle Management Item Description Function Supplier C8 Baler Feed System Container Storage Outfeed Conveyor Transport sorted recyclables from container cages to the baler. AEC (2010) C9 Baler Feed System Baler Infeed Conveyor Feed sorted recyclables into the baler. AEC (2010) Compactor 80 Baler Compression and binding of sorted materials. Scarlett (2010) The glass processing facility is located adjacent to the MRF. It consists of an in-feed chute, a single conveyor situated inside a modified shipping container, and a series of bays constructed of concrete blocks into which the coloured glass is sorted. The glass processing facility is detailed in Table 15. Improvements made in the kerbside collection methods enabling direct freight of the colour sorted glass from collection at the kerbside to a glass recycler in Auckland has resulted in a significant reduction in usage of the glass processing facility. Ongoing improvements to the recycling activity to reduce the need for glass to be sorted after collection will continue. Table 15: Glass Processing Facility Item Function Supplier Glass Processing Facility Conveyor Allow manual sorting of glass bottles into colours. AEC (2010) Glass Bunker Storage Area Storage of colour sorted glass prior to loading for bulk freight to Auckland for processing. PNCC (2015) Condition, Capacity & Performance of Assets The Materials Recovery Facility and associated infrastructure appearance is in average condition. Overall asset performance is good. Various capital programmes have been developed to maintain the assets in this AMP. The various assets for the MRF and associated infrastructure, together with their condition rating and performance rating are listed in Table 16. Table 16: Condition & Performance of the MRF Assets Asset Condition Rating 1= excellent 5= very poor Performance Rating 1= excellent 5= very poor Comments MRF Infeed Conveyor 1 1 Constructed August Modified 2017 Metering Wheel 1 1 Constructed 2017 Infeed Inclined Conveyor 1 1 Constructed August Modified 2017 Pre-sort Platform 2 1 Constructed January 2012 Pre-sort Conveyor 2 1 Constructed January 2012 Fines Screen Constructed January 2012 Fines Conveyor 2 1 Constructed January 2012 Fines Overhead Belt Magnet Purchased August 2010 Paper Screen Constructed August 2010 Screen Transfer Fibre out-feed horizontal conveyor 2 1 Constructed August 2010 Fibre Process Line Fibre Process Conveyor 2 1 Constructed August

73 Section 6 Assets & Lifecycle Management Asset Condition Rating 1= excellent 5= very poor Performance Rating 1= excellent 5= very poor Comments Fibre Process Platform 2 1 Constructed August 2010 Fibre Process Platform Fixed Container Storage Cages Screen Transfer Comingled Out-feed Incline Conveyor 2 3 Constructed August Constructed August 2010 Co-mingled Process Line Inclined Conveyor Constructed August 2010 Comingled Process Line Co-mingle Process Conveyor Constructed August 2010 Co-mingled Process Platform 2 1 Constructed August 2010 Co-mingled Process Platform Fixed Container Storage Cages 2 3 Constructed August 2010 Overhead Belt Magnet Constructed January 2012 Eddy Current Machine Constructed August 2010 Baler Feed System Container Storage Outfeed Conveyor Constructed August 2010 Baler Feed System Baler Infeed Conveyor Constructed August 2010 Baler Constructed August 2010 Glass Processing Facility Conveyor 2 2 August 2010 Container 2 2 August 2010 Bays and Truck Loading Areas Associated Infrastructure Fencing Renewals required External Sealed Areas Constructed in 2006 Office Building 2 3 Constructed in Extra ablution, staff offices and facilities are required. Plant Building Constructed in No camera s for security of staff and buildings The Awapuni Closed Landfill Description & Attributes The Awapuni Closed Landfill is located within the Awapuni Resource Recovery Park on Tip Road to the southwest of the city centre. The Awapuni landfill operated from 1950 until 31 January An estimated 2.5 million tonnes of rubbish was deposited in the landfill over its lifetime. Resource Consents relating to stormwater, leachate, and landfill gas remain operative until Separate resource consents are held for green and organic waste composting and the landfill gas activities. The key landfill management issue is compliance with the after-care consent requirements post the landfill closure, and management of the gas harvesting and composting operations (see Figure 16 below). A number of leaseholders occupy parts of the Awapuni Resource Recovery Park. PNCC acts as landlord and retains responsibility for the aftercare and for consent compliance across the entire site. 55

74 Section 6 Assets & Lifecycle Management Figure 16: Awapuni Closed Landfill Site The Awapuni Resource Recovery Park is provided with basic infrastructure required for access, security of site, power, and water/wastewater/drainage services. Access to the site is through Tip Road (located at the end of Maxwells Line). Tip Road is a sealed road and maintained by the Rubbish and Recycling activity. At the base of the closed landfill Tip Road forms a Y junction. To the left is access to the back of the closed landfill and one of the leaseholders where gravel extraction and processing occurs. The right proceeds up the closed landfill and the main access to the Resource Recovery Park via a weighbridge. Sealed roads continue up to the green waste drop off area, around the MRF and buildings. Unsealed access roads have been formed around the site for access purposes. Tyre walls have been developed to increase the useable surface on the top of the Closed Landfill for organic waste, green waste handling, and composting operations. Hardstand areas have been formed and extensive drainage works have taken place to capture the runoff from the composting operations. These areas facilitate the organic waste, green waste handling, and composting operations. Perimeter fencing has been established on the site; however the entire perimeter is not fenced. It is estimated that less than half of the perimeter is fenced. Site security is becoming an increasing issue with several incidents occurring during the last six months. A programme has been included with this AMP to increase the on-site security with cameras, flood lights, and access beams to alert the security company of unauthorised access to the site. An annual ongoing cover and landscape programme utilises compost produced on site to cover the clay cap. This has a dual benefit: it provides a vegetative layer for landscaping, and the additional benefit is to protect the cap from drying out and cracking during dry weather conditions, and during wet conditions prevents the clay from running off the slopes. An example of landscaping is shown in Figure

75 Section 6 Assets & Lifecycle Management Figure 17: Example of Landscaping at the Awapuni Resource Recovery Park The Awapuni Closed Landfill (including roading, drainage, fencing, and other associated infrastructure) is summarised in Table 17. Table 17: Awapuni Closed Landfill Infrastructure Detail Asset Description Length [m] Comments Sealed Access Roads Unsealed Access Roads 2,400 Shorter lifespan for these assets is expected due to heavy vehicle movements and subsurface movements from the landfill compacting. Some areas require Asphaltic surfacing to reduce stress where heavy vehicles turn. 1,800 Shorter lifespan for these assets is expected due to heavy vehicle movements and subsurface movements from the landfill compacting. Tyre Walls 265 Good condition. Perimeter Fencing 1,300 Existing perimeter fencing requires repair/renewal in some places. Perimeter fencing incomplete Condition, Capacity & Performance of Assets The Awapuni closed landfill ceased receiving rubbish on the 31 January The Awapuni closed landfill site appearance has been improved and is now considered to be good. On-going capping, top soiling, grassing, and replanting are expected to continually improve the appearance of the landfill as these works are progressively undertaken. Up until the spreading of compost material over the landfill cap was considered to be a Capital project by virtue of the creation of the landfill cap. With the establishment of a secure cap, ongoing spreading of compost is being charged as an operational expense. Landfill performance relates to compliance with resource consents. The Resource Consents currently held for the Awapuni closed landfill are the: Water permit to divert 66,000 m 3 of stormwater annually from the landfill to two soakage ponds (consent number 3962) (expiry 1 February 2029); 57

76 Section 6 Assets & Lifecycle Management Discharged permit to discharge 62,700 m 3 of stormwater annually from the soakage ponds into ground soakage (consent number 3963) (expiry 1 February 2029); Discharge permit to discharge stormwater to surrounding surface water in the event of flood waters covering the river terrace or diversion channels being exceeded by intense storm events (consent number 3964) (expiry 1 February 2029); Discharge permit to discharge contaminant (leachate) to groundwater from the unlined existing landfill and the lined extension area (consent number 3965) (expiry 1 February 2029); Discharge permit to discharge contaminant (landfill gas, dust, odour) to air (consent number 3966) (expiry 1 February 2029); and Discharge permit to discharge contaminant recirculated leachate to ground (consent number 3967) (expiry 1 February 2029). Consent compliance is measured by inspections of the landfill by Horizons Regional Council staff, and quarterly sample analysis of water taken from the boreholes around the landfill and from the Mangaone Stream. Currently the landfill is generally operated in compliance with resource consents. Table 18: Condition & Performance of the Awapuni Closed Landfill Assets Asset Condition Rating 1= excellent 5= very poor Performance Rating 1= excellent 5= very poor Comments Access Roads 2 2 Some Asphaltic Sealing required where heavy vehicles turn. Drainage Leachate pump and electrics The system was renewed in January Clay lining and clay cap Ongoing infrared surveys identify areas of clay cap requiring attention. Security Fences Some lengths of older fence Organic & Green Waste Handling & Composting Facilities Description & Attributes The composting operation is located on top of the capped landfill and is set up to produce two grades of compost: Commercial grade compost manufactured from uncontaminated organic feedstock, suitable for use in food production and for sale to the public; and Restricted grade compost, not suitable for public use, manufactured from a mixture of clean and contaminated feedstock. The contaminated material is primarily sewage sludge. The composting operation is mandated by resource consent numbers and issued in October 2010, for a term of 18.5 years expiring 1 February Table 19 below contains a summary of the various inputs to the composting operation for the previous two years. The volumes of materials being composted at Awapuni have been rising steadily year on year assisted by static fees for greenwaste drop-off and increasing promotion of commercial food waste collection services. Table 19: Annual Compost Input Quantities Inputs [Tonnes/yr] 2015/ /17 NZ Pharm Stable Waste Stable Waste Commercial

77 Section 6 Assets & Lifecycle Management Inputs [Tonnes/yr] 2015/ /17 Grease Trap Transpacific Wheelie Food (PNCC commercial) Green Waste Wood Waste Total Tonnes 6,764 8, Condition, Capacity & Performance of Assets Compost made to commercial grade is available on the site. Other compost that does not meet commercial grade standards is used as topdressing material for the closed landfill. All compost is tested and only sold or used on the old landfill once it is confirmed to meet the relevant standards. Table 20: Condition & Performance of the Compost Assets Asset Condition Rating 1= excellent 5= very poor Performance Rating 1= excellent 5= very poor Comments Hardstand Area s 1 1 Good condition Open Drainage Channels Good condition, some channels require refurbishment Subsurface Drainage Good condition Trommel Screen 3 2 Older screen, but performing well. Diesel engine will need an overhaul shortly Note: Hardstand areas and open drains require frequent maintenance to retain satisfactory service levels Landfill Gas Collection & Utilisation System Description & Attributes The Landfill Gas Generation (LFG) Project has been in operation since June 2006 and currently consists of a network of 30 gas extraction wells installed throughout the closed Awapuni landfill. These wells vary in depth from between 10m to 21m and are constructed from 100mm diameter PVC pipe with a slotted length at the base through which landfill gas is drawn. These wells are connected through individual 100mm laterals to a larger 225mm diameter ring-main that loops around the whole site and conveys the LFG to the Wastewater Treatment Plant (WWTP) Biogas Generator. Table 21 contains details of the gas field pipes. Table 21: Landfill Gas Collection System Pipe Diameter [mm] Length [m] , Unknown 200 Total 2,243 59

78 Section 6 Assets & Lifecycle Management The generator site includes a Candle Stick flare was installed in This flare has a capacity of 300m 3 /hr and is used to burn off the LFG when the WWTP Biogas generator is turned off. A candlestick flare is a simple flare that is used for combusting the landfill gas when the WWTP Biogas generator is turned off. The candlestick flare burns the concentrated flume of methane gas by discharging the gas through a discharge pipe and through a windshield. As the gases discharge, they are exposed to a pilot that will ignite the gases. The Landfill Biogas engine, which was leased, has not been operating for over a year following the construction of a pipeline to take landfill gas to the WWTP Biogas Generator. The landfill engine has been uplifted by the owner and the LFG Skid initially relocated to the WWTP Biogas Generator site has now been sold to the previous owner it is no longer appropriately sized for the gas flows. The landfill gas will be treated through the digester biogas skid to remove moisture and other contaminants prior to combustion Condition, Capacity & Performance of Assets The gas field is performing below expectations with declining gas quantities and methane gas concentrations for the past few years. The LFG still provides a useful supplement to the digester gas production and increases total electricity generation from the site as well as reducing the release of methane to the atmosphere. The Resource Consents currently held for the operation of the landfill gas operation are: Discharge permits ( and ) to discharge contaminant as a result of combustion and flaring of landfill gas to air which expire 19 July Table 22: Condition & Performance of the Landfill Gas System Asset Condition Rating 1 = excellent Performance Rating 1= excellent Comments 5= very poor 5= very poor Gas extraction wells Additional wells installed in 2009 and 2011 Gas collection pipelines Weighbridge & Weighbridge Kiosk Description & Attributes A Council owned weighbridge (renewed in 2013), located on the main access road into the site, is used to weigh all commercial greenwaste, organics, and recycling materials in and out of the recovery park. The weighbridge steel deck is approximately 9 m in length and 3 m wide, and allows for a single weigh of most vehicles. Larger truck and trailer units require a dual weigh, as the bridge length is not sufficient to weigh vehicles of this length in a single weigh. The weighbridge steel deck is mounted inside a concrete pit on four load cells. The concrete pit is approximately 9 m in length and 3 m wide. The pit walls are constructed from reinforced concrete and are approximately 300mm in width. The pit is 600 mm deep, with a variable floor thickness of 150 mm to 250 mm. Located at the eastern end of the concrete pit is a drainage sump, which discharges to a 150 mm PVC storm water pipe. AC approach aprons have been formed at each end of the weighbridge. 60

79 Section 6 Assets & Lifecycle Management A weighbridge kiosk is located adjacent to the weighbridge. The kiosk is approximately 16 m 2 (2.7 m x 5.9 m), and is provided with a computer, security cameras and monitor, cash register, eftpos facility, a toilet, electric power, and a phone line. Additionally, a software package is provided for invoicing and capturing weigh information from the weighbridge. Figure 18: Weighbridge & Weighbridge Kiosk Condition, Capacity & Performance of Assets The weighbridge was upgraded in December The upgrade involved a significant rehabilitation of the weighbridge pit and drainage infrastructure. Due to the landfill consolidating over time, the pit floor had become uneven and needed to be re-levelled. At the same time, all four load cells were replaced, and the approach aprons were replaced. The pit walls were also reconstructed during the upgrade. While rehabilitation of the weighbridge has significantly improved the condition and performance of the existing weighbridge, the weighbridge has some capacity and functionality limitations. The size (length) of the weighbridge does not allow a truck and trailer unit to be weighed during one pass. Additionally, as there is only one weighbridge, vehicles leaving the site requiring a tare weight to be recorded must pass through the weighbridge for their tare weight to be recorded. This requires these vehicles to loop around the weighbridge causing congestion issues at the weighbridge kiosk/bridge. The weighbridge steel deck has some rust and will require sandblasting within the next two - three years. The weighbridge kiosk is in poor condition and will require replacement shortly. Replacement of the weighbridge kiosk has been allowed for in the site renewals capital programme included in the AMP. The security cameras located at the weighbridge and kiosk were renewed in 2014; however, they are older technology (analogue). With increased security concerns at the Awapuni site, they may need to be replaced with digital technology ahead of their scheduled renewal. However, they can be installed at the Ferguson Street Recycling Centre to complement the existing analogue system in place. 61

80 Section 6 Assets & Lifecycle Management Table 23: Condition & Performance of the Weighbridge Assets Asset Condition Rating 1= excellent 5= very poor Performance Rating 1= excellent 5= very poor Comment Weighbridge Load Cells 1 1 Load cells replaced in December 2013 Weighbridge Steel Deck 3 3 Single Deck longer vehicles (truck & trailer units) require dual weigh Weighbridge Civil Works 1 1 Rehabilitated in December 2013 Weighbridge Kiosk Programmed to occur in (year 1 of 10 Year Plan) Weighbridge Security Cameras 2 2 Replaced in Awapuni Recycling Drop-Off Point Description & Attributes A recycling drop-off point (RDOP) is located within the recovery park. This facility provides for free public drop off of recyclables: paper, cardboard, plastics, steel and aluminium (tins and cans), and glass bottles and jars. The facility consists of three glass recycling bins (for colour sorted glass), and three mobile steel bins (Hiab bins) for the remaining recyclables. The facility is available during the opening hours of the recovery park. The glass bins are loaded onto a Hiab and transported to the colour sorted glass bunkers at Awapuni. Colour sorted bulk loads are then road freighted to a glass recycler based in Auckland. The remaining recyclables are collected and transported by forklift to the MRF for processing via the weighbridge. Figure 19: Awapuni RDOP Glass Recycling Condition, Capacity & Performance of Assets The main issues with the RDOP are: 62

81 Section 6 Assets & Lifecycle Management Contamination of the recyclables; Recyclables left but not placed inside the receptacles provided; Illegal dumping of non-recyclable materials; Wastage space when recyclables deposited (particularly cardboard) are not flattened prior to placement in the bins provided; Collection inefficiencies with current facilities; and Inconsistent branding. These all result in low recovery of recyclables and increasing costs to provide the service. Programmes in the AMP have been developed to address points 1 3 above through increased security (camera s and lighting), point 5 by replacing the collection bins with better fit for purpose options to improve the collections efficiency, and point 6 by providing for the development of standardised behind the wire posting modern RDOP facility at all locations across the City. Table 24: Condition & Performance of the Awapuni Recycling Drop-off Point Assets Asset Condition Rating 1= excellent 5= very poor Performance Rating 1= excellent 5= very poor Comment Glass Recycling Bins Purchased in 2013 Hiab Bins (Comingled Recyclables) Signage 2 2 Replaced in Quarry Site for Metal Extraction (Currently Licensed) Description & Attributes A metal aggregate quarry comprising approximately 13.3 ha is located at the south end and adjoining the closed landfill site. The extraction of approximately 40,000m 3 of gravel per year is consented by Palmerston North City Council resource consent ref. VW R25/2/PLN, dated 25 March Condition, Capacity & Performance of Assets The quarry continues to produce aggregate within the allowable consent limits. The quantity of gravel available is now very limited such that the leasee has indicated they are unlikely to be extending the lease beyond early This will result in a significant loss of revenue to Council, which has been included in the 10 Year Plan revenue estimates Leased Sites Description & Attributes One site comprises an area leased to a scrap metal recycler. The area is primarily a land lease and comprises an area of approximately 5,000 m 2 (0.5 ha). The area is fenced and provided with power and a concrete pad for the metal baler. Extensive refurbishment and clean-up of the site was undertaken in 2017 following a change in leasees. The site was regraded, fences repaired, and a stormwater interceptor was installed. Another site is leased to a liquid waste processor. This lease comprises an area of approximately 2,200 m 2 (0.22 ha), a steel shed (with a floor area of approximately 75 m 2 ), a Portacom (30 m 2 ), and 9 storage tanks that are bunded. 63

82 Section 6 Assets & Lifecycle Management Land is leased for concrete production and asphalt batching. The buildings and plant located at these leased sites are not owned by Council and do not form part of the lease. A timber recycler leases an area of approximately 2,600 m 2 (0.26 ha), which is fenced, and includes the lease of the former recycling building a steel clad shed with a floor area of 315 m Condition, Capacity & Performance of Assets The former recycling building was constructed in the early 90 s and, while it meets the needs of the current tenant, will need some repair works in the near future due to its age. The liquid processing building and tanks were constructed in 2009 and are still in average - good condition. The building and tanks were constructed specifically for the current tenant and are still performing as expected. The fencing associated with all the lease sites is in average condition and is repaired as required. Table 25: Condition & Performance of Leased Assets Asset Condition Rating 1= excellent 5= very poor Performance Rating 1= excellent 5= very poor Comment Former Recycling Building Repairs will be required shortly. Liquid Processing Building (75 m 2 ) Storage Tanks & associated infrastructure Requires painting. 2 2 No renewals identified Some cracks following the Jan 2016 Wellington Earthquake have been repaired in the bund area. Fencing Minor renewals are undertaken on selected sections every few years Mountain Bike Jumps Park (Refer to Recreation & Community Facilities AMP) A small recreation facility comprising earth mounds and mountain bike track has been established on the eastern boundary of the recovery park. While management of this asset is outside the scope of this AMP, the facility is not considered compatible with the activities of the site. An alternative location for a mountain bike park is under development at Panieri Park, and closure of this facility will be investigated once this is up and operating. 6.3 The Ashhurst Closed Landfill Assets Description & Attributes The Ashhurst closed landfill is located on the north-west side of Fitzherbert East Road (SH 57), approximately 3.4 kilometres south-west of the intersection with SH3. The Ashhurst closed landfill site occupies an area of 1.1 ha, with the landfill occupying an area of approximately 0.4 ha. The Ashhurst closed landfill is a small unlined facility that was used between approximately 1950 and 1995 by the Ashhurst township and surrounding small communities for the disposal of municipal solid waste. In 1989, Council inherited the landfill from the Oroua County Council. It is estimated that approximately 15,000 m 3 of rubbish was disposed of at the Ashhurst closed landfill. Over the last 64

83 Section 6 Assets & Lifecycle Management twenty years since closure of the landfill, the site has been largely left to itself. Sampling of the streams nearby has occurred, as required by the conditions of the Resource Consents held for the closed landfill. Six monthly site inspections are undertaken to assess the site Condition, Capacity & Performance of Assets The Ashhurst closed landfill ceased receiving rubbish in The Ashhurst closed landfill site appearance is average. Some fencing repairs will be required shortly. Landfill performance relates to compliance with resource consents. The Resource Consents currently held for the operation of the Ashhurst closed landfill are the: Discharge permit to discharge contaminant (leachate) to land (consent number ) (expiry 1 July 2033). Discharge permit to discharge stormwater to land (consent number ) (expiry 1 July 2033). Compliance is measured by inspections of the landfill by Horizons Regional Council staff and sample analysis of water taken from the streams around the landfill. Currently the landfill is generally operated in compliance with resource consents. 6.4 The Transfer Station & Recycling Drop-off Facility Assets The purpose of Council s transfer stations is to provide controlled and conveniently located rubbish disposal facilities for the public in areas that are outside the main urban parts of the city. The Council currently owns and operates a transfer station in Ashhurst Ashhurst Transfer Station Description & Attributes The Ashhurst Transfer Station was completed in September 1995 replacing the Ashhurst landfill (see Section 6.3) that was closed in Closure of the Ashhurst landfill was unavoidable because the upgrading required to comply with resource consent requirements was considered uneconomic. The current hours of operation are: Tuesdays 1:00 pm 3:00 pm. Saturdays 10:00 am 4:00 pm. Closed: Christmas Day, Good Friday, and ANZAC until 1:00pm. 65

84 Section 6 Assets & Lifecycle Management Figure 20: Ashhurst Transfer Station The transfer station is located south of the Ashhurst township centre at 123 Mulgrave Street. The area of the site is 0.1 ha. Assets consist of security fencing, gates, signage, concrete rubbish pit, sealed hardstand areas, and an internal traffic lane. The entrance area has control kiosk and lockable gates. The kiosk is provided with hot and cold running water, a water closet and electric power, a cash register, and mobile eftpos facility. The rubbish pit consists of a concrete slab and sidewalls made of precast concrete panels. The pit is 25 m long and 1.6 m deep. Public traffic flow is controlled around the pit in which two steel hook bins are located. Bins can be removed from both sides of the pit. Public access to the pit is over steep tipping ramp made of compacted base course. Rubbish collected at the Ashhurst Transfer Station is transferred to the privately owned Matthews Avenue transfer station via hook bins. The hook bins are hired, and the transport of hooks bins is provided by City Enterprises. The key issues relating to the Ashhurst transfer station are: Control of litter and odours; Economic viability (small throughput and minimal cost recovery); and Strong public demand for continued operation of the station. A recycling drop off point (RDOP) is provided at the Ashhurst Transfer Station. The facility provides for free public drop off of recyclables, namely paper, cardboard, plastics, steel and aluminium (tins and cans), and glass bottles and jars. 66

85 Section 6 Assets & Lifecycle Management The facility consists of a modified shipping container, with partitions inside (to keep the deposited recycled material separated), with posting holes cut out to deposit recyclables. The container is collected and transported to the Awapuni MRF for processing of the recyclables. The container is currently located outside the Ashhurst Transfer Station, thus available for recyclables to be dropped off 24hours/7days. As a result of significant contamination and blockage of the posting windows, there is low recovery of recyclables and relatively high costs to provide the service. Programmes are included in the AMP to address littering and illegal dumping through increased use of security cameras and lighting, replace the collection bins with smaller standard bins which can be collected with in-house equipment and development of a standardised RDOP station for Ashhurst and the other locations across the City. Figure 21: Ashhurst Recycling Facility Condition, Capacity & Performance of Assets The station was upgraded in 2000 following a review of the functional requirements and extensive feedback from users and the local community. In 2007 the RDOP recycling facility utilising a container was added. The kiosk was replaced in late 2014 and is considered to be in good condition. Safety barriers were installed in December 2015 to prevent users falling into the tipping pit. These were met with some opposition from the residents and regular users. However, Council had an independent review conducted of the design and their design was considered fit for purpose. Some minor modifications were introduced as part of the review such as padding on the top rail and mesh inserts on the bottom rails at each end of the tipping area. 67

86 Section 6 Assets & Lifecycle Management Issues to be considered are: Availability Restricted opening hours. Opening hours at this station will be reviewed from time to time. Quality Issues relating to access need to be reviewed. Capacity - Queues of users on the public road outside the transfer station were a problem up until 2016, when user charges were significantly increased to align with costs at the private Transfer Station in the city. The problem of over-crowding has not recurred. Current issues with the RDOP (MRC) are: Illegal dumping of non-recyclables (waste) beside the MRC. Contamination of the recyclables deposited in the MRC. Glass is co-mingled therefore requires colour sorting prior to recycling, which results in low recovery and high costs due to handling/broken glass. Costs in servicing the MRC are high compared with the recovery rates of recyclables. Table 26: Condition & Performance of the Ashhurst Transfer Station Assets Asset Condition Rating 1= excellent 5= very poor Performance Rating 1= excellent 5= very poor Comments Ashhurst Transfer Station 3 3 Surface repair required in 2017/ Closed Bunnythorpe Transfer Station Description & Attributes The Bunnythorpe Transfer Station, shown in Figure 22, was transferred to Council in July 2012 from the Manawatū District Council under a boundary adjustment between the two Councils. The facility was closed in August 2017 due to economic viability (small throughput and minimal cost recovery). The cost per user was considered high. 68

87 Section 6 Assets & Lifecycle Management Figure 22: Closed Bunnythorpe Transfer Station The transfer station is located west of the Bunnythorpe township centre at the end of Waughs Road. The area of the site is approximately 0.18 ha. Assets consist of security fencing, gates, signage, rubbish pit, metalled areas, and internal traffic lane. The entrance has lockable gates. The rubbish pit consists of wooden retaining walls. The pit is 23 m long and 0.6 m deep which can contain two steel hook bins. The site will be decommissioned and converted to land suitable for grazing by the local farmer in 2018/19. The land is flood prone Condition, Capacity & Performance of Assets Table 27 contains a summary of the asset condition and performance. Table 27: Condition & Performance of the Bunnythorpe Transfer Station Assets Asset Condition Rating 1= excellent 5= very poor Performance Rating 1= excellent 5= very poor Bunnythorpe Transfer Station Ferguson Street RDOP Description & Attributes This Ferguson Street RDOP, shown in Figure 23, is an integral part of the City Depot. The Ferguson Street facility differs from the other two RDOPs at Ashhurst and Awapuni in that it is manned during work hours and accepts a range of items for recycling not available at the other sites. The Centre comprises three areas: Recycling building - timber framed (20.6 m x 8.8 m x 4 m high) constructed on a reinforced concrete floor slab, and serviced with power, water supply, and telephone. Outside covered area with 24 hour access for all comingled recycling (paper, cardboard, plastics, steel and aluminium tins and cans, and glass bottles and jars, with CCTV security cameras and lighting). 69

88 Section 6 Assets & Lifecycle Management Sealed handling areas - a sealed and drained 100 m 2 area behind the recycling centre used for recycling bins and the temporary storage of recyclable material. Sealed parking - area at the front of the recycling centre provides visitors with vehicle access and parking. Figure 23: Ferguson Street Recycling Centre or RDOP Condition, Capacity & Performance of Assets The key issues for Ferguson Street RDOP are: Availability - Existing hours of operation are generally accepted. The interior area was modified to accept user pays recycling products, such as e-waste. Security cameras were installed to reduce illegal dumping activities at the site. Co-mingled recycling collected at the facility is transported to the MRF for processing and sale. Glass is collected in colour sorted purpose built bins which are transported directly to Mainfreight and then to the Auckland based glass recycler. E-waste such as computers and televisions are collected at Ferguson Street on a fee paid basis and then transported to an accredited recycling company, where it is dismantled and recycled in an ethical and environmentally sustainable way. Household batteries are accepted for free and child car seats for a $5 fee. Servicing costs for the recyclables are high. A programme in the AMP have been developed to address point 3 by replacing the collection bins with better fit for purpose options to improve the collections efficiency which will develop a similar look across all RDOPs in the City. 70

