Activity Summary: Sewerage and the Treatment and Disposal of Sewage

Transcription

1 Activity Summary: Sewerage and the Treatment and Disposal of Sewage Activity name Activity description Sewerage and the Treatment and Disposal of Sewage The Kaipara District Council operates six community wastewater schemes for: Dargaville; Glinks Gully; Kaiwaka; Te Kopuru; Mangawhai; and Maungaturoto. The Sewerage and the Treatment and Disposal of Sewage Activity focuses on protecting public and environmental health by collecting and treating wastewater prior to release into receiving environments. Council owns and maintains the wastewater service network covering: Collection and transfer of wastewater (reticulation); Pump station facilities; Treatment and storage of wastewater; and Discharge of treated wastewater into surrounding environments. Council s Sewerage and the Treatment and Disposal of Sewage Activity includes other responsibilities through their professional and physical works contracts. Council undertakes the following: Asset Management; Customer Services; Treatment Plant Operations and Maintenance; Capital and Refurbishment Programmes; and Consent Monitoring and Compliance. Page 1 of 13

2 2 Activity Profile: Sewerage and the Treatment and Disposal of Sewage Activity name Sewerage and the Treatment and Disposal of Sewage Level of Service Legal compliance with all Resource Consents for discharges into the environment from Council systems. The exception, provided for in the consent, is severe weather events and power failure; Services to customers from the six community wastewater schemes will be reliable and dependable; Extension of connections, disconnections to Council systems and exits from a scheme will be progressed where a business case shows benefits are in line with costs; We comply with Resource Consents except for Kaiwaka and Te Kopuru. Desludging of ponds will assist with compliance in the future and assist to avoid or mitigate any breaches of consent conditions; An extension of reticulation in Mangawhai is likely to be necessary to realise the full benefit from the investment already made; and Improvements are needed to the Asset Management Plan (AMP) to understand asset condition better and have an improved investment programme. Contribution to Community Outcomes Council wants to work with the people in Kaipara to make it a place where it s easy to live. When it s easy, it will be easy to do business here, easy to join in and easy to enjoy nature. The key issue for easy in this activity is affordability. A number of the schemes may become unaffordable in the future due to the level of renewals required to fix aging assets, and the declining population in some villages who need to pay for the work. To address this, Council is considering alternate ways of supplying this service to declining communities with aging infrastructure. Activity delivery model The preferred option is Core Activity In-house. Undertaking Core Activity In-house enables Council to take control of the professional services currently provided externally. There would be significant change from what we currently do, meaning: Management and Contract efficiencies Direct professional services provided internally Ownership of the asset. Page 2 of 13

3 Activity Profile: Sewerage and the Treatment and Disposal of Sewage 3 Activity name Sewerage and the Treatment and Disposal of Sewage The Kaipara District Council s Sewerage and the Treatment and Disposal of Sewage Activity functions through two key contracts whilst maintaining some asset management responsibilities in-house through Council s General Manager Infrastructure and Water Services Manager. The key external Contracts are: Operations and maintenance; carried out through a single multi-year Contract (Contract 527) that covers: o Day-to-day operations, inspections and planning o Responsive maintenance o Planned maintenance o Renewals (as requested) o Capital upgrades (as requested) o Resource consent reporting o Financial reporting o Asset data collection. The Operations Contract delivers the Lifecycle Management outcomes on a day-to-day basis. Professional Services; delivered through a separate multi-year Contract (Contract 666) that covers capital works. Service level issues The schemes in the west are getting old and require investment, especially in the aged pipe network. It may be unaffordable to continue to provide services with the current aging plant/pipes to declining communities with old schemes. Communities most affected include Te Kopuru and Glinks Gully. The current levels of service will be maintained for the next 3 years whilst further assessment of the infrastructure is undertaken. The trend towards higher and higher environmental standards of discharges may incur increased costs that communities will struggle to pay for. The MCWWS has unused plant capacity. Investigation is required to assess whether it is affordable to extend disposal and connection reticulation to use the full capacity of the plant. An Advisory Panel comprising six community members and two Commissioners have been appointed to consider if the reticulation network and disposal capacity should be extended to use more of the capacity of the plant. The business case for extension (or otherwise) will not be completed in time for inclusion in the Long Page 3 of 13

