Stormwater Asset Management Plan

Transcription

1 Stormwater Asset Management Plan This Asset Management Plan (AMP) is based on the best information available at the time of completion in December 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 to inform the 10 Year Plan planning process. The authoritative programme of work that Council plans to implement will be that detailed 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: Robert van Bentum Dec 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 Stormwater Activity Activity Description Activity Issues Capacity Limits Demand Management Activity Rationale Key Relationships LGA Section 17A Review Significant Negative Effects of the Activity Significant Changes to the Activity Strategic Environment Internal Strategic Context Council Vision, Goals & Strategic Direction Infrastructure Strategy District Plan External Strategic Context Horizons Regional Council One Plan Statutory & Regulatory Requirements Local Bylaws Standards & Specifications Asset Management Policy and Strategy Asset Management Policy Asset Management Strategy Levels of Service Introduction Appropriate Performance Measures for the Stormwater Activity 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... 37

4 4.5.4 Service Level Gaps Key AMP Improvement Projects Relating to LoS 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 Projections or Patterns Sustainable Urban Drainage Systems Changes in Legislative and Regulatory Requirements Demand management Changes in Percentage Impervious Areas Changes in Land Use Type and Commercial Activity Sensitivity to Demand Changes Climate Change Impact on Demand Assets & Lifecycle Management Overview of Stormwater Network Assets Description of Assets Asset Hierarchy Stormwater Pipe, Culvert & Manhole Assets Asset Attributes Asset Condition Asset Capacity & Performance Stormwater Pump Station Assets Asset Attributes Asset Condition Asset Capacity & Performance The Stream & Channel Assets Including Outlets Asset Attributes Asset Condition Asset Capacity & Performance Activity Management Support Services Increases in Services (New Operating Programmes) Asset Systems Database Infor Public Sector (IPS) Network Hydraulic Modelling... 70

5 6.5.5 SCADA & Telemetry Systems Water Services Assessment Operation & Maintenance of Assets Overview Operation & Maintenance Strategies Operation & Maintenance Costs Operation of Stormwater Assets Maintenance of Stormwater Assets Operation and Maintenance Delivery Renewal of Assets Overview History of Renewals Expenditure Renewal Strategies Long Term Renewal Profile Delivery of Renewal Programme Development of Assets Overview Development Strategies Non Asset Programmes Development Programme Delivery of Development 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 Stormwater Activity Role of Activity as a Lifeline Utility Critical Assets Resilience Sources of Risk Reference Documents Key Risks to the Stormwater Activity Operational Failure... 96

6 7.3.2 Asset Failure Project & Planning Risks Natural Disasters Events & Incidents Resilience of Infrastructure to Natural Disaster Introduction Seismic Hazard Flooding Hazard Volcanic Hazard Other Natural Hazards Interdependencies Risk Management Strategy Risk Management Programme Civil Defence Preparedness Emergency Events Emergency Response Plan Business Continuity Plan Recovery Lifeline Utilities Coordination Risks and Resilience Improvement Plan Sustainability Eco City Strategy Climate Change Initiatives Approach Taken in This Plan Financial Projections & Trends Long Term Financial Forecast Asset Valuation Confidence Levels Reliability of Financial Forecasts Maintenance & Renewal Forecasts Development Forecasts Potential Effects of Uncertainty Funding Policy Operation & Maintenance Capital Renewal Capital Development Development Contributions

7 10 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 Resource Consents Continuous Improvement Overview Programme Planning and Implementation Project Status Development Works Planning Residential Growth & Industrial Growth Planning (Refer to Section 5) Risk and Resilience (refer to AMP Section 7) Council Strategies (refer to AMP Section 3) Renewal Works Planning Condition Data Operations & 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 Levels of Service Review AMP Improvement Plan (2017)

8 Appendices Appendix A. Glossary Appendix B. Requirements of the LGA 2002 Appendix C. Activity Performance Measures Appendix D. Risk Analysis/Framework & Register Appendix E. 30 Year Financial Forecasts Appendix F. Asset Lives Appendix G. Resource Consent Details Appendix H. Condition & Data Confidence Grading Descriptions Appendix I. Six Year Asset Renewal Programme Appendix J. Stormwater Catchments Appendix K. Management and Reliability of Data Appendix L. Final Peer Review Report

9 Table of Figures Figure 1: Planning and Processes Relationship within Council... 3 Figure 2: AMP Structure... 5 Figure 3: Stormwater Managed Areas... 9 Figure 4: Schematic Layout of a Stormwater Drainage System Figure 5: Map showing location of proposed residential development Figure 6: Map of NEIZ Infrastructure Roll Out Figure 7: Map of Existing Industrial Zone at Longburn Figure 8: Map of Spatial Extent of the Business Zones Figure 9: Stormwater Catchments Figure 10: Stormwater Pipe Length by Age Figure 11: Stormwater Pipe Length by Material Figure 12: Stormwater Pipe Length by Diameter Figure 13: Stormwater Pipe Reactive Maintenance Work Order History Figure 14: Stormwater Pipe Reactive Maintenance Work Order by Pipe Age Figure 15: Stormwater Pipe Reactive Maintenance Work Order by Diameter Figure 16: Stormwater Pump Stations Figure 17: IPS Screen Shot Figure 18: Field Inspector Screen Shot Figure 19: City Enterprises SW Service Delivery Structure Figure 20: Graph of Historical Stormwater Renewal Expenditure Figure 21: 50 Year Long Term Renewal Profile Figure 22: Risk Management Hierarchy Figure 23: Risk Management Process (AS/NZS ISO 31000:2009) Figure 24: Thirty Year Operation & Maintenance Expenditure Forecast Figure 25: Thirty Year Projected Renewals Expenditure Figure 26: Thirty Year Projected New Capital Expenditure

10 Table of Tables Table 1: Stormwater Assets Quantity & Value... 8 Table 2: Activity Linkages to City Goals Table 3: Activity Contribution to City Goals Table 4: AMP Linkages to the Infrastructure Strategy Table 5: Specific District Plan Provisions to Manage Stormwater Discharge Effects Table 6: Matters Raised at Councillor LoS Workshop Table 7: Level of Service Actions from Strategy Plans Table 8: Customer Level of Service, Performance Measures and Targets Table 9: Future Changes to Levels of Service Table 10: Population Projection for Palmerston North Table 11: Household Projection for Palmerston North Table 12: Residential Development Type Table 13: The staging and timing of residential greenfield areas Table 14: Definition of Asset Categories Table 15: Condition & Performance of Stormwater Collection System Table 16: Stormwater Pump Stations Table 17: Streams & Channels Asset Details Table 18: Activity Management Programme Forecast Expenditure Table 19: Operating Programmes Forecast Expenditure Table 20: IPS Data Accuracy & Completeness (2017) Table 21: Operations & Maintenance Forecast Expenditure (Next Five Years) Table 22: Current Operations & Maintenance SLA Costs Table 23: Summary of Historical Stormwater Renewals over Previous 10 Years Table 24: Life Expectancy of Stormwater Assets Table 25: Total Renewal Programme Forecast Expenditure Table 26: Examples of Stormwater Demand Management Strategies Table 27: Development Programme Expenditure Forecast Table 28: Summary of Operational Risks and Planned Mitigation Table 29: Resilience Definitions Table 30: Critical Assets Table 31: Key Operational Risks Table 32: Key Asset Failure Risks Table 33: Key Project Planning Risks Table 34: Other Events & Incidents Table 35: Resilience to Seismic Hazard Table 36: Resilience to Flooding Hazard Table 37: Resilience to Volcanic Hazard Table 38: Resilience to Other Hazards Table 39: Utility Services that the Stormwater Activity Depends on for Continuity of Service Table 40: Utility Services that Depend on the Stormwater Activity Assets Table 41: Risk Management Programme (30 years)

11 Table 42: Eco City Strategy Priorities & Plans Table 43: Asset Valuation for Stormwater Assets (30 June 2017) Table 44: Confidence Grading Description Table 45: Asset Data Confidence Indication Table 46: Improvement Programme

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13 Executive Summary EXECUTIVE SUMMARY Purpose of the Plan The purpose of this plan is to demonstrate how the stormwater assets are being managed so as to deliver stormwater services to the community in a sustainable and cost effective way. This plan details information about: The strategic outcomes that Council is seeking to achieve related to stormwater infrastructure. The level of service to be provided. The infrastructure that needs to be maintained, renewed and developed to meet the demands placed on it over the next 30 years. How stormwater services are to be provided. What funding is required to meet these demands. The associated risks. 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 stormwater assets in this plan are as follows: A reticulated stormwater system of pipes, pumping stations and channels (primary network) sufficient to cope with frequent rainfall events. A secondary stormwater system comprising swales, road, kerb and channel and both formal and informal overland flow paths sufficient to control stormwater from less frequent rainfall events. Stop banks along parts of the Kawau Stream and Pioneer Drain to protect lowlying properties from flooding under normal conditions. Planning and building controls to restrict building in high flood risk areas, require minimum floor levels and require mitigation of stormwater runoff effects to prevent stormwater entry to habitable buildings. Planning and policy initiatives to minimise stormwater quality and quantity effects at source. Gross pollutant traps or similar treatment devices to reduce debris and contaminant levels in stormwater discharge. The assets that contribute to providing these services are: Asset type Buried pipelines and culverts Stormwater sump, kerb and mains connections Quantity 285 km 163 km Manholes 5,271 Flood gated structures 90 Inlet / Outlet Structures 428 Channels (artificial) Stopbanks 21 km 14 km Pump Stations 15 Storage and treatment basins and protection works Drainage Reserve ha These assets have a replacement value of $246.5 million. Asset Condition & Performance While the stormwater network is reasonably extensive, the capacity and performance of the primary network varies widely, resulting in more frequent ponding and operation of the secondary system. Apart from some areas where there is no primary network or there is a significant capacity shortfall, the focus is not to build or upsize the pipe network to any great extent. Rather a targeted approach to mitigating stormwater flood damage resulting i

14 Executive Summary from stormwater entry to habitable buildings is proposed. Solutions may include large drainage capacity improvements or detention to manage stormwater runoff, however the priority will be based on the numbers of properties suffering flood damage. The maintenance regime has historically focussed on ensuring key above ground structures particularly gated outlets, open channels and water courses are maintained to operate reliably at their design capacity. Less attention has been given to the pipe network on the assumption that given most of the network is less than 50 years old there will be few significant condition or maintenance issues. However there is evidence of problems with the performance of the network in older parts of the town or where services are located in private land or at the back of properties. In addition there is uncertainty about the condition and performance of the large diameter buried pipes (>1200mm) and box culverts. Routine inspection of the large diameter pipes and culverts will be undertaken to verify condition assumptions, identify faults and ensure critical assets are performing at or close to their capacity. Historically renewal expenditure has been focussed on replacing the main buried drain south of the city along Ferguson Street. With this project complete, the focus will shift to known problem areas where there are performance issues. Recent higher intensity rainfall events have highlighted performance issues with some parts of the network. A number of smaller diameter services older than 40 years and located predominately in private property have been identified in need of renewal. A five year programming targeting these services has been scoped for detailed survey and investigation. While it is expected that the majority of the stormwater network is in good to very good condition, inspection and condition data for a representative cross-section of the network is required to confirm this. A key priority will be inspection of the large diameter (>1.8m diameter) pipes and culverts to confirm they are able to function optimally. Included in this review will be a condition survey of the Napier Road flume. While the stormwater pump stations are considered to be in good condition, detailed condition surveys particularly of the mechanical and electrical components are required to develop accurate renewal priorities. Renewal work will be undertaken in parallel with upgrades to telemetry and flow measurement as well as any seismic strengthening which is identified. The performance of the network is influenced by the pattern and frequency of high intensity rainfall events. With continuing infill development and a gradual increase in impervious surface along with the increasing rainfall intensities due to climate change, the primary pipe network will be at capacity more often, resulting in increased reliance on the secondary drainage pathways along roads, old water courses and overland flow paths. High level monitoring work in combination with investigation of specific localised ponding and flooding issues has highlighted a range of capacity issues within the existing network. These issues include areas where there is no Council primary network as well as insufficient primary network capacity to meet current and future growth requirements. Targeted upgrades to the network will be undertaken to address these 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. ii

15 Executive Summary Of particular importance 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 Three Waters Plan. The Infrastructure Plan sets expectations that infrastructure for stormwater will be provided ahead of development demand and will be sufficient to meet on-going urban intensification based on high rate growth targets set by Council. The Three Waters Plan focusses on managing the effects of growth and climate change on stormwater discharge volumes and quality as well as addressing existing flood damage risks. External Strategic Environment The external strategic environment is also of relevance in that the performance of the stormwater network is governed by legislative obligations and dependent on the management of receiving water courses which fall under the control of the Horizons Regional Council. The Building Act and Horizons One Plan set legislative and regulatory requirements and controls around development and the level of service from stormwater systems. The Building Code sets out a requirement for properties to be protected from stormwater inundation of habitable floors in events up to 1 in 100 years return period, while the One Plan does not allow for construction of habitable buildings in a flood risk zone. Given the uncertainty of climate and changing rainfall patterns, performance measures expressed in terms of return periods are considered problematic. AMP Response to the Strategic Context The approach taken in the AMP is to look to target an acceptable level of flood damage loss for the city such that only where properties are at risk of frequent and uninsurable flood damage loss, would Council consider options to invest in capital upgrades to reduce the flood risk. Aside from the targeted capacity upgrades which could include catchment storage the overall approach proposed is to mitigate and prevent stormwater runoff effects through a range of measures including: Detention and treatment of stormwater at the individual property level or within the development or growth area; Application of minimum floor levels for new properties as well as protection of overland flow paths; Implementation of building controls on hard stand and impervious surface coverage; and Setting requirements for use of water sensitive design solutions. Specific issues focussed on for the period and addressed in this plan are: Further development of the 2 D model to include 1 D elements in at risk catchments to identify properties at risk of flood damage with climate change; Use of modelling to undertake scenario assessment to identify potential mitigation options to reduce flood damage severity or frequency to inform capital improvement programmes; Mitigating the effects of infill development on stormwater discharge in at risk catchments by way of at source control measures and enhanced building controls; Improving stormwater quality in the most at risk areas through targeted interventions at source with property owners and in the local receiving network; and Providing cost effective stormwater infrastructure in new growth areas through water sensitive design approaches and construction of sustainable urban drainage systems. The benefits of addressing these problems and the consequences of not addressing them are outlined in the AMP. iii