89 Section 6 Assets & Lifecycle Management Table 28: Condition & Performance of the Ferguson Street RDOP Assets Asset Condition Rating 1= excellent 5= very poor Performance Rating 1= excellent 5= very poor Ferguson Street RDOP The Kerbside Collection Assets Kerbside Rubbish Collection Assets Council provides a weekly kerbside collection of rubbish from residential areas and the CBD, using PNCC official rubbish bags. The assets associated with this service are owned or leased by City Enterprises and do not form part of this AMP. Rubbish collected at kerbside is disposed of at the private transfer station in Matthews Avenue. Rubbish is consolidated at the Transfer Station prior to bulk haulage and disposal at the privately owned Bonny Glen landfill. All of the assets at the Matthews Avenue transfer station and at the Bonny Glen disposal facility are owned privately and are therefore outside the ambit of this plan Kerbside Recycling Collection Assets Description & Attributes A kerbside recycling wheelie bin and glass crate collection service was introduced in July 2010 to replace the existing kerbside recycling service of collecting recyclables in supermarket shopping bags; the service area was subsequently extended in July 2013 to provide a kerbside recycling collection to the townships of Longburn and Bunnythorpe. Kerbside recycling collection is provided to all residential properties, and specified commercial and rural lifestyle properties, using plastic wheelie bins (for comingled recyclables) and crates (for glass) issued to those properties who receive the service. The recycling wheelie bins and glass recycling crates belong to Council and are assigned to the properties they are issued to. Table 29 below shows the number of recycling wheelie bins and glass recycling crates as at 30 June Table 29: Recycling Wheelie Bins & Glass Crates Quantities (30 June 2017) Description Number Wheelie Bin 240 litre 28,721 Wheelie Bin 80 litre 1,456 Crates 45 litre 30,621 The wheelie bins and crates are up to 7 years old (introduced in 2010), have a nominal economic life of 15 years, and overall are in very good condition. 71

90 Section 6 Assets & Lifecycle Management Figure 24: Age Profile of Recycling Wheelie Bins & Glass Crates (as at 30 June 2017) Condition, Capacity & Performance of Assets A kerbside recycling collection service is provided to all residential properties, and specified commercial and rural lifestyle properties using plastic recycling wheelie bins and glass crates. Availability Service provided to all residential properties in urban areas of City. Capacity There is no restriction to the capacity of the service within defined collection areas. Utilisation In 2016/17, 4,114 tonnes of recycling plus 1,437 tonnes of glass were collected through the kerbside collection service. Figure 25: Recycling Wheelie Bins & Glass Recycling Crates 72

91 Section 6 Assets & Lifecycle Management Table 30: Condition & Performance of the Kerbside Recycling Collection Assets Asset Condition Rating Performance Rating Comments 1= excellent 5= very poor 1= excellent 5= very poor Wheelie Bins 1 1 Implemented 2010 Glass Crates 1 1 Implemented Public Space Rubbish and Recycling Bins This Asset Management Plan includes operation, maintenance and capital and renewal funding for the the public space rubbish and recycling bins following their transfer from the Roading and the Parks and Property Activities during the financial year. Capital new and capital renewal programmes have been developed with a focus on rationalising and standardising on the number and design of bins in public spaces and the road. Capital investment will include trialling new smart compacting bins which promise to reduce the frequency of servicing leading to operational savings. Key issues in this area of service provision include: large quantities of household rubbish being deposited in street side bins costly emptying of remotely located bins on public walkways low levels of recycling recovery from split recycling bins provided within the CBD and major parks During the early part of the next 10 year period, investigation and trialling of new solutions and delivery models will be undertaken to identify more cost effective ways of delivering public space rubbish and recycling services. 6.7 Activity Management Support Services Programme The Rubbish and Recycling activity is managed by the Water and Wastes division of City Networks. It entails a combination of in-house asset management time, supplemented with external resources for specific projects, as required. Activity management has no direct effect on asset condition, but provides functions required to support the maintenance, renewal, and development plans. These functions include: System planning and monitoring; Systems record management; Asset management planning and policy; and Managing compliance with resource consents. 73

92 Section 6 Assets & Lifecycle Management The forecast expenditure for the support services programme for planning and policy to implement the strategies above is summarised in Table 31. Table 31: Activity Management Programme Forecast for First Five Years Activity 2017/ / / / / /23 City Networks Labour and Overheads $461,991 $661,148 $691,429 $727,982 $669,862 $673,772 Advertising $5,224 $5,000 $5,000 $5,000 $5,000 $5,000 Consultancy $191,825 $164,250 $149,250 $133,250 $163,250 $163,250 Insurance $24,185 $24,850 $24,850 $24,850 $24,850 $24,850 Legal $7,826 $7,000 $7,000 $7,000 $7,000 $7,000 Miscellaneous $57,397 $164,790 $164,790 $164,790 $164,790 $164,790 Software Licenses $5,000 $5,140 $5,140 $5,140 $5,140 $5,140 Electricity $33,157 $31,800 $31,800 $31,800 $31,800 $31,800 Rates $32,694 $33,930 $33,930 $33,930 $33,930 $33,930 Total $1,097,908 $1,113,189 $1,133,742 $1,105,622 $1,109,532 $1,097,908 Internal staff resources are mainly utilised in carrying out the functions as outlined above. Specialist external resources are employed for more sophisticated technical investigations and legal advice Increases in Services (Operating Programmes) No changes to the service levels in the foreseeable were identified, either by way of workshops with Councillors or due to external drivers Asset Systems Database Infor Public Sector (IPS) In order to store, collate, and analyse asset data, Council uses an asset management system. The current Council system is IPS, a product which is supplied by Infor Global Solutions. The Council has used IPS (previously Hansen) since The current version deployed is IPS IPS is based on internet technology and is Web-browser-based. The product can be customised by asset managers to best reflect AM processes and terminology. IPS is directly linked to the Council s Geographic Information System (GIS) via the Geo Administrator, an Infor Global Solutions developed interface. This allows new assets to be created in GIS and added to the IPS asset register by a single key stroke. Assets can be selected in GIS and viewed in the IPS window. The link between IPS and GIS also allows assets to be viewed in Geo City, an intranet viewer of Council s spatial data available to all staff. Council assets can also be viewed through the Geo-Guide on the Council s public website. Local Contractors are able to use this service to locate Council assets prior to construction activities. IPS is comprised of a number of modules: Asset Register. Work Orders. Inspections. Valuations. Advanced decision making. 74

93 Section 6 Assets & Lifecycle Management IPS allows asset managers to produce outputs using the Ad Hoc Reporting function. More complex reports are produced using Crystal Reports. IPS records the following asset data: Information: ID, Type, Description. Location: Address, Location Description, Area, Sub Area, District. Structural: Diameter, Material, Length, Manufacturer, Critical Rating. Associated: Install Year, Service Status, Ownership, Drawing No. A screen-shot from IPS is shown in Figure 27. Asset data can be assigned a condition rating and a performance rating base on a grading of 1 to 5 (refer to Appendix G for details). These ratings, along with criticality ratings, can be used to analyse the asset data and provide renewal profiles and determine maintenance programmes. Asset maintenance, both planned and reactive, along with inspections and associated costs, can be recorded via the Work Orders module. Work Orders can be processed Live in the field using the Infor Field Inspector. Figure 26: Field Inspector Screen Shot The assets in IPS have been assigned a replacement value. This is used for insurance purposes and will be used to estimate renewals programme costs when the condition, performance, and criticality ratings are complete. 75

94 Section 6 Assets & Lifecycle Management Figure 27: IPS Screen Shot Overall, the quality and extent of data held in IPS is good. Confidence in the reliability of the data is high. Table 32 details the extent of the asset data currently held in IPS for the Rubbish and Recycling activity. The assets include site works, the MRF (Materials Recovery Facility) and Gas wells, and collection pipelines. Table 32: Data Accuracy & Completeness Asset Type Quantity Asset Register Completeness Accuracy Valuation Awapuni Closed Landfill 5 90% 90% 100% Awapuni Grounds 66 80% 80% 100% Awapuni Landfill Gas Extraction 29 90% 90% 100% Awapuni Organic Waste 21 80% 80% 100% Awapuni Recycling Centre 78 90% 90% 100% Awapuni Weighbridge 6 90% 90% 100% Kerbside Recycling 12 95% 95% 100% Ashhurst Transfer Station 9 90% 90% 100% Bunnythorpe Transfer Station 7 90% 90% 100% 6.8 Operation & Maintenance of Assets Overview The effective operation and maintenance of all the Rubbish and Recycling assets is a key cornerstone of service delivery. Development and implementation of operations and maintenance strategies are 76

95 Section 6 Assets & Lifecycle Management important elements of optimising asset performance and extending asset lives to extract maximum performance out of the Rubbish and Recycling assets Operation & Maintenance Strategies Preventative maintenance programmes developed from operator experience and manufacturers recommendations have been developed which comprises a range of routine tasks focussed around the mechanical and electrical components of the MRF. Other key maintenance requirements are associated with the gas wells, flare, leachate pumping systems, drainage and roading networks as well as lighting, security and weighbridge infrastructure. A more robust condition assessment has been undertaken of the mechanical assets in order to prepare a contract for routine operation and maintenance. Renewal programmes have been developed from these condition assessments. The majority of maintenance work is scheduled and planned however there is the occasional requirement for reactive maintenance Operation & Maintenance Costs Rubbish and Recycling activity operation and maintenance costs are grouped into two areas namely activity management and activity delivery. Additional charges in the operation and maintenance area include interest and depreciation. Table 33 depicts the current breakdown of operations and maintenance expenditure within these two areas for the first five years of the plan. Table 33: Operations & Maintenance Forecast Expenditure (Next Five Years) Rubbish and Recycling Activity 2018/ / / / /23 Activity Delivery Total $1,098,000 $1,113,000 $1,134,000 $1,106,000 $1,110,000 Activity Management Total $5,164,000 $4,802,000 $4,822,000 $5,224,000 $5,232,000 Operations and Maintenance Total $6,262,000 $5,915,000 $5,956,000 $6,330,000 $6,342, Operation of Rubbish and Recycling Assets The Rubbish and Recycling activity is primarily managed and operated to meet levels of service. Day to day operational activities are carried out to achieve the following: Maintain the quality of the service to protect the health of the community; Ensure the service is accessible to the community within the service area; Ensure the service is reliable with minimal service disruptions; Ensure the activity is operated safely to minimise the risks to the public and operational staff; Operate to maximise the sustainability of the activity; and Operate to minimise the overall cost of the activity. Other factors that directly influence the operation of the Rubbish and Recycling activity include: Meeting the requirements specified in Council strategies and specific management plans; Compliance with Horizons Regional Council resource consents; and Compliance with national legislation with regard to health and safety, and hazardous chemicals. 77

96 Section 6 Assets & Lifecycle Management The day to day operation of the Rubbish and Recycling activity is carried out in accordance with the recycling and recycling service level agreements (SLA) between City Networks and City Enterprises. Each activity within the Rubbish and Recycling activity has a separate SLA, each with its own scope and specification. Each SLA documents the tasks, methods, and processes for all operational activities. The SLAs incorporate any relevant legislation and regulations. In order to ensure that levels of service and regulation requirements are met, Council carries out extensive monitoring of the Rubbish and Recycling activity. Sampling and monitoring is carried out for composting activities and the closed landfill. Council has a Business Continuity Plan (BCP) that provides management strategies for service disruptions. The Rubbish and Recycling activity has (and is in the process of further developing) a specific BCP to cover operation of Rubbish and Recycling assets during a significant disruption event. Council maintains a suitable level of preparedness for prompt and effective response to disruption events and civil emergencies through suitably trained staff and robust operating procedures Maintenance of Rubbish and Recycling Assets The Rubbish and Recycling assets maintenance strategy is intended to retain the current level of service while minimising costs. Day to day maintenance activities are carried out to achieve the following: Maintain operational functionality of the asset. Prevent premature deterioration of the asset. The day to day maintenance of the Rubbish and Recycling activity is carried out in accordance with the Rubbish and Recycling SLAs. These agreements document the tasks, methods, processes, and standards for all maintenance activities. The SLAs incorporate the requirements of any relevant legislation and regulations, and are focussed on ensuring on-going maintenance of assets according to their criticality rating. Council s maintenance strategy is broadly based on the criticality of the assets: Assets rated as High Criticality are inspected frequently (refer to Clause 7.2.3). A high level of preventative maintenance is carried out and component renewals are triggered based on the condition of the asset. Assets rated as Medium or Low Criticality are inspected less frequently. Preventative maintenance and component renewals are predominantly scheduled on a time basis. Assets rated as non-critical are rarely inspected and a run to failure approach is taken. Assets are repaired or replaced when required Operation & Maintenance Programme The on-going preventative maintenance programme is largely based on operator experience and manufacturer s recommendations rather than any specific analysis to determine the most cost effective strategy for the Rubbish and Recycling assets. Reactive maintenance is carried out when preventative maintenance fails to catch the deterioration of the assets. Table 34 shows the projected operations and maintenance expenditure for the next five years. 78

97 Section 6 Assets & Lifecycle Management Table 34: Operations & Maintenance Forecast for Next Five Years Activity 2017/ / / / / /23 Service Level Agreements $4,993,713 $5,152,730 $4,790,510 $4,810,620 $5,213,060 $5,220,770 External Contracts $11,000 $11,230 $11,230 $11,230 $11,230 $11,230 Total $5,004,713 $5,163,960 $4,801,740 $4,821,850 $5,224,290 $5,232,000 The major operating expense is associated with the Rubbish and Recycling collection and disposal services, and the processing of the recyclables. The operations and maintenance forecast projections remain relatively stable, in view of the fact that several LoS changes are set to occur during this AMP. The servicing of all street litter bins and un manned parks bins are now managed within this activity, several new initiatives have been included within this AMP; recycling of post-consumer batteries (at no charge to householders). See Section 9 for further details of the operation and maintenance financial projections Delivery of Programme Operation and maintenance of the Rubbish and Recycling assets is carried out by City Enterprises; the operational unit of Council. City Enterprises are engaged to carry out operational and maintenance activities by City Networks (the asset owner) though a series of internal contracts (known as Service Level Agreements or SLAs). For the Rubbish and Recycling activity there are twenty SLA s in place which cover both operation and planned maintenance tasks. These SLAs run annually and are occasionally supplemented by additional SLAs for specific operational or maintenance tasks. To operate the Rubbish and Recycling activity, City Enterprises employs staff to operate the MRF, composting, recycling facilities and collection services. The organisational structure of the City Enterprises team (to operate the Rubbish and Recycling activity) is shown in Figure 28. Figure 28: Rubbish & Recycling Operations & Maintenance Staff City Enterprises operations staff operate Rubbish and Recycling kerbside collection services on a five days a week basis. The transfer stations, Awapuni resource recovery park, and recycling facilities are operated the stated hours. All City Enterprises staff receive appropriate training in health and safety and operational requirements associated with the collection and processing of Rubbish and Recycling materials. 79

98 Section 6 Assets & Lifecycle Management 6.9 Renewal of Assets Overview Asset renewal is major work which restores, rehabilitates, replaces, or renews an existing asset to extend its economic life and/or restore the service potential. Work over and above restoring an asset to its original capacity is classed as development work. Renewals may be carried out for two primary reasons: Maintain the asset service potential this may be either the quality of service or reliability of service; and Minimise the whole life cycle cost of the asset. The decision to renew an asset will be based on: The criticality (consequence of failure); The condition (and therefore useful life); The performance; and The value. There are two options for a renewal project: Rehabilitate or refurbish the asset; or Replace the asset like for like. Renewal literature often refers to renewals options to upgrade/downgrade or alter the asset to meet other service requirements. For the purpose of this AMP, this is considered development work Renewal Strategies Renewal decisions are made based on criticality, condition, and asset performance. Critical assets (refer to Clause 7.2.3) should not be allowed to fail, and programmes need to be organised to replace or renew critical assets prior to expected failure date. Typically, assets maintain performance for most of their lifecycle and deteriorate quickly towards the end of their useful life. Renewal of assets must be carefully considered, as early replacement leaves unused value in the assets, while delayed replacement causes loss of service and costly repairs. Overall performance of the Rubbish and Recycling assets are monitored to identify areas where high risk of failure is and renewals are required. There are other meanings of asset failure other than normally recognised physical failure or breakage. The range of failure includes: Structural Both physical condition and service potential of the asset shall be taken into account, meaning the failure can be as a result of no longer being able to carry out the service duties or causing expensive consequences. Capacity/Utilisation Under capacity against a required level of service. Obsolescence Technical change or lack of replacement parts or technical support may result in assets uneconomic to operate or maintain. Cost or economic impact Where the cost to maintain and operate an asset is likely to exceed the economic return expected. 80

99 Section 6 Assets & Lifecycle Management Each of these has distinct attributes that require evaluation to allow an understanding of the effect on the assets. Assessment of the performance related to the type of failure is important. Condition assessment is a typical failure assessment activity. To evaluate cost and obsolescence as failures, it is necessary to capture the asset s operating and maintenance cost information, and to compare this with the lifecycle cost expectations Long Term Renewal Profile The expected lives used for estimating the replacement year are shown in Table 35. Table 35: Life Expectancy of Rubbish & Recycling Activity Assets Item Description Expected Asset Life [Yr] Building structures Portable site buildings 20 Concrete slabs, walkways etc. 100 Kerb and channel 100 Road sub-base Sealed pavement Stormwater, water wastewater pipes 120 Mechanical equipment 5-15 Electrical and control equipment Overhead power lines 50 Security fencing and gates Wheelie bins and crates 15 Figure 29 depicts the 50 year renewal profile for the Rubbish and Recycling Activity Assets based on the expected asset life. The renewal profile is based on age and expected asset life drawn from independently reviewed 30 June 2017 revaluation. It does not account for actual asset condition and performance. The renewal expenditure in the next 30 years has changed significantly since the 2014 AMP, with significant adjustments made in the profiling of renewal of the MRF assets, the assessed age for the kerbside bins and public space rubbish and recycling assets. 81

100 Section 6 Assets & Lifecycle Management Figure 29: 50 Year Renewal Expenditure Profile Based on Expected Asset Life Renewal Programme Council uses a combination of several methods to develop the renewals programme: Forward projection of historical costs, combined with broad estimates of asset depreciation, Predictive modelling based on age, Bottom up or unconstrained work bank approaches based on available condition information and operator knowledge. It is considered that there are currently no deferred renewals due to condition deterioration. Renewals required on the basis of levels of service are currently being investigated. The current Rubbish and Recycling renewals programme comprises the following on-going programmes: Programme 185: Closed Landfills and Transfer Stations Site Infrastructure Renewals Programme 612: Recycling City Wide Wheelie Bin and Crate Renewals Programme 649: Recycling - Materials Recovery Facility Renewals. Programme 1368: City Wide Public Space Rubbish & Recycling Bin Renewals Programme 1374: City Wide Public Recycling Facility Renewals Table 36 below shows the current renewals expenditure and the forecast for the next five years. Section and Appendix E show the full 30 year renewals expenditure forecast. 82

101 Section 6 Assets & Lifecycle Management Table 36: Renewal Expenditure Five Year Forecast Activity 2017/ / / / / / Recycling - Wheelie Bin and Crate Renewals $50,000 $74,000 $97,000 $133,000 $183,000 $251, Recycling - Materials Recovery Facility Renewals 1368-City Wide Public Space Rubbish & Recycling Bin Renewals $131,000 $131,000 $129,000 $137,000 $129,000 $137,000 $ - $15,000 $15,000 $15,000 $15,000 $15, City Wide Public Recycling Facility Renewals $ - $1,000 $2,000 $2,000 $2,000 $2,000 Recycling Collection & Processing Sub-Total $181,000 $221,000 $243,000 $287,000 $329,000 $405, Closed Landfills and Transfer Stations Site Infrastructure Renewals $125,000 $141,000 $74,000 $90,000 $20,000 $42,000 Awapuni Operations Sub-Total $125,000 $141,000 $74,000 $90,000 $20,000 $42,000 TOTAL $306,000 $362,000 $317,000 $377,000 $349,000 $447,000 It is expected that over the life of this AMP, assets such as the closed landfill access roads will need rehabilitation, as their usage has changed from the time of their acquisition and/or original development. This pattern is expected to continue over time as internal and external factors, such as Council policy decisions and legislative changes, affect the services delivered and therefore the assets required to deliver those services. The value of these programmes is largely based on historical cost. Many of the assets are nearing the middle of their expected lifespan, and renewals are expected to increase in the next 2-3 years for wheelie bins and crates as these come to the end of their estimated useful life. The MRF mechanical plant assets have increased from the previous AMP as the MRF mechanical infrastructure is almost 10 years old. Building assets will have a longer lifespan. The weighbridge kiosk provides for the main access through to the resource recovery park, and is where a permanent staff member is located to process transactions through the weighbridge. The kiosk is nearing the end of its useful life and requires replacement. This is scheduled for renewal in 2018/ Delivery of Programme The programme will be delivered by either Council in-house resources primarily for Awapuni Resource Recovery Park and the Transfer Station Renewals, or external contractors for more specialised works. The delivery method that is chosen will depend on the size and complexity of each individual programme. The project status reporting programme will be used to track the progress of individual projects that make up the overall programmes to both ensure the timeliness of delivery and costs. This will deliver reports to the monthly works programming meetings, in which the progress of each project is reviewed. 83

102 Section 6 Assets & Lifecycle Management 6.10 Development of Assets Overview Council needs to invest in growing its asset base to meet future demands. It is important that consideration is given to legislative requirements, waste minimisation, and development works that reduce costs and improve efficiency. Development includes creation or acquisition of a new asset that did not previously exist, or works which upgrade or improve an existing asset beyond its existing capacity. Development work may be necessary for the following reasons: Growth and increase in demand, Changes to Council policy and strategy, Changes to regulations and legislation, Changes to levels of service. Development of assets may also include disposal of an existing asset that is no longer required. Assets may become surplus to requirements. Rubbish and Recycling asset development provides for planned increase in operating capacity or design loading to ensure the activity is able to achieve the required level of service. This generally involves upgrading and/or developing the capacity and reliability of the Rubbish and Recycling assets. Additionally, this involves future proofing and/or investing in new technologies that maintain the service potential and/or reduce the operating costs of the activity Development Strategies New works for the Rubbish and Recycling activity are identified on the following basis: Anticipated expenditure needed to meet resource consents required under the RMA; Works required to remove, reduce, or mitigate high risks; Works required supporting the objectives of the Waste Management and Minimisation Plan 2012; Works to reduce costs and improve efficiency; and Works required to maintain levels of service. Council will evaluate the selection criteria for the prioritising and programming of development projects. This will be based on a consideration of risks and benefits, affordability, ranking with other expenditure, existing asset performance with respect to levels of service and life cycle costs, and efficiency. Development project approvals will be supported by an economic appraisal using cost/benefit analysis techniques, which take into account: Capital Costs; Affordability; Lifecycle operating and capital costs; Impact on revenue streams; Any changes in net annual operating costs, risk cost, annual maintenance requirements; and Any salvage value of existing assets or components. All development projects carried out by Council require completion of a Programme Planning and Implementation Template which sets out justification for the programme and key programme 84

103 Section 6 Assets & Lifecycle Management information including costs, risks and benefits, constraints and the approach required as well as timing for the work. For major programmes of work a Project Execution Plan must be completed for approval by Management Team prior to implementation. Decisions on renewal and development works are optimised after taking the above factors into account. The design option chosen will: Utilise the full capacity of existing infrastructure, wherever practical; Optimise life cycle costs for the assets created; and Consider options when evaluating development of assets. Council will develop AM systems and asset condition/performance data to allow better planning for the disposal of assets through rationalisation of the asset stock or when assets become uneconomic to own and operate. When considering disposal options, all relevant costs of disposal will be considered. These may include: Evaluation of options; Consultation/advertising; Obtaining resource consents; Professional services, including engineering, planning, legal, survey; Demolition/make safe costs; and Site clearing, decontamination, and beautification. Capital programmes have been included in this AMP to allow for the following: Development of infrastructure at the Awapuni site to allow for the activities taking place at the site; Development of facilities at the Resource Recovery Park; Development of facilities at the RDOPs; Development of the public space rubbish and recycling assets; Improving the rubbish and recycling collection systems; and Improving the processing of the recyclables. Identified gaps in current levels of service (refer to Section 4.5.1) are considered minor and do not require adjustment to lifecycle management approaches Non asset programmes Demand management (waste minimisation) strategies provide alternatives to the creation of new assets in order to meet demand and support sustainable economic and environmental practices in the management of waste. The Council WMMP encapsulates a Zero Waste policy, with the goal of effective progress towards a zero waste and sustainable Palmerston North. The WMMP sets a target that Palmerston North will divert 75% of the waste that Council currently buries in landfills and cleanfills to beneficial uses of waste by This target has not been achieved. The review of the WMMP due for completion in will set more realistic and achievable targets. 85

104 Section 6 Assets & Lifecycle Management Development Programme The capital development programme is the upgrade or new works that are needed to ensure that the Rubbish and Recycling activity can meet the future needs of City. The need to upgrade or provide new assets may be due to the following drivers: Increase the capacity of the assets due to growth in population of the City. This may be due to infill development, or for a new sub-division or growth area. Upgrade assets to meet new regulatory or legislative requirements. This could include areas such as health and safety regulations, changes to resource consent conditions, or changes to national legislation. Upgrade assets to improve operational efficiency. The most significant works undertaken to date are: Introduction of the wheelie bins and glass crates in 2010/2011 at a total cost of around $3M. Substantial upgrade of the MRF in 2010/2011 at a total cost of around $3M. Construction of the steel building that houses the MRF in 2005/2006 at a total cost of around $2.5M. Extension to the MRF plant and building in 2011/2012 at a total cost of around $650,000. Organic Waste Site Development at Awapuni Resource Recovery in 2010/2013 at a total cost of around $2.2M. New dedicated water main and sprinkler system at the Materials Recovery Facility in 2017 at total cost of around $1M The future 5 year development programme forecast expenditure is summarised in Table 37. The full 30year financial forecast is included in Appendix E Table 37: Development Programme Forecast Expenditure Project Growth % LOS % Forecast Timing Recycling 506 City Wide Public Space & Recycling Bins 100 $50,000 Annually 657 Recycling City Wide Wheelie Bins & Crates to additional properties 100 $56,000 Annually 1373 City Wide Public Recycling Facilities 100 $164, / Recycling Recycling Bins and Crates to Non Residential Properties Awapuni Resource Recovery Park 100 $426,000 $3, /2022 Annually from 2022/ Awapuni Landfill Landscaping 100 $17,000 Annually 1371 Closed Landfills and Transfer Stations Site Infrastructure 100 $169,000 $10, / Yrly from 2023/2024 The development programmes are discussed further below: Programmes to Support Growth 657 Wheelie Bins and Crates to additional properties This programme provides wheelie bins and glass crates to new growth areas zoned for residential development. The costs are based on prices for wheelie bins and crates as at 1 July 2018, and based on the growth trends in Section

105 Section 6 Assets & Lifecycle Management Level of Service Programmes 506 City Wide Public Space & Recycling Bins A programme to install new public space rubbish and recycling bins to supplement and expand the existing bins provided in the public space. These will be located in streets, parks and reserves and walkways Closed Landfills and Transfer Stations Site Infrastructure A programme to develop a series of key infrastructure upgrades to the Awapuni Resource Recovery Park. This includes increased security provisions through camera s, upgraded lights and security measures to prevent break ins at the site and increase staff s security at the site. Security at the Awapuni Resource Recovery Park is required for both the protection of staff and significant infrastructure located at site. A series of programmes have been developed in this AMP to improve the overall security as well as provide for the installation of a wash down bay to clean out the rubbish and recycling vehicles City Wide Public Recycling Facilities A programme to develop and enhance the existing infrastructure located at the recycling drop off points. It includes providing a consistent service at all facilities, improvements to operational serviceability and increased security provision to combat incidents of illegal dumping at these locations Recycling Recycling Bins and Crates to Non Residential Properties A programme to roll out the recycling service to non-residential properties in the City, the service will include the provision of receptacles suitable for multi dwelling/multi-unit properties as well as larger commercial properties for which the current 240 l wheelie bins are poorly suited Regulatory Programme 721 Awapuni Landfill - Landscaping This programme provides funding to landscape the clay cap on the closed Awapuni landfill. This will assist with maintaining the integrity of the clay cap Delivery of Programme The programme will be delivered by either Council in-house resources, primarily for Awapuni Resource Recovery Park and Rubbish Station Renewals, or external contractors for more specialised works. The delivery method that is chosen will depend on the size and complexity of each individual programme. The Project Status reporting programme will be used to track the progress of individual projects that make up the overall programmes to both ensure the timeliness of delivery and costs. This will deliver reports to the monthly works programming meetings, in which the progress of each project is reviewed. 87

106 Section 6 Assets & Lifecycle Management 6.11 Disposal of Assets The subsequent upgrade of the MRF in 2012 left some items redundant. However, these have been retained to date. A planned renewal at the MRF of the infeed may utilise some of the redundant items. After this renewal has progressed, any assets no longer required will be sold, or sold for scrap value Key AMP Improvement Projects Relating to Asset Lifecycle Management For the key AMP improvement projects relating to Assets and Lifecycle Management refer to the following items in Table 53, Section 11: Item 1, Development works planning (demand/los): Develop improved business case template to ensure full assessment of projects; Document changes to AMP programmes that arise through 10 Year Plan and AP process; and Monitor utilisation trends at transfer stations and material volumes at the MRF, composting facility, and landfill tonnages to determine and plan for any capacity issues. Item 2, Asset information: Update detailed asset component and condition information in AM system; Review AM system data quality process and improve as required; Review condition assessment programme; Monitor asset condition over time to measure effectiveness of maintenance activities and performance against expected useful lives; Review performance data needs; Analyse asset lives using available data; and Assess advanced AM system needs and implement suitable application. Item 3, Renewal works planning: Continue to develop predictive modelling; and Develop processes to prioritise risk mitigation options (Section 2 of Improvement Plan). Item 4, Operations and maintenance: Work on optimising O&M programmes; and Further develop processes to ensure competitive prices are obtained. Item 9, Delivery of services: Review delivery of services as required by LGA section 17A. 88