4 Activity Profile: Sewerage and the Treatment and Disposal of Sewage 4 Activity name Sewerage and the Treatment and Disposal of Sewage Term Plan for 2015/2025. To prepare for a decision that the extension should proceed, a budget allowance has been included in years 4-10 totalling $2.7m. This should not be read as a decision to extend. This is still to be decided. Risks The biggest risk is scheme failure because of the lack of investment in pipe renewals in the schemes reaching the end of their asset life. Funding source and rationale Funding: The sources of funding are from General Rates, Uniform Annual General Charges and ed Rates. ed Rates form the largest proportion of funding. Rationale: There has been a falling ratio from around 78% ed Rate in 2013/2014 to 68% ed Rate in 2015/2016. Those that use the system pay the greater costs that relate to the operation of the system. The increasing community share reflects that the entire community benefits environmentally through sewerage systems that function in accordance with their Resource Consents and that costsharing on this basis is appropriate. Key policy and statutory related cost drivers Local Government Act 2002 Resource Management Act 1991 Health Act 1956 Regional Policy Statement Regional Water and Soil Plan Regional Coastal Plan New Zealand Coastal Policy Statement National Policy Statement for Freshwater Management Wastewater Drainage Bylaw 2009 Trade Waste Bylaw 2009 The cost drivers are the necessary investment in capital plant, and compliance with ever-increasing environmental standards. Page 4 of 13

5 Activity Profile: Sewerage and the Treatment and Disposal of Sewage Sewerage and the Treatment and Disposal of Sewage Asset Valuations Community Treatment Plants Pump Stations Rising Mains (km) Gravity Lines (km) Points Connections Condition Dargaville ,932 Assessment programme commenced 2013/2014 Glinks Gully Assessment programme commenced 2013/2014 Kaiwaka Assessment programme commenced 2013/2014 Maungaturoto Assessment programme commenced 2013/2014 Te Kopuru Assessment programme commenced 2013/2014 Mangawhai ,870 Assessment programme commenced 2013/2014 Summary of Sewerage and the Treatment and Disposal of Sewage Asset Valuations Community Replacement Costs (including 2013/14 Reconciliation) $ Depreciated Replacement Cost $ Dargaville 18,663,775 7,581,385 Glinks Gully 257, ,503 Kaiwaka 1,797, ,643 Maungaturoto 5,793,851 3,310,426 Te Kopuru 1,956, ,089 Mangawhai 41,578,230 36,122,371 Total $70,046,391 $48,764,417 Page 5 of 13

6 6 Activity Profile: Sewerage and the Treatment and Disposal of Sewage Sewerage and Treatment and Disposal of Sewage - Performance Measures (Measures 1-4 are statutory requirements) Performance indicator/service level Annual Report 2013/2014 Annual Plan 2014/2015 LTP Year /2016 LTP Year /2017 LTP Year /2018 LTP Years / System and adequacy Legal compliance with all Resource Consents for discharges into the environment from Council systems. The exception, provided for in the consent, is severe weather events and power failure. Measured by The number of dry weather sewerage overflows from Council s sewerage systems, expressed per 1,000 sewerage connections to that sewerage system. The Resource Consent provides for severe weather events and power failure exceptions. 2 Discharge compliance Compliance with the Council s Resource Consents for discharge from its sewerage system. Measured by The number of abatement notices received by the Council in relation to its Resource Consents for discharge from its sewerage system. The number of infringement notices received by the Council in relation to its Resource Consents for discharge from its sewerage system. The number of enforcement orders received by the Council in relation to its Resource Consents for discharge from its sewerage system. Page 6 of 13