16 Executive Summary Levels of Service This plan supports Council providing: Stormwater collection and monitoring systems which protect residential, industrial and commercial properties in the City from flooding of habitable buildings for all rainfall events up to a 1 in 100 year return period. Stormwater infrastructure which meets the growth requirements outlined by Council. Stormwater services which comply with regulatory and consenting requirements. LoS measures contained in Council s 10 Year Plan include a number of DIA mandatory performance measures. Work is continuing on determining more appropriate KPIs for the activity based around target levels of property loss and damage following flooding, expressed as $ per annum. The AMP also sets out both customer and technical levels of service in the areas of flood damage frequency and occurrence, responsiveness, consent compliance, fault and complaint occurrence and planning. Level of service is expected to change in the following areas over 30 years: Reduced incidence of network faults and performance issues identified within the network following proactive investment in inspection, condition assessment and renewals More frequent ponding and nuisance flooding in the road and in overland flow paths associated with more frequent operation of the secondary stormwater network due to climate change and additional stormwater runoff due to intensification Improved outcomes in respect of stormwater quality due to a greater focus on regulatory and physical controls to treat stormwater at or close to source Gradual improvement in the biodiversity and quality of the stormwater drainage reserves and waterways due to an investment by Council and the community in weed clearance, planting and maintenance Future Demand The main demand for stormwater services in the future will be driven by: Urban intensification, commercial and household growth. Climate change effects resulting in more frequent higher intensity rainfall events. Higher expectations around achievement of improvements in stormwater quality particularly in the urban streams and watercourses Community expectations that the stormwater drainage corridors will provide walking and cycling connectivity and greater biodiversity within the urban area. 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, with additional contributions from Aokautere, Hokowhitu, Napier Road, Flygers Line, Te Wanaka Road and Ashhurst. City West is assumed to meet growth requirements in the medium to longer term. Industrial growth requirements will be met mainly by the North East Industrial Zone and its extension as well as some existing land at Longburn. The demand for services is to be met through a combination of managing existing assets, upgrading of existing assets, providing new assets and demand management. The demand management approach to stormwater is to be delivered through implementing the actions outlined in the following Council Plans: District Plan Provisions for the Whakarongo and North East Industrial Extension Growth Areas Urban Residential Growth Strategy Specific Catchment Stormwater Management Plans (in development) iv

17 Executive Summary Lifecycle Management Stormwater assets are managed so as to deliver the required levels of service while minimising costs on a whole of life basis. Palmerston North is serviced by separate drainage systems for wastewater and stormwater run-off. While the main focus is the primary pipe and open channel network, the effective performance of the stormwater system relies heavily on the secondary system which includes the roading network and overland flow paths. Achieving Council s strategic outcomes at an affordable cost will rely on exercising more control and oversight of the secondary system and ensuring it can function effectively when required. The stormwater activity therefore relies heavily on the Roading Activity to maintain and renew the sumps, sump leads, grates and kerb and channel to deliver effective stormwater drainage performance. A significant proportion of property stormwater is discharged to the kerb and channel prior to being conveyed to the primary network. Important considerations in managing the stormwater services in combination with other assets include: Maintaining sumps and sump leads to ensure they can function effectively; Ensuring road design can accommodate the required volumes of overland flow without exacerbating property level flood damage impacts; and Ensuring overland flow paths are protected and free of obstruction. The maintenance and renewal plans maintain the service potential of the stormwater assets through the 30 year period while the development plan provides for the additional capacity for growth and added resilience to the system or programmes to achieve specific outcomes desired by the Council. Particular aspects and funding required for each of the plans are as follows: Policy and Planning Expenditure on policy and planning is predicted to continue at significant levels with key priorities during the period including: Advancing the city wide 2D stormwater modelling and scenario assessment work to provide greater detail at a catchment level; Completing policy and regulatory work to inform policy and plan changes to improve stormwater management; Undertaking critical asset condition assessment; and Targeting stormwater discharge quality improvements in sub-catchments with significant contaminant discharges. The programme also includes provision for an annual programme of CCTV inspection and condition grading for a representative crosssection of the network over the first 5 years of the AMP. Operations and Maintenance Plan The operation and maintenance expenditure profile is expected to rise over the first 8 to 10 years of the period and then fall away due to a reduction in pipe network maintenance as poorly performing parts of the stormwater network are renewed. Some of the savings are likely to be offset by additional maintenance costs for treatment systems and stormwater detention and attenuation ponds which are vested with Council. Current understanding of the cost of long term maintenance of dry and wet pond and wetland systems is limited and it is possible that O&M costs may need to rise to reflect the higher costs of these components of the network. Total 30 year Operational cost g forecasts (including operating programmes, activity management and activity delivery but excluding interest and depreciation) are $50M (on average $1.7M p.a.). Renewals Plan The renewals profile shows a higher level of renewal expenditure in the initial 5 to 8 years period associated with renewal of a backlog of currently identified problem pipe assets. v

18 Executive Summary Renewal funding requirements are then expected to drop. The renewals profile includes provisions for stream and drain renewals, minor pipe renewals and replacement of outlet, gate and other assets at risk of damage within the stream or river active discharge zone. Condition assessment work and detailed inspections may result in a revision of the renewal profile in the medium to long term. Renewal predictions over the 30 year period indicate funding levels after a higher level of investment in the first 6 years, falling to a steady level for the remainder of the period. Detailed CCTV and condition surveys of critical and representative portions of the network will be undertaken to verify the assumptions. Total 30 year Renewal forecast of $12M (on average $0.4M p.a.) Development Plan New capital expenditure comprises a combination of investment in infrastructure required for growth primarily in Whakarongo and the North East Industrial Area Extension and construction of new assets to mitigate the effects of flood damage in at risk areas of the network. A summary of the breakdown in the funding split between these two areas is outlined below. The spike in 2024/25 is associated with the assumed first stage of stormwater infrastructure investment required for the City West residential zone. Total 30 year Development forecast - $17M (on average $0.56M p.a.) Figure A: Thirty Year Projected Operations and Maintenance Millions $2.0 $1.5 $1.0 $0.5 $0.0 Renewals Operational Expenditure Stormwater Average Annual in 5 year bands I I I I I I I I I Figure B depicts projected renewal expenditure for the 30 year plan period. Renewals are significantly less than below depreciation due largely to most of the stormwater assets being in the early stage of the renewal profile such that only a small proportion of the stormwater assets will require renewal during the 30 year planning period. Based on the condition information to hand, it is also expected that many pipes will have lives considerably longer than the assumed median pipe age, thus spreading the renewal cost further. The renewals budget is higher in the first six years to fund replacement of a small number of poor condition small diameter pipes of 40 to 60 years of age typically located in private property easements. These pipes currently account for the majority of the service requests and service complaints. Figure B: 30 Year Projected Renewals Expenditure Financial Summary The following graphs show the projected operating and maintenance, renewals 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 years 1 to 30 of the plan. Millions $0.80 $0.60 $0.40 $0.20 $0.00 Renewal Expenditure Stormwater Average Annual in 5 year bands I I I I I I Operations and Maintenance Figure A depicts projected operation and maintenance expenditure excluding interest and depreciation for the 30 year period.. Renewal expenditure requirements in respect of the larger diameter pipes are assessed to be low and will be associated largely with remedying faults associated with installation vi

19 Executive Summary issues and third party service clashes or damage rectification. Capital Development The projected 30 year capital development expenditure profile is depicted in Figure C. It is comprised of an annual investment in capacity upgrades and attenuation solutions to mitigate flood damage and new stormwater infrastructure to service new growth areas. Financial forecasts are based on limited asset information so that extrapolation from existing information has been used. Projects in the first few years are more fully scoped than in later years. Figure C: 30 Year Projected New Capital Expenditure Thousands $1,500 $1,000 $500 $0 Capital New Expenditure Stormwater Risk and Resilience Average Annual in 5 year bands I I I I I Critical assets for the stormwater activity having the highest consequences should they fail are identified as: Stormwater pipes > 1.8m diameter (criticality assessed as High). Culverts (criticality assessed as Medium). Pump Stations (criticality assessed as Medium to High). Stopbanks (criticality assessed as medium). Other key risks for the activity as a whole are: Climate change. Non-compliance with legislation and legal requirements. Discharge of hazardous or dangerous contaminants to the stormwater network. Mechanical/electrical failure of stormwater pump station, stop banks and discharge structures. Ineffective project, programme, contract and asset management due to staff skill and knowledge gaps. Mitigation measures to address the above risks are outlined in this plan. The plan is also focussed on increasing the resilience of the infrastructure to natural hazards so as to minimize the extent of loss associated with flooding or habitable buildings. Initiatives in this plan that increase the resilience of the stormwater infrastructure include: Ensuring that new buildings are constructed with significant freeboard to meet predicted stormwater ponding levels allowing for climate change Implement requirements to provide detention storage and stormwater infiltration at source to reduce stormwater volumes and flows leaving properties Using 2D modelling of the stormwater system to inform the community of areas at risk of flood damage and working with them to develop strategies to limit the impact and loss Ensuring stormwater pump stations include provision for operation using mobile generation equipment and such equipment is available within Council. Data Management and Reliability The quality and completeness of the stormwater asset data is considered average given it is based on historical capture of asset data at the time of construction. Investment in physical and CCTV inspection of the critical buried pipe assets and a selection of the remainder of the network will provide an opportunity to audit the quality of the data for buried assets. Further initiatives are planned to improve the quality of asset data and its condition including: Development of a spatial data set for all the open channels and drains which includes a condition score to enable programming of renewal and major maintenance works vii

20 Executive Summary Routine physical inspections of all large diameter (>1.8 m dia) mains to identify condition and performance risks to enable these to be addressed immediately Spatial identification and categorisation of all outlet and in-channel structures Spatial mapping of all drainage reserves to enable more efficient management of routine vegetation mowing and management tasks 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 programme development to more effectively implement a sustainable development approach which utilises source detention and attenuation instead of investment in additional drainage capacity. Review demand projections on an on-going basis to ensure growth programmes meet requirements for capacity provision ahead of growth. Development of predictive modelling and risk based approaches to prioritise renewal programmes and better manage risks and costs in achieving the desired outcomes. On-going development of asset systems and collection and analysis of data to provide a more accurate assessment of the assets and their ability to meet the level of service. Resource planning to ensure the recruitment, retention and development of sufficient and suitably qualified staff. viii

21 Section 1 Overview 1 Overview 1.1 Purpose of This Plan This AMP is the basis for the Stormwater Activity planning. The objective of asset management is to: 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 Stormwater 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 Stormwater 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 Stormwater 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 Planning process, which will be the subject of a special public consultative procedure. The intention of this AMP is to set out Council Stormwater 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 Stormwater Activity along with interested members of the community. It covers the services that are provided from ownership through to 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 (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

22 Section 1 Overview Infrastructure Strategy: A local authority must, as part of its long-term plan, prepare and adopt an infrastructure strategy for a period of at least 30 consecutive financial years. The purpose of this strategy is to: 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. This AMP is an integral document in informing the Infrastructure Strategy. 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. Stormwater Catchment Management Plans: The first stage of modelling of stormwater runoff across the city has been completed. Further development of this 2 D modelling is planned for specific sub-catchments where flood risks have been identified. The modelling work will help to identify at risk properties and allow for scenario assessment of potential mitigation strategies. Alongside this, Council has started work on a review of receiving water quality in the urban streams and open drains. Together with an assessment of land use, this will be used to identify target areas for improved property level stormwater control, and at source treatment. Property level and catchment level stormwater management plans will be developed to guide interventions in each area and ensure the range of interventions considered is comprehensive. Horizons Regional Council One Plan: This plan is now the controlling document covering the quality of air, land, and water receiving environments. Horizons Regional Council is currently working through a stock take of stormwater discharges and their effects on the receiving environment to guide the policy and consenting approach in this area. 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

23 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 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 workshops. Assessment of growth and demand projections to determine future stormwater capacity 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 - November 2017). Internal Peer Review and finalisation of AMPs (Dec Jan 2018). External peer review (February 2018). 3

24 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 asset management 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 robust information. (Section 11) 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 how the level of service and strategic outcomes are achieved through managing and developing the assets. 4