107 Section 7 Risks & Resilience 7 Risks & Resilience Infrastructure risk management is the process of identifying risks that may affect the ongoing delivery of services from infrastructure. 7.1 Corporate Risk Management Framework A corporate risk management policy (MT 76, April 2011) has been established to enable risks to be managed in an effective and appropriate manner. From an asset management perspective, the policy helps prevent the Council taking risks that compromise its ability to provide and maintain key infrastructure and services. Progress with mitigation actions is monitored and reported to Council Risk Management Policy The risk management policy covers strategic, operational, and project risks. It applies to all functions performed by the Council, and to all staff employed in carrying out its functions. Strategic risks are defined as those things that prevent the Council from implementing its strategies. They can be caused by misalignment between goals and strategies, or the Council simply not implementing its strategies. Operational risks are inherent in the processes chosen to implement the Council s strategies. The benefits of managing operational risks include meeting financial goals, maintaining quality, proactive and effective planning, and preparedness for emergencies. Project risks are of a specific, normally short-term nature. The benefits of managing these risks include the avoidance of time and cost overruns Strategic risks The key strategic risks to the Council achieving its desired outcomes have been identified as follows: Poor City image and reputation. Lack of vibrancy in the CBD. Decline in the City economy and jobs. A low level of community trust and engagement with the Council. Council s financial position is not sustainable. These risks are mitigated through following the Council strategies set out in Section 3.1, and through quarterly reporting to the Council. Development and management of the Council s infrastructure is part of this risk mitigation. 89

108 Section 7 Risks & Resilience Operational Risks Table 38 contains operational risks identified in the Risk Management Policy, relevant to this activity. Table 38: Operational Risks Operational Risk Corporate Mitigation Strategy Corporate Mitigation Action Council's infrastructural assets are not managed in accordance with the adopted Asset Management Plans (AMPs) and/or granted Resource Consents. Council does not deliver the capital (new and renewal) programmes within approved scope of works, planned timeframes and budget. 1. Manage infrastructural assets in accordance with AMPs as funded through the 10 Year/Annual Budget 2. Ensure infrastructural asset programmes developed for the AMPs and then presented for consideration in the 10 Year /Annual Budget have adequate justification in terms of assessing options, feasibility, economic, social and environmental factors. 3. Operate infrastructural asset activities in compliance with the granted Resource Consents 4. Operate infrastructural asset activities in a manner that uses the AMP risk register.responses for specific risk situations as and when these may arise 1. Set realistic capital revenue and expenditure budgets 1.1 Review AMPs three yearly, assessing assets over a 30 year period to increase certainty to condition assessments Seek continuous improvement of each AMP in terms of quality that matches best practice in NZ Incorporate consideration of city growth, climate change, urban design and environmental sustainability into each AMP. 1.2 Report to Council where necessary implications of difference in budgets between 10 Year Plan with AMPs, and determine revised asset management actions Ensure Infrastructure programmes aligned with the zoning for growth. 1.3 Implement infrastructural programmes (operations and maintenance, renewals and capital new) Programmes associated with the Totara Road Wastewater Treatment Plant (WWTP) and closed Awapuni Landfill, in respect to their impact on the Manawatū River Programmes associated with cycle/pedestrian pathway, in respect to property negotiations and Community stakeholders engagement. 2.1 Develop programme justification for the AMPs to feed into the annual planning process 3.1 Maintain a database of all required Resource Consents 3.2 Monitor compliance against the database 3.3 Attend to Resource Consent renewals before expiry deadlines 4.1 Report quarterly on infrastructural asset activities against the appropriate AMP Risk Register items in terms of invoking any of the "controls", "treatment" and/or "management options". 1.1 Use City Networks Programme Planning and Implementation Template, identify and update (at least annually) the status of programmes in respect of scope, assumptions, and planning milestones, budget estimates and funding sources. 90

109 Section 7 Risks & Resilience Operational Risk Corporate Mitigation Strategy Corporate Mitigation Action 1.2 Within the City Networks Programme Planning and Implementation Template identify the external factors which must be addressed to advance the programme and establish appropriate milestone dates as to when these factors will be addressed. 1.3 Information in the Programme Summary of the Ozone Corporate Planning module is referenced against an up to date City Networks Programme Planning and Implementation Template. 1.4 Identify as potential delayed flags those capital programmes which have constraints beyond management s control as part of the budget approval process 1.5 At the commencement of the financial year identify those capital programmes where there is confidence of delivery because contracts (& SLAs) are in place. 1.6 At the commencement of the financial year identify those capital programmes where planning is well advanced such that contracts (& SLAs) can be established in the 1st quarter of the financial year 2. Scrutinise all capital revenue and expenditure budgets exceeding $250k. 2.1 Signed off by the relevant General Manager 2.2 Review budget for reasonableness (all individual capital budgets) 3. Obtain Management Team approval on all capital projects that require a Project Execution Plan (PEP) before commencement of the project 4. Assess resources required to deliver the overall capital programmes 5. Manage projects against recognised good practice. 3.1 Active management by General Manager 3.2 Report to Chief Executive of all noncompliance instances 4.1 Use the Works Programming Forum both City Networks and City Enterprises identify the internal resources to be allocated to programmes and then determine any shortfall which requires the engagement of external consultant/contractor resources. 5.1 Deliver projects in accordance with City Networks Asset Management Good Practice Guidelines in relation to Project Management discipline. 5.2 Develop and regularly review Project Execution Plans (PEPs) for significant projects, with specific attention to any change circumstances which may impact on scope of works, timelines and/or budget requirements 6. Monitor progress in the delivery of capital programmes 6.1 Monitor progress through Works Programming Forum 6.2 Monitor progress of work through monthly financial reports, and the Project Status Reporting tool both actual year to date against the current financial budget and against the total project budget spanning more than one financial year. 91

110 Section 7 Risks & Resilience Operational Risk Corporate Mitigation Strategy Corporate Mitigation Action 6.3 Identify programmes which cannot be delivered due to changed circumstances giving the reason why. 6.4 Utilise Council's approval of commencing up to 20% renewal works prior to the formal adoption of the new financial year budget PNCC is not meeting its responsibilities for an emergency or a civil defence emergency event because it is unable to deliver the basic services. Council's activity preparation in key areas does not align to the 10 Year Plan programmes approval and budget processes and vice versa. 1. Develop and maintain high level PNCC Business Continuity Plan(s) (BCP) 2. Ensure integrated planning occurs across Council s recreation assets 3. Implementation of the Street Design Manual 1.1 Prepare and maintain high level PNCC Business Continuity Plans (BCP) 2.1 Concept and development plans are developed for Council s recreation facilities and reserves aligned to the Active Recreation Strategy Year Plan recreation programmes for the first 3 years are informed by soundlybased development plans 3.1 Programme of work is developed to implement the Street Design Manual Year Plan levels of service align with changes promoted in the Street Design Manual Year Plan Programmes advance implementation of the Street Design Manual and for the first 3 years are informed by soundly-based development plans Project Risks Project risks associated with significant individual projects (both operational and capital) are normally of a short term nature and are managed through specific project plans approved through the Corporate Management Team. They include acquisitions and investments Risk Management Hierarchy Figure 30 demonstrates the risk management hierarchy between the three types of risk management strategic (corporate), project specific, and operational. Risk is managed at the various levels within the Council s risk management framework. The level of risks included at each layer is appropriate to that layer but filters down where appropriate with increasing detail. 92

111 Section 7 Risks & Resilience Natural & Technologic al Risks Physical/ Asset Failure Risk Public Health & Environment Corporate Risk Management Civil Defence Management Group Risk Management Activity Risk Management Project Risk Management Operational Risk Management Figure 30: Risk Management Hierarchy Within all the levels of risk management discussed above consideration is given to the management of both everyday risks and the low frequency high impact events such as natural disasters. When existing assets are being renewed or new works constructed, the potential of those works to affect the resilience and readiness of all lifeline networks is considered. Contingency plans are prepared to ensure, through operational systems and temporary response structures, that appropriate response can be made Asset Criticality Those assets where failure would likely result in a significant disruption in service and financial, environment, and social cost, in terms of impact on organisational objectives, are considered to be critical assets. The definitions used in this plan for critical assets, customers, and suppliers are as follows: Critical assets are defined as those assets with the highest consequence of failure but not necessarily a high probability of failure. In determining consequence of failure both importance to the city and importance to the service provided are taken into account. Critical customers are those relying on essential services provided by the Council (e.g. water supply to schools and hospitals). Critical suppliers are those providing services required for the delivery of the Council s essential services (e.g. energy supply, communication systems, etc). The criteria used to assess criticality are set out in Section Resilience The National Infrastructure Unit defines resilient infrastructure as infrastructure that is able to deal with significant disruption and changing circumstances. This may be due to natural hazards and shock events, or events which evolve over time, such as changing demographics. However, this plan is largely focussed on being able to provide essential services following a high consequence event, such as a natural disaster. Resilience of critical assets is particularly important for continuation of service delivery. Both technical and organisational aspects of resilience have been considered in this plan. Table 39 contains the attributes and definitions of both dimensions. 93

112 Section 7 Risks & Resilience Table 39: Resilience Definitions Dimension Attribute Definition Technical Robustness / resistance Redundancy Reliability Organisational Preparedness Response and Recovery The strength, or the ability of elements, systems, and other units of analysis, to withstand a given level of stress or demand without suffering degradation or loss of function The extent to which elements, systems, or other infrastructure units exist that are substitutable, i.e. capable of satisfying functional requirements in the event of disruption, degradation, or loss of functionality The extent to which the infrastructure components are inherently designed to operate under a range of conditions and hence mitigate damage or loss from an event. The capacity to mobilize resources when conditions exist that threaten to disrupt some element or system to maintain service and enable a fast and effective response to and recovery from disruptive events Risk Management Process This plan is based on AS/NZS ISO 31000:2009 as the basis of its approach to risk identification and management. The Standard defines risk as the effect of uncertainty on objectives. Effective management of risk is important to maintain the performance and functionality of the Rubbish and Recycling activity. Risk management is one of the factors used to determine optimum maintenance frequencies and the level and timing of asset renewals. The risk management process considers the following stages: Risk management context determining the framework within which Council-wide risks will be managed. Risk identification identifying the relevant risks. Risk analysis scoring or rating each of the risks identified in a way that makes them comparable across the organisation. Risk treatment identify the actions to be taken. Monitor and review the risks to ensure mitigation is successful and identify new risks. The above process is summarised in Figure

113 Section 7 Risks & Resilience Figure 31: Risk Management Process (AS/NZS ISO 31000:2009) Further details of the process followed and the risk management register are given in Appendix D. 7.2 Activity Risk Management Approach for the Rubbish and Recycling Activity Risk assessments at the activity level focus on risks associated with management of the activity and the enabling infrastructure. Activity risk assessment considers risks identified at both the corporate and the operational level. Risk management planning has been used to identify the potential and actual business risks associated with the provision and management of the Council s Rubbish and Recycling assets and services. The process has been applied to prioritise mitigation programmes. The key risk categories adopted for assessing the consequences of identified risks for this activity are: Legal; Environmental; Corporate Image; Service delivery; Financial; and Community Health and Safety. A full list of the assessed risks facing this activity, including risks from natural events, is detailed in the Risk Register appendix. The Register also summarises the current mitigation measures and the proposed, or planned, changes to these. 95

114 Section 7 Risks & Resilience Role of Activity as a Lifeline Utility The Civil Defence and Emergency Management Act 2002 contains specific requirements in relation to Lifeline Utilities. The term lifeline utility is defined as an entity named or described in Part A of Schedule 1, or that carries on a business described in Part B of Schedule 1 of the Act. The Rubbish and Recycling activity is not regarded as a lifeline utility. The Act also has national and regional requirements, including the roles of Controllers, the establishment of Civil Defence Emergency Management (CDEM) Groups, and the preparation of CDEM Plans Critical Assets Critical assets are regarded as those assets which have the highest consequences should they fail. A simple approach has been taken in this plan applying broad assumptions about the implications of failure using a number of criteria to make an overall assessment of high, medium, or low criticality. The criteria used for assessing criticality for the rubbish and recycling activity are as follows: Numbers of people adversely affected; Significant business activity interrupted; Consequential cost of failure; Critical lifeline/disaster recovery asset; and Other. Assets fundamental to the continuous provision of the Rubbish and Recycling activity include the materials recovery facility (MRF) and the closed Awapuni Landfill. The consequence of failure of the MRF is not, however, high. In the event of failure, other options for handling recyclables would be available, such as stockpiling or landfilling of material. The potentially significant adverse effects of component failure associated with the drainage, capping, or leachate collection systems at the closed Awapuni landfill, followed by the high consequential costs of regulatory enforcement, mitigation, and remediation, together with the interdependency of the Palmerston North wastewater treatment plant for composting of sludge at the landfill and the consequential high costs of other options (e.g. sludge to landfill), qualify this as a critical asset. Table 40 contains a summary of the critical Rubbish and Recycling assets. Table 40: Critical Assets Critical Asset Criteria Dependent Customers & Services Assessed Overall Criticality Closed Awapuni Landfill Consequential cost of failure. People adversely affected PNCC wastewater treatment plant composting of sludge. Rangitāne o Manawatū impact of potential leachate discharge on special cultural significance of river. River users potential leachate contamination of river. Medium Resilience The approach taken in this plan is to assess the impact of particular natural hazards on the critical assets of the Rubbish and Recycling activity. This considers the current level and desired level of resilience. Section 7.4 summarises this assessment and Section 7.5 outlines the mitigation strategy 96

115 Section 7 Risks & Resilience adopted in this plan to reduce the risk. The interdependencies of other utility services are identified in Section Further work will be undertaken in the next 2-3 years to develop a more comprehensive approach in which the level of criticality is matched against the desired level of resilience together with the options available for achieving this. A programme for further work is included in the Improvement Plan Sources of Risk The sources of risk affecting the activity are as follows: Operational failures; Physical Asset risks; Project and planning risks; Natural hazards; and Events and Incidents. The risks arising from these sources are elaborated on in Section Reference Documents Documents that have informed this plan include: 2005 Risks & Responsibilities - Lifelines Project Report Hazard Risk Assessment for the Manawatū-Wanganui Region City Infrastructure and Civil Defence Preparedness. 7.3 Key Risks to the Rubbish & Recycling Activity The five sources of risk impacting on the activity are considered to be operational failure, asset failure, natural disasters, events and incidents and project/ programme risks. The risk register in Appendix D sets out the identified risks arising from these sources. The key risks largely based on criticality are summarised in this section. It should be noted that from these sources there may be consequences in the following areas: Legal; Environmental; Corporate Image; Service delivery; Financial; and Community Health and Safety. These have been considered in identifying the key risks for this activity Operational Failure Operational failures are those events that may prevent service delivery as intended such as contamination, vandalism, operator error, injury, crash, or contract management issues, but do not involve a physical breakdown of the asset. They may also have other consequences as noted above. 97

116 Section 7 Risks & Resilience The key operational risks for this activity and their mitigation measures are summarised in Table 41. Table 41: Key Operational Risks Key Operational Risks Inadequate Service Level Agreement management (SLW05) Non-compliance with legislation and legal requirements (SLW08) Diminishing funding allocation (SLW14) Leachate and discharges from closed landfill (SLW20) Mitigation Measures Monitor customer feedback and trends. Review and improve contract auditing procedures. Improved KPIs. Staff training and new staff trained on internal contract management manual. Possible extension of QMS. Compliance monitoring and management of consents. Relevant and specific contract conditions (including OSH pre-qualification, HSE Act, etc.). Project management of waste assessments and five-yearly reviews of Waste Management & Minimisation Plan. Forecast likely scenarios regarding effects of budget changes including deferments. Escalate issues to higher levels e.g. lobbying Central Government. Initiatives to maximise funding opportunities. Consent monitoring and reporting. Inspections of capping, stormwater management and leachate collection systems. Leachate pump maintenance programme. Regular monitoring of gas wells Asset Failure Asset failure can arise from deterioration of condition leading to structural failure or loss of performance of the asset which then impacts adversely on the service provided to the community. The key risks relating to asset failure have been identified in Table 42. Table 42: Key Asset Failure Risks Key Asset Failure risks Building or structure failure (SLW17) Plant equipment or operations failure (SLW18) Mitigation Measures Better performance measures including health & safety & reporting. Develop renewals programme for site infrastructure. Develop operations & maintenance programme for buildings. Operations manuals for fully commissioned plant and machinery. Programmed maintenance. Formal reporting system Project & Planning Risks This is where infrastructure is not provided in a timely way, or does not meet the needs of the community, as a result of inadequate project management and planning processes and resources. The key project and planning risks identified are shown in Table 43. Table 43: Key Project & Planning Risks Key Project & Planning risks Lack of skilled staff (SW02) Failure to deliver on projects and programmes (SW04) Mitigation Measures Review and report situational risk profile at key intervals. Development of corporate processes and systems. Reporting procedures for measuring performance. External reviews and audits. Formalise requirements and project reporting for internal consultants. Keep project scope up to date. 98

117 Section 7 Risks & Resilience Key Project & Planning risks Inadequate asset management (SW07) Ineffective strategic planning (SLW15) Inadequate communications and PR Management (SLW16) Mitigation Measures Continue to improve documentation around processes & practices. External review. Strategy to advanced AM status. Continue current practices liaison between City Future, City Networks and Council, AMP review and updating. Greater City Networks input to the district plan review. Improved presentation to public. Communications plan developed for key projects. Contract conditions regarding community interaction. Timely communications/notification to affected customers. User friendly website Natural Disasters The impact of natural disaster hazard events on the infrastructure of the Rubbish and Recycling activity has been considered with a particular focus on lifelines, critical assets, and interdependencies. The events considered are those used in the Lifelines Hazard Assessment: Earthquake an MM9 shaking intensity (Return period 1000 years). This is further expanded on in Section 7.4, which describes the hazards, and assesses the impacts on critical assets. The initial response will include those measures set out in the CDEM Group Plan and the Business Continuity Plan Events & Incidents Other events and incidents that could impact on the assets and the service provided by the assets are listed in Table 44. Table 44: Other Events & Incidents Event Power supply failure Impact on Assets or Service Potential contamination of surface/ground water due to impact on operation of leachate pumping system resulting in breach of discharge consent Disruption to MRF operation resulting in backlog of unsorted recycling material. These impacts will be managed largely through the measures and procedures set out in the Business Continuity Plan discussed in Section Resilience of Infrastructure to Natural Disaster Introduction This section considers the impact of seismic events on critical assets and the assessed level of resilience of these assets. It has been informed by the reports and investigations listed in Section The Lifelines Project Report 2005 found that the region as a whole is most at risk from seismic hazard in particular, the liquefaction phenomenon could cause significant damage in a severe earthquake. 99

118 Section 7 Risks & Resilience Seismic Hazard Table 45 provides a summary of the assessed resilience of the Rubbish and Recycling assets to a MM9 earthquake, with a return period of 1,000 years. Where the current level of resilience is less than the desired level of resilience, further work is to be undertaken to determine options for future management and development of the asset. This will include reviewing the desired level of resilience. Table 45: Resilience to Seismic Hazard Asset Criticality Current Level of Resilience Desired Level of Resilience Closed Awapuni Landfill Medium Low to Medium Medium Interdependencies The critical assets comprising the activity are not stand alone. To operate effectively they are dependent on a variety of other utilities / infrastructure providers. Other utilities also rely on the continued serviceability of the assets of this activity. To effectively manage risk, these interdependencies have been evaluated to identify where the highest levels of dependency exist and the implications of failure. The following Table 46 identifies the utility services that this activity depends on, the level of dependence and the mitigation measures in place. Utility services that this activity depends on for continuity of service are shown in Table 46. Table 46: Utility Services that the Rubbish & Recycling Activity Depends on for Continuity of Service Critical Assets Utility Service the Asset is Dependent on Implications of Failure of the Asset Depended on Mitigation Measures Closed Awapuni landfill Water supply Interruption to compost manufacturing processes Fire fighting On site water storage Installation of new water main and sprinkler system Utility services that depend on the assets from this activity are shown in Table 47. Table 47: Utility Services that Depend on the Rubbish & Recycling Activity Critical Asset Utility Service that is Dependent on this Asset Implications of Failure Mitigation Measures Closed Awapuni landfill Sludge composting operation Interruption to compost manufacturing processes Cartage and disposal of waste to remote landfill 7.5 Risk Management Strategy The approach to managing Rubbish and Recycling assets to provide for mitigation of risk and increased resilience is as follows: On-going management and development of the assets according to sound asset management practise. This includes having a good knowledge of the assets, and planning appropriately for maintenance, renewal, and development of assets. Developing the assets to provide for future capacity requirements in a timely way to avoid any loss of service through overloading of the system. Implementing programmes for timely renewal of the assets, particularly critical assets, to reduce the risk of unexpected failure and loss of service. Prioritising inspection, maintenance, and renewal work to those areas that carry the greatest risk for the Council. 100

119 Section 7 Risks & Resilience On-going review of the risk register, with refinement to provide greater understanding of those asset components that carry higher risk. Investigating over the next 2-3 years options for increasing the resilience of the asset and developing tools such as risk based economic analysis to assist sound decision making. This is to be part of the Improvement Plan. Including specific programmes for strengthening of building structures where warranted or required to meet standards. Incorporating greater resilience when renewing or building new assets through choice of materials and higher design standards. Maintaining a readiness for responding to disaster events through having an up to date Business Continuity Plan and participating in CDEM arrangements. 7.6 Risk Management Programme The programmes in this plan that contribute to mitigation of risk and increased resilience of the Rubbish and Recycling assets are summarised in Table 48. Table 48: Risk Management Programme for Closed Awapuni Landfill Programme Impact on Risk & Resilience Expenditure Year Maintenance Maintaining condition of closed landfill infrastructure to ensure effective operation and reduce risk of asset failure $K pa avg. 2018~/48 Renewal Restoring service potential of assets to original capacity to ensure the same level of drainage and flood protection Variable $20k - $140K pa 2018~/48 Development Landscape closed landfill $17K pa Annually Increased site security and development of site infrastructure $169K Readiness BCP etc. Asset management planning and emergency response plans identify the risk and resilience measures required to mitigate the impacts of natural hazards $K pa avg. 2018~/ Civil Defence Preparedness Emergency Events The Civil Defence and Emergency Management Act 2002 defines an emergency as a situation that: is the result of any happening, whether natural or otherwise, including, without limitation, any explosion, earthquake, eruption, tsunami, land movement, flood, storm, tornado, cyclone, serious fire, leakage or spillage of any dangerous gas or substance, technological failure, infestation, plague, epidemic, failure of or disruption to an emergency service or a lifeline utility, or actual or imminent attack or warlike act; causes or may cause loss of life or injury or illness or distress or in any way endangers the safety of the public or property in New Zealand or any part of New Zealand; or cannot be dealt with by emergency services, or otherwise requires a significant and co-ordinated response under this Act Emergency Response Plan The Act also requires the establishment of CDEM Groups based on Regional Council boundaries, working in partnership with emergency services, lifeline utilities, and others, to deliver CDEM at the 101

120 Section 7 Risks & Resilience local level. Each Group is required to prepare a plan to describe the Group s CDEM arrangements that set out among other things: Hazards and risks to be managed by the Group. Civil defence emergency management necessary to manage the hazards and risks. Arrangements for declaring a state of emergency in the area. Arrangements for co-operation and co-ordination with other Groups. The Manawatū-Wanganui Civil Defence Emergency Management Group Plan covers the CDEM operational arrangements for the assets and services described in this AMP. The four phases of disaster management outlined in the plan and their applicability to this activity are as follows: Reduction Identifying and analysing long-term risks to human life and property from natural or man-made hazards, and taking steps to eliminate these risks where practicable, and where not, reduce the magnitude of their impact and likelihood of their occurring. For this activity this is achieved through two key initiatives: PNCC contribution to the Lifelines Advisory Group which aims to facilitate information exchange and collaboration between the various utility service providers in the region with respect to CDEM. This group is also responsible for maintaining and improving the Regional Lifelines Project Report Risks and Responsibilities. Ensuring that the development of infrastructure development is in keeping with PNCC District Plan provisions, which in turn has been informed by Horizons One Plan, with respect to placement of critical infrastructure in areas prone to natural hazard events. Readiness Developing operational systems and capabilities before a disaster happens. These include self-help and response programmes for the general public, as well as specific programmes for emergency services. A significant portion of the CDEM Group s work is undertaken as readiness initiatives. The group provides co-ordinated planning to ensure an effective response to the affected communities and for the co-ordination of responding agencies. This activity provides inputs into these activities. Response This relates to response actions taken immediately before an emergency is declared and lasts until the normal systems can accommodate the recovery process. A fundamental principle for this phase is that agencies should respond to an emergency by activating their own plans and co-ordinating with the lead agency. In the case of this activity the Business Continuity Plan described in Section would be activated. Recovery This relates to activities beginning after initial impact has been stabilised and extending until the community s capacity for self-help has been restored. Recovery is a key part of the comprehensive 102

121 Section 7 Risks & Resilience approach to CDEM and for this reason the Group has a comprehensive Recovery Plan. The impact of a major event can lead to long term recovery needs for the City. For the rubbish and recycling activity this is discussed in Section Business Continuity Plan A Business Continuity Action Plan has been prepared for the Rubbish and Recycling Services to provide information and strategies, including co-ordination of people and resources, that will enable continued availability of business process and services and recovery from events that interrupt those services. The Rubbish and Recycling Plan contains: The Rubbish and Recycling Services call tree; Incident Management Team; Rubbish & Recycling services continuity and recovery strategies; Contact Lists for both internal and external contacts; and Response Centre Details - Arena Manawatū Recovery In the event of a major disruption of service establishing at least a temporary supply to critical customers would be a priority. Should the event have caused widespread disruption to the water network and recovery over a long term is required then a recovery programme will need to be put in place. This programme will cover: Priorities for work done on the asset; Consideration of changes in the way the assets could be configured if a significant replacement programme was required and materials use; Potential funding needs / issues; and Relationships between the assets and other utilities assets e.g. co-location in road corridors. Ongoing work will be undertaken on these aspects Lifeline Utilities Coordination Protocols and arrangements to facilitate communication and co-ordination with other utilities in the event of a major event affecting multiple agencies are set out in the CDEM Group Plan The following organisations are members of the Lifelines Advisory Group: Horizons Regional Council Palmerston North City Council Ruapehu District Council Whanganui District Council Rangitikei District Council Manawatū District Council Tararua District Council Horowhenua District Council Transpower NZTA Chorus Electra First Gas Kordia Scanpower Kiwi Rail PowerCo GasNet Palmerston North International Airport Mid Central DHB 103

122 Section 7 Risks & Resilience Spark NZ Vodafone 2 Degrees Inspire Net Teamtalk The Lines Company Foodstuffs 7.8 Risks & Resilience Improvement Plan Particular aspects that require further development. Further assessment of risk and programmes to mitigate risk in the light of further investigation and better information about the impact of natural hazards. Develop a more advanced approach to identifying critical assets that incorporates rating and other dimensions of criticality. Further assessment of the current level of resilience. Develop a more comprehensive method of assessing resilience using risk based evaluation and optimised decision making tools to assist decision making around the desired level of resilience. On-going review of the risk register. Provision is made in the continuous improvement programme, Section 11, for further work on these aspects over the next three years. 104

123 Section 8 Sustainability 8 Sustainability This section sets out how the Rubbish and Recycling activity contributes to the key drivers of Council s Eco City Strategy. 8.1 Eco City Strategy The Eco City Strategy is one of the Council s five strategies supporting its vision for the City which aims to ensure the city develops and grows sustainably. The plan includes a focus on reducing the city s ecological footprint through effective planning of infrastructure and the protection, maintenance, and enhancement of the city s natural and built environment. The Council is also working towards the city becoming a low carbon economy. To achieve the desired outcomes the Council has set a number of priorities and developed Strategy Plans under the Eco City Strategy as shown below. Table 49: Key Drivers of Sustainable City Strategy Eco Strategy Priorities Respect and enhance the mauri of the Manawatū River Work with the community to reduce carbon emissions Regenerate native biodiversity Invest in infrastructure that serves to protect, enhance and preserve our environment Use our legislative powers and policies to ensure that urban development is sustainable now and into the future Educate the community, in particular, property owners, on the benefits of investing in sustainable building design and green buildings Demonstrate leadership and best practice by developing and implementing an environmental sustainability plan for the Council Eco City Strategy Plans Biodiversity Three Waters Waste Energy Sustainable Practices Plan 8.2 Key Sustainability Issues Key sustainability issues for this activity are identified as follows: Waste minimisation less waste to landfill means that material recovery, reuse, and recycling practices are effecting a reduction in the quantity of residual waste for disposal; Energy use in operations fuel consumed in Rubbish and Recycling collection activities. A landfill gas engine is operated, which generates electricity from gas produced in the closed landfill. Gas quantities are reducing. The lease for the landfill gas engine has expired and has not been renewed. Instead the landfill gas has been piped to the WWTP Biogas Generator and is being blended and burned in this engine since mid-2017; Landfill maintenance management of leachate and optimising collection of gas from closed landfill site; and Capping of landfill and collection of methane gas for use as an alternative energy source at the wastewater treatment plant reduces methane gas emissions to the atmosphere. 105