7 Performance indicator/service level Annual Report 2013/2014 Annual Plan 2014/2015 LTP Year /2016 LTP Year /2017 LTP Year /2018 LTP Years /2025 The number of convictions received by the Council in relation to its Resource Consents for discharge from its sewerage system. 3 Fault response times Where the Council attends to sewerage overflows resulting from a blockage or other fault in the Council s sewerage system. Measured by Attendance time: from the time that the Council receives notification to the time that service personnel reach the 1 hour 1 hour 1 hour 1 hour site. Resolution time: from the time that the Council receives 4 hours for 4 hours for 4 hours for 4 hours for notification to the time that service personnel confirm minor minor minor minor resolution of the blockage or other fault. 3 days for 3 days for 3 days for 3 days for significant significant significant significant 4 Customer satisfaction The total number of sewerage system complaints received by the Council. Measured by The total number of complaints received by the Council s s about sewage odour. Expressed per 1,000 sewerage connections to that sewerage system. Page 7 of 13

8 Performance indicator/service level Annual Report 2013/2014 Annual Plan 2014/2015 LTP Year /2016 LTP Year /2017 LTP Year /2018 LTP Years /2025 The total number of complaints received by the Council s s about sewerage system faults. Expressed per 1,000 sewerage connections to that sewerage system. The total number of complaints received by the Council s s about sewerage system. Expressed per 1,000 sewerage connections to that sewerage system. Council s response time to complaints regarding its s s 1 hour 1 hour 1 hour 1 hour sewerage system. Sewerage and the Treatment and Disposal of Sewage Significant Negative Effects Possible negative effects of this activity could include system failure or pipeline breakages that result in contamination of public waterways which results in an environmental or public health risk. Overflows of sewerage to waterways during heavy rainfall events may also be a negative effect. Council s Wastewater Asset Management Plan describes its wastewater assets and details the practices used to manage those assets which helps to reduce possible negative effects and risks; Overflows from the wastewater pumping stations to river/water bodies may result in the Northland Regional Council issuing an infringement notice; Council has installed a warning system at critical wastewater pumping stations to warn its operations staff before they overflow; and Failure of wastewater treatment plant in meeting the resource consent parameters may result in the Northland Regional Council issuing an infringement notice. Council measures performance of its wastewater treatment plants on a regular basis to monitor the treatment processes and ensuring compliance with the resource consents. Human Resources Activity Profile Sub Profile 30/06/14 FTE 2014/15 FTE 2015/16 FTE 2016/17 FTE 2017/18 FTE FTE Water Services Wastewater Page 8 of 13

9 Improvement Programme 2015/2025 Sewerage and the Treatment and Disposal of Sewage Year 1 Planned improvement/ change 2015/2016 CAPEX Improvement Project Cost estimate $ Dargaville: Renewals + pump station safety 429,000 Kaiwaka: Environmental compliance 2,500 Mangawhai: Effluent discharge + growth Maungaturoto: Renewal + environmental compliance + pump station safety Te Kopuru: Environmental compliance Total 485,000 25,500 2,500 $944,500 OPEX Improvement (as per Asset Management Improvement Programme Three Waters) Project Cost estimate $ Condition Assessment of wastewater continuation 80,000 Improvement of Asset Information System (AssetFinda) 50,000 Hydraulic modelling wastewater 35,000 Total $165,000 Year 2 Planned improvement/ change 2016/2017 CAPEX Improvement Project Cost estimate $ Dargaville: Renewals 430,000 Kaiwaka: Pond curtain + environmental compliance 42,500 Mangawhai: Additional capacity for growth 40,000 Maungaturoto: Renewal + environmental compliance Te Kopuru: environmental compliance Total 52,500 2,500 $567,500 Page 9 of 13

10 10 Activity Profile: Sewerage and the Treatment and Disposal of Sewage Year 3 Planned improvement/ change 2017/2018 Years 4-10 Planned improvement/ change 2018/2025 CAPEX Improvement Project Cost estimate Dargaville: Renewals 430,000 Kaiwaka: Environmental compliance 2,500 Mangawhai: Additional capacity for growth 40,000 Maungaturoto: Renewal + pump station storage + 52,500 Environmental compliance Total $525,000 Wastewater Capital Expenditure 2018/ / / / / / /25 Dargaville 270, , , , , , ,000 Glinks Gully 10,000 20, , Kaiwaka 2,500 80, , , ,000 Maungaturoto 12, , , , , , ,000 Te Kopuru 10,000 20,000-8,840 22,500 50,000 70,000 Page 10 of 13