25 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: AMP Structure 5

26 Section 1 Overview 6

27 Section 2 The Stormwater Activity 2 The Stormwater Activity This section sets out the services provided by the Stormwater Activity including: A description of the assets used to deliver the activity; The rationale for Council involvement and ownership of assets; The key relationships within Council The significant negative effects of the activity; and The significant changes in the activity since the last AMP. 2.1 Activity Description The key function of the stormwater activity is to provide for surface water collection and drainage which limits the risk of flooding of residential habitable dwellings and commercial buildings as well as limit the impact of stormwater discharges on the receiving environment in the urban areas of the City. Figure 3 depicts the City areas managed for stormwater drainage which now include the village settlements of Longburn and Bunnythorpe. The stormwater drainage system comprises both a primary system comprising a network of pipes and open drains designed to cope with surface runoff from frequent rainfall events of average intensity and a secondary overland flow network including roads, swales and informal drainage paths for less frequent and more intense rainfall events. In managing stormwater drainage localised ponding, informal storage basins and formal surface attenuation devices reduce peak flows by detaining stormwater until drainage networks and receiving water courses are able to cope with the flows. When the primary pipe system is at capacity, the secondary system must be able to cope with the additional stormwater drainage effectively if the flooding hazard to residential and commercial properties is to be mitigated. The sump, and kerb and channel assets are managed separately under the Stormwater Asset Management Plan. This combined network of a primary pipe network and secondary over-land flow network comprises the drainage network for all public and private property and comprises the following key components: A reticulated stormwater system of pipes, pumping stations and channels with varying capacity to minimise street flooding for frequent (2 to 5 year return period) rainfall events. A secondary stormwater system comprising swales, road kerb and channel and more informal overland flow paths through private property. In combination with the primary network this is intended to protect habitable buildings from flooding in all events up to a 100 year frequency. Note: The Horizons Regional Council Proposed One Plan requires a level of protection for any new structure, activity or critical infrastructure located in a floodway to be designed so that the adverse effects of a 1 in 200 flood event are avoided or mitigated). Local stopbanks, totalling 14 km in length along the following open water courses: the main stem of the Kawau Stream, downstream of the North Street confluence and upstream of Botanical Road; and Pioneer drain from Mangaone Stream to Mariner Street. 7

28 Section 2 The Stormwater Activity Planning and building controls such as restrictions on building in high flood risk areas, provision of temporary detention or storage attenuation and minimum floor heights for residential and commercial buildings. Programmes to minimise the entry of pollutants to the stormwater system through the use of water sensitive design incorporating at source diversion or contaminants to the sewer network or treatment by way of rain gardens, grass swales and treatment wetlands as part of flow attenuation facilities. Gross pollutant traps or similar treatment devices in the stormwater system designed to reduce the quantities of both debris and particulate contaminants that are conveyed to the stormwater drains and discharged to the receiving water courses. Planning and policy initiatives to require the mitigation of the stormwater quality and quantity effects of infill development in the face of more frequent short duration high intensity rainfall events due to climate change. This AMP covers the three broad categories of stormwater assets, namely: collection, pump stations and streams and drainage channels. The broad asset groups and their replacement values as at 30 th June 2017 are shown in the Table 1. Table 1: Stormwater Assets Quantity & Value Asset Type Quantity Replacement Value Pipelines Circular 275 km $136,558,367 Culverts 9 km $40,551,054 Manholes 5,271 $23,498,230 Mains Connections 24 km $ 4,075,370 Sumps connections 54 km $13,149,888 Kerb Connections 65 km $5,373,449 Flood Gated & Other Structures 90 $495,220 Inlet/Outlet Structures 428 $2,609,890 Storage Basins 6 $2,694,200 Channels (Artificial) 21 km $9,055,545 Land Drainage Stopbanks 14 km $2,503,950 Land Drainage Protection works 15 $2,938,250 Pump Stations 15 $2,529,830 Drainage Reserve Land 76,606 m2 $466,500 Total $246,499,743 8

29 Section 2 The Stormwater Activity Figure 3: Stormwater Managed Areas 9

30 Section 2 The Stormwater Activity The schematic layout of a typical stormwater drainage system is shown in Figure 4. Figure 4: Schematic Layout of a Stormwater Drainage System Although most of the City is urban in nature, there are adjoining rural areas where piped stormwater systems are not provided. Local stormwater disposal is usually acceptable in these areas due to the low density of development and the ability of the natural systems to accept additional stormwater runoff without significant impacts on the receiving environment. Where a piped stormwater network is available, the point of service or discharge for stormwater drainage is the property boundary. The Council owns and maintains all stormwater pipelines and public drains up to and including the point of service. All stormwater drains, pipework and plumbing upstream of the point of service and private watercourses within private property are owned by and are the responsibility of the property owner. This includes private pipelines discharging directly to watercourses. 2.2 Activity Issues Capacity Limits It is impractical and unaffordable to provide a primary stormwater system with the capacity to accommodate runoff from all rainfall events. Instead a primary network designed to provide for frequent rainfall events is combined with a secondary system comprising overland flow along roads or over designated overland flow paths is provided. Historically the indicative design standard adopted by Council for the primary stormwater system has been to handle runoff from a storm with a 5 year return period or with a 20% chance of being exceeded in any year. For more significant and less frequent rainfall events the expectation is that the secondary stormwater system will provide the additional capacity required to avoid flooding of habitable dwellings and commercial premises for up to a 1 in

31 Section 2 The Stormwater Activity year return period event. In practice for various reasons significant parts of the city have been provided with primary networks with much lower design capacities such that secondary flow networks operate on a number of occasions each year. There are a range of other factors which impact on the apparent performance and design capacity of the primary network including: the significant infill development occurring within the city which is resulting in significant increases in impervious surface areas and stormwater runoff volumes and rates of discharge to the existing stormwater pipe network; and the increase in the frequency and intensity of rainfall events due to climate change. Both of these factors are resulting in a decline in the apparent level of service of the primary network, or an increase in the frequency with which the overland flow of stormwater via the secondary network occurs. Because the level of flood protection that can be economically provided by the stormwater activity is, limited, a different approach is required to determine the optimum capacity of the system and how to provide for changing stormwater service demand. The approach proposed in this AMP comprises the following: the level of service to be provided by the primary pipe system shall as a minimum be sufficient to handle only frequent rainfall events of short duration which typically occur every year (i.e. 1 or 2 year ARI); - this is a potential change to the quoted LoS however reflects the status quo in many parts of the network the overall capacity of the stormwater system shall be the combined capacity of the primary and secondary stormwater network and wherever possible this shall meet the 1 in 100 year return period standard inclusive of climate change; - no change to LoS flooding risk mitigation shall be focussed on limiting the number of properties that suffer flood damage or the severity of flood damage associated with stormwater flowing through habitable residential or commercial dwellings for ARI events of up to 1 in 20 years; - this is a new LoS criteria not previously set new residential growth areas shall incorporate low impact design and sustainable urban design systems which effectively treat and limit stormwater flooding risks for the development, downstream catchments and receiving watercourses.- current requirement The specific level of services changes have yet to be finalised as the scoping of the approach will rely on the findings and scenario assessment undertaken using the 2-D modelling work which is well advanced. The modelling work is key to enabling identification and protection of key secondary flow paths and ponding areas. It is expected that the changes to level of service will be developed and consulted on as part of the next LoS review Demand Management Building Floor Level Control A key factor in effectively mitigating flood damage is to accurately identify flood risk areas and then restrict and control building activity by way of setting minimum floor levels for new dwellings or buildings. This is particularly important within infill development where older style timber piled housing is often replaced with concrete slab-on-ground dwellings. Without the setting of specific minimum floor levels supported by flood modelling work, new buildings will be typically constructed with a lower floor level than the original building resulting in an increased risk of flood damage. 11

32 Section 2 The Stormwater Activity In the absence of model derived water levels, a conservative approach to the setting of freeboard can address the risk particularly in flood plain or terrace areas such as are typical in much of the City and Ashhurst. Small differences in elevation of the building floor above the section and road will usually provide the necessary protection. For lower lying areas in the City particularly around old river features, more detailed site specific determination of flood levels is required. This is particularly important given the upsurge in building activity which is resulting in pressure to build on previously ignored areas of land which have inherent constraints often related to drainage. A key focus over the next 3 years will be formalising through the subdivision and building consent process, the requirement for stricter building floor level controls supported by the more robust modelling work currently underway. Site Specific Detention and Stormwater Attenuation While some enhancements to the primary stormwater network will also be advanced, a key focus will be improved sustainable management of stormwater by implementation of water sensitive design approaches in new industrial and residential growth areas. Section provides further information on non-asset, demand management programmes for the stormwater activity. 2.3 Activity Rationale Territorial authorities exist principally to supply services that help to promote the social, economic, environmental and cultural well-being of their communities. The services provided, and how they are provided, depend on the level of service required by the community. Council has identified the assets comprising the stormwater activity as a whole, as strategic assets owned by Council. Under the provisions of the Local Government Act 2002, Council cannot transfer ownership or control of a strategic asset, or construct, replace or abandon a strategic asset unless it has first consulted with the community and included the proposal in its operative Long Term Plan. In addition, the Health Act 1956 requires Local Authorities to provide sanitary works, the definition of which includes drainage works and includes all lands, buildings, and pipes used in connection with any such works. As a major contributor to stormwater runoff within the City, Council is committed to its present involvement in the stormwater activity. This AMP has been developed on the basis of continuing Council ownership of the stormwater assets. The AM objective adopted for the stormwater activity is: To provide a stormwater collection and monitoring system to protect residential, industrial and commercial properties in the City from flooding to the level of a 100 year flood. The services provided by the Stormwater activity contribute to the vision and goals adopted by Council for the City as summarised in Table 2. 12

33 Section 2 The Stormwater 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 Contribution Provide sustainable and cost effective stormwater services that meet the agreed level of service in advance of development Promote increased biodiversity and enhanced public access to drainage reserves and waterways through daylighting and native planting without compromising on drainage capacity Ensure open drains, waterways, culverts and screens are designed to minimise health and safety risks as well as provide safe walking and cycling corridors Adoption of more sustainable management of stormwater at source through requiring infiltration, detention and attenuation of stormwater as well as implementing appropriate treatment to remove significant contaminants Adoption of digital transformation technology where appropriate to enable more efficient operation and provide better customer service 2.4 Key Relationships In delivering stormwater services Council has a key responsibility to the customers and users of the service (residential, commercial and industrial) which takes the form of explicit levels of service and key performance indicators. Council has identified the need to improve communication with customers to clarify what Council s stormwater services can be expected deliver. There is currently insufficient understanding that effective functioning of the system depends on utilising roads and overland flow paths to convey stormwater during heavy rainfall events. In order to deliver effective stormwater services in the City, Council relies on working relationships with a number of key stakeholders including contractors, consultants and specialist service providers, including: City Enterprises, a service delivery unit of Council, who are engaged by City Networks as Council s contractor to provide reticulation network operation, maintenance and renewals services City Future, a planning unit of Council, who provide strategic planning services including development of growth forecasts and sustainable development strategies City Corporate, a unit of Council which provides financial and corporate services to Council including development of funding policies and financial forecasts Customer Services, a unit of Council, which provides regulatory and RMA planning services The Ministry of Health, who have statutory responsibility for public health issues in New Zealand including health related aspects of stormwater Horizons Regional Council (the operating arm of Manawatũ Wanganui Regional Council) who have an environmental, regulatory and monitoring role as a regional consent authority under the Resource Management Act. Responsibilities include the management of resource consents issued for the discharge of stormwater to land and water Local iwi formally represented by Rangitãne are in active partnership with PNCC with their views sought and accorded special significance as water related issues are of special cultural significance to Maori. 13

34 Section 2 The Stormwater Activity 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 decided to make the Stormwater activity exempt from an s17a review by 7 August It decided that a review of this activity before this time was not an effective use of Council resources so the review has been postponed. 2.6 Significant Negative Effects of the Activity There are a number of negative effects of the activity which Council is focussed on mitigating. These include: Flooding of habitable residential and commercial buildings resulting in financial loss associated with property damage and disruption to normal activities. Runoff from industrial and commercial areas, as well as pollution incidents resulting in contaminants with the potential to cause adverse effects in the receiving environment i.e. streams and the Manawatū River. The first flush of stormwater runoff following a dry period often contains significantly elevated levels of contaminants including sediments, oils, greases, metals and organic material. In rural areas, runoff may be contaminated with herbicides, pesticides, fertilisers and animal waste. Stormwater entry to the wastewater network through cross-connections and illegal connections resulting in high wet weather peak wastewater flows resulting in excess volumes of wastewater to be treated and potential detrimental impacts on the quality of treated effluent discharged. Pollution and contamination of the stormwater associated with cross-connections with the wastewater network resulting in contaminants entering the stormwater network and discharging to streams and the Manawatū River. Council is able to mitigate to varying degrees most of these potential negative effects by a mix of asset development work, demand management initiatives, regulatory and policy controls and the incorporation of features sympathetic to amenity and environmental values. Some of the specific measures are outlined below: To mitigate these potentially significant negative effects, Council is already undertaking or proposes the following additional programmes of work: Property damage due to flood events is being addressed by a range of measures including targeted capital works to address capacity constraints, effective building control to set minimum building floor levels, site specific detention and attenuation of stormwater in new growth areas and infill subdivision development in flood risk sub-catchments. Runoff from industrial areas with the potential for adverse stormwater contamination is managed through the building consenting and trade waste regulatory processes. Details of industrial premises with wash-down facilities, or undertaking activities with a high risk of generating contaminants (e.g. petrol filling stations) are recorded within a database, and the premises are routinely inspected by Council staff. Runoff is either directed to the wastewater system as trade waste, or to the stormwater system following treatment (e.g. via an oil & grit interceptor or other device). 14