124 Section 8 Sustainability 8.3 Climate Change Initiatives Climate change is unlikely to have a significant effect on Rubbish and Recycling assets. Higher intensity storms at increased frequency may have an impact of groundwater levels, which in turn could have some effect on operation of the closed landfill. The capping and collection of methane gas at the landfill for use as an alternative energy reduces methane gas emissions to the atmosphere, thereby benefitting measures to reduce the effects on climate change. 8.4 Approach Taken in This Plan This AMP identifies programmes for improvements to the recycling materials recovery facility (MRF), a community resource recovery facility and infrastructure to support future development of resource recovery facilities, including composting, at the closed Awapuni landfill site. Sustainability considerations incorporated in this AMP include: Resource consents for the closed landfill sites and the operation of the composting activity at the Awapuni site. Operational plans for the Awapuni landfill gas-field. Council s Waste Management and Minimisation Plan Focus on illegal dumping activities. Identification of other products for recycling. 8.5 Product Stewardship To date, Central Government has adopted a voluntary approach to product stewardship, which has had limited success in increasing diversion rates for products that cause particular environmental harm; e-waste, tyres, agri-chemicals. Council has introduced a user pays e-waste recycling scheme partnership that results in the dismantling of e-waste products for offshore export. 106

125 Section 9 Financial Projections & Trends 9 Financial Projections & Trends This section outlines the long-term financial requirements for operations, maintenance and capital renewal and development for the wastewater activity based on the long-term strategies and tactics described earlier in the AMP. 9.1 Long Term Financial Forecasts Figure 32 shows the thirty year projected operation and maintenance expenditure, interest, and depreciation costs. Management Delivery Operating Programmes (Nil) $7 $6 $5 $4 $3 $2 $1 $0 2018/ / / /28 Proposed Annual Expenditure [Millions] 2030/ / / / / /46 Figure 32: Thirty Year Operation & Maintenance Expenditure Forecast Figure 33 shows the thirty year projected renewals expenditure, broken down into major asset groups. The levels of renewals is significantly less than depreciation largely because for many of the assets their service potential does not decline significantly until they are very close to the end of their lives e.g. MRF building and stationary non-wearing assets and wheelie bins. For the majority of the MRF mechanical equipment renewals are designed to maintain their service potential indefinitely. The renewal profile is dominated by the renewal of the wheelie bins and crates with the current stock of wheelie bins assumed to require replacement from 2020/21 through to 2030/31. The major landfill management renewal costs in 2035/36 and 2036/37 are associated with renewal of the roading assets including Tip Road and the within site access roads. 107

126 Section 9 Financial Projections & Trends Figure 33: Thirty Year Projected Renewals Expenditure Figure 34 shows the thirty year projected new capital expenditure, broken down into the major assets groups. The major capital expenditure is associated with programmes to purchase larger bins to facilitate institutional recycling services, standardised bins for rationalising transport and collection of recyclables as well as major upgrades to RDOPs. Figure 34: Thirty Year Projected New Capital Expenditure 108

127 Section 9 Financial Projections & Trends A full breakdown of the thirty year projected costs is given in Appendix E Trends in Thirty Year Forecast Significant trends for the thirty year forecast are: Operations & Maintenance Expenditure remains relatively steady throughout the planning period. The recycling collection and processing costs increase gradually over the period, corresponding to the roll out of wheelie bins and crates to new properties, in keeping with the forecast increase in residential growth. Rubbish collection and disposal remains reasonably constant, assuming the current volume of rubbish collected and current disposal costs at Bonny Glen landfill. Provision for the collection and disposal of public space bins has been provided in this AMP (formerly they were included in the Roading AMP and Parks AMP). Additionally, funding for a regular Solid Waste Analysis Protocol (SWAP) has been included to determine the make-up of rubbish going to landfill. Renewals & Rehabilitation Provision is made for renewal and rehabilitation of some assets as they come to the end of their functional life. An assessment of both the maximum life and the distribution of replacement for wheelie bins and crates has identified that a significant proportion of these assets are stored under cover resulting in them having significantly extended lives and reducing the renewals expenditure significantly over the first five years of the 10 Year Plan which is the main reason for the gap between renewals and depreciation. Extensive condition inspections have identified significant mechanical assets that will be requiring renewal over the next 10 years. This has resulted in an increased provision for renewals at the MRF within the AMP. Development Programmes are included for the development of new bins in the public space (Prog 506), improved infrastructure at the Awapuni Resource Recovery Park (increased security), enhancing the operational efficiency at the recycling drop off points (RDOP s)(prog 1373) and providing Recycling receptacles to non-residential properties(prog 1410). 9.2 Asset Valuation Council Rubbish and Recycling assets were revalued as at 30 June 2017 in accordance with Financial Reporting Standard (FRS) 3 and the NZ Infrastructure Valuation Guidelines. The results of this valuation were independently audited. The updated valuations as at 30 June 2017 are shown in Table 50. The detailed valuation and valuation methodology are contained in the report entitled Revaluation of Infrastructure Assets for City Networks Unit (June 2017). Table 50: Asset Valuation for Rubbish & Recycling Assets Asset Optimised Replacement Cost Optimised Depreciated Replacement Cost Annual Depreciation Ashhurst Transfer Station $208,950 $172,279 $1,787 Awapuni Resource Recovery Park and Waste Collection/Minimisation Assets $26,123,570 $21,654,667 $572,253 TOTAL $26,368,520 $21,841,737 $574,

128 Section 9 Financial Projections & Trends 9.3 Confidence Levels The confidence in the asset data used as a basis for the financial forecasts has been assessed using the following grading system summarised in Table 51 and Table 52. Table 51: Asset Data Confidence Level Grading System Confidence Grade Description Processes Asset Data 5 Highly reliable/ Audited Strictly formal process for collecting and analysing data. Process is documented and always followed by all staff. Process is recognised by industry as best method of assessment. Very high level of data confidence. Data is believed to be 95 to 100% complete and ±5% accurate. Regular data audits verify high level of accuracy in data received. 4 Reliable/ Verified Strong process to collect data. May not be fully documented but usually undertaken by most staff. 3 Less Reliable Process to collect data established. May not be fully documented but usually undertaken by most staff. 2 Uncertain Semiformal process usually followed. Poor documentation. Process to collect data followed about half the time. 1 Very uncertain Ad hoc procedures to collect data. Minimal or no process documentation. Process followed occasionally. Good level of data confidence. Data is believed to be 80 to 95% complete and ±10 to 15% accurate. Some minor data extrapolation or assumptions has been applied. Occasional data audits verify reasonable level of confidence. Average level of data confidence. Data is believed to be 50 to 80% complete and ±15 to 20% accurate. Some data extrapolation has been applied based on supported assumptions. Occasional data audits verify reasonable level of confidence. Not sure of data confidence, or data confidence is good for some data, but most of dataset is based on extrapolation of incomplete data set with unsupported assumptions. Very low data confidence. Data based on very large unsupported assumptions, cursory inspection and analysis. Data may have been developed by extrapolation from small, unverified data sets. 0 No data No process exists to collect data. No data available. Table 52: Rubbish & Recycling Asset Data Confidence Level Asset Awapuni Landfill Services and Improvements Asset Data Confidence Condition Data Confidence Performance Data Confidence Demand / Growth Forecast Confidence Buildings Materials Recovery Facility and Glass Sorting Wheelie Bins and Crates Awapuni Plant and Equipment Awapuni Landfill Gas Extraction Awapuni Landfill Clay Lining Awapuni Landfill Land N/A Ashhurst Transfer Station Land N/a 110

129 Section 9 Financial Projections & Trends 9.4 Reliability of Financial Forecasts Maintenance & Renewal Forecasts These are considered reliable estimates based on a known quantum and scope of work and the young age of the assets. There is some uncertainty of forecasts regarding the long term financial viability of some capital waste minimisation initiatives these estimates will be reviewed in the next generation AMP Development Forecasts Years 1-3: The scope and pricing of work is considered reliable. Years 4-10: Increasing uncertainty around scope and detail of work. Forecast estimates considered conservative but less reliable than years 1-3. Years 11-20: Rough order costing based on estimated quantum of work, forecasts could change significantly with further investigation Effects of Uncertainty of Financial Forecasts Generally, forecasts are considered conservative. The longer term development expenditure forecasts will be refined both in scope and costing as these programmes get closer to implementation. Those programmes that are for growth also form the basis for development contributions assessed over a period of thirty years. Periodic revision and adjustment to the schedule of works in the three year rolling programme counters any negative effect of uncertainty of the financial forecasts. Overall, the Rubbish and Recycling assets are in average to good condition and perform for the demands placed on them so that continuation of the level of service to the community is not over sensitive to changes in particular programmes. Should the required level of funding not be available then there is a potential risk of deferred maintenance or renewal or development that would not be noticeable immediately but which could build up over a period of time and result in not meeting agreed levels of service. This is mitigated through an extensive review and revision of asset management requirements that takes place on a three yearly cycle, enabling corrective action to be taken before a substantial backlog is built up. 9.5 Funding policy The focus of this AMP is on identifying the optimum (lowest lifecycle) cost for waste management assets necessary to produce the desired level of service. Current funding sources available for waste management assets include rates and revenue from rubbish disposal charges and levies, sale of recyclable material, and gas cogeneration. The different types of expenditure are funded as follows: Operation & Maintenance The operations and maintenance are funded as follows; The total operations and maintenance cost is estimated. Revenues from rubbish bag sales, gate charges, leases, and material sales are estimated. The shortfall between the costs and revenues is funded through a targeted rate over those ratepayers receiving the service. 111

130 Section 9 Financial Projections & Trends Capital Renewal Funded from targeted rates revenue collected to cover renewal costs Capital Development Funded from subsidies and grants (when available), user contributions, reserves and, where necessary, from borrowing. There will be a move to reduce the impact on rates-funding of the Rubbish and Recycling Activity through increased emphasis on user pays, with surplus funds applied to waste minimisation strategies. The implementation of new waste minimisation initiatives will depend on the merit of the business case specific to each proposal. In short, the costs of those projects will need to be matched by a corresponding increase in the revenue generated Development Contributions No development contributions are sought for the Rubbish and Recycling activity because: Provision of recycling bins does not fall within the LGA definition of network or community infrastructure that is able to be funded from development contributions hence, in accordance with Council s Revenue & Financing Policy, this expenditure is funded from borrowing, which will be serviced and repaid from rates over the average expected life of the bins. Although the materials recovery facility (MRF) is an important facility, the Council has, at this stage, determined that the development contributions policy will not extend to funding community infrastructure (other than buildings and works on parks and reserves). As a consequence, any growth related upgrades to the MRF will be funded initially by borrowing in accordance with the Council s Revenue & Financing Policy. 112

131 Section 10 Assumptions 10 Assumptions This section sets out the key assumptions made in developing the asset lifecycle programmes and financial forecasts and identifies the likelihood and impact of variations from these assumptions Asset Ownership & Provision of Service Asset ownership and provision of service remains in Council ownership and management Population Growth The following population projections are assumed: 10-year projection , 940 people per annum at 1.0%. 20 year projection , 710 people per annum at 0.7%. 30 year projection , 598 people per annum at 0.6%. This is a hybrid growth scenario based on a specific Palmerston North high growth projection for years 1-10 and a Statistics New Zealand medium growth projection for years The AMP is formally reviewed every 3 years and programmes will be adjusted on an annual basis through the Annual Budget for variances from that assumed. There is a low risk that planning for capital development projects for growth will not match actual needs Residential Growth The development scenario for residential growth is based on meeting the needs of a growing population and also includes the additional margins required by the National Policy Statement for Urban Development Capacity. An average household size of 2.5 is assumed. A future housing preference of 50% for greenfield, 38% for infill and 12% for rural / residential is assumed. The assumed development scenario is based on Greenfield development being centred on Whakarongo, Aokautere, Kelvin Grove with a number of other smaller developments in the short to medium term with City West and further Aoukautere development in the medium to longer term. Any changes to this scenario will be worked through subsequent AMPs Industrial Growth It is assumed that the North East Industrial Zone (NEIZ) and the NEIZ Extension Area will be sufficient to meet the growth in large floor plate industrial activity over the next 20 to 30 Years. Longburn is viewed as a suitable location for wet industry although there are infrastructure constraints at the moment to its development due to its private ownership. It is assumed these will be resolved to fully realise its potential. 113

132 Section 10 Assumptions Given that the nature of industrial investment can be lumpy, on-going review of industrial land uptake and needs will be required Retail Growth A centres based approach is assumed for managing retail and office activity throughout the city. This approach seeks to keep commercial activity centred in the core of the city and to avoid the dispersion of office and retail activity to the periphery of the urban area. This approach is given effect to through the District Plan hierarchy of business zones as follows: Inner Business Zone (IBZ). Outer Business Zone (OBZ). Fringe Business Zone (FBZ). Local Business Zone (LBZ) Rural-Residential Growth It is assumed that the Council generally will not provide a kerbside recycling service to rural-residential and rural properties within the City boundary. It is assumed rural-residential subdivision will occur in locations which do not require the Council to fund substantial upgrades to the roading network in order to facilitate the subdivision Levels of Service Generally a similar level of service to that currently delivered applies but with minor adjustments as follows. Provision for the servicing of public space litter bins within the Rubbish & Recycling Activity Provision for the servicing of the kerbside within growth areas of the current serviced areas Provision for investigation of waste minimisation activities Further levels of service changes may occur during this period. Cost implications and updating to the AMP will be made at the time they occur Construction Costs Financial forecasts are based on projected July 2018 construction costs. It is likely that the price of some components will change relative to others. Budgets are reassessed each year during the Annual Budget process to mitigate this risk. BERL inflation factors applied to the 10 Year Plan also incorporate an element of price changes in different activity sectors Maintenance & Operational Costs These are largely based on historical rates and assume similar contract rates throughout the planning period. 114

133 Section 10 Assumptions Inflation factors will be applied at the 10 Year Plan level to reflect forecast price changes in different sectors Inflation Financial projections are based on July 2018 estimated costs. No inflation factors have been applied. BERL inflation factors will be applied to the programmes and budgets in the 10 Year Plan. Budgets for successive years of the Annual Budget are based on the corresponding year of the 10 Year Plan Depreciation Average asset lives at a project level for new works have been used to calculate depreciation. New works are a small percentage of total depreciation. Differences from actual due to averaging of lives are relatively minor Vested Assets On average the same level of assets are gifted to the Council as a result of subdivision as has occurred over the last 5 years. Note that the rate of change of development will be taken account of in future revisions of the AMP and subsequent O&M and depreciation taken into account Service Potential Service potential of the asset is maintained by the renewal programme. There is low risk that the service potential of the asset will not be maintained by implementation of the renewal programme since this is based on reliable asset and condition information from the asset management system Asset Lives Asset lives are accurately stated. The risk that lives are inaccurate is low. Lives are based on generally accepted industry values modified by local knowledge. The asset database gives a good knowledge of asset condition and an extensive field assessment has recently been undertaken Natural Disasters There are no major natural disasters requiring additional funds. 115

134 Section 10 Assumptions There is medium risk of a natural disaster occurring during this period requiring additional funds to repair or reinstate assets. Some further provision for increasing the resilience of the assets has been built into this plan but there is still further work to be undertaken to determine the desired level of resilience and the further asset improvements to achieve this Council Policy No significant change to Council policy that impacts on assets and services. Any significant change will require a full review of the AMP and implications identified at the time Interest Rate An interest rate of 5.7% p.a. is used for debt on new work. 116

135 Section 11 Continuous Improvement 11 Continuous Improvement 11.1 Overview The quality of Council s AM practice has been enhanced over the past 20 years in line with the objective to match, but not lead, industry 'best practice' in New Zealand. This version of the AMP incorporates the following key improvements and changes undertaken over the last three years: 11.2 Programme Planning and Implementation A Programme Planning and Implementation Template (PPI) was introduced in 2015 by the City Networks Unit as part of an initiative to improve the quality of information associated with Council infrastructural programmes, including the 30 year programmes in the AMPs The PPI sheet is completed for every infrastructural programme and includes information about type, timing and scope of programme, options considered, Council decisions, estimated costs, risks, assumptions and constraints, and approvals required for the programme to be implemented. These files also contain links to other relevant reports. The information is updated annually. As a result the information behind the programmes in this plan is more robust than previously Project Status A system for monitoring the progress and expenditure of individual programmes through the financial year has been implemented during the last 3 years to aid better monitoring and management of programmes. This allows projects to be tracked against budget and forecasts and to record the progress being made. An advantage of this is that the information is widely available with a number of different reports available for different audiences Development Works Planning Residential Growth and Industrial Growth Planning (refer to Section 5) Council s Residential Growth Strategy was adopted on 30 September In October 2011, Council authorised the preparation of a proposed District Plan change to give effect to the Residential Growth Strategy within the District Plan. Development works included in the 2014 AMP to meet growth were based on the 2010 Residential Growth Strategy, adjusted by a 2012 Addendum, that identified the Whakarongo area as preceding City West for residential development. A further modification of this strategy is now included in this plan to incorporate a higher projected growth forecast, and also takes into account the NPS-UDC requirements. 117

136 Section 11 Continuous Improvement Demand Projections (refer to AMP Section 5) As a result of further analysis of migration trends, the Council has decided to assume high growth projections for years 1-10, and a medium growth projection for years This is greater than was assumed for the 2014 AMP, which was based on Statistics New Zealand medium growth projections adjusted for the local Palmerston North situation Risk and Resilience (refer to AMP Section 7) The risk and resilience assessment aligns with the new Local Government Act 2002 Amendment Act 2014 requirement for 30 year infrastructure strategies to identify and manage risks relating to natural hazards and to make appropriate financial provision for those risks. Since the 2014 AMP, further work has been undertaken with a review of risks facing the assets, a review of Business Continuity plans, and Lifelines interdependencies Council Strategies (refer to AMP Section 3) As part of the 10 Year Planning process, the Council has reviewed its Vision, Goals, and Strategies to ensure it is achieving the outcomes it desires for the community. The infrastructure elements of the Strategy Plans associated with Council s goals have been incorporated into these AMPs Renewal Works Planning Condition Data Asset age, condition, performance and risk are the four main determinants of renewals planning. Ongoing condition and performance assessment of Council s assets has taken place during the period. The data collected is fundamental to improved renewal programming. Predictive modelling is still in its early stages and provision has been included in this Improvement Plan for development of this aspect of asset management. see Task 2(g) Operations and Maintenance Operations and Maintenance Strategy The operations and maintenance strategy and processes have been reviewed in conjunction with development of this Plan Internal Service Level Agreements Internal service level agreements between the City Networks Unit and the City Enterprises Unit, the inhouse service provider, have continued to be advanced to increase transparency and accountability between funding and service provision. This has been aided by establishing an SLA system looked after by a dedicated officer. This has been supported by a Collaborative Working Practices process between the two Units. 118

137 Section 11 Continuous Improvement Market Comparability Procedure In conjunction with collaborative working practices, a market comparability procedure is built into the SLA process. This is to ensure that the prices being accepted by City Networks reflect the market price. Some improvement has taken place over the past 3 years in this procedure, but it still requires further improvement to get the full benefit of this approach. Further work is identified in this Improvement Plan (Task 9(b)) Asset Information Data Quality Processes All capital and maintenance projects are now processed through RAMM contractor that allows real time updates to the asset data register in the field using tablets. It also allows the contractor to correct or add information to the existing asset data, and attach notes or photos if required. RAMM GIS will be also used to compliment this process within the office environment Asset Management Plan Improvement The AMP Policy and Strategy was reviewed in October 2016 and presented to PNCC Management Team in February This has been incorporated in the 2017 AMPs. A set of AMP guidelines and programme was prepared at the same time to assist the asset managers in the development of the 2017 AMPs. This identified the context and issues that needed to be addressed to enable the AMPs to be completed and aligned with development of the Year Plan. The programme included a Level of Service review, incorporation of Council Strategies into the AM planning process, development of capital (new and renewal) and operational programmes, and an independent peer review. AMP templates and guidelines were prepared to coordinate the AMP structure and content, and to improve consistency between different AMPs. The AMP financials were constructed within the Council s corporate 10 Year Plan planning system to ensure consistency with the Year Plan projections Asset Management Resources Loss of Key AM Knowledge Key systems to preservice asset management knowledge are the Asset Management Systems and the Programme Planning and Implementation template system that keeps track of information connected with particular programmes. These have both been strengthened during this period Skill Gaps Skill gaps have been identified through regular performance development interviews asset management officers. AM skills and knowledge development has been largely addressed through attendance of AM staff at NAMS training courses and other on line courses. 119

138 Section 11 Continuous Improvement 11.9 Levels of Service Review A review of current levels of service and performance measures was work-shopped with the Council in March Feedback from the workshop was assessed by senior managers and has been factored into projects and programmes included in this AMP. Further LoS information came through from Councillors during the LGA s17a process, and also during the development of Council s Strategy Plans AMP Improvement Plan (2017) The purpose of the Improvement Plan is to: Identify and develop implementation of AM planning processes. Identify, programme, and resource measures required to complete studies, or measures to confirm planning assumptions, or to gather information required to improve the reliability / confidence of information used to develop the AMP. Identify and prioritise ways to cost-effectively improve the quality of the AMP. Identify indicative time-scales, priorities, and human and financial resources required to achieve AM planning objectives. The following improvement activities have been identified for action over the next 3 years, after consideration of priorities identified by the asset management team. Many of these improvements are generic across all asset activities (i.e. water, property, roading etc.) and will be implemented as coordinated projects across all areas. Capital renewal and development project planning further development of processes to take into account a sustainable development approach. Review demand projections on an on-going basis consistent with Council s Residential Growth Strategy. Continue to develop predictive modelling and risk based approaches to help prioritise renewal programmes and better manage risks and costs in achieving the desired outcomes. Update City-wide asset development plans as growth and actual development necessitates. Periodically review risk assessments. Further develop appropriate mitigation strategies for Council s critical assets in the event of a major natural hazard, and programmes to improve resilience of critical assets from natural hazards. Operations and maintenance on-going review of contracting and internal service agreement strategies to achieve the best balance of risk transfer, cost, and performance. Asset information on-going development of systems to meet all asset management needs, and the integration of asset information activities within Council. Internal process improvements for Collaborative Working Practices, Service Procurement processes, and Market Comparability assessments. Level of service undertake stakeholder consultation on new, major issues to update understanding of community expectations and preferences. Review levels of service with Council every three years. AM resource planning to ensure the recruitment, retention, and development of sufficient and suitably qualified staff. Review asset management strategy to take account of changes in Council direction and Government policy. The indicative AM improvement programme is detailed in Table

139 Section 11 Continuous Improvement Table 53: Palmerston North City Council 3 year AM Improvement Programme Improvement Activities Who & Time Est ($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 1. Development Works Planning (Demand/ LoS) Review impact of Council's strategies and policies on demand projections 1 wk AM 4k Review project priorities based on risk/cost/benefit analysis 2 wk AM 8k Review mitigation strategies for major natural hazard events impacting on rubbish & recycling facilities. 1 wk AM 5k Document changes to AMP programmes that arise through 10 Year Plan & AP processes 2 wk AM 10k 2. Asset information Establish annual management review meetings to consider AM performance AMP Coord/ Activity Manager 121

140 Section 11 Continuous Improvement Improvement Activities Who & Time Est ($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Review AM system data quality processes and improve as required. Develop Data Improvement Plan. Link with Task 3(a) 2 wk AM & AM Coord. 10k Review and document condition assessment quality process/ programme (to support risk & predictive modelling) 2 wk AM 10k Review performance data needs (reporting & decision-making) and document data capture quality process. 2 wk AM 8k Analyse asset lives (using condition/ capacity/ performance data), and review / address data quality issues. Enter into AM system 1 week AM & AMSO 4k Review/Identify critical assets in the register. 1 week AM 4k 122

141 Section 11 Continuous Improvement Improvement Activities Who & Time Est ($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Review financial data needed to support ODM and valuationimplement process 2 wk AM 8k Assess future options for development of AM system 2 wk AMSO 8k Review and update Programme Planning and Implementation (PPI) information in conjunction with AP & 10 Year Plan process 3 wk AM 20k Develop user friendly database for the PPI information 3 wk AM Group / IT 20k 3. Renewal works planning Undertake annual assessment of asset condition, age and environmental factors to determine residual asset lives (predictive modelling). Annual AM 15k 123

142 Section 11 Continuous Improvement Improvement Activities Who & Time Est ($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Develop and action processes to identify and prioritise risk mitigation options (ODM). Prepare renewal programme. 3 wk AM 10k 4. Operations and maintenance Document O&M strategy and O&M processes for optimising programmes (benefit/ cost approach) 1 week AM 4k Review processes to ensure that competitive prices are obtained for services delivered, and that there is the correct balance between risk transfer, performance orientation and costs. (SLA comparability, core market data, schedules of prices) 2 wk AM 8k 124

143 Section 11 Continuous Improvement Improvement Activities Who & Time Est ($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Continue development of measure and value SLAs with further development of KPIs and deliverables. Detailed review of resource inputs to operation and maintenance activities to identify opportunities to do more for less. 2 wk AM 5k 5. Asset management improvement Establish annual management review meetings to consider AM performance Establish an Asset Management Coordinating Group to drive improvement plan & next AMP over the next 3yrs AMP Coord. 3k Develop overall AM strategy leading up to next AM review and get adopted by MT 2 wk AMP Coord. 8k Develop a process for regular review of risk. 1 wk AMP Coord. 5k 125

144 Section 11 Continuous Improvement Improvement Activities Who & Time Est ($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Develop and enhance measures for resilience of critical assets to natural hazards. 3 wk AMP Coord. 5k Develop & implement process to ensure that there is better integration between all AMPs 1 wk AMP Coord. 4k Develop KPIs to monitor progress with the Improvement Plan 2 d AMP Coord. 1k 6. Asset management staff resources Adopt succession planning process to minimise risks relating to loss of key staff knowledge 1 wk CNMT 4k Skill gaps in AM are assessed and training programmes implemented to close any identified gaps 1 wk SW AM 2k Promote organisational understanding of AM practices and outcomes 2 wk AMP Coord. 10k 126

145 Section 11 Continuous Improvement Improvement Activities Who & Time Est ($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D 7. Level of service review Review LOS strategy & programme 2 wk AMP Coord. 10k Undertake consultation on major issues, case by case. 10 wk 50k Undertake LOS Review with Council AMP Coord. / AM 30k 8. Update AMP AMP Maturity Assessment & identification of key focus areas for 2021 Plans AMP Coord. / AM 12k Prepare AMP using outputs of this improvement programme and incorporate further recommendations from the 2017 Peer Review & Audit NZ into the Plan 16 wk AM 30k 127

146 Section 11 Continuous Improvement Improvement Activities Who & Time Est ($) J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D Update AMP programme & financials 4 wk AM 16k 9. Delivery of services Improve internal processes of CWP. SLA system and Market Comparability as required Special Projects Manager 15k 128

147 Appendix A Glossary Appendix A. Glossary 129

148 Appendix A Glossary 130

149 Appendix A Glossary The following terms and acronyms (in brackets) are used in this AMP. Term or Acronym Activity Advanced Asset Management (AAM) Annual Budget Asset Asset Management (AM) Asset Management System (AMS) Asset Management Plan Asset Management Strategy Asset Management Team Asset Register Benefit Cost Ratio (B/C) Business Plan Capital Expenditure (CAPEX) Cash Flow Components Condition Monitoring Core Asset Management Critical Assets Current Replacement Cost Deferred Maintenance Description An activity is the work undertaken on an asset or group of assets to achieve a desired outcome. Asset management practice that has evolved to a state that matches business needs. AAM employs predictive modelling, risk management and optimised renewal decision making techniques to establish asset lifecycle treatment options and related long term cashflow predictions. (See Core asset management). The Annual Budget provides a statement of the direction of Council and ensures consistency and coordination in both making policies and decisions concerning the use of Council resources. It is a reference document for monitoring and measuring performance for the community as well as the Council itself. A physical component of a facility that has value, enables services to be provided and has an economic life of greater than 12 months. The combination of management, financial, economic, engineering and other practices applied to physical assets with the objective of providing the required level of service in the most cost effective manner. A system (usually computerised) for collecting analysing and reporting data on the utilisation, performance, lifecycle management and funding of existing assets. A plan developed for the management of one or more infrastructure assets that combines multidisciplinary management techniques (including technical and financial) over the lifecycle of the asset in the most cost effective manner to provide a specified level of service. A significant component of the plan is a long term cashflow projection for the activities. A strategy for asset management covering, the development and implementation of plans and programmes for asset creation, operation, maintenance, renewal, disposal and performance monitoring to ensure that the desired levels of service and other operational objectives are achieved at optimum cost. The team appointed by an organisation to review and monitor the corporate asset management improvement programme and ensure the development of integrated asset management systems and plans consistent with organisational goals and objectives. A record of asset information considered worthy of separate identification including inventory, historical, financial, condition, construction, technical and financial information about each. The sum of the present values of all benefits (including residual value, if any) over a specified period, or the life cycle of the asset or facility, divided by the sum of the present value of all costs. A plan produced by an organisation (or business units within it) which translate the objectives contained in an Annual Budget into detailed work plans for a particular, or range of, business activities. Activities may include marketing, development, operations, management, personnel, technology and financial planning Expenditure used to create new assets or to increase the capacity of existing assets beyond their original design capacity or service potential. CAPEX increases the value of an asset. The stream of costs and/or benefits over time resulting from a project investment or ownership of an asset. Specific parts of an asset having independent physical or functional identity and having specific attributes such as different life expectancy, maintenance regimes, risk or criticality. Continuous or periodic inspection, assessment, measurement and interpretation of resulting data, to indicate the condition of a specific component so as to determine the need for some preventive or remedial action Asset management which relies primarily on the use of an asset register, maintenance history, condition assessment, defined levels of service, and simple risk and benefit/ cost assessments in order to establish work priorities and long term cashflow predictions. Assets for which the financial, business or service level consequences of failure are highest. Critical assets have a lower threshold for action than non-critical assets. The cost of replacing the service potential of an existing asset, by reference to some measure of capacity, with an appropriate modern equivalent asset. The shortfall in rehabilitation work required to maintain the service potential of an asset. 131