11 11 Activity Profile: Sewerage and the Treatment and Disposal of Sewage Financial Information Sewerage and the Treatment and Disposal of Sewage Funding Impact Statement Operating For the period commencing: Annual Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 1 July $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Operating funding Sources of operating funding General rates, uniform annual general charges, rate penalties 1,891 2,729 2,538 2,586 2,978 3,001 2,474 3,219 3,064 3,098 3,387 ed rates (other than a targeted rate for water supply) 4,901 4,803 5,668 5,775 5,970 6,638 6,891 7,284 8,007 8,520 8,902 Subsidies and grants for operating purposes Fees, charges and targeted rates for water supply Internal charges and overheads recovered Local authorities fuel tax, fines, infringement fees and other receipts Application of operating funding Total operating funding 6,809 7,541 8,216 8,371 8,958 9,649 9,376 10,514 11,083 11,630 12,301 Payments to staff and suppliers 2,591 2,649 2,440 2,361 2,394 2,635 2,629 2,707 3,008 3,504 3,305 Finance Costs 3,375 3,706 3,672 3,685 3,315 3,239 3,211 3,159 3,108 3,043 3,053 Internal charges and overheads applied ,003 1,086 1,212 1,178 Other operating funding applications Total applications of operating funding 6,578 7,292 7,005 6,927 6,605 6,836 6,812 6,869 7,202 7,759 7,536 Surplus (deficit) of operating funding ,211 1,444 2,353 2,813 2,564 3,645 3,881 3,871 4,765 Page 11 of 13

12 12 Activity Profile: Sewerage and the Treatment and Disposal of Sewage Funding Impact Statement - Capital For the period commencing: Annual Plan Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 1 July $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 $'000 Capital funding Sources of capital funding Subsidies and grants for capital expenditure Development and financial contributions Increase (decrease) in debt , ,160-1,455-1,566-2,180 Gross proceeds from sale of assets Lump Sum Contributions Other dedicated capital funding Total sources of capital funding ,481 Applications of capital funding Capital Expenditure - to meet additional demand Capital Expenditure - to improve the level of service Capital Expenditure - to replace existing assets ,140 2,308 2,770 Increase (decrease) in reserves ,188 1, Increase (decrease) of investments Total applications of capital funding 585 1,173 1,045 1,164 1,408 2,465 2,692 3,020 3,002 2,942 3,284 Surplus (deficit) of capital funding ,211-1,444-2,353-2,813-2,564-3,645-3,881-3,871-4,765 Funding Balance Page 12 of 13

13 Activity Profile: Sewerage and the Treatment and Disposal of Sewage Capital Expenditure Programme Sewerage and the Treatment and Disposal of Sewage For the period commencing: Annual Plan Budget Budget Budget 1 July $'000 $'000 $'000 $'000 Dargaville Increase pump station capacity 99 Increase pump station capacity * 100 Pump station renewal Renewal of reticulation areas Renewal of reticulation areas * 150 Step screen at oxidation ponds 96 Various projects generated from 2013/14 Condition Assessment Glinks Gully Effluent flow meter 5 Kaiwaka Various projects generated from 2013/14 Condition Assessment 12 2 Pond curtain 45 Mangawhai Disposal system improvements and expansion Disposal system improvements and expansion * 280 Reticulation extension 143 Effluent discharge options 445 Maungaturoto Upgrade telemetry 10 Pipe renewal Upgrade telemetry 40 Treatment plant renewal Pump station storage 36 Te Kopuru Discharge monitoring mechanism 10 Minor safety improvements 2 2 Total 1,110 1, * Carried forward prior year Page 13 of 13