35 Section 2 The Stormwater Activity Council has an emergency response plan to undertake mitigation works with Horizons Regional Council to clean-up pollution incidents. The number of incidents reported to Council can now be monitored through the KnowledgeBase (K-Base) database. Council is implementing a comprehensive programme of monitoring, inspection and corrective work to reduce the volume of stormwater infiltration and inflow into the wastewater system. The detail of this is described in Wastewater Asset Management Plan and is funded under Programme 1401 City Wide Infiltration and Inflow Investigations. Council monitoring of stream water quality at key watercourse sites on a regular basis as part of its state-of-the-environment monitoring and reporting to assist the development of city wide Stormwater Management Plan which will target high risk sites with the potential to discharge significant contaminants. Behaviour change initiatives within the community focussing on reducing illegal dumping, littering and discharging of hazardous substances into the stormwater system. 2.7 Significant Changes to the Activity The key change outlined in the plan is the development of a targeted approach to investing in capital new programmes to address flood damage risk. Rather than being focussed on achieving a specific return period performance the approach is based on identifying and prioritising investments based on their ability to mitigate damage loss due to stormwater entry to habitable buildings. This approach is designed to better target capital spending on areas with known flooding risks where practical mitigation measures can be identified. In addition a pro-active approach will be taken to the renewal of stormwater services with known performance and condition issues. In addition to targeting stormwater quality improvements in waterways with known significant contaminant discharges there is specific investment in enhancing the open waterways in the city to promote biodiversity and local aquatic flora and fauna. Detailed definition of, development of guidance and standards and implementation of sustainable water sensitive design approaches will continue to be the key focus for managing stormwater in all significant new growth area developments and in any significant infill development or redevelopment areas.. 15

36 Section 2 The Stormwater Activity 16

37 Section 3 Strategic Environment 3 Strategic Environment This section sets out the strategic environment within which the water supply is managed, outlining the: Internal Strategic Context (PNCC Vision, Goals, Strategies and Plans associated with the water supply) External Strategic Context (Legislative and national and regional environment, Statutory & Regulatory requirements, local bylaws and standards and specifications. Asset Management 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 connective 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 3. Table 3: Activity Contribution to City Goals City Goals City Strategies Priorities Strategy Plans An innovative and growing city City Development Strategy Create and enable opportunities for employment and growth Provide the right infrastructure at the right time 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 Strategic transport Parking 17

38 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 Biodiversity 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 Water Waste Energy Environmental education Carbon emissions reduction 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 Stormwater Activity supports Council achieving its strategic goals through the strategy plans identified in Table 3 as follows: Infrastructure Strategy The Local Government Act 2002 Amendment Act 2014 introduced a requirement for Council to prepare and adopt, as part of its Long Term Plan, an infrastructure strategy covering a 30 year planning period. This AMP is an integral document in informing the Infrastructure Strategy. Table 4 describes the linkages between this AMP and the component parts of the Infrastructure Strategy. Table 4: AMP Linkages to the Infrastructure Strategy Infrastructure Strategy s.101b LGA 2002 Asset Management Plan Paragraph No. Description Reference 2a & b Significant infrastructure issues & options Sections 4, 5, 6, 9 3a Renewals and replacements Sections 6, 9 3b Growth or decline Sections 5, 6, 9 3c Changes to LOS Sections 4, 6 3d Maintain or improve public health & environmental outcomes or mitigate adverse effects Sections 3, 4, 6, 7, 8, 9 3e Resilience of infrastructure relating to natural hazards Sections 6, 7, 9, 11 4a Estimates of capital and operating expenditure Section 9 18

39 Section 3 Strategic Environment Infrastructure Strategy s.101b LGA 2002 Asset Management Plan Paragraph No. Description Reference 4b Significant decisions about capital expenditure Sections 6, 9 4c & d Assumptions & uncertainty Section District Plan Palmerston North s District Plan provides for specific provisions to ensure stormwater is managed in an integrated manner to minimise the effects on the receiving environment both in terms of quantity and quality. The specific provisions are referenced in Table 5. Table 5: Specific District Plan Provisions to Manage Stormwater Discharge Effects District Plan Reference Section 7A Whakarongo Residential Area Objective 4 Stormwater Management Methods Sustainable Urban Design Systems and Low Impact Design Systems via Engineering Standards for Land Development Section 12 A North East Industrial Zone Objective 3 Policy 3.5 Manage adverse effects on the environment from inundation or the discharge of stormwater Rule R12A.8.3 Stormwater Detention Area 3.2 External Strategic Context Horizons Regional Council One Plan The sections of the Horizons One Plan with specific application to stormwater management and discharge include: Section 13 relating to Land use activities and biological diversity. Section 13 establishes specific rules which control discharges of water or contaminants namely rules 13-8 and Section 14.6 relating to stormwater discharges to land and water. Section 14.6 establishes specific rules which control stormwater discharges namely rules and for discharges of stormwater to surface water and land. Rule states: Discharges of stormwater to surface water and land [are] permitted [subject to the following] conditions/standards/terms: (a) The discharge must not include stormwater from any: (i) (ii) (iii) industrial or trade premises where hazardous substances stored or used may be entrained by the stormwater contaminated land where the contaminants of concern may be entrained by the stormwater operating quarry or mineral extraction site unless there is an interceptor system in place. 19

40 Section 3 Strategic Environment (b) (c) (d) (e) (f) (g) (h) The discharge must not cause or exacerbate the flooding of any other property. The activity must not cause erosion of any land or the bed of any water body beyond the point of discharge unless this is not practicably avoidable, in which case any erosion that occurs as a result of the discharge must be remedied as soon as practicable. There must be no discharge to any rare habitat, threatened habitat, at-risk habitat, or reach of river or its bed with a Schedule AB Value of Natural State. For discharges of stormwater onto or into land: (i) (ii) (iii) he discharge must be below a rate that would cause flooding outside the design discharge soakage area, except in rain events equivalent to or greater than the 10% annual exceedance probability design storm. Any exceedance must go into designated overland flow paths there must not be any overland flow resulting in a discharge to a natural surface water body, except in rain events equivalent to or greater than the 10% annual exceedance probability design storm the discharge must not contain concentrations of hazardous substances that are toxic to aquatic ecosystems, or accumulate in soil. For discharges of stormwater into surface water bodies the discharge must not cause any permanent reduction of the ability of the receiving water body or its bed to convey flood flows. For discharges of stormwater into surface water bodies the discharge must not cause, after reasonable mixing, any of the following effects in the receiving water body: (i) (ii) (iii) (iv) (v) the production of conspicuous oil or grease films, scums or foams, or floatable or suspended materials any conspicuous change in the colour or visual clarity of the receiving water any emission of objectionable odour the rendering of fresh water unsuitable for consumption by farm animals toxicity to aquatic ecosystems. The activity must not be to any historic heritage identified in any district plan or regional plan. Rule of states: Discharges of stormwater to surface water or land not complying with Rule [are a] restricted discretionary [activity subject to the following] conditions/standards/terms: (a) There must be no discharge to any rare habitat, threatened habitat, at-risk habitat, or reach of a river or its bed with a Schedule AB Value of Natural State. Rangitāne o Manawatū, as mana whenua, is explicitly recognised in the One Plan. Rangitāne o Manawatū has identified the Manawatū River from upstream of the Manawatū Gorge down to the Foxton Loop, including short reaches of the Pohangina at Ashhurst and the Oroua at Rangiotu as having a high density of cultural and historical sites of significance including wāhi tapu and taonga. These cultural sites would be negatively and potentially permanently harmed by some activities and consequently are given a high level of protection under the plan. Policies 2-1, 2-2 and 2-3 in Chapter 2 require the Regional Council and consent applicants to involve iwi in resource management processes, consult with, involve in monitoring processes and ensure protection of sites of cultural and historic significance. 20

41 Section 3 Strategic Environment Chapter 9 of the One Plan deals with Natural Hazards. In particular, Policies 9-1 and 9-2 introduce requirements for Territorial Authorities to identify floodways or other areas known to be inundated by a 0.5% AEP flood event in district plans and control land use activities in these areas to prevent establishment of any new structure or activity, or increase the scale of any existing structure or activity within a floodway unless: (i) (ii) (iii) there is a functional necessity to locate the structure or activity within such an area, and the structure or activity is designed so that the adverse effects of a 0.5% annual exceedance probability (AEP) (1 in 200 year) flood event on it are avoided or mitigated, and the structure or activity is designed so that adverse effects on the environment, including the functioning of the floodway, arising from the structure or activity during a flood event are avoided or mitigated. Policy 9-3 requires the avoidance of new critical infrastructure in an area likely to be inundated by a 1 in 200 year flood event except in defined circumstances. Policy 9-5 requires the Regional Council and Territorial Authorities to take a precautionary approach when assessing the effects of climate change and sea level rise on the scale and frequency of natural hazards with regard to, inter alia, stormwater discharges Statutory & Regulatory Requirements The key legislation relating to management of the Stormwater 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 3.2. Council is currently complying with all legislative requirements: Local Government Act 2002 incorporating Local Government Act 2002 Amendment Act 2014, 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 Amendment Act introduces a number of new measures. Of particular relevance, the 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. 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, which recognises that a well-functioning health and safety system relies on participation, leadership and accountability by government, business and works. The HSWA came into force on 4 April 2016 and sets out the principles, duties and rights in relation 21

42 Section 3 Strategic Environment to workplace health and safety. The New Zealand Transport Agency Guidelines Code of Practice for Temporary Traffic Management and the Local Road Supplement are the recognised standards for traffic management for maintenance and construction works on legal roads Building Act 2004 sets the 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 This Act 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 The Public Bodies Contracts Act confers on a local authority similar powers to enter contracts as enjoyed by corporate bodies or natural persons. Civil Defence and Emergency Management Act 2002 The Civil Defence and Emergency Management Act 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 The following Council By-laws are relevant to the management of Stormwater Activity assets: The Palmerston North Stormwater Drainage Bylaw 2015 Bylaw and Administration Manual were adopted by Council and came into force on 1 July The bylaw enables Council to ensure that stormwater is managed to promote sustainable urban drainage and protect the environment from the impacts of flooding, erosion and environmental pollution. It provides for improved control of stormwater discharges and formalises an obligation that pre-treatment devices be installed in all commercial/industrial operations that are/or have the potential to discharge contaminants to the stormwater network. It also gives Council the right to protect overland flow paths and stormwater infrastructure from any interference which might impact on the performance of the network Standards & Specifications The standards and specifications for all works to stormwater assets reflect the best current technologies, national standards and legislative requirements. All stormwater assets are operated, maintained and built in accordance with: PNCC Sanitary Sewerage and Stormwater Drainage Specification. PNCC Engineering Standards for Land Development. PNCC Policy for Road Openings and Reinstatement. New Zealand Building Code and Electrical Regulations. NZS 6101 'Classification of Hazardous Areas'. CCTV - New Zealand Pipe Inspection Manual. Appropriate industry best practices, technologies and the most recent version of national standards and legislative requirements. PNCC District Plan. Resource consents issued under the Resource Management Act

43 Section 3 Strategic Environment 3.3 Asset Management Policy and Strategy Asset Management Policy AM Policy Assets 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. 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 & 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 Asset Management 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. 23

44 Section 3 Strategic Environment 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 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. 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 KPIs to achieve alignment from the operational level to the 10 Year Plan KPIs. The move to measure and value service agreements with specific KPIs and formalised reporting will continue to enable outcomes to be measured and verified. 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. 24

45 Section 3 Strategic Environment 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; and 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. The transition to mobile electronic data collection and work order management and resolution will continue with the objective of eliminating paper based systems in the first year of the next AMP period. Asset management system functionality will be progressively developed to meet the requirements of advanced asset management planning. 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 KPI s will be reported through quarterly Annual Plan reports. Other LOS performance measures will be reported quarterly to the City Networks Executive Team (CNET). 25

46 Section 3 Strategic Environment 26

47 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, practical performance criteria 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; and To enable users to assess the suitability, affordability and equity of the services offered. Levels of service for the Stormwater Activity are based on: Strategic goals (See Section 3.1.2) - 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 3.3.1) - 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 4.3) - Information gained over the last 3 years on LoS from specific consultation, customer service requests, Annual Budget submissions and community surveys. The Department of Internal Affairs (DIA) mandatory measures were introduced in 2013 in order to establish a set of baseline data to enable performance to be measured comparatively between all Local Authorities in the country. 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 4.4 are expected to be included for community consultation in the consultation document 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. 27