150 Appendix A Glossary Term or Acronym Demand Management Depreciated Replacement Cost (DRC) Depreciation Disposal Economic Life Facility Geographic Information System (GIS) Infrastructure Assets Infrastructure Strategy Level Of Service Life Life Cycle Life Cycle Cost Maintenance Maintenance Plan Maintenance Standards Net Present Value (NPV) Objective Operation Optimised Renewal Decision Making (ORDM) Description The active intervention in the market to influence demand for services and assets with forecast consequences, usually to avoid or defer CAPEX expenditure. Demand management is based on the notion that as needs are satisfied expectations rise automatically and almost every action taken to satisfy demand will stimulate further demand. The replacement cost of an existing asset after deducting an allowance for wear or consumption to reflect the remaining economic life of the existing asset. The wearing out, consumption or other loss of value of an asset whether arising from use, passing of time or obsolescence through technological and market changes. It is accounted for by the allocation of the historical cost (or revalued amount) of the asset less its residual value over its useful life. Activities necessary to dispose of decommissioned assets. The period from the acquisition of the asset to the time when the asset, while physically able to provide a service, ceases to be the lowest cost alternative to satisfy a particular level of service. The economic life is at the maximum when equal to the physical life however obsolescence will often ensure that the economic life is less than the physical life. A complex comprising many assets (e.g. a hospital, water treatment plant, recreation complex, etc.) which represents a single management unit for financial, operational, maintenance or other purposes. Software which provides a means of spatially viewing, searching, manipulating, and analysing an electronic data-base. Stationary systems forming a network and serving whole communities, where the system as a whole is intended to be maintained indefinitely at a particular level of service potential by the continuing replacement and refurbishment of its components. The network may include normally recognised ordinary assets as components. A strategy for identifying the principal options for managing significant infrastructure issues expected to occur over a 30-year period The defined service quality for the Rubbish and Recycling Activity or service area against which service performance may be measured. Service levels usually relate to quality, quantity, reliability, responsiveness, environmental acceptability and cost. A measure of the anticipated life of an asset or component; such as time, number of cycles, distance intervals etc. Life cycle has two meanings: The cycle of activities that an asset (or facility) goes through while it retains an identity as a particular asset i.e. from planning and design to decommissioning or disposal. The period of time between a selected date and the last year over which the criteria (e.g. costs) relating to a decision or alternative under study will be assessed. The total cost of an asset throughout its life including planning, design, construction, acquisition, operation, maintenance, rehabilitation and disposal costs. All actions necessary for retaining an asset as near as practicable to its original condition, but excluding rehabilitation or renewal. Collated information, policies and procedures for the optimum maintenance of an asset, or group of assets. The standards set for the maintenance service, usually contained in preventive maintenance schedules, operation and maintenance manuals, codes of practice, estimating criteria, statutory regulations and mandatory requirements, in accordance with maintenance quality objectives. The value of an asset to the organisation, derived from the continued use and subsequent disposal in present monetary values. It is the net amount of discounted total cash inflows arising from the continued use and subsequent disposal of the asset after deducting the value of the discounted total cash outflows. An objective is a general statement of intention relating to a specific output or activity. They are longer term aims and are not necessarily outcomes that managers can control. The active process of utilising an asset which will consume resources such as manpower, energy, chemicals and materials. Operation costs are part of an assets life cycle costs. An optimisation process for considering and prioritising all options to rectify performance failures of assets. The process encompasses NPV analysis and risk assessment. 132

151 Appendix A Glossary Term or Acronym Performance Indicator (PI) Performance Monitoring Pipeline Asset Management System Planned Maintenance Rehabilitation Renewal Renewal Accounting Repair Replacement Remaining Economic Life Resilient Infrastructure Risk Risk Cost Risk Management Routine Maintenance Service Potential Strategic Plan Unplanned Maintenance Upgrading Valuation Description A qualitative or quantitative measure of a service or activity used to compare actual performance against a standard or other target. Performance indicators commonly relate to statutory limits, safety, responsiveness, cost, comfort, asset performance, reliability, efficiency, environmental protection and customer satisfaction. Continuous or periodic quantitative and qualitative assessments of the actual performance compared with specific objectives, targets or standards. Council uses an asset management system to store, collate and analyse asset data. The current Council system is IPS, a product which is supplied by Infor Global Solutions. The Council has used IPS (previously Hansen) since The current version deployed is IPS Planned maintenance activities fall into 3 categories : Periodic - necessary to ensure the reliability or sustain the design life of an asset. Predictive - condition monitoring activities used to predict failure. Preventive - maintenance that can be initiated without routine or continuous checking (e.g. using information contained in maintenance manuals or manufacturers recommendations) and is not condition-based. Works to rebuild or replace parts or components of an asset, to restore it to a required functional condition and extend its life, which may incorporate some modification. Generally involves repairing the asset using available techniques and standards to deliver its original level of service (i.e. heavy patching of roads, slip-lining of sewer mains, etc.) without resorting to significant upgrading or replacement. Works to upgrade, refurbish, rehabilitate or replace existing facilities with facilities of equivalent capacity or performance capability. A method of infrastructure asset accounting which recognises that infrastructure assets are maintained at an agreed service level through regular planned maintenance, rehabilitation and renewal programmes contained in an asset management plan. The system as a whole is maintained in perpetuity and therefore does not need to be depreciated. The relevant rehabilitation and renewal costs are treated as operational rather than capital expenditure and any loss in service potential is recognised as deferred maintenance. Action to restore an item to its previous condition after failure or damage. The complete replacement of an asset that has reached the end of its life, so as to provide a similar, or agreed alternative, level of service. The time remaining until an asset ceases to provide service level or economic usefulness. Infrastructure that is able to deal with significant disruption and changing circumstances. The product of the likelihood of an event occurring and the estimated impact (consequence) of the event. The assessed annual cost or benefit relating to the consequence of an event. Risk cost equals the costs relating to the event multiplied by the probability of the event occurring. The application of a formal process to the range of possible values relating to key factors associated with a risk in order to determine the resultant ranges of outcomes and their probability of occurrence. Day to day operational activities to keep the asset operating (replacement of light bulbs, cleaning of drains, repairing leaks, etc.) and which form part of the annual operating budget, including preventative maintenance. The total future service capacity of an asset. It is normally determined by reference to the operating capacity and economic life of an asset. Strategic planning involves making decisions about the long term goals and strategies of an organisation. Strategic plans have a strong external focus, cover major portions of the organisation and identify major targets, actions and resource allocations relating to the long term survival, value and growth of the organisation. Corrective work required in the short term to restore an asset to working condition so it can continue to deliver the required service or to maintain its level of security and integrity. The replacement of an asset or addition/ replacement of an asset component which materially improves the original service potential of the asset. Estimated asset value which may depend on the purpose for which the valuation is required, i.e. replacement value for determining maintenance levels or market value for life cycle costing. 133

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153 Appendix B Requirements of the LGA 2002 Appendix B. Requirements of the LGA

154 Appendix B Requirements of the LGA

155 Appendix B Requirements of the LGA 2002 Section 101B from the LGA 2002 Amendment Act 2014 and LGA Schedule 10 outline the information to be included in 10 Year Plans. Much of this information is provided through asset management plans. LGA Section 101B Infrastructure Strategy 101B Infrastructure strategy (1) A local authority must, as part of its long-term plan, prepare and adopt an infrastructure strategy for a period of at least 30consecutive financial years. (2) The purpose of the infrastructure strategy is to (a) (b) identify significant infrastructure issues for the local authority over the period covered by the strategy; and identify the principal options for managing those issues and the implications of those options. (3) The infrastructure strategy must outline how the local authority intends to manage its infrastructure assets, taking into account the need to (a) (b) (c) (d) (e) renew or replace existing assets; and respond to growth or decline in the demand for services reliant on those assets; and allow for planned increases or decreases in levels of service provided through those assets; and maintain or improve public health and environmental outcomes or mitigate adverse effects on them; and provide for the resilience of infrastructure assets by identifying and managing risks relating to natural hazards and by making appropriate financial provision for those risks. (4) The infrastructure strategy must outline the most likely scenario for the management of the local authority s infrastructure assets over the period of the strategy and, in that context, must (a) show indicative estimates of the projected capital and operating expenditure associated with the management of those assets (i) (ii) in each of the first 10 years covered by the strategy; and in each subsequent period of 5 years covered by the strategy; and (b) identify (i) (ii) the significant decisions about capital expenditure the local authority expects it will be required to make; and when the local authority expects those decisions will be required; and 137

156 Appendix B Requirements of the LGA 2002 (iii) (iv) for each decision, the principal options the local authority expects to have to consider; and the approximate scale or extent of the costs associated with each decision; and (c) include the following assumptions on which the scenario is based: (i) (ii) (iii) the assumptions of the local authority about the life cycle of significant infrastructure assets: the assumptions of the local authority about growth or decline in the demand for relevant services: the assumptions of the local authority about increases or decreases in relevant levels of service; and (d) if assumptions referred to in paragraph (c) involve a high level of uncertainty, (i) (ii) identify the nature of that uncertainty; and include an outline of the potential effects of that uncertainty. (5) A local authority may meet the requirements of section 101A and this section by adopting a single financial and infrastructure strategy document as part of its long-term plan. (6) In this section, infrastructure assets includes (a) existing or proposed assets to be used to provide services by or on behalf of the local authority in relation to the following groups of activities: (i) (ii) (iii) (iv) (v) water supply: sewerage and the treatment and disposal of sewage: stormwater drainage: flood protection and control works: the provision of roads and footpaths; and (b) any other assets that the local authority, in its discretion, wishes to include in the strategy. 138

157 Appendix B Requirements of the LGA 2002 Extract from LGA Schedule 10 Part 1 Information to be included in long-term plans 1 Community outcomes A long-term plan must, to the extent determined appropriate by the local authority, describe the community outcomes for the local authority s district or region. 2 Groups of activities (1) A long-term plan must, in relation to each group of activities of the local authority, (a) (b) (c) identify the activities within the group of activities: identify the rationale for delivery of the group of activities (including the community outcomes to which the group of activities primarily contributes): outline any significant negative effects that any activity within the group of activities may have on the local community: (d) include the information specified in clauses 4 and 5 (i) (ii) in detail in relation to each of the first 3 financial years covered by the plan; and in outline in relation to each of the subsequent financial years covered by the plan. (2) In this schedule, each of the following activities is a group of activities: (a) (b) (c) (d) (e) water supply: sewerage and the treatment and disposal of sewage: stormwater drainage: flood protection and control works: the provision of roads and footpaths. (3) Despite subclause (2), a local authority may treat any other activities as a group of activities. 3 Capital expenditure for groups of activities (1) A long-term plan must, in relation to each group of activities of the local authority and for each financial year covered by the plan, include a statement of the amount of capital expenditure that the authority has budgeted to (a) (b) meet additional demand for an activity; and improve the level of service; and 139

158 Appendix B Requirements of the LGA 2002 (c) replace existing assets. (2) For the purpose of this clause, capital expenditure budgeted for 2 or all of the purposes in subclause (1) may be treated as if it were made solely in relation to the primary purpose of the expenditure. 4 Statement of service provision A long-term plan must, in relation to each group of activities of the local authority, include a statement of the intended levels of service provision that specifies (a) (b) (c) (d) (e) any performance measures specified in a rule made under section 261B for a group of activities described in clause 2(2); and the performance measures that the local authority considers will enable the public to assess the level of service for major aspects of groups of activities for which performance measures have not been specified under paragraph (a); and the performance target or targets set by the local authority for each performance measure; and any intended changes to the level of service that was provided in the year before the first year covered by the plan and the reasons for the changes; and the reason for any material change to the cost of a service. 5 Funding impact statement for groups of activities (1) A long-term plan must, in relation to each year covered by the plan, include a funding impact statement in relation to each group of activities of the local authority. (2) The funding impact statement must be in the prescribed form and must identify (a) (b) (c) the sources of funding to be used by the local authority; and the amount of funds expected to be produced from each source; and how the funds are to be applied. 140

159 Appendix C Activity Performance Measures Appendix C. Activity Performance Measures 141

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161 Appendix C Activity Performance Measures Table C1: Customer Level of Service, Performance Measures & Targets, & Performance Targets Key Service Criteria User Group (e.g. All, commercial, residential, pedestrians etc.) Customer Level of Service Customer Performance Measure Current Performance Future Performance Targets 2018/ / / Quality Residential users Council provides rubbish & recycling collection services which meet the expectations of the community Residents are satisfied with the quality of Council s rubbish and recycling collection services. 92% At least 85% At least 85% At least 85% At least 85% Reliability & Accessibility Residential users & commercial users Council provides a reliable Rubbish and Recycling service. Rubbish and recycling placed in the Council s official receptacles is collected on the stated days % 98% 98% 98% 98% Council responds to request for service in a prompt and efficient way. RFS are resolved within specified timeframes 89.2% 90% 90% 90% 90% All residents Council provides a drop off rubbish and recycling services as advised on Councils Website Green waste disposal facilities are available and open for the stated hours. 100% 100% 100% 100% 100% Disposal facilities are available and open for the stated hours. 100% 100% 100% 100% 100% Recycling drop off facilities are available and open for the stated hours. 100% 100% 100% 100% 100% Sustainability All residents Council disposes of waste in an efficient and sustainable way. Contamination of recycling received at MRF remains at industry standards. 10% 12% 12% 12% 12% Council promotes and implements effective waste management strategies Waste tonnages per capita remains steady or reduces New Measure 17/ Waste Assessment 545 kg/capita 545 kg/capita 545 kg/capita 540 kg/capita 549 kg/capita Waste diverted per capita remains steady or increases New Measure 17/ Waste Assessment 360 kg/capita 360 kg/capita 360 kg/capita 365 kg/capita 354 kg/capita 143

162 Appendix C Activity Performance Measures Key Service Criteria User Group (e.g. All, commercial, residential, pedestrians etc.) Customer Level of Service Customer Performance Measure Current Performance Future Performance Targets 2018/ / / Council monitors incidences of illegal dumping in the City. Number of reported incidences of illegal dumping does not increase. New Measure 16/17 Total Reported Incidents 1,015 1,000 1,000 1,000 1,000 Quantity of illegal dumping collected does not increase. New Measure 16/17 69 Tonnes Collected Compliance with resource consents for the Rubbish and Recycling Activity Number of abatement notices Number of Infringements issued Number of enforcement orders. Number of convictions received by the Council in relation to resource consents Council maintains and develops Rubbish and Recycling services to meet current and future needs. A 30-year asset management plan is in place for the Rubbish and Recycling activity. Plan in place Plan in place (key projects from the plan will also be outlined) Plan in place (key projects from the plan will also be outlined) Plan reviewed (key projects from the plan will also be outlined) Plan in place and reviewed three-yearly (key projects from the plan will also be outlined) Financial Management All residents The Council manages its Rubbish and Recycling activity in a financially sustainable way. Annual work programmes achieved within budget. 100% 100% 100% 100% 100% 144

163 Appendix D Risk Analysis Framework & Register Appendix D. Risk Analysis Framework & Register 145

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165 Appendix D Risk Analysis Framework & Register Insert Appendix D (DM ) here 147

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167 Risk Management Table of Contents Overview 1 Putting the Risks into Perspective 1 Levels of Risk 1 Risk Types 2 Operational 2 Financial / Economic 2 Health and Safety 2 Reputation / Image 2 Legislative 2 Environmental 2 Current Situation 2 Corporate Policy 2 Risk Management Process 3 Identify Risks 3 Determine Likelihood and Consequence for Gross Risk Factor 3 Identify Current Systems & Processes, and their Effectiveness 6 Determine Net Risk 6 Risk Action Plan 7 Link to Improvement Plans 8 Monitor, Measure, Report, Review Plan and Actions 8 Review Risks 8 Risk Register 9 Risk Action Plan 18 SOLID WASTE RISK MANAGEMENT January 2011

168 Risk Management Overview This Solid waste activity specific risk management planning for Palmerston North City Council (PNCC) will provide the basis for future risk analysis and improvement planning. This section covers the risk management implemented by PNCC and how it applies to current and future solid waste activities. In addition, an overview of risk management theory and practice is provided along with suggested improvements to current practices at the PNCC. Risk management is a process used to identify the specific business risks, together with any possible risks associated with the provision and management of council s solid waste services. This can be used to determine the direct and indirect costs associated with these risks, and form a priority-based action plan to address them. Levels of Risk The purpose of this risk plan is to identify the risks associated with the provision of solid waste services. This requires approaching the risks from many perspectives including financial, operational, reputational and public health and safety. These risks are pertinent to both a higher, corporate level, and to a more detailed asset specific level, but do not substitute for more specific risk analysis at those levels (see Error! Not a valid bookmark self-reference.). The next step beyond this risk analysis is to develop more detailed risk plans where the criticality of specific assets is assessed and an action plan developed as appropriate. Figure 1 - Risk Hierarchy Levels The outcome of this evaluation is to be used to: Emphasize the importance of continuing to provide Council s solid waste services and manage inherent risks Continually identify improvements required to Council solid waste services to avoid risk events, or minimise their impact or to realise identified opportunities A Risk is defined in AS/NZS ISO 31000:2009 Risk management Principles and guidelines, as: Effect of Uncertainty on Objectives Effect: Deviation from the expected positive or negative. Objectives: Can have different aspects (see Risk Types) and can apply at different levels (see Risk Hierarchy Levels). Risks: Often characterized by reference to potential events and consequences, and is often expressed in terms of a combination of the consequences of an event and the associated likelihood. Uncertainty: The state, even partial, of deficiency of information related to, understanding or knowledge of an event, its consequence, or likelihood. Corporate Risk Activity Risk Asset Specific Risks Highest level covering risks for the entire organisation Considers risks from all perspectives affecting the management of the activity and its assets Specific critical asset/ service risks, project risks Putting the Risks into Perspective Council policy and operation cannot influence all the factors contributing to these risk events. However, PNCC has a responsibility to assess the risks faced by the solid waste activity in order to best manage the services with the resources available to avoid and mitigate the effects of any event. In the following risk analysis, PNCC has highlighted a number of key risk areas across the activity including: Moderate hatural hazards Contract / SLA management Legislative noncompliance These are discussed in further detail in the Risk Registers and the overall Action Plan contained in this risk section Page 1 SOLID WASTE RISK MANAGEMENT January 2011

169 Risk Management Risk Types Risks events derive from, or impact in one or more of the following ways. These are identified against each risk in the risk register as risk types. Operational Risks affecting the efficient operation of solid waste services and their ability to function effectively. Financial / Economic Risks related to the financial management of PNCC and its ability to fund Council services now, and into the future Risks resulting from an externally imposed economic environment. Health and Safety A risk event that adversely impacts on the health and safety of the community or Council staff. Reputation / Image Risks that affect the way Council and staff are perceived: By the community By staff Nationwide and internationally By stakeholders By the media Legislative A risk event that results in PNCC either unknowingly or knowingly breaching statutes and regulations, or being exposed to liability Environmental Potential or actual negative environmental or ecological impacts, regardless of whether these are reversible or irreversible in nature. Current Situation PNCC s solid waste activity has not undertaken previous risk assessments on the service, but has carried out an asset level risk exercise for inclusion in the asset management plan. Corporate Policy PNCC is seeking to establish a corporate risk policy in place and a Risk and Assurance team, which will have an overview of all risk exposures within the organisation, including corporate, financial, customer, assets. Infrastructure Services staff will contribute regularly to the work of this group. Each risk identified in this plan will be entered into the corporate risk register. Page 2 SOLID WASTE RISK MANAGEMENT January 2011

170 Risk Management Risk Management Process The following sections expand upon the risk management process as identified in the flowchart (Figure 2 overleaf) and detail the key elements of the risk management process. The risk criteria and matrices have been established as the basis for risk evaluation developed in accordance with the AS/NZS ISO 31000:2009 international risk standard. Identify Risks All practically possible risks affecting the Council should be identified, entered into the risk register and risk types assigned. The register is used to record and summarise each risk and to outline current mitigation measures and potential future options for management of the risk. Determine Likelihood and Consequence for Gross Risk Factor Table 1 and Table 2 demonstrate the scales used to determine the likelihood and consequence levels, which are then input into the risk matrix to determine the effect of a risk event. Assessment of the likelihood of occurrence and severity of consequences should be based on as much real data as possible, for example local knowledge or recorded events such as maintenance records, weather events etc. Some analysis may be required to verify the data. The likelihood scales identify how likely, or often, a particular event is expected to occur and these are shown in Table 1 below. The descriptors are not mandatory, but are presented as a guide to assist ranking the probability of occurrence in line with the nature of each risk. For example, a risk such as a sewer overflow is considered to be rare if it occurs once every ten years, whereas a tsunami occurring every ten years would be considered frequent Table 1: Likelihood of Occurrence Likelihood Rating Descriptor (example frequencies) Almost Certain A The event could occur in most circumstances, e.g. 90% + chance of occurring in the next 12 months (or in 9 out of every 10 years). Likely B The event will probably occur in most circumstances, e.g. 70% chance of occurring in the next 12 months (or in 7 out of every 10 years). Moderate C The event should occur at some time, e.g. 50% chance of occurring in the next 12 months (or in 5 out of every 10 years). Unlikely D The event could occur at some time, e.g % chance of occurring in the next 12 months (or in 2-3 out of every 10 years). Rare E The event may occur only in exceptional circumstances, e.g. up to 10% chance of occurring in the next 12 months (or once in 10 years). Extremely Rare F The event may occur only in extremely exceptional circumstances, e.g. up to 2% chance of occurring in the next 12 months (or once or less in 50 years). Page 3 SOLID WASTE RISK MANAGEMENT January 2011

171 Risk Management Figure 2: Risk Management Process Identify Possible Risks Approach from all possible applicable perspectives eg: Operational Reputation/Image Financial/Economic Legislative Health & Safety Environmental Obtain input from the best available information & perform analysis as required Determine likelihood and severity of consequence New or Varied Risks Determine Gross Risk factor using a risk register/matrix (likelihood x consequence) Gross Risk is based on no measures in place to prevent or minimise the likelihood or consequence i.e: How bad would it be if we did nothing?? Review existing risks only Identify current processes & systems in place that effectively help to avoid or minimise the chances & severity of each risk Audits /investigations may be required to measure effectiveness Determine Net Risk factor using the risk register/matrix (likelihood x consequence) Net Risk = Gross Risk minus measures in place to avoid or mitigate. This can also be called Current Actual Risk. Brainstorm possible risk management options to further reduce risk level for each risk Prioritise risks based on size of Net Risk and criticality of service, process or asset Form a practical and achievable Action Plan with priorities aligned with size of each risk. Set Future Risk Ensure mechanisms are in place to monitor, measure, report on and review the Action Plan Use of available techniques to determine various options for risk treatment and cost benefit approach eg: Optimised decision making Future Risk is the risk level expected once management actions are effectively implemented. Progress action, monitor and report, and repeat the cycle at regular intervals Page 4 SOLID WASTE RISK MANAGEMENT January 2011

172 Risk Management Table 2: Consequence Rating Area of Impact Legal Corporate image Service Delivery Factor Extreme Major Moderate Minor Insignificant Legal Political Image Councillor/Managem ent Time Service Delivery Council sued or fined or otherwise liable for more than $20M Catastrophic environmental damage of national importance. Prosecution. Long term study. Impact permanent. Appointment of a commissioner. Negative international multi media coverage for 1 month plus Water supply and sewage out for city for several days + Permanent loss of solid waste facility Council sued or fined or otherwise liable for $5M - $20M Serious environmental damage of national importance. Prosecution. Long term study. Impact not full reversible. Decision making process breaks down National adverse political comment for 1 month plus. Negative international multi media coverage. Water supply and sewage out for two suburbs for one week. Water supply contaminated Public amenity closed for one month or more Council sued or fined or otherwise liable for $250k-$5M Serious environmental damage of national importance. Prosecution expected. Impact reversible within 10 years. Council delays decisions. Regional adverse political comment for several days. Unplanned collective 30 days of Councillor s or management s time Water supply and/or sewage out for city for one day Public amenity closed for 2 weeks or more Council sued or fined or otherwise liable for up to $250k Serious environmental damage of local importance. Prosecution probable. Impact fully reversible within 1 year Breakdown in the relationship between council and the CEO Local adverse political comment for one week days of Managers time Water supply and/or sewage out for 2 suburbs for one day Public amenity closed for 1 week or more Systematic customer complaints or complaints relating to more than one business area Repeated service standard failure or one that affects multiple people Council prosecuted for minor offence Minor localised environmental damage. Prosecution possible. Impact fully reversible within 3 months. Local adverse political comment. Up to 2 days of Managers Time Public amenity closed for less than 1 week. Isolated customer complaints Isolated service standard failure Financial PNCC Financial Unplanned loss or cost to reinstate of $3.5M or greater Ongoing loss of $400k pa Unplanned loss or cost to reinstate between $1.75M- $3.5M Ongoing loss $200k- $400k pa Unplanned loss or cost to reinstate between $1.0M- $1.75M Ongoing loss $100k- $200k pa Unplanned loss or cost to reinstate between $500k- $1.0M Unplanned loss or cost to reinstate less than $500k Financial Community Financial Catastrophic consequential loss in the community (>$20M) Major consequential loss in the community ($5M- $20M) Significant consequential loss in the community ($1M- $5M) Some consequential loss in the community ($250k- $1M) Minimal consequential loss in the community (<$250k) People in several suburbs ill through contaminated water or similar People in 2-3 suburbs ill through contaminated water or similar People in one suburb ill through contaminated water or similar Several people ill through contaminated water or similar Community Health and Safety Community Multiple loss of life or city wide epidemic Loss of life or widespread long term hospitalisation required Hospitalisation required Medical treatment required Dissatisfaction of community measure needs to be included? Page 5 SOLID WASTE RISK MANAGEMENT January 2011

173 Risk Management After the likelihood and consequence factors have been determined, the level of risk is calculated by multiplying the Likelihood of Occurrence (Table 1) and Consequence Rating (Table 2) together. Risk = the likelihood of an event occurring X the consequence of such an event. The final outcome is a risk rating. The risk rating enables definition between those risks that are significant and those that are of a lesser nature. Having established the comparative risk level applicable to individual risks, it is possible to rank those risks. Five risk categories have been used: Critical, High, Moderate, Low and Insignificant (see Tables 3 & 4). Once the impact has been ranked according to the relative risk level it poses, it is then possible to target the treatment of the risk exposure, by beginning with the highest risks and identifying the potential mitigation measures. Table 3: Risk Assessment Matrix Likelihood Insignificant (1) Minor (2) Consequence Moderate (3) Major (4) Extreme (5) Almost Certain (A) M M H C C Likely (B) L M H H C Moderate (C) L M M H C Unlikely (D) I L M M H Identify Current Systems & Processes, and their Effectiveness Identifying current systems and processes are identified, and as far as resources allow, their effectiveness measured. It is often practical to identify these processes and systems initially, and rank the effectiveness conservatively until the audits and actual practice prove otherwise. Audits can be identified as part of the improvement process. Effectiveness of existing systems and processes is expressed in the following categories: Excellent Good Fair Poor Very Poor Determine Net Risk Fulfils requirements thoroughly, very robust and positive measurable effects Fulfils requirements, robust and measurable, room for improvement Barely fulfils requirements, effects hard to measure (or haven t been audited or measured), improvement required Not fulfilling requirements, little measurement or effect on overall risk Totally ineffective in avoiding or mitigating associated risk events The net risk is the actual risk that exists considering the effective measures implemented. The measures in place reduce either, or both, the consequence and the likelihood of a risk occurrence. The revised factors are input into the same risk matrix to obtain the Net Risk Factor. Rare (E) I I L L M Extremely Rare (F) I I I L M Table 4: Comparative Levels of Risk I Insignificant Risk Examine where un-needed action can be reduced L Low Risk Managed by routine procedures M Medium Risk Management responsibility must be specified and risk controls reviewed H High Risk Risk & management strategy identified in AM plan. Failure management plans available C Critical Risk Risk & management strategy identified in AM plan, Failure management plan specifically addressing event in place. Initially, the gross risk needs to be calculated, so likelihood and consequences need to be considered as if there were no measures in place to prevent or mitigate the risk occurrence. Essentially gross risk is an exercise to determine What is the worst that could happen? Once the gross risk is determined it is possible to investigate the current systems and processes to identify the net risk and then formulate an action plan to further reduce the likelihood or consequences of identified risks occurring. Page 6 SOLID WASTE RISK MANAGEMENT January 2011

174 Risk Management Risk Action Plan The Risk Action Plan is compiled from the Risk Register and highlights the most significant risks faced as determined in the risk register. The main risks are listed in order of severity (primarily gross risk, and secondarily net risk) as assigned in consultation with key Council officers. Actions that are required to achieve the desired improvements are indicated along with how progress on these actions will be monitored and reported. Where applicable, action tasks will detail timeframes for achievement, and responsibility for these actions. Gross Risk Higher Risk Current practices and strategies Actions required to provide assurance that current practices remain effective Net Risk A priority order of issues to be addressed is obtained by sorting first the gross risk levels and then the net risk levels, and identification of the biggest gaps and opportunities for improvement. Gaps between gross and net risk indicate the importance of effective current practices to prevent gross risk events. Accordingly, improvement actions should focus on the things that will further assure Council that current practices remain effective. Gaps between net risk and an acceptable future risk require improvement actions that will reduce current risk levels. Risk treatments to be applied Actions required to reach acceptable risk levels in future Future Risk Lower Risk Page 7 SOLID WASTE RISK MANAGEMENT January 2011

175 Risk Management The most suitable risk reduction actions must be determined by considering options and resources available to the Council. Costs and benefits of these actions should be analysed to determine those actions yielding the greatest benefit (risk reduction) for the least cost. The best available techniques should be utilised to analyse the options e.g. optimised decisionmaking (ODM). Application of ODM applies a value chain to the proposed actions rather than just working from the highest risk down regardless of cost. For example: A high risk may have to remain due to the prohibitive costs associated with avoidance or mitigation A medium risk event could be easily and cost-effectively avoided within resources available The options for mitigating risks considered to reduce the cause, probability or impact of failure, are typically: Accept Risk Strategic Change Operational Change Risk Transfer Accept the Risk, fund and resource any risk impacts Implement strategic planning, organisational improvements Implement technical improvements, procedural changes Outsourcing, Improving contract terms, increased insurance Link to Improvement Plans Actions identified in this Risk Management analysis should be directly linked to actions identified in appropriate improvement plans where they exist e.g. Asset Management Improvement Plan, where resources should be identified, approval of resources noted, and a defined method provided for revisiting and reviewing progress against each action item. Where an equivalent action item is not listed in the Improvement Plan, it should be added. The resulting action plan for risk treatment needs to be practical and achievable such that the necessary resources and time frames are realistically met. The actions also need to be able to be monitored and measured. The monitoring/reporting column of the Risk Action Table specifies: Responsibility: Nominated person responsible for ensuring the risks are managed and that improvements are carried out in accordance with the programme; Timeframe: Achievable target date to be monitored and reported against; and Method and Frequency of Monitoring: This entire Action Table will be monitored by the Risk Management Steering Committee, but there will be certain actions that are being monitored and reported in other forums. These forums are to be specified and the frequency with which these actions will be reviewed. The actions listed will be reported, monitored and reviewed regularly at the Risk Management Steering Group and various Group forums. As necessary, this group will need to revise timeframes, responsibility, and even the appropriateness of continuing with the proposed action, or adding new actions. As actions are complete, the net risk should reduce in most cases. The risk tables will need to be reviewed against these and updated to reflect these improvements. Review Risks Most of the time, the risks identified will remain the same and reviews will occur in the context of these risks. However, it will be important to recognise when a new risk arises, or an existing risk changes in nature. In the latter case, the gross risk also needs to be re-evaluated. In all cases, the appropriate risk reference number should be noted in the Improvement Plan, and the Improvement number should be noted in the Risk Action Plan. Monitor, Measure, Report, Review Plan and Actions Management options listed in the risk tables have been refined into actions for each risk listed. These are the actions that are required to cost-effectively reduce the net risk by increasing PNCC s ability to minimise the chances of the risk event occurring, or minimising the consequences should it occur. Actions should, where possible, align with the overall management objectives of Council, not simply aimed at the minimisation of risk. If possible, proposed actions should align with other initiatives to: Reduce capital investment costs. Reduce operating and maintenance costs. Reduce business risk exposure (BRE). Increase effective asset life / value. Increase level of service. Page 8 SOLID WASTE RISK MANAGEMENT January 2011

176 Risk Management Risk Register The risk registers provided in the following tables for the current and future Solid waste activities of Palmerston North City Council have been developed in consultation with key staff. Table 5: Asset Management Risks Solid Waste General Risks Table 5: Asset Management Risks General Risk Reference Risk Descriptor details the main component and provides an example of a risk(s) that may be attributable What are the risks? Risk Type What are the main types of impact resulting from this risk event? Gross Risk What risk level do we face if we did nothing to prevent or minimise it? Consequence Likelihood Factor Description Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Effectiveness Net Risk Considering what we do, what is the current actual risk level we face? Consequence Likelihood Factor Risk Owner (Title) Who has the responsibility and ability to follow through? Management Options Available What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SLW01 Unavailability of normal workplace resources for Council City Networks and City Enterprises personnel Caused by: Unavailability of Council buildings (due to e.g. power failure, isolation, flood ) Telecommunications systems not working Environmental Public Health Operational Financial / Economic Reputation / Image 3 C M Civil Defence Emergency Management Team Plan and organisation in place Council Business Continuity Plan IT procedures for backup, storage Lifelines Strategy, documentation & communication SCADA ability to control from multiple sites Good 3 E L Chief Executive Water and Waste Services Manager City Enterprises Incident Response plan Council Emergency Response Procedures in place Liaise with National and Regional policy makers to identify hazards and ensure emergency response mechanisms are in place in the event of a hazard occurring Coordination and liaison with other councils Consequences: Inability to respond to, or effectively manage and recover from disaster or emergency (e.g. tornado, volcanic ash, power failure, high winds) Inability to operate business under normal conditions Negative image SLW02 Lack of Skilled Staff Resources Caused by: Inability to attract key staff Inability to retain skilled staff Inability of external resources to provide Operational Financial / Economic Reputation / Image 4 B H City promotion (Work-life balance) Dedicated HR staff and policies e.g. Personal Development Programmes, Benchmarking Some use of recruitment consultancy Benchmarked salary levels Occasional staff surveys to highlight issues Good 2 C M Water and Waste Services Manager Chief Executive Review & report situational risk profile at key intervals Consequences: Suitable accommodation and work environment Operational loss Financial costs Loss of service level Poor (or no) decision making Use of consultants (and access to their wider network of non Council resources) Graduate Development Programme Scholarships for students Technical staff in house Succession planning SLW03 Loss of knowledge (information) Caused by: Inability to retain knowledge Permanent loss of strategic information through damage to information systems Insufficient/inappropriate systems in place to manage data/information, especially regarding asset performance and condition Loss of institutional knowledge (staff turnover) Financial / Economic Operational Reputation/Image Legislative 3 C M Asset changes/updates Information currently provided by City Enterprises, contractors, consultants and developers Processes for updating vested assets and new capital works into Asset database Sporadic condition surveys undertaken IT practices (backup, virus, security etc.) Asset database in place (off site) with backups (Hansen) Spreadsheet for consent information saved to DM system Good 3 F I Water and Waste Services Manager Chief Executive Historical plans to be put into DM system Reliance on one dedicated staff member IT failure Loss of knowledge of where to find information Consequences: Operational loss Financial costs Failure to meet compliance requirements (e.g. asset inventory and condition information, unable to forecast renewals requirements) Information management and responsibilities defined between PNCC staff and consultants/contractors Historical plans still not available electronically (DM system) Asset resgister for solid waste Weigh bridge information on PNCC network Asset Management Information Group Institutional knowledge Page 9 SOLID WASTE RISK MANAGEMENT January 2011

177 Risk Management Table 5: Asset Management Risks General Risk Reference Risk Descriptor details the main component and provides an example of a risk(s) that may be attributable What are the risks? Risk Type What are the main types of impact resulting from this risk event? Gross Risk What risk level do we face if we did nothing to prevent or minimise it? Consequence Likelihood Factor Description Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Effectiveness Net Risk Considering what we do, what is the current actual risk level we face? Consequence Likelihood Factor Risk Owner (Title) Who has the responsibility and ability to follow through? Management Options Available What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SLW04 Failure to deliver on projects and programmes Caused By: Inadequate project, programme and portfolio management Lack of training or qualified staff Lack of project planning or systems Projects inadequately scoped, budgeted, managed, documented, and reviewed Inadequate community consultation and management of expectations Unrealistic expectations Insufficient input to 10 Year Plan (financial) Lack of resources Lack of ownership, change of leadership Cost Escalations (e.g. price of materials, economic failures, exchange rates, Consequences: Time & cost blowouts Lack of quality outcomes Loss of service level Operational Reputation/Image Financial / Economic Health and Safety Environmental Legislative 3 A H Works programming by senior staff out of MS Project Senior staff manage consenting processes Collaborative working relationships with Technical Services & Depot Formal agreement includes SLAs External works managed by Technical Services Some Project Management Training for key staff Some Project Management by external consultants Annual Plan/10YP/AMP Process defined Quartlerly review of projects to Council Use of experienced and skilled staff Use of trained external resources / specialists Communication Plan stakeholder and media management for key projects Appropriate resources (e.g. software/information systems) Monitor consultants quality of work, reporting requirements written into some contracts Post project de-briefs, Post implementation reviews Processes to clearly identify project timeline and timing Market comparability test for all projects Good 3 D M Water and Waste Services Manager Solid Waste Operations Manager Development of corporate processes and systems Reporting procedures for measuring performance External reviews and audits e.g. peer reviews Formalise requirements and project reporting for internal consultants Keep project scopes up to date Loss of image and credibility Impact on staff morale Over/under spending of budgets Failure to deliver on commitments e.g. 10 Year Plan Deferring of projects Hindering development Public health and environmental consequences SLW05 Inadequate contract / SLA management (network maintenance and operations) Caused by: Inadequate documents Inadequate selection, availability of contractor Inadequate management of contractors i.e. communication, monitoring etc. Consequences: Poor contractor performance and outputs Interruption to services Loss of service levels Health and environmental incidents Failure to meet legislative requirements Additional costs Excessive deterioration of assets Operational Financial / Economic Reputation/ Image Health and Safety 4 A C Operations SLAs. Separated for treatment, reticulation maintenance, waste collection etc. Contract manuals and collaborative working processes SLAs managed by staff Contract conditions (KPI s, penalties) Contractor training and certification Staff training Public notification,public feedback (customer sevice tracking system K Base) Financial reporting to Networks Management Team who provide monthly reporting to the Management Team and quarterly reporting to Council Procedures for suppliers to complete asset update requirements Standard operating procedures and codes of practice Audits and reviews Monitor outstanding customer requests weekly Budgets are reviewed monthly Good 3 C M Water and Waste Services Manager Solid Waste Operations Manager Monitor customer feedback and trends Review and improve auditing procedures for contracts Improved KPIs Training staff in maintaining and enhancing technical skills of operators Possible extension of Quality Management System Ensure new staff trained on internal Contract Management Manual Contract Management Manual Page 10 SOLID WASTE RISK MANAGEMENT January 2011

178 Risk Management Table 5: Asset Management Risks General Risk Reference Risk Descriptor details the main component and provides an example of a risk(s) that may be attributable What are the risks? Risk Type What are the main types of impact resulting from this risk event? Gross Risk What risk level do we face if we did nothing to prevent or minimise it? Consequence Likelihood Factor Description Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Effectiveness Net Risk Considering what we do, what is the current actual risk level we face? Consequence Likelihood Factor Risk Owner (Title) Who has the responsibility and ability to follow through? Management Options Available What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SLW06 Inadequate contract / SLA management (capital works) Caused by: Inadequate documents Inadequate selection, availability of contractor Inadequate management of contractors i.e. communication, monitoring, change of scope management) Consequences: Operational Financial / Economic Reputation/ Image Health and Safety 4 A C Operations SLAs. Separated for treatment, reticulation maintenance, waste collection etc. Contract manuals and collaborative working processes SLAs managed by staff Contract conditions (KPI s, penalties) Contractor training and certification Staff training Public notification,public feedback (customer sevice tracking system K Base) Good 3 C M Water and Waste Services Manager Solid Waste Operations Manager Monitor customer feedback and trends Review and improve auditing procedures for contracts Improved KPIs Higher level of financial reporting and feedback now required Ensure new staff trained on internal Contract Management Manual Poor quality assets constructed and/or vested Increased operational expenditure costs Interruption to services Health and environmental incidents Financial reporting to Networks Management Team who provide monthly reporting to the Management Team and quarterly reporting to Council Procedures for suppliers to complete asset update requirements Failure to meet legislative requirements Additional costs and time overruns Reduced lifespan (early deterioration) of assets Standard operating procedures and codes of practice Audits and reviews Monitor outstanding customer requests weekly Budgets are reviewed monthly Contract Management Manual SLW07 Inadequate asset management not up to date, or insufficient quality of process and output. Caused by: Lack of AM knowledge and practice Lack of staff knowledge and training Lack of resources Inadequate communication of issues and strategic planning Consequences: Loss of service level - decline in integrity and service capacity of assets Operational Legislative Financial / Economic 4 B H Asset Management processes and practices Asset Information Systems (Hansen/ GIS / dtims) managed by City Networks and IT 10 YP, Annual Plan processes Asset Management Plan - Improvement Plan driven by City Networks staff / Audit NZ reviews Continuing Staff Development Peer review every 3 years to meet Audit NZ Office requirements Ongoing budget provision Ongoing input from internal and external consultants Good 3 C M Water and Waste Services Manager Continue to improve documentation around processes and practices External review Strategy to move to Advanced asset management status Suboptimal lifecycle cost Insufficient depreciation funding Inability to cater for growth Failure to meet 10 Year Plan commitments and service levels SLW08 Non-compliance with legislation and legal requirements Caused By: Lack of awareness e.g. changes in legislation not identified Lack of funding Legislative changes increases statutory obligations to a level where they are unable to be met with existing resources (goalposts shift) Disputes with regulatory authorities Consequences: Compromised health, safety and environment Operational Financial / Economic Reputation/ Image Health and Safety 5 A C Compliance monitoring Contract Conditions (including OSH pre-qualification, HSE Act, HAZNO) Staff training and development, e.g. regular attendance of industry conferences Use of external advice/resources Standard templates and written Council procedures Auditing of works contracts (e.g. safety, OSH, environmental performance) Management of consents Good 3 C M Solid Waste Operations Manager Water and Waste Services Manager Regional Plan One Plan requirements becoming more stringent Legal action and resulting costs and consequences Poor public image Page 11 SOLID WASTE RISK MANAGEMENT January 2011

179 Risk Management Table 5: Asset Management Risks General Risk Reference Risk Descriptor details the main component and provides an example of a risk(s) that may be attributable What are the risks? Risk Type What are the main types of impact resulting from this risk event? Gross Risk What risk level do we face if we did nothing to prevent or minimise it? Consequence Likelihood Factor Description Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Effectiveness Net Risk Considering what we do, what is the current actual risk level we face? Consequence Likelihood Factor Risk Owner (Title) Who has the responsibility and ability to follow through? Management Options Available What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SLW09 SLW10 SLW11 Extreme Natural Hazards (major earthquake/ tsunami/ volcanic/lahar) Inability to minimize effects Caused By: Strategic information is inadequately protected Internal and external risks not adequately identified Possible impacts of disasters are not proactively minimised Inadequate understanding of staff of disaster recovery procedures Inadequate documentation to support recovery process Civil Defence not adequately resourced Consequences: Inability to respond to, or effectively manage and recover from disaster or emergency Inability to operate business under normal conditions Destruction of, or prolonged widespread damage to infrastructural assets Hindering development Negative image Actual or high probability of loss of life Moderate Natural Hazards (minor earthquake/landslips/ major storm event) Inability to minimize effects Caused By: Strategic information is inadequately protected Internal and external risks not adequately identified Possible impacts of disasters are not proactively minimised Inadequate understanding of staff of disaster recover procedures Inadequate documentation to support recovery process Civil Defence not adequately resourced Consequences: Inability to respond to, or effectively manage and recover from disaster or emergency Compromised ability to operate business under normal conditions Damage to infrastructural assets, loss of service Hindering development Negative image Potential loss of life Lack of Political Alignment or inability of elected members to fulfil roles and responsibilities or disregard for community/staff views. Caused by: Lack of communication with elected members Lack of understanding from elected members Consequences: Essential services under-resourced Decisions made on political grounds ahead of defensible decision making Environmental Public Health Operational Financial / Economic Environmental Public Health Operational Financial / Economic Operational Reputation/ Image 5 E M Dedicated Council Emergency Management Manager Council Emergency Response Procedures in place (e.g. pandemic response) Civil Defence Emergency Management Team Plan and organisation in place IT procedures for backup, storage (i.e. water supply customer base) Business Continuity Plans K Base systm for customer feedback Civil Defence, actively involved in Lifelines Operations SLAs in place to respond Building code/standards, PNCC Engineering Standards for Land Development (ESLD) LAPP and Insurance 4 A C Dedicated Council Emergency Management Manager Council Emergency Response Procedures in place (e.g. pandemic response) Civil Defence Emergency Management Team Plan and organisation in place IT procedures for backup, storage (i.e. water supply customer base) Business Continuity Plans K Base systm for customer feedback Civil Defence, actively involved in Lifelines Operations SLAs in place to respond Building code/standards, PNCC Engineering Standards for Land Development (ESLD) LAPP and Insurance 4 B H Councillors roles well defined and implemented Legislative requirements/ 10 YP process Reports provided to Council Councillor induction (LGA course) Councillor briefings / workshops CEO giving advice to Councillors Provide asset management background to Councillors Fair (untested) 4 E L Water and Waste Services Manager Solid Waste Operations Manager Fair 4 C H Water and Waste Services Manager Good 3 E L Chief Executive Water and Waste Services Manager Incident Response Plan Critical assets identified for networks, maintenance regime based around these (currently under review) Currently reviewing critical hazard for each critical asset Criteria for new critical infrastructure construction Incident Response Plan Critical assets identified for networks, maintenance regime based around these (currently under review) Currently reviewing critical hazard for each critical asset Criteria for new critical infrastructure construction Continue to manage process through CEO / workshops Page 12 SOLID WASTE RISK MANAGEMENT January 2011

180 Risk Management Table 5: Asset Management Risks General Risk Reference Risk Descriptor details the main component and provides an example of a risk(s) that may be attributable What are the risks? Risk Type What are the main types of impact resulting from this risk event? Gross Risk What risk level do we face if we did nothing to prevent or minimise it? Consequence Likelihood Factor Description Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Effectiveness Net Risk Considering what we do, what is the current actual risk level we face? Consequence Likelihood Factor Risk Owner (Title) Who has the responsibility and ability to follow through? Management Options Available What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SLW12 SLW13 SLW14 External Economic Influences Caused by: Cost Escalations (e.g. due to oil price increases, economic failures). Uncontrollable movements in economy e.g. exchange rates, prices of local products drop Local unemployment Consequences: Financial impact cost of services Inability to provide services, maintain service levels or achieve community outcomes Inability to utilise funding options Both internal and external, including failure to acquire external subsidies and people not applying for funding on time or not identifying potential areas where funding is required. Caused by: Lack of staff training Lack of awareness of funding sources Organisational or process deficiencies Consequences: Funding not realised Loss of service levels Diminishing Funding Allocation Caused by: Decreased subsidy, rates, tax, development contribution charges Insufficient external funding secured Consequences: Projects unable to proceed Inability to provide services, maintain service levels or achieve community outcomes Financial / Economic Operational Financial / Economic Reputation/ Image Operational Financial / Economic 4 C H Buy Local Policy City Futures Unit to study future impacts Local government networking Track national and global trends. Monitor key economic developments and liaise with central government Optimise efficiencies Smart procurement practices Responding to national directives Monitoring and react to world events Use of materials from local sources Hedging Managing LoS expectations Investigating alternative construction / maintenance options 4 D M Asset management process Prioritising projects/ 10 YP and Annual Plan process Experienced staff reporting needs to Council 4 B H Development contributions policy and enforcement Asset management process Prioritising projects/ 10 YP process and Annual Plan process Experienced staff reporting to Council Current practices and strategies for rates funding though 10 YP process (funding policy) Levels of Service and costs quantified in 10 YP Fair 4 D M Water and Waste Services Manager Good 3 E L Water and Waste Services Manager Good 3 D L Water and Waste Services Manager?? Forecast likely scenarios regarding effects of budget changes including deferments Working closely with regional groups Initiatives to maximise funding opportunities Staff knowledge and awareness Forecast likely scenarios regarding effects of budget changes including deferments Escalate issues to higher levels e.g. Lobbying Central Government SLW15 Ineffective strategic planning (internal) Caused by: Lack of integration between the different arms of Council pursuing objectives that are at odds with each other. Change of Councillors or Mayor Consequences: Eventual loss of service levels Funding loss Operational Financial / Economic Reputation / Image 4 B H Communication between City Future and City Networks. Consultation within organisation on long term planning. Early consultation with prospective developers 10 YP process AMP process and updating Communication between City Future and Councillors City Ward committees Good 3 D M Water and Waste Services Manager Continue current practices More City Networks input into district plan review Page 13 SOLID WASTE RISK MANAGEMENT January 2011

181 Risk Management Table 5: Asset Management Risks General Risk Reference Risk Descriptor details the main component and provides an example of a risk(s) that may be attributable What are the risks? Risk Type What are the main types of impact resulting from this risk event? Gross Risk What risk level do we face if we did nothing to prevent or minimise it? Consequence Likelihood Factor Description Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Effectiveness Net Risk Considering what we do, what is the current actual risk level we face? Consequence Likelihood Factor Risk Owner (Title) Who has the responsibility and ability to follow through? Management Options Available What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SLW16 Inadequate Communications and PR Management Caused by: Poor communication e.g. provision of too much/ not enough information to public Inadequate strategic planning Ineffective consultation Reputation/ Image Operational Financial / Economic 4 B H Dedicated Strategic Communications officer, provides regular updates, represented at senior management meeting Council Communication Plan Communications plan developed for key projects Timely communication/ notification to affected customers (public/ratepayers, councillors, staff, contractors) Fair 3 C M Water and Waste Services Manager Improved presentation to public consultation forums (present the whole picture clearly) through consistent approach Improved contract conditions regarding community interaction Historic perception of expectations Customer service interface (K Base) Consequences: Increased costs Poor relations between council and community Negative publicity and reputation Access to communications tools Web, Intranet, Newsletters (Square Circular) User friendly website (PNCC website rated highly in survey) Lack of public support for works and new initiatives Difficulty getting consents Page 14 SOLID WASTE RISK MANAGEMENT January 2011

182 Risk Management Table 6: Asset Management Risks Solid waste Operational Risks Error! Reference source not found.: Asset Management Risks Solid Waste Operational Risks Risk Reference Risk Descriptor details the main component and provides an example of a risk(s) that may be attributable What are the risks? Risk Type What are the main types of impact resulting from this risk event? Gross Risk What risk level do we face if we did nothing to prevent or minimise it? Consequence Likelihood Factor Description Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Effectiveness Net Risk Considering what we do, what is the current actual risk level we face? Consequence Likelihood Factor Risk Owner (Name and Title) Who has the responsibility and ability to follow through? Management Options Available What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SLW17 SLW18 Building or Structure failure Caused by: Building defects Lack of maintenance Poor management Consequences: Closure Environmental incident (spillage or explosion) Contaminated environment Odours Breach of consent conditions Public health incident Injury or death Negative media coverage Loss of rental, sales and fees income Plant Equipment or Operations Failure Caused by: Public Health Operational Financial Reputation / Image Environmental Public Health Operational 4 C H 4 C H Buildings specifically designed for landfill use (all relatively new) Building levels are monitored annually Maintenance and repair on as-needed basis Site specific management plans (includes HSNO, Handling procedures) Structures constructed to HSNO guidelines All sites bunded where needed (storage tanks) City Enterprises SLA for site management Landfill Management Plan, Compost Management Plan covering site inspections, response plans, monitoring to show compliance with consent conditions Review and audit site operators weekly Operator training Daily SLA tasks (operations and condition checklist) Good Fair 2 D L Solid Waste Operations Manager 3 C M Solid Waste Operations Manager Better performance measures including Health & Safety and reporting Develop renewals programme for site infrastructure Develop operations and maintenance programme for buildings Operations manuals when machinery fully commissioned Programmed maintenance Lack of maintenance Poor management Extreme weather event (e.g. flooding, scouring of riverbanks) Power failure Financial Reputation / Image Environmental Part of WWTP SLA to manage gas system Weekly site inspection Equipment manufacturer s assistance and warranty External specialist consultant for recycling plant Develop formal reporting system Consequences: External specialist contractor for compost Closure Environmental incident (spillage or explosion) Contaminated environment Odours Breach of consent conditions Public health incident Injury or death Negative media coverage Loss of rental, sales and fees income Page 15 SOLID WASTE RISK MANAGEMENT January 2011

183 Risk Management Error! Reference source not found.: Asset Management Risks Solid Waste Operational Risks Risk Reference Risk Descriptor details the main component and provides an example of a risk(s) that may be attributable What are the risks? Risk Type What are the main types of impact resulting from this risk event? Gross Risk What risk level do we face if we did nothing to prevent or minimise it? Consequence Likelihood Factor Description Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Effectiveness Net Risk Considering what we do, what is the current actual risk level we face? Consequence Likelihood Factor Risk Owner (Name and Title) Who has the responsibility and ability to follow through? Management Options Available What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SLW19 Lack of security at facility Caused by: Financial Operational 3 A H Fences, warning signage etc. Locked buildings and structures Good 1 A M Solid Waste Operations Manager Develop further security options as site develops (e.g. electronic gate) Lack of resources Inadequate design Security lapse Consequences: Health and Safety On site staff during working hours After hours security contract CCTV Theft SLW20 Damage Health and Safety Incident Closure Loss of Revenue Leachate and discharges from closed landfills Caused by: Operational Environmental 2 A M Monitoring as per resource consent conditions Closed Landfill Asset Management Plan Good 2 D L Solid Waste Operations Manager Operations manuals for site activities when machinery fully commissioned Programmed maintenance Decomposing waste (will occur regardless) Lack of capping, inadequate filling techniques Lack of management and protection Lack of maintenance Location e.g. River and stream receiving environments, erosion issues Legislative Image / Reputation Post Closure Management Plan Cap, stormwater and leachate inspections Leachate pump managed with sewage pump stations Gas wells monitored regularly Develop formal reporting system Site specific hazard identification sheet Composition, size, age of waste Consequences: Contaminated environment SLW21 Odours and air pollution Breach of consent conditions Public health incident Negative media coverage Illegal dumping of rubbish Caused by: Operational Reputation/ Image 2 A M Signs disallowing dumping of rubbish Council provides recycling drop off centres Good 1 A M Solid Waste Operations Manager Increase enforcement Advertise & promote reduction, recycling and waste targets Lack of disposal options Missed collections High costs of disposal Travel distance Deliberate acts regardless of available options Whole of City not covered by collection systems Students leaving town leaving inorganic rubbish Consequences: Extra costs and resources Negative image Environmental effects Public health & safety Environmental Provision of litter bins Other private waste services Monitor complaints / K Base system Bylaw enforcement Council officers / inspectors Annual student inorganic collection Specific street cleanup service weekly coordinated with kerbside collection Xmas tree collection Roads maintenance contract provides for street cleanup Page 16 SOLID WASTE RISK MANAGEMENT January 2011

184 Risk Management Error! Reference source not found.: Asset Management Risks Solid Waste Operational Risks Risk Reference Risk Descriptor details the main component and provides an example of a risk(s) that may be attributable What are the risks? Risk Type What are the main types of impact resulting from this risk event? Gross Risk What risk level do we face if we did nothing to prevent or minimise it? Consequence Likelihood Factor Description Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Effectiveness Net Risk Considering what we do, what is the current actual risk level we face? Consequence Likelihood Factor Risk Owner (Name and Title) Who has the responsibility and ability to follow through? Management Options Available What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SLW22 Recycling receiving services no longer require materials Caused by: Lack of demand Oversupply Business failure Global commodity prices Consequences: Inability to dispose of recyclables Operational Financial Reputation/ Image Environmental 3 B H Knowledge of recycling technology and demand. Receiver reports on market / commodity prices trends noted Budget on long term price average Target to reduce waste to landfill Landfill levy Council has agreements with receivers Long term relationships Good 2 D L Water and Waste Services Manager Solid Waste Operations Manager Develop alternative uses for products Investigate new markets Extra costs Increased waste volumes Page 17 SOLID WASTE RISK MANAGEMENT January 2011

185 Risk Management Risk Action Plan Table 7 is compiled from the Risk Register and highlights the most significant risks faced by the solid waste activity. The main risks are listed in order of severity (Gross and then Net risk) as assigned in consultation with key Council staff Actions that are required to achieve the desired improvements are indicated along with how progress on these actions will be monitored and reported. Where applicable, Action tasks will detail timeframes for achievement, and responsibility for these actions. Table 7: Asset Management Risk Action Plan Solid waste Risk Reference Risk Descriptor Nature of Risk What are the main types of impact resulting from this risk event? Gross Risk Net Risk Management Options Available What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? Risk Owner (Title) Who has the responsibility and ability to follow through? Risk Appetite Accept or Prioritise Accept = Current Practice, P1 = Urgent, P2 = Routine Pinpoint Management Actions Defined actions to be programmed and resourced under the direction of the risk owner Monitoring / Reporting Which forums and systems will monitor the action and receive progress reports (reference improvement plan/ project numbers) Timeframe Define programme for action completion/ implementation Costs / Resources Where possible, allocate $ amounts and staff time required for action Future Risk What Residual risk score could be achieved if actions are implemented? SLW10 Moderate Natural Hazards (minor earthquake/landslips/ major storm event) Inability to minimize effects Environmental Public Health Operational Financial / Economic C H Incident Response Plan Critical assets identified for networks, maintenance regime based around these (currently under review) Currently reviewing critical hazard for each critical asset Water and Waste Services Manager Criteria for new critical infrastructure construction SLW05 Inadequate contract / SLA management (network maintenance and operations) Operational Financial / Economic Reputation/ Image Health and Safety C M Monitor customer feedback and trends Review and improve auditing procedures for contracts Improved KPIs Training staff in maintaining and enhancing technical skills of operators Water and Waste Services Manager Solid Waste Operations Manager Consider actions to ensure current practices remain effective Possible extension of Quality Management System Ensure new staff trained on internal Contract Management Manual SLW06 Inadequate contract / SLA management (capital works) Operational Financial / Economic Reputation/ Image Health and Safety C M Monitor customer feedback and trends Review and improve auditing procedures for contracts Improved KPIs Higher level of financial reporting and feedback now required Water and Waste Services Manager Solid Waste Operations Manager Consider actions to ensure current practices remain effective Ensure new staff trained on internal Contract Management Manual SLW08 Non-compliance with legislation and legal requirements Operational Financial / Economic Reputation/ Image Health and Safety C M Regional Plan One Plan requirements becoming more stringent Solid Waste Operations Manager Water and Waste Services Manager Consider actions to ensure current practices remain effective SLW02 Lack of Skilled Staff Resources Operational Financial / Economic Reputation / Image H M Review & report situational risk profile at key intervals Water and Waste Services Manager Chief Executive SLW04 Failure to deliver on projects and programmes Operational Reputation/Image Financial / Economic Health and Safety Environmental Legislative H M Development of corporate processes and systems Reporting procedures for measuring performance External reviews and audits e.g. peer reviews Formalise requirements and project reporting for internal consultants Keep project scopes up to date Water and Waste Services Manager Solid Waste Operations Manager SLW07 Inadequate asset management not up to date, or insufficient quality of process and output. Operational Legislative Financial / Economic H M Continue to improve documentation around processes and practices External review Strategy to move to Advanced asset management status Water and Waste Services Manager SLW12 External Economic Influences Financial / Economic H M?? Water and Waste Services Manager Page 18 SOLID WASTE RISK MANAGEMENT January 2011