48 Section 4 Levels of Service 4.2 Appropriate Performance Measures for the Stormwater Activity Levels of service in the stormwater activity have historically been based around setting a return period (e.g. 1 in 100 years) or an annual exceedance probability percentage (e.g. AEP %) for either the primary network or the overall stormwater system. While the obligation to meet such a standard remains via legislation such as for example the Building Act provisions, the practicality and relevance of setting and benchmarking performance against such a standard is problematic given the changing frequency of high intensity rainfall events and the recognition that building larger capacity stormwater networks is neither cost effective nor sustainable. As outlined in Section 7, Council is developing a new approach based on minimising levels of property loss or damage due to flooding of habitable buildings. This recognises that the purpose of stormwater infrastructure is to prevent flooding which results in property damage rather than simply prevent localised ponding or property level flooding which may be simply a function of the secondary network. In some areas of the city given the topography and proximity to the receiving water course, the current infrastructure is adequate for current and future needs with current standards and no change to the requirements or additional investment, while in other areas of the city existing properties are currently exposed to significant flood damage risk. The alternative level of service measures under development recognise that the susceptibility to flood damage risk varies within the city and requires a more nuanced approach than has been adopted to date.. Further 2D and 1D modelling work and scenario assessment is required to determine flood frequency for specific return events and using property floor level information the number of properties potentially at risk of flood damage from stormwater entry to habitable buildings. The number of properties at risk of flooding will be used as a proxy for the potential damage cost. Various scenarios will be scoped for a range of rainfall event durations and frequencies for different parts of the city. Where practical options to mitigate or reduce the flood impacts will be identified and costed. The goal is to develop a range of interventions and mitigations by catchment which delivers measurable reduction in flood damage loss. The specific options and the respective damage risk reduction information will be provided to Council to enable decisions to be made on the level of investment in the stormwater system. Council will set out level of service performance standards in the following areas: the performance of the existing pipe and channel network to ensure it is optimised through effective maintenance and timely renewal minimising complaints; LoS number of network defects and response times rainfall return periods for which the existing primary and secondary networks can function reliably without resulting in property damage on a catchment basis across the city; new LoS measures for each catchment the percentage of new properties, constructed since 2017, with minimum floor levels and appropriate stormwater mitigation that suffer flood damage from a 1 in 100 year return period rainfall event or less; LoS new building and resource consent processing KPI the percentage of new residential and commercial growth areas created by way of a plan change which include sustainable urban design approaches to limit stormwater runoff peak flows and provide treatment of all stormwater discharges for the worst case modelled 1 in 100 year return period rainfall event inclusive of climate change effects; compliance with all conditions and requirements of regional council issued stormwater discharge consents. 28

49 Section 4 Levels of Service Specific LoS measures still under development will be discussed with Council and the community during the first three years of the updated AMP to ensure any changes can be adopted for the next AMP review in The Department of Internal Affairs has established a number of mandatory performance measures to attempt to collect information around the performance of stormwater systems across various Territorial Authorities. Council, together with many other TAs, considers the validity of the measures to be flawed and has provided feedback to the DIA to that effect. While Council will continue to collect data to report on these measures they are not considered to provide a meaningful assessment of performance. Specific issues with the DIA measures are outlined as follows: The number of flooding events per year resulting in stormwater overflow entering a habitable floor in an urban area. The incidence of flood events is dependent on both climate variability and the capacity of the combined primary and secondary networks designed and maintained by Council. The number of habitable properties per 1,000 properties within urban stormwater service areas affected by a flood event. The key problem with this measure is that property owners are not required to advise Council of stormwater flooding damage, so that in any rain event Council will be made aware of only a small number of flood damage incidents where residents feel Council may have some responsibility for the flooding. 4.3 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 levels of service (LoS) options by the Council over a significant period of time. During 2005, an extensive level of service review was undertaken which engaged with a broad crosssection 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 levels of service. 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 levels of service received from the community through local, Communitrak surveys, service requests, 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 2005 and then largely to aesthetic matters such as the duration of ponding following rain events or waterlogging in poorly draining areas of the city. For this AMP level of service workshops were held with Councillors over March Information about the current level of service together with community feedback was presented to the Councillors. Councillors were asked to: Consider whether the current level of service was about right and what changes, if any, were required. Give direction on some specific LoS issues important to the activity. 29

50 Section 4 Levels of Service 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 6. Table 6: Matters Raised at Councillor LoS Workshop Matters raised at Councillor LOS workshops 23/24 March Reducing severity of stormwater flood damage to residential and commercial property Additional focus on stormwater treatment Amenity enhancement in selected waterways Bunnythorpe, Kawau, Mangaone How these are included in this AMP Development of new approach to stormwater LoS based on a mitigating flood damage levels in specific catchments. The target would be used to prioritise the level of investment in capital improvement works to reduce flood frequency in at risk areas (to be developed). Development of specific District Plan policy instruments to mandate stormwater effects mitigation at subdivision to ensure flood risks for existing properties are not exacerbated (to be developed). Flow attenuation and water quality treatment requirements to be mandated in all new residential and industrial areas through the plan change process (in place). Protection of overland flow paths and stormwater infrastructure through the Stormwater Drainage Bylaw (in place). Capital Improvement Plan Based on the 2-D modelling work in process and scenario assessment work, capital programmes are being scoped for enhancements to the stormwater network to mitigate flood damage risks for the highest priority areas. No further investment until the performance of the current devices has been reviewed. Stormwater management plans to be developed for water courses with significant contaminants by way of source control measures implemented via the Stormwater and Drainage Bylaw New programme of work pilot waterway biodiversity improvement in collaboration with community and iwi in selected locations of the stormwater network. As part of the development of Council s strategic direction a number of Strategy Plans were developed during July & August 2017 (see Section 3.1). Some of the actions set out in these Strategy Plans have level of service implications for this AMP. These are shown in Table 7. 30

51 Section 4 Levels of Service Table 7: Level of Service Actions from Strategy Plans LOS actions arising from Council Strategy Plans July August 2017 Specific initiatives in respect of the stormwater activity as captured in the Three Waters Plan How these are included in this AMP Day to Day Ongoing Actions Provide stormwater services that protect buildings from inundation from flooding in major events. Undertake cultural monitoring for infrastructure projects, especially those situated near waterways. Continue to comply with resource consent requirements. Improve the cultural and biodiversity values of our urban waterways. Acquire private land in urban waterway corridors where necessary. New On-going Actions Initiate a city-wide stormwater infiltration and inflow reduction programme to identify defects in the wastewater network that are susceptible to stormwater entry and repair as well as identifying and remedying sources of stormwater entry from private property to the wastewater network. Implement new stormwater capital works to reduce frequency of property damage due to frequent rainfall events. Specific New Programmes Amend District Plan to require water sensitive design solutions and runoff mitigation for all new development in flood prone catchments (by 2019). Review the Development Contributions Policy to incentivise water-sensitive design practices for new developments (by 2019). Map cultural values of urban waterways (by 2021). Smart City Practices Create smart infrastructure networks to improve monitoring e.g. through the use of sensor technology. Build and maintain calibrated computer models for water, wastewater and stormwater to better analyse infrastructure opportunities and constraints. Use GIS to interpret stormwater modelling to inform District Plan zoning decisions and resource consent applications. Use GIS to map sites of importance/significance to iwi and community. Sustainable Practices Work to restore the mauri of urban waterways. Require water sensitive design for all new development to reduce environmental impact on urban waterways. Iwi Partnerships Collaborate with iwi on the urban waterway improvement projects. Work with iwi to map sites of significance and cultural value. Strategic Partnerships Work collaboratively with Horizons Regional Council on the urban waterway project. Work with Environment Network Manawatū to identify urban waterways that are of community importance. Specific Measures of success Stormwater discharges to the Manawatū River comply with resource consent requirements. Stormwater network minimises the extent of property loss in majority of rainfall events. Urban waterways are thriving ecosystems. 31

52 Section 4 Levels of Service 4.4 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. 4.5 Current and Future Levels of Service & Performance Measures Customer Segmentation & Target Outcomes Users of stormwater services have been segmented by broad customer type. The services provided for each are set out in Table Key Performance Indicators Target levels of service for the stormwater activity are shown in Table 8. Programmes that contribute to the above Levels of Service (LoS) include operations and maintenance, renewals and capital development. Refer to Sections 6.6.3, 6.7.5, and In order to demonstrate that the performance measures have been achieved it is necessary to define specific performance criteria relating to numeric values for stormwater quality, quantity and reliability of supply. Details of how the performance measures are monitored and assessed can be found in Appendix C. As outlined in section 4.2, work is on-going to develop further KPIs and refine existing KPIs to better align the performance of the stormwater services with both community expectations and Council s funding priorities. Specific KPIs in development include: Refinement of the existing LoS KPIs measuring both number of defects in the network and response times to resolve and address these. Catchment based rainfall return periods setting target performance for the existing primary and secondary networks without resulting in property damage to replace the single measure for the entire city; new LoS measure. Council compliance with the requirement that 100% of new properties, constructed since 2017, are permitted with minimum floor levels and/or appropriate stormwater mitigation to ensure they are free from flood damage risk for all events up to and including 1 in 100 year return period - new KPI. Council compliance with the requirement that all new residential and commercial growth areas created by way of a plan change incorporate sustainable urban design approaches to limit stormwater runoff peak flows and provide treatment of all stormwater discharges for the worst case modelled 1 in 100 year return period rainfall event inclusive of climate change effects. 32

53 Section 4 Levels of Service Table 8: Customer Level of Service, Performance Measures and Targets Key Service Criteria User Group (e.g. All, commercial, residential, pedestrians etc.) Customer Level of Service Customer Performance Measure Current Target Current Performance Future Performance Targets 2018/ / / Quality and Health Residential and commercial property owners and occupiers in urban areas connected to the Council s stormwater system The Council provides protection of habitable buildings in urban areas from flooding in major flood events. Goals 1, 3 and 4 The number of flooding events per annum resulting in stormwater overflow entering a habitable floor in an urban area. 1 The number of habitable floors per 1,000 per annum properties within urban stormwater service areas affected by a flood event resulting in water entering a habitable floor. 1 No more than 2 No event No more than 5 No more than 2 (60 properties in total) No event No more than 2 (60 propert ies in total) No more than 5 No more than 2 No more than 5 No more than 2 No more than 5 No more than 2 Reliability, Serviceability or Performance All residents in urban areas connected to the Council s stormwater system The Council provides a reliable stormwater collection service Goals 1 and 5 The number of complaints received about the performance of the Council s urban stormwater system per 1,000 properties connected per annum calculated for a rolling 12 month period. 1 No more than 15 (420 complaints per annum) 17 No more than 15 No more than 15 No more than 15 No more than 15 1 DIA mandatory measure 33

54 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 Target Current Performance Future Performance Targets 2018/ / / The Council responds to failures and request for service in a prompt and efficient way Goal 5. Median response time to attend to a flooding event, from the time notification is received to the time service personnel reach the site (flood event is one resulting in stormwater entering habitable building. 1 < 2 hours No event < 2 hours < 2 hours < 2 hours < 2 hours Accessibility Residential and commercial property owners and occupiers in urban areas connected to the Council s stormwater system The Council provides stormwater collection service to residential and commercial areas of the City Goals 1, 3 and 4. Properties within the designated stormwater service area are able to connect to the stormwater network. At least 95% 100% At least 95% At least 95% At least 95% At least 95% Sustainability All ratepayers Compliance with resource consent conditions for discharge from the Councils urban stormwater system that relate to environmental effects Number of abatement 0 Target met notices. 2 Number of infringement notices. 0 Target met Goal 4. Number of enforcement orders. Number of successful prosecutions against the Council in relation to stormwater resource consents. 0 Target met Target met DIA mandatory measure

55 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 Target Current Performance Future Performance Targets 2018/ / / All ratepayers The Council maintains and develops a stormwater services to meet current and future agreed levels of service. A 30-year asset management plan is in place for the stormwater activity. AMP in place and key projects be identified 30 Year asset management plan adopted by the Council in September 2013 AMP in place and key projects be identified AMP in place and key projects be identified AMP in place and key projects be identified AMP in place and key projects be identified Goals 1, 3, 4 and 5 Financial Management All ratepayers The Council manages its stormwater activity in a financially sustainable way Work programme is achieved within budget. 100% Target met 100% 100% 100% 100% Goals 4 and 5 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. 35

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57 Section 4 Levels of Service Future Changes to Levels of Service The anticipated changes to the current levels of service over the next thirty years are summarised in Table 9. Table 9: 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 Move to a new LoS criteria based around limiting Annual Average Damage for the network expressed in $000 per annum. Focus efforts on the areas with the greatest potential benefits in terms of reduced losses due to flooding. Cost effective way of targeting stormwater infrastructure investment. Target stormwater capital works in areas where AAD can be cost effectively reduced. Admission that not all properties at risk of flooding can be or should be mitigated. Targeted investment in stormwater improvements. Implement stormwater quality LoS targets based around improvements in high risk catchments in response to Horizons Regional Council push to achieve receiving water quality improvements. Targeted improvements to stormwater quality in the areas with the greatest problem and the greatest opportunity for improvement. Stormwater treatment is most cost effective if implemented at source. Treatment capital and operational cost are high for network devices. Include biodiversity outcomes in the operation and management of selected streams and water courses. Promote awareness and engagement of the community in the stormwater network. Additional operational programme budget required however contributions in kind available from third parties and other parts of Council. In the next thirty years Council anticipates changes to the level of service in the following areas: The Horizons Regional Council One Plan seeks to moderate the impact of stormwater discharges on the receiving environment. A regional approach to improved management of stormwater will be required. This will require Council to develop Stormwater Management Plans which set out performance targets and actions to achieve stormwater quality improvements. This may lead to a requirement for specific resource consents from high risk catchments and work with private property owners to ensure compliance with the Stormwater Drainage Bylaw through implementing site specific stormwater management plans. Continuing community pressure to reduce the incidence of flood damage and reduce extended ponding following rain events may necessitate strategic capacity upgrades to the stormwater network. The increasing frequency of high intensity rainfall events due to climate change will result in more frequent and extended ponding and a higher flood damage risk. This will require more robust assessment and mitigation of stormwater flooding risk at the building and subdivision consent stage if greater stormwater damage losses are to be avoided with new developments. An increased emphasis on planning and providing for resilience of infrastructure assets to natural hazards, as a result of the Local Government Act 2002 Amendment Act 2014, will support a focus on mitigating flood damage risk. An increased community focus on transforming stormwater reserves, corridors and waterways to provide cycling and walking connectivity, amenity and recreational spaces. The potential impacts of the above changes on current levels of service have been considered in this AMP. 37