186 Risk Management Risk Descriptor Nature of Risk Management Options Available Risk Owner (Title) Risk Appetite Pinpoint Management Monitoring / Reporting Timeframe Costs / Resources Future Risk What are the What can we possibly do (brainstorm) to further reduce the Who has the Accept or Prioritise Actions Which forums and systems will Define programme for Where possible, allocate $ What Residual Risk Reference main types of impact resulting from this risk event? Gross Risk Net Risk risk level or provide assurance that current practices remain effective? responsibility and ability to follow through? Accept = Current Practice, P1 = Urgent, P2 = Routine Defined actions to be programmed and resourced under the direction of the risk owner monitor the action and receive progress reports (reference improvement plan/ project numbers) action completion/ implementation amounts and staff time required for action risk score could be achieved if actions are implemented? SLW15 Ineffective strategic planning (internal) Operational Financial / Economic Reputation / Image H M Continue current practices More City Networks input into district plan review Solid Waste Operations Manager Water and Waste Services Manager SLW16 Inadequate Communications and PR Management Reputation/ Image Operational Financial / Economic H M Improved presentation to public consultation forums (present the whole picture clearly) through consistent approach Water and Waste Services Manager Improved contract conditions regarding community interaction SLW18 Plant Equipment or Operations Failure Public Health Operational Financial Reputation / Image Environmental H M Operations manuals when machinery fully commissioned Programmed maintenance Develop formal reporting system Solid Waste Operations Manager SLW19 Lack of security at facility Financial Operational Health and Safety H M Develop further security options as site develops (e.g. electronic gate) Solid Waste Operations Manager SLW11 Lack of Political Alignment or inability of elected members to fulfil roles and responsibilities or disregard for community/staff views. Operational Reputation/ Image H L Continue to manage process through CEO / workshops Chief Executive Water and Waste Services Manager Consider actions to ensure current practices remain effective SLW14 Diminishing Funding Allocation Operational Financial / Economic H L Forecast likely scenarios regarding effects of budget changes including deferments Escalate issues to higher levels e.g. Lobbying Central Government Water and Waste Services Manager Consider actions to ensure current practices remain effective SLW17 Building or Structure failure Public Health Operational Financial Reputation / Image Environmental H L Better performance measures including Health & Safety and reporting Develop renewals programme for site infrastructure Develop operations and maintenance programme for buildings Solid Waste Operations Manager Consider actions to ensure current practices remain effective SLW22 Recycling receiving services no longer require materials Operational Financial Reputation/ Image Environmental H L Develop alternative uses for products Investigate new markets Water and Waste Services Manager Solid Waste Operations Manager Consider actions to ensure current practices remain effective Page 19 SOLID WASTE RISK MANAGEMENT January 2011

187 Appendix E 30 Year Financial Forecasts Appendix E. 30 Year Financial Forecasts 149

188

189 Appendix E 30 Year Financial Forecasts Table E1: Thirty Year Operating Expenditure Forecast OPERATIONAL EXPENDITURE ['000s] 2018/ / / / / / / / / / / / / / /33 Activity Management $1,098 $1,113 $1,134 $1,106 $1,110 $1,070 $1,099 $1,069 $1,113 $1,128 $1,129 $1,127 $1,155 $1,163 $1,098 Activity Delivery $5,164 $4,802 $4,822 $5,224 $5,232 $5,203 $5,210 $5,215 $5,220 $5,224 $5,228 $5,231 $5,234 $5,237 $5,240 Operating Programmes Sub-Total $6,262 $5,915 $5,956 $6,330 $6,342 $6,272 $6,309 $6,284 $6,333 $6,353 $6,357 $6,357 $6,389 $6,401 $6,339 Interest $406 $409 $403 $397 $383 $362 $338 $318 $293 $265 $239 $211 $187 $164 $139 Depreciation $918 $935 $951 $968 $985 $992 $999 $1,006 $1,014 $1,015 $1,019 $1,027 $1,031 $1,035 $1,039 TOTAL OPERATNIG EXPENDITURE $7,586 $7,259 $7,310 $7,694 $7,710 $7,626 $7,646 $7,609 $7,640 $7,633 $7,615 $7,596 $7,607 $7,599 $7,517 OPERATIONAL EXPENDITURE ['000s] 2033/ / / / / / / / / / / / / / /48 Activity Management $1,093 $1,100 $1,085 $1,109 $1,085 $1,088 $1,103 $1,088 $1,091 $1,044 $1,022 $1,037 $963 $963 $966 Activity Delivery $5,244 $5,252 $5,260 $5,268 $5,276 $5,285 $5,293 $5,301 $5,309 $5,318 $5,326 $5,334 $5,217 $5,220 $5,224 Operating Programmes Sub-Total $6,336 $6,352 $6,345 $6,378 $6,362 $6,372 $6,396 $6,389 $6,400 $6,362 $6,348 $6,371 $6,180 $6,183 $6,189 Interest $117 $92 $65 $46 $33 $23 $27 $27 $21 $20 $18 $21 $27 $32 $42 Depreciation $1,043 $1,039 $1,026 $1,013 $1,000 $996 $991 $987 $983 $978 $974 $973 $971 $970 $969 TOTAL OPERATNIG EXPENDITURE $7,496 $7,483 $7,435 $7,437 $7,394 $7,391 $7,414 $7,403 $7,404 $7,360 $7,340 $7,365 $7,178 $7,185 $7,

190 Appendix C Activity Performance Measures Table E2: Thirty Year Renewal Expenditure Forecast RENEWAL EXPENDITURE ['000s] 2018/ / / / / / / / / / / / / / /33 Landfill Management 185-Awapuni Resource Recovery Park & Rubbish Transfer Stations - Roading, Drainage and Infrastructure Replacements $141 $74 $90 $20 $42 $25 $315 $336 $15 $43 $20 $45 $61 $50 $198 Landfill Management Sub-Total $141 $74 $90 $20 $42 $25 $315 $336 $15 $43 $20 $45 $61 $50 $198 Waste Minimisation 612-Recycling - Wheelie Bin and Crate Replacements $74 $97 $133 $183 $251 $340 $446 $560 $754 $583 $504 $381 $261 $154 $ Recycling - Materials Recovery Facility Renewals $131 $129 $137 $129 $137 $88 $117 $83 $135 $98 $98 $145 $186 $94 $ City Wide Public Space Rubbish & Recycling Bins Renewals $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $ City Wide Public Recycling Facilitites Renewals $1 $2 $2 $2 $2 $2 $2 $4 $4 $5 $2 $2 $2 $2 $2 Waste Minimisation Sub-Total $221 $243 $287 $329 $405 $446 $580 $661 $908 $700 $619 $542 $464 $264 $304 TOTAL RENEWAL EXPENDITURE $362 $317 $377 $349 $447 $471 $895 $997 $923 $744 $639 $588 $525 $314 $

191 Appendix E 30 Year Financial Forecasts RENEWAL EXPENDITURE ['000s] 2033/ / / / / / / / / / / / / / /48 Landfill Management 185-Awapuni Resource Recovery Park & Rubbish Transfer Stations - Roading, Drainage and Infrastructure Replacements $20 $13 $655 $597 $57 $15 $189 $25 $55 $15 $5 $0 $0 $5 $37 Landfill Management Sub-Total $20 $13 $655 $597 $57 $15 $189 $25 $55 $15 $5 $0 $0 $5 $37 Waste Minimisation 612-Recycling - Wheelie Bin and Crate Replacements $193 $225 $267 $316 $371 $419 $470 $508 $527 $505 $457 $401 $344 $298 $ Recycling - Materials Recovery Facility Renewals $51 $127 $138 $101 $116 $146 $108 $164 $55 $121 $109 $92 $155 $151 $ City Wide Public Space Rubbish & Recycling Bins Renewals $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $ City Wide Public Recycling Facilities Renewals $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 Waste Minimisation Sub-Total $261 $370 $422 $434 $503 $583 $595 $689 $599 $643 $584 $510 $516 $466 $374 TOTAL RENEWAL EXPENDITURE $281 $383 $1,077 $1,031 $560 $598 $784 $714 $653 $658 $589 $510 $516 $471 $

192 Appendix C Activity Performance Measures Table E3: Thirty Year Capital New Expenditure Forecast CAPITAL NEW EXPENDITURE ['000s] 2018/ / / / / / / / / / / / / / /33 Landfill Management 721-Awapuni Landfill - Landscaping $17 $17 $17 $17 $17 $17 $17 $17 $17 $17 $0 $0 $0 $0 $ Closed Landfills and Transfer Stations - Site Infrastructure $50 $44 $50 $25 $0 $10 $0 $0 $10 $0 $0 $10 $0 $0 $10 Landfill Management Sub-Total $67 $61 $67 $42 $17 $27 $17 $17 $27 $17 $0 $10 $0 $0 $10 Waste Minimisation 506-City Wide Public Space Rubbish & Recycling Bins $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $15 $15 $15 $15 $ Recycling - City Wide Wheelie Bins and Crates to Additional Properties $56 $56 $56 $56 $56 $56 $56 $56 $56 $56 $39 $39 $39 $39 $ City Wide Public Recycling Facilities $44 $40 $38 $42 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Recycling - Recycling Bins and Crates to Non Residential Properties $0 $140 $143 $143 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $ C/fwd - Recycling - Install RFID Tags on Existing Recycling Wheelie Bins $300 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Waste Minimisation Sub-Total $57 $51 $51 $51 $51 $51 $44 $44 $44 $44 $44 $38 $38 $38 $38 TOTAL CAPITAL NEW EXPENDITURE $517 $347 $354 $333 $126 $136 $126 $126 $136 $126 $57 $67 $57 $57 $67 154

193 Appendix E 30 Year Financial Forecasts CAPITAL NEW EXPENDITURE ['000s] 2033/ / / / / / / / / / / / / / /48 Landfill Management 721-Awapuni Landfill - Landscaping $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Closed Landfills and Transfer Stations - Site Infrastructure $0 $0 $10 $0 $0 $10 $0 $0 $10 $0 $0 $10 $0 $0 $10 Landfill Management Sub-Total $0 $0 $10 $0 $0 $10 $0 $0 $10 $0 $0 $10 $0 $0 $10 Waste Minimisation 506-City Wide Public Space Rubbish & Recycling Bins $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $15 $1 657-Recycling - City Wide Wheelie Bins and Crates to Additional Properties $33 $33 $33 $33 $33 $26 $26 $26 $26 $26 $20 $20 $20 $20 $ City Wide Public Recycling Facilities $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $ Recycling - Recycling Bins and Crates to Non Residential Properties $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $ C/fwd - Recycling - Install RFID Tags on Existing Recycling Wheelie Bins $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Waste Minimisation Sub-Total $51 $51 $51 $51 $51 $44 $44 $44 $44 $44 $38 $38 $38 $38 $24 TOTAL CAPITAL NEW EXPENDITURE $51 $51 $61 $51 $51 $54 $44 $44 $54 $44 $38 $48 $38 $38 $34 155

194

195 Appendix F Asset Lives Appendix F. Asset Lives 157

196 Appendix F - Asset Lives 158

197 Appendix F Asset Lives Table F1: Expected Asset Lives Item Description Expected Asset Life [yrs.] Building structures Portable site buildings 20 Concrete slabs, walkways etc. 100 Kerb and channel 100 Road sub-base Sealed pavement Stormwater, water wastewater pipes 120 Electrical and control equipment Overhead power lines 50 Security fencing and gates Wheelie bins and crates

198

199 Appendix G Asset Condition & Performance Grading Appendix G. Asset Condition & Performance Grading 161

200 Appendix G 162

201 Appendix G Asset Condition & Performance Grading Table 54: Condition Grading Criteria for Rubbish & Recycling Assets Grade Condition Definition 1. Excellent Sound design to current standards, all operable and well maintained. 2. Good As for grade 1, but not designed to current standards or showing wear and tear. Requires major renewal or replacement within the medium term. Deterioration causing minimal influence on performance. 3. Moderate Functionally sound components, acceptable but showing some signs of wear and tear with minor failures and some diminished efficiency. Deterioration beginning to be reflected in performance and a higher level of maintenance. 4. Poor Plant and/or components function but require a high level of maintenance to remain operational. Likely to cause a marked deterioration in performance in the medium term. Some asset replacement or rehabilitation needed within the short term. 5. Very Poor Plant and/or component effective life exceeded and excessive maintenance costs incurred. A high risk of breakdown or failure with a serious impact on performance. No residual life expectancy, requiring urgent replacement or rehabilitation. Table 55: Performance Grading Criteria for Rubbish & Recycling Assets Grade Performance Definition 1. Excellent Meets all design and statutory requirements at all times and in all conditions. For example, capacity exceeds maximum design demand, and adequate back-up facilities. 2. Good As grade 1, but with some minor shortcomings in non-critical aspects or under extreme operating conditions. For example, capacity meets maximum design demand and adequate back-up facilities. 3. Moderate Asset generally meeting design requirements with occasional failures in performance criteria under normal operating conditions. For example, capacity less than maximum design demand, or minor shortcomings in back-up facilities 4. Poor Asset with frequent failures in performance criteria under normal operating conditions. For example, capacity significantly less than maximum design demand, back-up facilities not fully adequate, or shortcomings in design (pipework, electrics, etc.). 5. Very Poor Asset substantially unable to meet performance criteria with very frequent failures against defined standards. For example, capacity significantly less than maximum design demand or flow, standby plant facilities not adequate, or shortcomings in design (pipework, electrics, etc.).

202

203 Appendix H Management and Reliability of Data Appendix H. Management and Reliability of Data

204

205 Appendix H Management and Reliability of Data Data & Information Management Asset Management Planning depends on drawing on many sources of data and information to formulate plans that quantify the programmes that are required to maintain the asset and provide the required level of service into the future. This section describes the main sources of information that contribute to the different aspects of asset management planning, setting out the source of that information, what it is used for, the quality of information required and how the data is maintained and kept up to date. The confidence and reliability of the data that lies behind the AM programmes is indicated in Table H1. Table H1: High Level Overview of Confidence and Reliability of Data Asset Management Processes Source of data & Information Use of Information Quality required for AMPs Maintenance and updating of data & information Demand Forecasting Growth projections population and household growth projections The City Future planning unit provides advice about population and household growth based on NZ Statistics Information, other professional advice and analysis of past Council data. Information is used to formulate a planning scenario for the development of residential and industrial areas. The identification of infrastructure investment in bins and crates is based on spatial projections of both the location and rate of growth provided by Council planners. Broad based information only is required that allows a credible 30yr plan to be drawn up and supports the development contribution calculations. Actual development can also be determined by the market at the time. The growth projections and planning scenario are revised every 3 years based on the most up to date information from NZ Statistics. Levels of Service Customer service data (for past 1-3 yrs) K-Base customer service request system Used to inform Council s LOS decision (identifies areas where LOS is not being met or particular service issues are arising. Key source of information on service performance compliance with Key KPIs. The data assists with identification of specific problem areas e.g. missed collections / high levels of contamination / illegal dumping Sufficient resolution to identify the main service issues and trends. Generally the last 1 to 2 years information is adequate On-going data being received

206 Appendix H Management and Reliability of Data Asset Management Processes Source of data & Information Use of Information Quality required for AMPs Maintenance and updating of data & information Submissions made to various Council processes Used to inform Council s LOS decision and as a check that particular service areas and initiatives have been identified. Part of ongoing Council process Used to inform campaigns to change behaviour e.g. illegal dumping / contamination of recycling collection Communitrak Survey undertaken periodically Used to inform Councillors about trends in customer satisfaction with services being delivered. Reputable survey Survey undertaken every 3 years Assists with Council s LOS decision making Performance measurement (KPIs) Used to monitor the delivery of the agreed level of service Continuous collection and analysis of KPI data particularly in respect of service delivery Asset Knowledge Asset age and physical attributes Asset Information System. (IPS) The rubbish and recycling database is considered 85% complete. This is core data that is the basis for building up accurate O&M, Renewal and Development Plans. It is also the basis for valuation of the asset. It is essential to good AM to know what assets need to be maintained and renewed. Accurate information with regard to the physical attributes is important. A reliable date of construction at least to within 5 years is desirable and the date of deployment of the asset to the year. The AIS is continually being updated by the Asset Systems Officer as new information comes to light and as new assets are being built (As built plans). A dedicated officer maintains the system. Asset condition Information collected from surveys, inspections and maintenance records Used to identify faults and performance issues in critical assets for immediate resolution. Used to develop specific life estimates and projections of the renewal profile for non-critical assets Sufficient overall resolution of condition to reliable informs a 5 level grading system. Needs to be added to on a continuous basis. Physical inspection and condition assessments of critical assets to be undertaken on at least a 2 year cycle. CCTV inspection of buried assets to be completed every 10 years. 168

207 Appendix H Management and Reliability of Data Asset Management Processes Source of data & Information Use of Information Quality required for AMPs Maintenance and updating of data & information Asset performance Information from monitoring customer complaints and operations team Inform further investigation and fault finding to identify defects or performance issues. Needs to accurately identify the current situation Data needs to be continuous captured and recorded against the asset to provide an up to date record of issues Analysis of asset information From information collected & input into the AMS Renewal scheduling and profiling particularly for wheelie and street bin and crate assets where optimised replacement based on end of life can have a significant impact on renewal funding costs. RFID data can allow for more precise understanding of behaviour and rubbish and recycling volumes to optimise planning for service capacity increases. Spatial mapping of contamination and illegal dumping can help to pin-point patterns to identify strategic mitigation measures. Up to date Data needs to be logging and recorded continuously. Key to this is providing mobile solutions which allow field staff to update asset data and record issues directly they are identified. Analysis to be undertaken periodically ahead of key planning milestones e.g. LTP Service Delivery Procurement of work so as to provide service through operation and maintenance of the assets Previous information about the cost and scope of work done or assets built. Information about Internal service delivery stored in SLA system. Data about market prices and comparability of internal service delivery to be migrated to database in Benchmark Data is used to prepare engineer s estimates prior to seeking either internal or external prices. Data is critical for determining the market comparability of internal service delivery and whether external contract procurement is justified. Costs data is also used to value new assets and confirm asset valuations on an annual basis Up to date with latest prices and costs captured as soon as possible after work is completed Needs to be kept up to date given that the costs for constructing new infrastructure change rapidly in response to a range of external factors Programme Planning Data about programmes objectives, scope, timing, cost and risk, previous Programme Planning and Implementation Database (currently in Excel spreadsheets) Used to inform asset programmes for the asset management plan The database is based on a comprehensive template covering programme information The PPI database for each programme in the AMP is updated annually by the asset manager for each activity

208 Appendix H Management and Reliability of Data Asset Management Processes Source of data & Information Use of Information Quality required for AMPs Maintenance and updating of data & information investigation Development Plans (Strategy Plans, WMMP) Identify specific constraints and servicing challenges and sets out options for investment to mitigate effects. The data is critical to providing options for consideration by Council in respect of different levels of investment to meet different levels of service. Outlines consequences of not proceeding with investment. High level but with clear detail of assumptions used. Regular updating required at a frequency necessary to inform key planning and funding decision making e.g. 3 yearly to align with the LTP. Specific consultants reports Eumonia - Waste Assessment MWH Solid Waste Disposal Assessment Used to identify potential future work programmes to mitigate stormwater flood damage risks. Assisted with confirming renewal and minor capital improvement programme works included in the first three years of the LTP and 30 year programme. Snapshot of current and future challenges. Further work required to develop more nuanced assessment at a catchment level Need to be developed further and updated to improve justification for individual capital new programmes. Council s 10YP Used to inform changes adopted by the Council to previous AMP programmes High level estimates which are sufficient to deliver the programme of work given the risk profiles for each programme or activity. Through Council s annual budget and 10YP process & system Financial Planning Long term financial forecasts 30 year Infrastructure Plan Used to inform Council of future funding profiles, borrowing obligations and renewal funding issues. High level estimates with significant contingency based on optimised profiling of renewals and realistic assessment of new capital requirements. Three year updates ahead of Council s 10YP process Reliability and Confidence in Programmes The expenditure and programmes in this AMP Plan are based on the data sources described in Appendix X. Confidence that programme information is reliable depends on the accuracy of the input data sources upon which that programme is based. The following is an assessment of the overall confidence in the various data streams that input into programmes, including the demand drivers, growth projections, the condition and performance data and the estimating data used for the financial forecasts. Further work on this aspect is planned over the next 3 years with a data improvement plan project being included in the Improvement Plan. 170

209 Appendix H Management and Reliability of Data Definition of Data Confidence Rating Rating Description Processes Asset Data 5 Highly reliable/ Audited Strictly formal process for collecting and analysing data. Process is documented and always followed by all staff. Process is recognised by industry as best method of assessment. Very high level of data confidence. Data is believed to be % complete and + or - 5% accurate. Regular data audits verify high level of accuracy in data received. 4 Reliable/ Verified Strong process to collect data. May not be fully documented but usually undertaken by most staff. Good level of data confidence. Data is believed to be 80-95% complete and + or - 10% to15% accurate. Some minor data extrapolation or assumptions has been applied. Occasional data audits verify reasonable level of confidence. 3 Less Reliable Process to collect data established. May not be fully documented but usually undertaken by most staff. 2 Uncertain Semi -formal process usually followed. Poor documentation. Process to collect data followed about half the time. Average level of data confidence. Data is believed to be 50-80% complete and + or - 15to20% accurate. Some data extrapolation has been applied based on supported assumptions. Occasional data audits verify reasonable level of confidence. Not sure of data confidence, or data confidence is good for some data, but most of dataset is based on extrapolation of incomplete data set with unsupported assumptions. 1 Very uncertain Ad hoc procedures to collect data. Minimal or no process documentation. Process followed occasionally. Very low data confidence. Data based on very large unsupported assumptions, cursory inspection and analysis. Data may have been developed by extrapolation from small, unverified data sets. 0 No data No process exists to collect data. No data available. Please note that 'no data available' is different to collecting a legitimate data value of zero (0), where the data confidence could potentially be very high. Assessment of Confidence in Key data Inputs to AMP Data Confidence Assessment Comment Demand drivers Growth projections 3 Demand drivers in respect of rubbish and recycling services include: additional residential property growth Council policy in respect of mandatory service delivery to commercial sector uptake of commercial or optional recycling services national support for recycling and product stewardship underpinning the financial viability of the service and impacting on the cost of waste disposal 4 The growth projections are neither predictions nor forecasts. They are built on assumptions about future changes in population based on demographic trends and patterns and other factors. Variations in the economic cycle mean that it is inevitable that the actual rate of growth will be above or below the projected rate at different times in the economic cycle. Projections are reassessed every 3 years in the light of the information available at that time at which point the programmes based on the projections will be reassessed.

210 Appendix H Management and Reliability of Data Data Confidence Assessment Comment Asset useful lives 3 The current useful lives are based on either detailed condition assessment and experience of the life achieved on high wearing mechanical assets or experience from other TAs in respect of the typical life of wheelie bins and crates. On-going reassessment of the remaining useful lives will be required. MRF infrastructure such as buildings and buried services used industry standard lives from IIMI guidelines. Asset values 4 Asset values are based on the latest information for renewal and capital costs for assets purchased, renewed or created in the last two years. Where no work has been done cost estimates for work undertaken by local Councils within the region have been used. Condition of asset Performance of Network Operational forecasts Renewal forecasts Development forecasts 3 Asset condition assumptions are based on the condition of above ground assets from visual inspection e.g. roading and mechanical assets. Buried assets have not been inspected so scores are based on very limited information. 2 Recent failure of a number of key mechanical components of the MRF has highlighted the inadequacy of the condition information. Additional unforeseen issues with drainage and roading asset performance have also highlighted the need for more robust condition assessment. 2 Forecasts of operational costs are very uncertain due to the large uncertainty around revenue from sale of commodities, growing costs associated with managing contamination and illegal dumping as well as unforeseen compliance and maintenance costs.. 2 While additional funds have been allocated for the next 3 years to renew already identified portions of the network and critical items of plant and equipment, the longer terms projections for recurring renewal obligations are poorly developed. The key renewal cost is the renewal of the wheelie bin assets and the optimum life for these assets is poorly understood and highly variable as it depends on user behaviour. It is expected that with more condition information, additional renewal funding will be required in the next 3 year period, given that renewal investment is currently low 3 Current planning forecasts are considered robust and potentially overestimate the demand for new residential recycling services. The key uncertainty is in the uptake for services from the non-residential sector for whom use of Council services are optional. Heavy promotion of services has increased participation rates, however less than 50% of the non-residential sector contract use Council s R&R services. Reliability of Financial Forecasts Information for programmes in this plan are derived from the information that is input into the Programme Planning and Implementation database. This database provides for the estimating accuracy to be made of each programme together with the estimating rates on which the estimate is based. The types of estimates with their definition are as follows: Ballpark This is an order of magnitude estimate made in the early stages of a project based on high level comparative information Rough Order This applies in the early stages of feasibility using a top down approach but with better breakdown of the major components of work. 172

211 Appendix H Management and Reliability of Data Preliminary Work is reasonably well defined with more detailed knowledge of quantities and scope of work. Based on historic rates for construction Firm Engineers Estimate This is based on detailed design specification and drawings. information. Costing is based on market rate In this plan an assessment is made of the reliability of the financial forecasts based on the reliability of physical asset data, asset condition data, asset performance data and growth projections in Section 5.