58 Section 4 Levels of Service 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: Older public and private housing areas with very small capacity stormwater drainage systems require renewal of the stormwater services due to performance issues with the current network due to root blockage and pipe displacement. These areas are a priority for renewal to restore the service to acceptable levels. (Prog 1062 City Wide Stormwater Renewal Works) Some areas of the city (currently being identified through high level modelling work) are prone to more frequent and higher levels of flood damage loss than is tolerable due to their elevation and proximity to major overland flow pathways. Strategic upgrades where feasible are required to mitigate the level of flood damage loss. (Prog 1060 City Wide Stormwater Improvement Works) Some areas of the city are not well served by a public stormwater network resulting in stormwater being directed to the wastewater network contributing in turn to higher wet weather flows. Extensions to the stormwater network in these areas will support reductions in stormwater I and I into the wastewater network. (Prog 1060 City Wide Stormwater Improvement Works) Parts of the network of open water courses within the city receive disproportionate quantities of contaminants from commercial and industrial activities within the contributing catchment. A combination of at source control and treatment devices within the private property and Council constructed treatment facilities are required to deliver measurable improvements in stormwater quality. (Prog 1060 City Wide Stormwater Improvement Works There is no provision in this AMP to improve the stormwater levels of service for the residential and rural areas outside the defined stormwater collection service area. 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.

59 Section 5 Growth and Demand 5 Growth and Demand This section sets out the factors impacting on the management and development of the assets to meet the requirements of growth and other demands place on the Stormwater 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 stormwater services in the city will be driven by: The impact of development on stormwater runoff volumes which will be influenced by increases in the percentage of hard surface. The type and nature of land use activity in respect to the quantity of contaminants generated from new and existing commercial areas. The impact of climate change on rainfall intensity and duration together with community expectations around the level of annual average flood damage considered acceptable. The extent to which sustainable urban drainage solutions are incorporated into all future develop to mitigate any development effects. Regional and national legislative and regulatory changes setting performance standards for the quality of stormwater discharges. 5.2 Growth Projections Palmerston North is growing and the Council has strong aspirations to accelerate growth and through this contribute to greater 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 elected to assume a high growth rate projection for years 1-10 and a medium growth projection for years This is greater than has been 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 39

60 Section 5 Growth and Demand a population projection of 102,400 3 in 2048 for the medium growth projection. This compares with a projected population of 105,100 by 2046 that 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 Council is adopting a higher population projection than Statistics NZ s medium growth projection in the first 10 years. The projection for five year periods through to 2048 is shown in Table 10. Table 10: 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 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 11. 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 shown in Table 11 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. 3 Based on Statistics NZ 2016 population projection with estimated projection between 2043 &

61 Section 5 Growth and Demand Table 11: 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 of household numbers include the margin for the requirements of the NPS-UDC. Table 12: Residential Development Type Period Household per annum Greenfield Infill Rural Total % 33% 12% 4, % 38% 12% 2, % 38% 12% 1, , Residential Growth Strategy The Residential Growth Strategy is outlined within the Council s City Development Strategy with key points outlined as follows. 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 changed 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 41

62 Section 5 Growth and Demand 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 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. There is a need 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 and the assumed timescale for greenfield development are shown in Table 13. This shows how the projected demands on greenfield development will be met in the short, medium and long term. Table 13 also shows the number of lots expected to be provided in each area. The locations are shown spatially on Figure 5. 42

63 Section 5 Growth and Demand Table 13: The staging and timing of residential greenfield areas Greenfield Development Areas Location Lots Years 1-5 Years 6-10 Years Years Years Zoned Land Aokautere 759 Ashhurst 88 Kelvin Grove 264 Whakarongo 500 Short to Medium Term Rezoning Hokowhitu 130 Flygers Line 150 Napier Road 50 Ashhurst Future 250 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 Figure 5. 43

64 Section 5 Growth and Demand Figure 5: Map showing location of proposed residential development 44

65 Section 5 Growth and Demand 5.4 Industrial Growth Strategy The strategy prioritises industrial growth: In the short to medium term within the North East Industrial Zone (NEIZ) and the recently rezoned Extension Area for large floor plate transport, warehousing and logistics activities. Longburn is attracting transport and logistics activities and is considered a suitable location for some limited wet industry. North East Industrial Zone (NEIZ) The NEIZ (86 hectares) was rezoned in As at March 2017, 46 hectares was 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 hectares. It is anticipated that the annual uptake of land in the NEIZ will exceed 3.5 hectares in the next 3 years. NEIZ Extension Area The 126 hectare 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 timeperiod. Infrastructure Roll-Out and Staging For the purposes of infrastructure roll-out, Figure 6 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 be developed. 45

66 Section 5 Growth and Demand Figure 6: Map of NEIZ Infrastructure Roll Out Longburn Longburn and the area focussed around Works Road has attracted recent transport and logistics activities and would provide scope for some limited development of wet industry given the existing large capacity pipeline and relative 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 7 shows the extent of the existing industrial zone at Longburn which comprises approximately 42 ha of which some 35 ha has yet to be developed or remediated to enable development to occur. 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. Council are working pro-actively with the land owners to develop an integrated solution to providing local wastewater services to existing and new industry, not include Fonterra and Goldman Fielder who have their own treatment facilities. 46

67 Section 5 Growth and Demand Figure 7: Map of Existing Industrial Zone at Longburn Braeburn Industrial Area Plan Change 15F rezoned a 33 ha 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). 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 of 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 Streetscape 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. 47

68 Section 5 Growth and Demand 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 existing infrastructure as it is effectively a form of brownfield development. Figure 8: 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. 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 Projections or Patterns Specific factors influencing demand and consumption projections include: 48

69 Section 5 Growth and Demand Changes in percentage impervious areas. Changes in land use type and commercial activity. Implementation of sustainable urban drainage systems. Changes in regulatory and legislative requirements Sustainable Urban Drainage Systems The extent to which Council is able to implement sustainable urban drainage requirements will determine the extent of growth impacts on the demand for stormwater services. Council has been able through current plan change processes to limit the impact of development on stormwater volume and quality by requiring specific detention and treatment facilities be provided within development zones and for these to be funded by the developers either directly or through development contributions. Currently there is no mechanism for this requirement to be applied in the existing urban area to address the effects of infill development. Council will be looking to: Develop guidance for developers around acceptable sustainable urban design solutions; and Work to implement policy requirements for stormwater volume and quality mitigation for all parts of the city based on flood damage risk Changes in Legislative and Regulatory Requirements Legislative change through the implementation of National Policy Statements will result in heightened expectation that Council achieves meaningful improvements in stormwater discharge quality. Council will work actively to develop Stormwater Management Plans which identify priority catchments and target significant contamination. Horizons Regional Council continues to seek to limit the extent of stormwater peak flow increase in order to limit flood flows in the Manawatū River. This will drive the requirement for hydraulic neutrality in all major new developments. Council will continue to work proactively with Horizons Regional Council to identify the best means of achieving improvements in stormwater quality outcomes, in a way which is both practical and cost effective. 5.8 Demand management Changes in Percentage Impervious Areas One of key changes associated with any urban development is the change in the percentage of impervious area associated with the building and hard stand amenity and parking areas. In new growth areas specifically zoned for residential or commercial development, the additional stormwater runoff generated and the additional stormwater contaminants discharged can be mitigated by specific design and performance requirements. Currently there is no specific mechanism to require such stormwater effects to be mitigated for infill development. Council can and does in some cases require mitigation for larger developments by way of attenuation storage, but there is no planning requirement mandating this. 49

70 Section 5 Growth and Demand With continuing on-going infill development, the additional incremental stormwater discharges are eroding the existing level of service and resulting in more frequent overland flow and ponding. For many areas of the city the additional flows do not result in any material change to flood risk. However for areas of the city with an existing flood risk, there is a need to consider specific mitigation to limit any impact. Council propose to use the stormwater modelling work and scenario assessments to determine the effects of infill development and identify potential mitigation measures either at development level or a catchment level which can help mitigate the effects of additional stormwater runoff Changes in Land Use Type and Commercial Activity Any residential or commercial development which results in greenfield land being transformed to building or hard surface will result in increased levels of contaminants associated with erosion and particulates from roof surfaces, vehicle movements and any other human activity. For residential development these increases in contaminants are small, however for commercial development involving large vehicle movements, and or the handling of goods and materials, significant levels of contaminants can be generated. Commercial activities involving high risk process will be required to provide first flush systems and bunded containment areas which provide for highly contaminated stormwater to be directed to the wastewater system. To ensure improvements in stormwater quality in the face of increasing regulatory and legislative standards, Council will need to ensure that treatment is provided at source wherever possible, by way of either engineered devices or natural treatment systems such as swales and wet or dry ponds. Only where this is not practicable or feasible would Council consider treatment devices located in the Council domain given the on-going operation and maintenance costs that they impose. Council is developing procedures and implement existing controls to: Manage silt runoff from development earthworks areas (silt pond requirements for developers); Manage discharge of contaminants associated with urban runoff in the CBD area (sump filters, ponds and wetlands, and routine monitoring of receiving waters); Manage point source contamination from commercial and industrial areas (ongoing monitoring and updating of stormwater control devices in these areas); and Limit other contamination sources through active engagement with the community to change behaviour and value their neighbouring receiving environment. 5.9 Sensitivity to Demand Changes City wide 2-D stormwater modelling work is well advanced and has identified the current pattern of stormwater drainage and identified areas at risk of significant loss due to flooding. This modelling work will be further developed to assess the impacts of significant changes in land use, especially that of infill redevelopment and increasing percentage impervious surface on the flood damage risk. Based on this work a range of potential mitigation measures have been identified and these will be assessed to determine their technical feasibility and efficacy at mitigating the flood risk. The most cost effective of these will be advanced as part of the capital new programme of work. The works are largely focussed on development in the existing urban area. 50

71 Section 5 Growth and Demand With respect to future growth areas, specific stormwater volume and quality mitigation measures have been mandated to ensure the development has little impact on the receiving water course. Typically the growth areas discharge to adjacent Horizon s controlled water courses or rural drainage networks. Design of all new stormwater infrastructure will take into account climate change 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 for the 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. Current research and monitoring suggests that the main impacts of climate change on the stormwater activity will be an increase in the frequency and intensity of rainfall events. For a 2 temperature rise, an average 16% increase in the rainfall depth for any one rain event is predicted. This in turn is likely to result in more rain events per annum when the secondary stormwater system operates with stormwater flows down roads, swales and via informal overland flow paths. The impact is characterised by a change in the return period of a particular event e.g. a 1 in 100 year event occurs more frequently with climate change i.e. 1 in 50 year event. The impact of the greater frequency of any rain event is an increased flood risk for flooding susceptible areas of the network. More frequent ponding is likely to occur in all areas, it is only in areas where more frequent flooding of habitable residential and commercial buildings is likely would Council propose to investigate mitigation options. Modelling will be utilised to assess the feasibility and efficacy of capital projects to attenuate, divert or contain additional runoff. Areas likely to be targeted initially will be those already experiencing flood damage effects. 51

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73 Section 6 Assets & Lifecycle Management 6 Assets & Lifecycle Management This section provides the detail of the key asset components comprising the stormwater activity together with individual AM strategies and plans for the maintenance, renewal and development of these assets. 6.1 Overview of Stormwater Network Assets Description of Assets Palmerston North is serviced by separate drainage systems for wastewater and stormwater run-off. The purpose of the stormwater system is to collect and convey stormwater resulting from a rain event away from the areas drained. The network is made up of a primary and secondary system. The primary system is to drain stormwater resulting from frequent rain events typically with a 20% probability of occurring in any one year or less. The secondary system (i.e. roadways and other surface flow paths) exists to minimise the effects of flooding when the flows are in excess of the capacity of the primary system. The urban zone of the city is separated into three discrete catchments (Greater City Centre, Aokautere and Linton), the stormwater from each eventually discharging to the Manawatū River. In addition there are stormwater networks in Ashhurst and the communities of Bunnythorpe and Longburn: Greater City Area; Aokautere; Linton; Ashhurst; Bunnythorpe; and Longburn. These catchments are then broken down into sub-catchments as shown in Figure 9. Due to the flat topography of Palmerston North in some areas stormwater cannot drain to the Kawau Stream, Mangaone Stream or the Manawatū River by gravity alone, especially when river levels are high causing gravity stormwater outlets to be submerged. Pump stations are required in some areas to dispose of stormwater from low lying areas and to increase the capacity of the system. Locations of these pump stations are shown in Figure