212

213 Appendix I Six Year Asset Renewal Programme Appendix I. Six Year Asset Renewal Programme

214

215 Appendix I Six Year Asset Renewal Programme Table I1: Programme and Renewal Project List Programme and Renewal Project List 2018/19 [$] 2019/20 [$] 2020/21 [$] 2021/22 [$] 2022/23 [$] 2023/24 [$] 1368-City Wide Public Space Rubbish & Recycling Bins Renewals Reactive $15,000 $15,000 $15,000 $15,000 $15,000 $15, City Wide Public Recycling Facilities Renewals Minor and Reactive Works $1,000 $2,000 $2,000 $2,000 $2,000 $2, Closed Landfills and Transfer Stations - Site Infrastructure Renewals Information signs including road signage $3,000 Security gates - internal - drop off centre $1,250 Security gates - internal - steel store area $1,500 Building - sump pump $1,800 Weighbridge kiosk $103,63 4 Leachate manhole pump cables $1,500 Leachate pump $8,000 Minor reactive works $20,000 $20,000 $25,000 Trommel mulch screen $20,000 Ashhurst Closed Landfill extras $5,000 $5,000 AC reseal around weighbridge kiosk $49,475 Hydraulic Power Pack $30,000 Container Storage $10,000 Diesel Engine $50,000 Chip seal (820m 2 ) $3,690 Office (2.5m x 3.0m old container) $4,480 Fence (roadside deer fence with gates) $5,000 Surveillance cameras for loads $1,790 Surveillance cameras for site $5,820 Safety fence $16, Recycling - City Wide Wheelie Bin and Crate Renewals Reactive Wheelie Bin and Crate Replacements $73,566 $96,957 $132,77 2 $182,85 5 $250,64 3 $340, Recycling - Materials Recovery Facility Renewals Mobile Cage Replacement (two per year) $14,000 $14,000 $14,000 $14,000 $14,000 $14,000 Compactor Hydraulic Rams $15,000 $15,000

216 Appendix I Six Year Asset Renewal Programme Programme and Renewal Project List 2018/19 [$] 2019/20 [$] 2020/21 [$] 2021/22 [$] 2022/23 [$] 2023/24 [$] Fines Screen 1 Bearings $6,500 $6,500 Fines Screen 2 Chains & Sprockets $10,000 $10,000 Perforator Bearings $2,500 $2,500 Compactor Hydraulic Rams $15,000 $15,000 CV5 Return Bearings $650 $650 CV5 Return Housings $650 $650 CV8 Housing $650 $650 CV4 Drive Bearings $650 $650 CV8 Return Bearings $650 $650 CV4 Return Bearings $650 $650 CV8 Return Housings $650 $650 CV8 Drive Bearings $650 $650 CV5 Drive Bearings $650 $650 CV9 Drive Bearings $650 $650 CV9 Housing $650 $650 CV9 Return Bearings $650 $650 CV4 Housing $650 $650 CV9 Return Housings $650 $650 CV5 Housing $650 $650 CV4 Return Housings $650 $650 CV5 Return Bearings $650 $650 CV5 Return Housings $650 $650 CV8 Drive Bearings $650 $650 CV8 Housing $650 $650 CV4 Drive Bearings $650 $650 CV8 Return Bearings $650 $650 CV4 Return Bearings $650 $650 Perforators Spikes $4,500 CV10 Drum $3,500 CV10 Return Drum $3,000 Perforator Motors $9,000 CV10 Gear Box $9,000 CV10 Sprockets $3,500 CV10 Chain (Belt replacement) $40,500 Perforator Spikes $4,500 CV10 Drum $3,500 CV10 Return Drum $3,000 Metering Wheel Baffles $1,200 $1,

217 Appendix I Six Year Asset Renewal Programme Programme and Renewal Project List 2018/19 [$] 2019/20 [$] 2020/21 [$] 2021/22 [$] 2022/23 [$] 2023/24 [$] CV6 Return Housings $650 CV6 Housing $650 CV7 Housing $650 CV6 Return Bearings $650 CV7 Return Drum $3,000 CV6 Return Drum $3,000 CV7 Sprockets $3,500 Compactor Motors $25,000 CV6 Drive Bearings $650 CV6 Sprockets $3,500 CV6 Gear Box $9,000 CV7 Chain (Belt replacement) $25,000 CV7 Return Housings $650 CV6 Drum $3,500 CV7 Drive Bearings $650 CV6 Chain (Belt replacement) $20,500 CV7 Drum $3,500 CV7 Return Bearings $650 CV7 Gear Box $9,000 CV4 Return Drum $2,200 CV11 Return Bearings $650 CV3 Housing $650 CV3 Return Bearings $650 CV11 Return Housings $650 CV4 (Belt replacement) $5,500 CV12 Drive Bearings $650 CV4 Drum $2,500 CV10 Return Housings $650 CV11 Drive Bearings $650 CV1 Drive Bearings $650 CV11 Housing $650 CV4 Sprockets $3,500 CV3 Drive Bearings $650 CV1 Return Housings $650 CV3 Return Housings $650 CV5 Gear Box $3,500 CV 1 Housing $650 CV10 Drive Bearings $650

218 Appendix I Six Year Asset Renewal Programme Programme and Renewal Project List 2018/19 [$] 2019/20 [$] 2020/21 [$] 2021/22 [$] 2022/23 [$] 2023/24 [$] CV4 Gear Box $3,500 Compactor $35,000 CV 1 Return Bearings $650 CV10 Return Bearings $650 CV12 Housing $650 Baler Motor $10,000 CV12 Return Bearings $650 CV5 Drum $2,500 CV12 Return Housings $650 CV5 Sprockets $3,500 CV2 Drive Bearings $650 CV2 Return Housings $650 CV2 Housing $650 CV5 Return Drum $2,200 CV2 Return Bearings $650 CV5 (Belt replacement) $8,500 Magnet 1 $10,000 CV10 Housing $650 Magnet 2 $15,000 CV8 (Belt replacement) $13,000 Fines Screen 1 Motors $18,000 CV8 Drum $2,500 CV8 Gear Box $3,500 CV8 Sprockets $3,500 Baler Other $35,000 CV9 (Belt replacement) $11,000 CV8 Return Drum $2,200 CV9 Drum $2,500 CV9 Return Drum $2,200 Metering Wheel Bearings $650 CV9 Gear Box $3,500 Metering Wheel Housings $650 CV9 Sprockets $3,500 Paper Screen 2 Bearings $13,000 CV11 Return Drum $2,200 CV11 Drum $2,500 CV11 Gear Box $3,500 CV12 (Belt replacement) $11,

219 Appendix I Six Year Asset Renewal Programme Programme and Renewal Project List 2018/19 [$] 2019/20 [$] 2020/21 [$] 2021/22 [$] 2022/23 [$] 2023/24 [$] CV12 Sprockets $3,500 CV3 Sprockets $3,500 CV12 Drum $2,500 CV3 Return Drum $2,200 CV12 Gear Box $3,500 CV3 (Belt replacement) $6,500 CV3 Gear Box $3,500 CV12 Return Drum $2,200 CV11 Sprockets $3,500 Paper Screen 2 Motors $26,700 CV11 (Belt replacement) $8,500 CV3 Drum $2,500 CV 1 Chain (Belt replacement) $45,000 CV 1 Drum $3,500 CV1 Sprockets $3,500 CV 1 Gear Box $9,000 CV1 Return Drum $3,000

220

221 Appendix J Final Peer Review Appendix J. Final Peer Review Report Insert final peer review here

222 PNCC Asset Management Review Palmerston North City Council 16-Apr-2018 Asset Management Review AMP's 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

223 AECOM PNCC Asset Management Review Asset Management Review AMP's Quality Information Document Ref Date Prepared by Reviewed by Asset Management Review AMP's p:\605x\ \8. issued docs\8.1 reports\pncc 2017 amp review final.docx 16-Apr-2018 Stephen Garlick Ian Martin Revision History Rev Revision Date Details Name/Position Authorised Signature Draft A 21-Mar-2018 For Comment Ian Martin Regional Manager, Wellington Final 16-Apr-2018 Final Issue Ian Martin Regional Manager, Wellington 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

224 AECOM PNCC Asset Management Review Asset Management Review AMP's Appendix D Rubbish and Recycling AMP 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

225 AECOM PNCC Asset Management Review Asset Management Review AMP's D-1 Appendix D Rubbish and Recycling AMP PNCC AM Assessments 2018 AMP 2017 Rubbish and Recycling AMP Assessment Item 1 Alignment Score 3 Why is this important? Our Findings The purpose of organisations is to achieve organisational objectives. In the case of local authorities these are generally expressed as Community Outcomes (required by and LGA 2002) and in some cases separate organisational objectives sitting below the Community Outcomes. It is important that the management of asset based local authority activities (as set out in AMPs) is clearly aligned with and contributes to the achievement of organisational objectives. AMPs should also reflect the organisation s asset management policy and strategy (if there the organisation has these) and with the Infrastructure Strategy. Rubbish and Recycling AMPs (and in particular any works that receive government subsidy) should be consistent with and support the Government Policy Statement on Land Transport and the three strategic priorities forming part of the National Policy Statement PNCC has adopted the following 5 Strategic Goals (Community Outcomes) for the City: Goal 1: An innovative and growing city. Goal 2: A creative and exciting city. Goal 3: A connective and safe community. Goal 4: An eco-city. Goal 5: A driven and enabling Council. Table 1 is intended to set out how the Rubbish and Recycling Activity contribute to the goals adopted by Council for the City. However Goals for the City are not shown in this table. In this table the Activity is shown as contributing to Priorities 5,7,4 and 2. Although these Priorities may link to the Strategic Goals, this would probably not be apparent to most readers of the AMP. AMPs are founded on the services to be provided and the standards to be achieved in the provision of these services (Levels of Service). These Levels of Service should therefore be clearly aligned with and contribute to the achievement of the Community Outcomes. This is an issue Audit NZ have raised in audits of other organisations. The Levels of Service for the Rubbish and Recycling Activity set out in Table 7 cover the following service criteria: Quality and Health Reliability Accessibility Sustainability Financial Management. It is however a little difficult to see how these Levels of Service are aligned with and contribute to the achievement of City Goals (Community Outcomes) and therefore the Vision for the City. This is an issue Audit NZ have raised in audits of other organisations. The general alignment we would expect to see in the AMP is indicated in the following diagram. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

226 AECOM PNCC Asset Management Review Asset Management Review AMP's Continual Improvement Assets Performance 10 Year Plan (LTP) City Goals (Community Outcomes) Services to be Provided Target Standards (Levels of Service) Programmes o Management o Maintenance and Operations o Renewals o Development Financials Service Level Gaps One way that alignment between levels of service and Community Outcomes might be demonstrated is indicated in the diagram below (this is a water supply example) Details of this alignment are probably best appended. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A D-2

227 AECOM PNCC Asset Management Review Asset Management Review AMP's D-3 This aligns service criteria (in this diagram referred to as service aspect) with Community Outcomes which thereby ensures alignment of levels of service. It is the expectation of the LGA 2002 that everything the Council does can be readily identified as contributing to the achievement of Community Outcomes. The asset management process and alignment between the principal elements of asset management can be illustrated by the following diagram. Closing the loop on the asset management process involves measuring performance relative to what we set out to achieve and using this performance (performance gaps) as a basis for continual improvement. Current (2016/2017?) performance is shown relative to performance targets in Level of Service, Performance Measures & Targets Table 7 in Section 4.4 of the AMP. It is noted that the only KPI where the target level of performance was not fully achieved was: Number of reported incidences of illegal dumping does not increase. This presumably means that there is only one minor service gap and therefore minimal requirement for new capital investment in the Activity (apart from what may be required due to projected demand). Section covers Service Level Gaps. The following service level gaps are identified: The recycling drop off infrastructure requires refreshing and enhancement to reduce the servicing costs, increase security, and align with the recycling branding. Investment in the public space rubbish and recycling bins to introduce smart technology to improve the servicing efficiencies. Parts of the City do not receive the recycling service increase the serviced area for the kerbside recycling service to strengthen and improve the waste diversion targets for the City. If these are Service Level Gaps, then each identified Gap should clearly relate to a Level of Service and the performance of that Level of Service should indicate that there is a service gap. It is a little difficult to relate the Service Level Gaps in Section to the performance relative to the Levels of Service in Table 7 where it appears only one Level of Service was not fully achieved which begs the question, to what levels of service do the other identified Service Level Gaps relate? It would also be expected that service gaps would in turn feed into the lifecycle management programmes and in particular the Capital Development Programme. Development projects in Table 36 appear to generally reflect the Service Level Gaps in Section although this linkage should be made more explicit. Sections and of the AMP set out the Asset Management Policy and Strategy for Palmerston North City Council. The Rubbish and Recycling AMP reflects this Policy and Strategy. There are operational, renewal and development budgets derived from the lifecycle programmes in Sections 6.8, 6.9 and Difficulty was experienced in reconciling these with the Financial Forecasts in Appendix E. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

228 AECOM PNCC Asset Management Review Asset Management Review AMP's This table (Table 35 appears to omit Landfill Management. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A D-4

229 AECOM PNCC Asset Management Review Asset Management Review AMP's D-5 Opportunities for Improvement 1. Show more clearly the alignment between the Levels of Services set out in Section 4 of the AMP and the Activity Contribution to City Goals (as set out in Table 1) and therefore the City Goals (Community Outcomes). 2. Improve the alignment between service gaps arising from the assessment of performance relative to the Levels of Service Performance Targets set out in Table 7, the discussion of Performance & Service Level Gaps in Section and the capital development programme recognising that current and expected service gaps are the driver for new capital investment. 3. Improve the alignment between the budgets derived from the lifecycle programmes in Sections 6.8, 6.9 and 6.10 and the Financial Forecasts in Appendix E. 0 - Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

230 AECOM PNCC Asset Management Review Asset Management Review AMP's D-6 Assessment Item 2 Service statements and Levels of Service Score 3 Why is this important? Our Findings AMPs should be founded on a statement of what the plans are intended to achieve. This is generally a statement of the services to be provided through the plan, the standards to be achieved and the level of performance that is targeted. This should incorporate the mandatory performance measures required under the Non- Financial Performance Measures Rules Rubbish and Recycling AMPs should incorporate One Network Road Classification performance measures as appropriate. The justification for the target levels of service should be provided. Ideally this would include consideration of benefits and costs of different levels of service. Service statements represent the objectives that the AMP aims to achieve. It is important that these objectives are clearly aligned with organisational objectives (alignment should be demonstrated in the AMP). There is a good statement of the services to be provided through the Rubbish and Recycling Activity in Section 2.1 Activity Description. These services are: A household rubbish collection and disposal service; A recycling collection and processing service; A green waste drop off and processing service; One small rubbish transfer stations (RTS); Three recycling drop off points (RDOP); Public space rubbish and recycling services; Maintenance and after care of the former Awapuni Landfill, Ashhurst Landfill and the Closed Bunnythorpe Transfer Station; Support for various waste minimisation actions and initiatives. Section sets out Customer Segmentation & Target Outcomes. Customer segments identified in this section are: Residential Rural Residential Rural CBD Commercial/Industrial/Institutional Public Areas The services provided to each of these customer segments are described. These services appear to be consistent with those described in Section 2.1. Table 7: Customer Levels of Service, Performance Measures & Targets also identifies Customer Groups. These are: Residential users Residential users & commercial users Commercial users All residents All users While these are not inconsistent with the customer segments described in Section 2.1 it is desirable for customer segmentation to be consistent in different parts of the plan. There is a good range of Customer Performance Measures Set out in Table 7. Table 7 appears to be repeated as Table C1 in Appendix C. As indicated in Item 1 it is difficult to link the Levels of Service in Table 7 back to the Community Outcomes to which they contribute. Ideally performance targets would result from an analysis of the costs and benefits of different levels of service. It is unclear how performance targets were set and whether any analysis of the benefits and costs of different performance targets has been carried out. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

231 AECOM PNCC Asset Management Review Asset Management Review AMP's D-7 Opportunities for Improvement 4. Provide a commentary on how the target levels of service were set. Ideally this would include consideration of cost implications of different levels of service although a full benefit/cost analysis of different levels of service may not be justified. 0 - Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

232 AECOM PNCC Asset Management Review Asset Management Review AMP's D-8 Assessment Item 3 Future demand Score 2-3 Why is this important? Our Findings AMPs are strategic documents which take a long term view. It is important to identify the principal changes which are likely to impact on the plan over the term of the plan and take account of these changes in the plan. This involves identifying the principal drivers of change, assessing how these drivers are likely to change over the term of the plan and the overall impact on the plan. The AMP identifies 3 principal drivers of demand (5.1) for Rubbish and Recycling services. Growth and population Greater level of uptake by the commercial sector Changes in government policy There is an extensive discussion about different types of growth that are expected in the city. It is unclear from the AMP what is meant by Greater level of uptake by the commercial sector. It appears from the AMP that uptake could refer to uptake of land in new industrial or commercial zones or to uptake of waste minimisation and recovery initiatives. Changes in government policy that may impact on waste management in Palmerston North do not appear to be discussed, despite being identified as a driver of demand. Ideally there would be a 1:1 relationship between each of the identified drivers of demand and a discussion of how these drivers are expected to change over time. Despite the discussion of drivers of demand, there does not appear to be an actual demand projection in the AMP. The reader is left with the impression after reading Section 5 Growth and Demand So What What does this mean for the Rubbish & Recycling Activity going forward? It is accepted that it is difficult to quantify the effect of changes in demand on future waste management but the discussion on drivers of demand should lead to some form of conclusion that can be linked to the capital development programme. Opportunities for Improvement 5. Provide a demand projection (or projections) in the AMP 0 - Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

233 AECOM PNCC Asset Management Review Asset Management Review AMP's D-9 Assessment Item 4 Risk Score 3 Why is this important? Our Findings AMPs set out how organisations intend to work to achieve activity specific asset management objectives. It is important to also identify risks to the achievement of these objectives, ensure transparency of these risks and manage these risks within the risk appetite of the organisation. Risk should be an input to decision making. Risks are managed in accordance with a Corporate Risk Management Policy set out in Section and which supports a consistent approach to risk management across the organisation. This policy covers strategic, operational and project risks. There is a separate section (7.2) on Activity Risk Management. In Section 7.2.1, it is stated that the consequence of risk is evaluated in terms of: Legal Environmental Corporate Image Service delivery Financial Community Health and Safety. The detailed risk register was not appended. In 7.3, 5 sources of risk are identified: Operational failure Asset failure Natural disasters Events and incidents Project/ programme risks. The AMP states that the risk register identifies risks arising from these sources. While there is no issue with identifying risks in these 5 areas, it should be kept in mind that risks are uncertain future events that could impact on an organisation s ability to achieve its objectives. The AS/NZS ISO 31000:2009 Standard defines risk as the effect of uncertainty on objectives. Risks should therefore be identified in terms of objectives (Impact on objectives is what makes a risk a risk). This does not appear to have been done in the AMP. The point being made can be illustrated in the following example. If the question was asked Why is Building or structure failure a risk? (Table 40) an answer could be that it is obvious it is a risk. The answer should be that Building or structure failure is a risk because in the event of this occurring it would impact on the achievement of (name of) business objective(s). If Building or structure failure would not impact on any objective, then it would not be a risk to the Rubbish and Recycling Activity. Opportunities for Improvement 6. Ensure that all risks are identified in terms of the objective or objective they will impact on, recognising that it is impact on objectives which makes a risk a risk. In an AMP the objectives are generally the levels of service. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

234 AECOM PNCC Asset Management Review Asset Management Review AMP's D Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

235 AECOM PNCC Asset Management Review Asset Management Review AMP's D-11 Assessment Item 5 Critical assets Score 2-3 Why is this important? Our Findings Critical assets are those with a high consequence of failure. It is important that critical assets are identified using a defined and consistent methodology and that appropriate interventions are put in place (such as condition monitoring, replacement before failure, contingency planning, actions to reduce criticality) to minimise the risk of failure of critical assets. Asset Criticality is summarised in Section 7 Risks and Resilience and covered in more detail in In 7.2.3, critical assets are identified as those assets with the highest consequence of failure but not necessarily a high probability of failure. Criticality of Rubbish and Recycling assets is assessed using the following criteria: Numbers of people adversely affected; Significant business activity interrupted; Consequential cost of failure; and Critical lifeline/disaster recovery asset. Other. Risk and criticality are linked. Whereas risk is a combination of consequence and probability, criticality is about consequence only. The AMP does not appear to state how consequence of activity risk is assessed (Appendix D. Risk Analysis Framework & Register is still to be completed) However in the other PNCC AMPs consequence of risk is generally assessed in terms of the following: Legal Environmental Corporate Image Service delivery Financial (Council) Financial (Community) Community Health and Safety In the interests of consistency, the same criteria as are used to assess consequence of risk should be used to assess criticality. The only asset assessed as critical is the Closed Awapuni Landfill (Table 38). Table 46 sets out the activities that will be carried out to manage the risk associated with the closed Awapuni Landfill. Opportunities for Improvement 7. Ensure alignment and consistency between assessments of criticality and assessments of risk by assessing consequence on the same basis for both risk and criticality. 0 - Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

236 AECOM PNCC Asset Management Review Asset Management Review AMP's D-12 Assessment Item 6 Justification for maintenance programmes Score 2-3 Why is this important? Our Findings Maintenance programmes are relied upon as a source of inputs to the Council s long term financial planning and the Council Long Term Plan. They should provide confidence that an appropriate level of maintenance is being carried out and that the ability to achieve service objectives and the service capability of the assets is not being compromised. Maintenance programmes should be subject to systematic decisionmaking processes to optimise these programmes Rubbish and Recycling AMPs should incorporate the NZTA Business Case Approach to ensuring appropriate and cost effective maintenance programmes. There should be a clear line of sight from the maintenance programmes in the AMP to the financial programmes in the LTP. The reasons and consequences of any inconsistencies between the AMP and the LTP should be stated Operation & Maintenance of Assets is set out in Section 6.8. Section sets out Operation & Maintenance Strategies. These strategies are intended to enable the Rubbish and Recycling assets meet required levels of service. Maintenance activities are intended to: Maintain operational functionality of the asset. Prevent premature deterioration of the asset. Maintenance strategies indicate maintenance is based on the criticality of the assets and falls into 3 broad categories Assets rated as High Criticality frequent inspection and high level of preventive maintenance. Assets rated as Medium or Low Criticality - inspected less frequently. Preventative maintenance and component renewals predominantly scheduled on a time basis. Assets rated as non-critical - rarely inspected and a run to failure approach is taken. Assets are repaired or replaced when required. Maintenance is carried out by the City Enterprises operations team in accordance with a number of Service Level Agreements. The level of planned maintenance is largely based on operator experience and manufacturers recommendations rather than any specific analysis to determine the most cost effective strategy for the Rubbish and Recycling assets. This appears a little inconsistent with the maintenance strategy stating maintenance is based on the criticality of the assets. It is unclear how PNCC verifies that firstly an adequate and secondly an optimum level of maintenance is being carried out. Table 33 sets out a 5 year projection Operations & Maintenance costs for the Rubbish and Recycling activity. The justification for these maintenance and operations budgets could be made clearer in the AMP. The maintenance and operations programme should explain this is what we need to do (and why) and these are the costs arising from that. The justification for the maintenance budgets could typically be something along the following lines: The budget has been derived from historic costs which have been established as being sufficient to carry out these activities and which have been amended as necessary to allow for changes in management activities and practices. The forecast for maintenance expenditure is based on assessments that: The overall condition of the Rubbish and Recycling assets will not change significantly over the next 15 years (see renewal strategies). There will be negligible additions or deletions to the Rubbish and Recycling assets. The level of maintenance required will not increase (and may decrease) reflecting an increase in the overall condition of the Rubbish and Recycling assets as a result of maintenance and asset renewal programmes. Opportunities for Improvement 8. Improve the justification for the budgets arising from the maintenance and operations programmes 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

237 AECOM PNCC Asset Management Review Asset Management Review AMP's D Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

238 AECOM PNCC Asset Management Review Asset Management Review AMP's D-14 Assessment Item 7 Justification for asset renewal programme Score 3 Why is this important? Our Findings Asset Renewal Programmes are relied upon as a source of inputs to the Council s long term financial planning and the Council Long Term Plan. They should provide confidence that an optimum level of asset renewal is being carried out which will maintain an acceptable level of service capability of the asset systems, while maximising the value to be obtained from investment in the assets, and that asset renewal programmes are cost effective. Renewal programmes should be subject to systematic decisionmaking processes (ODM) to optimise these programmes. Rubbish and Recycling AMPs should incorporate the NZTA Business Case Approach to ensuring appropriate and cost effective asset renewal programme. There should be a clear line of sight from the asset renewal programmes in the AMP to the financial programmes in the LTP. The reasons and consequences of any inconsistencies between the AMP and the LTP should be stated Section sets out Renewals Strategies for the Rubbish and Recycling assets. The general strategy is that renewal decisions will be made based on criticality, condition, and asset performance with asset failure determined by consideration of: Structural condition Capacity/Utilisation Obsolescence Cost or economic impact There is a long term renewal profile set out in Figure 29. This is primarily based on asset age relative to expected asset lives. It is noted that the long term renewal profile is very peaky reflecting the asset portfolio comprising a number of discrete relatively high value assets and that expenditure has been smoothed in the 30 year renewal forecast in Table E2. It is noted that proposed expenditure on renewals over the 30 year period of the financial forecasts appears to be significantly less than depreciation. While this simply reflects the condition and remaining life profiles of the assets, some additional commentary about this variance is desirable to dispel incorrect perceptions that an insufficient level of renewals is proposed. This is an issue that has been raised by Audit New Zealand in audits of other territorial authorities and should be addressed proactively in the AMP. Opportunities for Improvement 9. Provide additional commentary on the variance between depreciation and the asset renewal projection to provide assurance that an appropriate level of renewals is planned which will maintain the overall service capability of the Rubbish and Recycling infrastructure. 0 - Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

239 AECOM PNCC Asset Management Review Asset Management Review AMP's D-15 Assessment Item 8 Justification for asset development programme Score 2-3 Why is this important? Our Findings Asset Development Programmes are relied upon as a source of inputs to the Council s long term financial planning and the Council Long Term Plan. Asset Development Programmes close current and projected service gaps. They should provide confidence that an acceptable level of service capability will be maintained into the future. Asset development programmes should be subject to systematic decision-making processes (ODM) to optimise these programmes. Although the rate of closing service gaps is a political decision and is subject to competing demands for Council funding, it should be noted in the plans. Rubbish and Recycling AMPs should incorporate the NZTA Business Case Approach to ensuring appropriate and cost effective asset development programme. There should be a clear line of sight from the asset development programmes in the AMP to the financial programmes in the LTP. The reasons and consequences of any inconsistencies between the AMP and the LTP should be stated Section sets out Development Strategies for the Rubbish and Recycling assets. This provides for asset development proposals to be based on: The need to comply with Resource Consents Works required to remove, reduce, or mitigate high risks Works to support the objectives of the Waste Management and Minimisation Plan Works to reduce costs and improve efficiency Works required to maintain levels of service. The demand projection should also be a key input to Asset Development Decisions Service gaps are the primary driver of asset development. As the purpose of asset development is to close service gaps, it would be expected that development proposals would be linked to the following Service Level Gaps identified in Section 4.5.1: The recycling drop off infrastructure requires refreshing and enhancement to reduce the servicing costs, increase security, and align with the recycling branding. Investment in the public space rubbish and recycling bins to introduce smart technology to improve the servicing efficiencies. Parts of the City do not receive the recycling service increase the serviced area for the kerbside recycling service to strengthen and improve the waste diversion targets for the City. Although the Development Programme set out in Table 36 generally reflects the identified service gaps it is desirable for each development proposal to be more explicitly linked to a service gap (or gaps) Opportunities for Improvement 10. Provide a clearer link between each development proposal in the development programme and current and projected gaps between target LOS shown in Section 4 of the AMP and current service capability. 0 - Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

240 AECOM PNCC Asset Management Review Asset Management Review AMP's D-16 Assessment Item 9 Data Score 3 Why is this important? Our Findings Data supports fact based decision making, key asset management processes and performance measurement. It is important that organisations identify the data they require for these purposes, the quality of data they require, where they will obtain the data, and how they will manage and retrieve the data as required. They should also identify the quality of existing data relative to what is required and put in place a programme to improve data (where data quality gaps exist). This includes data on the assets, their condition and performance as well as other data needed to support business processes and decision making. The quality of asset management can only ever be as good as the quality of the underlying data. Data supports the entire asset management process. Appendix H covers Data Management which includes an assessment of the data required to support key asset management processes, together with the required quality of this data, data sources and data collection mechanisms and arrangements for data management, retrieval and analysis. Ideally there would be an analysis of gaps between the desired and current state of each data item which would then form the basis of a data improvement programme. Opportunities for Improvement 11. Develop a data improvement programme based on an analysis of gaps between the desired and current state of each data item. 0 - Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

241 AECOM PNCC Asset Management Review Asset Management Review AMP's D-17 Assessment Item 10 Confidence in programmes Score 2-3 Why is this important? Our Findings Programmes from AMPs are intended to support the sustainable long term provision of services. These programmes are relied upon as a source of inputs to the Council s long term financial planning and the Council Long Term Plan. It is therefore important that any issues with confidence in these programmes are known and disclosed. This typically involves identifying the inputs to the programmes and making an assessment of the accuracy of these inputs as a basis for estimating confidence in the programmes. The assessment should be documented. Section 9.3 sets out the system for assessing confidence in asset data used as a basis for the financial forecasts. Confidence levels are assessed for: (Table 50) Asset Data Confidence Asset Condition Data Asset Performance Data Demand/Growth Forecasts. The overall confidence level for rubbish and recycling assets has been assessed as B Reliable. Section 9.4 sets out an assessment of reliability of the financial forecasts in the AMP. Maintenance and renewal forecasts are assessed as reliable. Development forecasts are assessed as reliable for years 1-3 with confidence decreasing for longer term forecasts. Ideally the assessment of confidence in data in Section 9.3 would form the basis for the assessment of reliability of the financial forecasts in Section 9.4. How Section 9.4 Reliability of Financial Forecasts has been derived from Section 9.3 Confidence Levels could be made more explicit in the AMP. Confidence in programmes is also covered in Appendix I although this appendix does not appear to have been completed. It is useful to track actual variations from programmes over time as a reality check on assessments of confidence in the programmes. If for example the programmes are consistently coming in within +/- 10% of plan then this would confirm that an assessment of reliable is reasonable. Opportunities for Improvement 12. Set out more clearly in the AMP how Section 9.4 Reliability of Financial Forecasts has been derived from Section 9.3 Confidence Levels 13. Track historic variations between programmes and actuals to provide a reality check on assessments of confidence in the programmes 0 - Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

242 AECOM PNCC Asset Management Review Asset Management Review AMP's D-18 Assessment Item 11 Performance Measurement Score 2-3 Why is this important? Our Findings AMPs set out how organisations will work to achieve their activity specific asset management objectives. It is important to close the loop and measure performance relative to these objectives. This includes performance relative to mandatory performance measures required under the Non-Financial Performance Measures Rules 2013 Monitoring performance relative to objectives helps identify areas where improvements may be required and areas where organisations may be overperforming. There may be scope for cost savings in such areas. Monitoring performance helps organisations compare their performance with that of comparable organisations By monitoring performance over time organisations are able to identify trends which may indicate a need for intervention. Current (2016/2017) performance (where available) is monitored for each of the Customer Levels of Service in Table 7 (Section 4 Levels of Service) and in Appendix C. Activity Performance Measures. Performance targets are provided for each of the years 2018/19 to 2020/21 and for the period 2021 to Current performance provides a snapshot in time of performance and a pass/fail indication of whether targets are being achieved (and by how much). This is of limited value as it does not provide an indication of performance trends whether it is improving, staying constant or declining, expected future performance, or how performance compares with that of comparable organisations. Ideally, performance results would be presented in graphical form which shows historic performance trends, current performance, expected future performance, performance targets and how these are changing over time and an industry benchmark (where available). Presenting performance results in this form enables managers to quickly make informed decisions about the need for intervention and anticipate issues that may be developing. The indicative graphs below show how performance results are typically presented in this way. Once systems are setup, reporting performance in this way is not onerous. Ideally there would be a separate performance section in the AMP presenting performance in this way. This will help readers make informed judgements about how the activity is performing. The PNCC Roading AMP provides an excellent example of performance reporting. Opportunities for Improvement 14. Present performance relative to customer LOS in in graphical form in the AMP which shows historic performance trends, current performance, expected future performance, performance targets and how these are changing over time and an industry benchmark (where available). 15. Consider adding a separate section on performance to the AMP setting out performance as suggested in OFI 14 above 0 - Innocent 1 - Aware 2 - Developing 3 - Fully meets requirements 4 - Exceeds requirements The AMP does not demonstrate any The AMP complies with good industry awareness of this requirement practice The AMP does not currently address this requirement (or covers it in a minimal way) but demonstrates an intent to progress it The AMP partly complies with good industry practice and demonstrates an intent to achieve full compliance with good industry practice The AMP exceeds compliance with good industry practice 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A