74 Section 6 Assets & Lifecycle Management Figure 9: Stormwater Catchments 54

75 Section 6 Assets & Lifecycle Management Asset Hierarchy The stormwater collection system consists of: Stormwater pipe mains; Large culverts; Manholes, penstocks and sluice valves; Pump stations; Property stormwater connections; and Streams and channels. Table 14 gives a brief description of the different asset groups that make up the stormwater system. Table 14: Definition of Asset Categories Asset Type Pipelines and Culverts Manholes Mains Connections Sump Connections Kerb Connections Flood Gated and Other Structures Inlet/Outlet Structures Storage Basins Channels- Artificial Stop-banks Protection works. Pump stations Purpose These convey stormwater away from developed areas. Pipelines are normally circular pipework while culverts here refer to stormwater conduits that are of non-circular shapes such as rectangular, corrugated or multi-cell units. These chambers provide access to pipelines at intervals of generally not greater than 100m. Manholes are located at confluences, changes in pipeline gradient or alignment. These pipes convey stormwater from properties directly to Council s stormwater mains. Sometimes referred to as sump leads. These pipes connect the street sumps to the stormwater mains Convey stormwater run-off from private property to the street kerb face Flood gated structures control the direction of the stormwater when the flow is high. Other structures include stormwater treatment devices. Located at inlet and outlets when necessary to retain the surrounding earth. Provide storage to reduce peak flows of stormwater downstream. In additional to natural watercourses and streams, these man-made or modified channels convey stormwater away from developed areas when the construction of a pipeline is uneconomic or not appropriate. These are earth embankments or concrete floodwalls along stream banks provided to prevent overtopping of stream banks and discharge of flows onto surrounding properties These protect the banks and beds of channels from erosion and include gabion baskets, channel lining etc. Civil and mechanical structures which enable pumping of stormwater from low areas in the system. 6.2 Stormwater Pipe, Culvert & Manhole Assets Asset Attributes Figure 10 depicts the length of stormwater mains and culverts categorised by age. More than two thirds (77%) of stormwater pipelines have been constructed since As a concrete stormwater pipe is expected to last well in excess of 100 years the majority of pipelines are therefore in the early part of their lifecycle. 55

76 Section 6 Assets & Lifecycle Management Length of Stormwater Mains [km] Age Range [yr] Figure 10: Stormwater Pipe Length by Age Figure 11 illustrates that the majority of the stormwater pipelines are of concrete. Smaller diameter pipes less than 200 mm diameter are typically earthenware, while the newer pipes are mainly PVC Length of Stormwater Mains [km] Concrete Plastic Glazed Earthenware Other Pipe Material Type Figure 11: Stormwater Pipe Length by Material Figure 12 indicates that the network consists as would be expected of a mix of pipe sizes with the majority of the network comprising pipes smaller than 750 mm in diameter. 56

77 Section 6 Assets & Lifecycle Management Length of Stormwater Mains [km] Pipe Diameter [mm] Figure 12: Stormwater Pipe Length by Diameter Asset Condition Asset condition has been graded on a scale of 1 to 5 (excellent to poor) based on the International Infrastructure Management Manual guidelines. Condition grading confidence level descriptions are also provided in Section 9.3 and Appendix H. Specific condition survey data for the stormwater reticulation is limited so that the condition grading of 2 is largely based on assumed rates of deterioration for well-constructed pipes under average conditions. A small selection (2.750km) of stormwater pipes were inspected by CCTV in The findings and results from the inspection work have yet to be received. Further CCTV inspection work will be undertaken to provide a representative selection of the pipe diameters, age and materials within the network to determine an appropriate condition for pipes of a similar age and material. The majority of the stormwater network is made up of concrete (94%) with smaller quantities of PVC (5%). These pipe materials are generally robust and are expected to have effective lives of between 120 and 175 years depending on the amount of reinforcement, the jointing system used and soil conditions. A programme for improving asset condition data for the stormwater network is included in the Improvement Plan (Section 11) and this includes the CCTV inspection programme outlined. The majority of the 3% of stormwater drain built pre-1920 comprises the Fever Creek concrete box culvert constructed along Ferguson Street. This has been progressively renewed over the last 10 years partly because many of the manhole lids were failing due to the effects of vehicle loading beyond their structural design capacity. The location of flap type flood gates on the more than 90 flood gated outlets is frequently in positions where they are exposed to damage by the elements and water borne debris causing the condition to deteriorate more quickly than might be otherwise predicted. Hence there is a regular inspection, repair and renewal programme to ensure that they are working properly. The confidence level for the overall condition grading is 2 reliable. 57

78 Section 6 Assets & Lifecycle Management The various asset types of the stormwater collection system, together with their condition rating, performance rating and respective quantities are listed in Table 15. Table 15: Condition & Performance of Stormwater Collection System Asset Type Quantity Condition Rating Performance Rating Pipelines - Circular km Culverts 9.0 km Manholes Mains Connections 32 km Sumps Connections 52 km Kerb Connections 72 km Asset Capacity & Performance Asset performance is graded on a scale of 1 to 5 (excellent to poor) based on guidelines from the International Infrastructure Management Manual. Performance grading confidence level descriptions are also provided in Section 9.3 and Appendix H. Pipelines, as the primary stormwater system, generally have been sized in accordance with the discharge derived from the rational method of analysis to cope with typically a 1 in 5 year return period or a 20% AEP rainfall event. The actual capacity varies widely with some parts of the network providing protection to only 1 in 2 years. Stormwater flow in excess of the primary system capacity is conveyed via secondary flow paths, typically along streets or private property overland flow paths in the urban environment. Infill development and increasing impervious areas is resulting in higher stormwater flows and an erosion in the level of service provided by the primary network in some areas.. This together with climate change impacts on rainfall intensity is resulting in more frequent overland flow and ponding. Currently there are no robust regulatory mechanisms to require developers to address the effects of the additional hardstand. Council is working on developing policy and planning controls but also taking a targeted approach, to tackle only those areas where erosion of the level of service is likely to result in additional property damage associated with flooding of habitable floors. City wide 2D modelling will be used to identify options for mitigating the impacts of higher flows including new stormwater drains and restricting storm flows by developing off-line and detention storage in the upper catchments. Measures such as protecting and enhancing overland flow paths, creating on-site detention areas, permitting localised ponding on private property and public open spaces, and setting minimum floor levels on all properties will all assist in mitigating the incidence and magnitude of flooding damage in flood prone areas. Performance of the pipe system can be affected by blockages. This is mitigated by guarding the entrances to pipe systems using sump grates and inlet structure debris grills. A program of regular inspections and clearing of the entrance structures is in place. Additional performance issues result from tree root ingress, sediment build-up in flat pipes and displacement of pipes due to external disturbance or settlement. The typical reactive maintenance work carried out on stormwater mains includes: Flushing to remove debris; 58

79 Section 6 Assets & Lifecycle Management Removal of roots; Minor repairs; and Man entry inspections CCTV inspections to identify problems Figure 13 and Figure 15 show the number of work orders logged for stormwater mains for the last eight years firstly by number, secondly by defect type and thirdly by pipe age. While work order numbers are generally low there has been an increase in the last two years following a more proactive approach being taken to investigating and addressing known problem areas where stormwater drainage is poor or ponding is slow to drain away following the end of a rain event. Particular problem areas include small diameter pipe drains installed within government housing estates, which are in poor condition and these typically appear to be some of the oldest pipes in the network. The renewal of these pipes is the key focus for the renewal programme over the next 5 years. Figure 13: Stormwater Pipe Reactive Maintenance Work Order History 59

80 Section 6 Assets & Lifecycle Management Figure 14: Stormwater Pipe Reactive Maintenance Work Order by Pipe Age Figure 15: Stormwater Pipe Reactive Maintenance Work Order by Diameter The older stormwater service connections are made of brittle material, shorter pipe lengths and are smaller in diameter. Hence, they are more susceptible to damage, root intrusion and blockages. These are addressed by reactive maintenance and renewal where appropriate. The renewals programme over the next 2 to 3 years will target replacement of poorly performing stormwater pipes in private property easements which will include mostly smaller diameter brittle pipes which are contributing too many of the work order requests. A significant number of maintenance requests relate to routine flushing and cleaning which are designed to keep some problem stormwater services operating reliably. 60

81 Section 6 Assets & Lifecycle Management 6.3 Stormwater Pump Station Assets Asset Attributes Pump stations are generally installed in parallel to and along-side the gravity system to enable them to function only when the water level in the receiving watercourse rises to prevent or impede continuing gravity discharge. The pump stations are important in preventing habitable floor level property flooding and alleviating street ponding in their local catchment areas. Operation of the majority of the pump stations can be monitored via the telemetry system, however there are a number of the smaller pump stations which are not on the telemetry system. Alarm messages are sent to the mobile phones of 24 hour duty maintenance personnel to alert them of service failures and faults at the pump stations. Figure 16 shows the location of the stormwater pump stations in Palmerston North and Ashhurst. There are presently no pump stations in Bunnythorpe and Longburn and no perceived requirement for them in these locations Asset Condition Asset condition is graded on a scale of 1 to 5 (excellent to poor) based on guidelines from the International Infrastructure Management Manual. Condition grading confidence level descriptions are also provided in Section 9.3 and Appendix H. The pump stations are all relatively recently constructed and in generally good condition. The environment is not as corrosive as in wastewater pump stations. The older pump stations; Bennett St, Ellesmere Crescent and Fairs Rd, have had significant mechanical and critical electrical renewals between 1996 and In 2008, some electrical components were replaced in the Guy Ave, Birmingham Ave and Clausen St pump stations. Birmingham PS was recently upgraded (2017) to install a variable speed drive on one of the two pumps to enable the pump to operate more effectively over a wider range of flows. Not all the pump stations are on telemetry and few of them have any direct flow measurement. An upgrade programme is required to bring all the stations control and telemetry systems up to a modern standard and in line with that applying in the wastewater network to enable staff to be confident the stations are operating as and when required. The programme is included in the 10 Year Plan with funding of $210,000 spread over the first 3 years of the 10 Year Plan. A new pump station has been installed in Sutton Place in 2017 in parallel with an upgrade to the gravity drainage discharge to the Sutton Drain. This followed two significant flood events which resulted in stormwater entering commercial properties in the street. 61

82 Section 6 Assets & Lifecycle Management Figure 16: Stormwater Pump Stations 62

83 Section 6 Assets & Lifecycle Management Asset Capacity & Performance Asset performance is graded on a scale of 1 to 5 (excellent to poor) based on guidelines from the International Infrastructure Management Manual. Performance grading confidence level descriptions are also provided in Section 9.3 and Appendix H. Stormwater pump stations perform well though they are rarely run at full capacity. This happens only when there is a major rainfall event. Accordingly, the pumps are regularly checked and test runs performed. While the capacity of the existing pump stations is considered adequate to cope with all but the largest storm events, there is evidence that the configuration and control of the pumps is not optimised to match the range of flows being received. A recent upgrade to Birmingham Street PS (2017) involved the installation of a variable speed drive and has improved the match of the station pumping capacity with incoming flows. An evaluation of other pump stations will be undertaken to assess whether similar performance improvement opportunities exist in the network. The performance of all but 4 of the pump stations is monitored by telemetry although the data is limited to alarms and total run hours. More nuanced information is required to confirm pump station performance and to detect any deterioration of pump performance. Specific electrical and mechanical condition assessments are required and planned to provide greater confidence of asset condition and reliability. A programme is included in the 10 Year Plan to address these deficiencies and improve flow data and real time monitoring of pump station operation. Overall, the data confidence level for the condition and performance grading of pump stations is 2 (reliable). The various asset types and attributes of the stormwater pump stations, together with their condition rating for both the pumps and the pump station structures, and performance rating are listed in Table 16. Table 16: Stormwater Pump Stations Pump Station Capacity [L/s] No. Pumps Year Built Last Major Renewal Condition Rating Performance Rating Telemetry Bennett Street Fairs Road 2x 175 1x 42 2x 380 1x Yes Yes Ellesmere Crescent 2x Yes Guy Avenue 1x 750 1x Yes Paisley Street 2x Yes Birmingham Ave 2x Yes Clausen Street 2x Yes Pirani Place No Downing St No 63

84 Section 6 Assets & Lifecycle Management Pump Station Capacity [L/s] No. Pumps Year Built Last Major Renewal Condition Rating Performance Rating Telemetry Wilson Crescent No Wikiriwhi Crescent Highbury Ave North Highbury Ave South Mulgrave Street, Ashhurst No Yes Yes Yes Sutton Place 250? Yes 6.4 The Stream & Channel Assets Including Outlets Asset Attributes Stormwater collected by the pipeline system is discharged into streams and channels. These comprise natural water courses and modified or engineered channels constructed to divert watercourses around built-up areas. Man-made or modified channels are also used to convey stormwater away from developed areas where the construction of a piped stormwater drain is not economic or appropriate. There are also a small number of storage basins and ponding areas which form part of the stormwater collection system. The ultimate receiving water courses are the Manawatū River, Mangaone Stream, Kawau Stream downstream of Botanical Road and the Ashhurst Stream. These are all the responsibility of Horizons Regional Council. Natural water courses and streams are not included in the stormwater asset valuation. However, construction of drain channels and improvement works are valued. Examples of assets included in this category include earth stop-banks, floodwalls, fences, concrete and timber retaining walls, inlet and outlet structures, erosion protection works such as gabion baskets and channel lining. The streams and channels may be located within Council s reserves or within private properties Asset Condition Asset condition is graded on a scale of 1 to 5 (1 = excellent. 5 = poor) based on guidelines from the International Infrastructure Management Manual. Condition grading confidence level descriptions are also provided in Section 9.3 and Appendix H. The condition of stream and channels and associated assets varies but on the whole is good as most assets were constructed in the last two decades. The topography of Palmerston North is relatively flat and therefore erosion of channels and structures is not a major problem for most areas. In some of the lower reaches of some of the watercourses, both previous heavy drain cleaning and high flow events have resulted in erosion of the bed. This in turn has contributed to some slumping of the banks on these sections. Recent maintenance work has been focussed on re-grading the channel and rebuilding the banks to prevent future slumping. Work has recently been completed in the lower 64

85 Section 6 Assets & Lifecycle Management reaches of the Milson Stream and Kawau Stream using a reinforced earth technique which promotes a thick vegetative mat above the waterline. This is providing an effective alternative to hard rock lining. While regular vegetation clearance is required, care is taken to restrict this to removal of larger tree species and invasive weeds leaving a healthy well vegetated bank to protect against erosion. A number of the waterways are in poor maintenance condition due to littering, illegal dumping and exotic vegetation growth. A targeted programme of work involving daylighting, heavy maintenance combined with replanting in natives and community support for on-going care is intended to support transformation of some forgotten sections of the drain network into more vibrant local ecosystems. There are a number of open drain sections which run behind or across private properties and are difficult to access for maintenance purposes. Where the drain is a critical asset serving a significant upstream catchment, capital works to culvert the open drain will be undertaken. Following pipe installation an easement is created over the pipe to enable access for any future repairs and maintenance and prevent construction of any permanent structure over the new piped section. The various asset types and quantities of the stream and channels, together with their condition rating and performance rating are listed in Table 17. Table 17: Streams & Channels Asset Details Asset Quantity Condition Rating Performance Rating Flood Gated & Other Structures Inlet/Outlet Structures Storage Basins Channels (Artificial) 20.6 km Stop-banks 14.1 km Protection works Various Asset Capacity & Performance The stream and channel asset performance is graded on a scale of 1 to 5 (excellent to poor) based on guidelines from the International Infrastructure Management Manual. Performance grading confidence level descriptions are also provided in Section 9.3 and Appendix H. Overall streams and channels in the City perform well, although the dominant discharge capacity of some smaller channels can be exceeded in major storm events resulting in stormwater overtopping and flooding onto adjacent properties. High water levels in receiving streams during these events can also prevent effective discharge from the stormwater primary system, causing surfacing flooding in low lying areas as gravity system discharge outlets are blocked. Stopbank improvement works implemented in the 1990 s along the Kawau Stream and Pioneer Drain have, so far, successfully prevented flooding of habitable floors due to overtopping, as happened in the 1988 flood event. 65

86 Section 6 Assets & Lifecycle Management 6.5 Activity Management Support Services Activity management has no direct effect on asset condition but provides functions and processes required to support the maintenance, renewal and development plans. These functions include: System planning; System monitoring; Systems record management; Discharge quality control; Regulatory control of stormwater inflow (Bylaw provision); Resource consents application, monitoring and reporting; Asset management strategy & policy; and Insurance and rates. The forecast expenditure for planning and policy support services required to implement the above strategies is shown in Table 18. There will continue to be significant additional consultancy expenditure on the development of the 2D model and assessment of various mitigation scenarios over the next two years. Table 18: Activity Management Programme Forecast Expenditure Activity 2017/ / / / / /23 City Networks Labour and Overheads $542,123 $629,726 $631,324 $625,787 $625,803 $625,803 Consultancy $140,543 $114,870 $94,870 $75,870 $74,870 $74,870 Insurance $103,230 $105,280 $105,280 $105,280 $105,280 $105,280 Legal $5,000 $10,000 $10,000 $10,000 $10,000 $10,000 Miscellaneous $26,893 $11,080 $11,080 $11,080 $11,080 $11,080 Software Licenses $5,000 $9,140 $9,140 $9,140 $9,140 $9,140 Electricity $- $1,500 $1,500 $1,500 $1,500 $1,500 Rates $85,670 $87,610 $87,610 $87,610 $87,610 $87,610 Total $908,459 $969,206 $950,804 $926,267 $925,283 $925,283 The majority of the remaining activity management services are carried out internally by City Networks staff. Specialist external resources are employed for CCTV inspection of pipelines, ecological and quality monitoring of streams and more sophisticated technical investigations, peer reviews and legal advice Increases in Services (New Operating Programmes) In support of Councils new strategies and goals, Council has approved three new operational programmes to contribute to specific strategy outcomes. These are: Programme 1247 sustainable practices within the three waters 66

87 Section 6 Assets & Lifecycle Management This programme is provided to fund both specific project initiatives and personnel resources to implement behaviour change initiatives to deliver improved environmental outcomes and lead to more sustainable practices in the water, wastewater and stormwater activities. It is envisaged that this will include initiatives to increase water use efficiency, reduce disposal of unsuitable products and chemicals in the wastewater systems and contamination and dumping in the stormwater network. Specific services to reduce plastics, divert hazardous chemicals and promote community engagement with local streams are proposed. Programme 1369 Joint Water Quality / Cultural Monitoring Framework This programme will fund collaborative work with Rangitane and external consultants to develop baseline environmental monitoring in the water course and drains of the city. The development of a monitoring framework supported by several years of baseline monitoring will enable Council and Rangitane to assess the effectiveness and progress being made through programmes and interventions to reduce contaminant discharges to the urban streams and drains. Programme 1495 Third Party Stormwater flood problem resolution This programme provides additional funds to complete investigations of stormwater performance and flooding issues which require collaboration with other third party SOE or government departments for example KiwiRail and NZTA. The funding will enable Council to take the lead in some cases to investigate the issue and proactively seek resolution with the other government landowners. Table 19: Operating Programmes Forecast Expenditure Operating Programme 2018/ / / / / Sustainable practices within the three waters $150,000 $150,000 $150,000 $150,000 $150, Joint Water Quality/Cultural Monitoring Framework $100,000 $150,000 $100, Third party Stormwater flood problem resolution $20,000 $20,000 $20,000 $20,000 $20,000 Total $270,000 $320,000 $270,000 $170,000 $170, 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 GeoAdministrator, 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 giving all staff access to Council s spatial data. 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: 67

88 Section 6 Assets & Lifecycle Management Asset Register; Work Orders; Inspections; Valuations; and Images. A Date Exchange Utility (DEU) allows pipe inspection data to be exported from IPS to contractors and results imported back into IPS. IPS allows asset managers to produce outputs using the Ad Hoc Reporting function. More complex reports are produces 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. Asset data can be assigned a condition rating and a performance rating base on a grading of 1 to 5 (refer Appendix H). These ratings, along with criticality ratings, can be used to analyse the asset data and provide renewal profiles and determine maintenance programmes. Figure 17: IPS Screen Shot Asset maintenance, both planned and reactive, on assets 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. 68

89 Section 6 Assets & Lifecycle Management Figure 18: Field Inspector Screen Shot The assets in the AMS have been assigned a replacement value. This is used for corporate accounting and insurance purposes and will be used to estimate renewals programme costs when the condition, performance and criticality ratings are complete. Overall the quality and extent of data held in IPS is good. Pipeline data is quite extensive, with the exception of stormwater laterals (service lines) which were not historically captured. Pump station and stream channel data is less complete in terms of detail. Table 20 details the extent of the asset data currently held in IPS for the stormwater activity. Table 20: IPS Data Accuracy & Completeness (2017) Asset Type Sub Type No of Assets (In Service) Asset Register Completeness Accuracy Valuation Pump Stations Equipment % 90% 100% Storage Basins Equipment 10 95% 95% 100% Land Drainage Miscellaneous 44 95% 95% 100% Pipes - Circular % 95% 100% Reticulation Pipes - Culverts % 95% 100% Manholes % 95% 100% Sump Connections % 95% 100% Service Lines To Main % 90% 100% Reticulation Service Lines To Kerb 1 0% 90% 100% Inlet/Outlet Structures % 95% 100% Channels % 85% 100% 69

90 Section 6 Assets & Lifecycle Management Network Hydraulic Modelling Prior to 2017 Council had made limited use of an in-house hydraulic modelling program to analyse the stormwater network. The program was an older 1D model and could note integrate the primary pipe system with secondary overland surface flows. The first computer based stormwater catchment and network modelling for the City was completed in 1990 following the July 1988 flood event where a significant number of properties were inundated. The outputs provided the basis for subsequent flood protection and stormwater network improvement works. In the last 2 years Council has invested in the development of a city-wide 2 D model which combines a surface rain on grid model with the trunk pipe network (pipes >450mm diameter). The model is able to depict the depth of overland flow in various parts of the city for a range of rainfall events with different return periods allowing for the trunk pipe network capacity. When combined with floor level information for buildings in the overland flow path, the model has been able to identify at a coarse level of accuracy properties at risk of flood damage. The model requires further calibration by reference to flood levels during further heavy rain events however in its current form it can be used to assist with the analysis of: Potential capital projects to reduce the risk of flooding in at risk areas. Impacts of climate change and strategies to mitigate these effects in infill areas particularly. Capacity of the network to accept additional stormwater runoff from additional infill development. Opportunities to optimise the network to improve operational efficiency. Opportunities to improve network layout prompted by the need for stormwater pipe renewals SCADA & Telemetry Systems Council utilises a telemetry service to transmit monitoring data from various sites, typically pump stations, throughout the City to a central database, to provide oversight of operations and advice of any malfunctions. Council currently uses the Abbey Telemetry System. The data is available in real time to operations and City Networks staff to facilitate monitoring of the operation of the pump stations and the water levels in the Kawau Stream at Birmingham St. Some limited historical data on pump run hours is available for trend and pattern analysis. The data from each of the sites connected to telemetry is transmitted using Council radio communications channels. The data monitored includes operational statuses of the pumps, e.g. run/stop, pump running hours, rain data, well levels etc. The telemetry system also sends out alarm mobile phone messages to pump maintenance crews whenever it detects faults in the pump operations such as power failure, pump fault, high well level, etc. so that the fault can be attended to in a timely manner. Communication with the Telemetry Master Station is by Abbey Secured Link software using laptops and broadband internet connections. While the majority of the pump stations are on telemetry there are a number of pump stations which are not. In addition pump flow information is not currently collected with staff relying on pump run hours. An upgrade to the monitoring and telemetry set-up at each pump station is required to improve operational management and ensure pump performance is can be robustly monitored and analysed Water Services Assessment Water Services Assessments, as required by Section 125 of the Local Government, were last completed by Maunsells Ltd in In the case of stormwater services, the assessments identified that the adequacy of flood protection and quality of the receiving waters in Palmerston North are 70

91 Section 6 Assets & Lifecycle Management generally good and cater for current demands. No major public health or environmental risks were identified. Processes that were in place in 2005 to meet future demands are also still relevant and include on-going monitoring, modelling, analysis and planning, a programme of capital improvement works and implementation of demand management strategies. This AMP also provides for the investigation and implementation of works to improve stormwater discharge quality. The programmes and projects described in this AMP are consistent with the issues and risks identified in the 2005 Water Services Assessments. There are no significant variations to disclose. 6.6 Operation & Maintenance of Assets Overview The overall goal of operations and maintenance is to ensure that assets will operate as designed and continue to do so reliably when required. With stormwater assets this is particularly important as the assets may be subject to long periods of no demand e.g. dry periods. An optimum approach is achieved when there is a balance of both reactive and proactive maintenance. While low levels of reactive maintenance can be expected, high levels indicate inadequate proactive maintenance or significant deferred renewal obligations, both of which are considered undesirable Operation & Maintenance Strategies The preventative maintenance programme was developed from operator experience and manufacturers recommendations. It comprises a range of routine tasks involving cleaning and flushing of problem assets to prevent blockage, coupled with regular inspection of key above ground assets such as gated outlets, open drains and streams and pump station mechanical and electrical assets. Further development of these maintenance tasks is planned to ensure condition information required to inform renewal programmes is captured. Inspections will include physical entry of large diameter culverts (1.8m diameter) to identify debris as well as other snagging risks, e.g. cable services installed through the buried service. In addition a length of 2-3 km of stormwater pipes will be inspected by CCTV and condition scored to enable a more robust assessment of the timing and need for renewal of the network. The expectation is that the older smaller diameter part of the network will exhibit the poorest condition. Reactive maintenance includes a wide variety of work ranging from investigations of flood prone areas to repairs to blocked pipes. In many cases the investigations do not identify any practical solution given that flooding issues are associated with heavy soils in low lying properties. The gap between what Council can achieve and the level of service expectations from property owners in this area is likely to increase with more frequency higher intensity rain events Operation & Maintenance Costs Stormwater activity operation and maintenance costs are grouped into three areas namely activity management, activity delivery and a range of operational programmes with specific outcome objectives. Additional charges in the operation and maintenance area include interest and depreciation. Table 21 depicts the current breakdown of operations and maintenance expenditure within these three areas for the first five years of the plan. 71

92 Section 6 Assets & Lifecycle Management Table 21: Operations & Maintenance Forecast Expenditure (Next Five Years) Stormwater Activity 2018/ / / / /23 Activity Delivery Total $512,000 $514,000 $519,000 $520,000 $530,000 Activity Management Total $969,000 $951,000 $926,000 $925,000 $925,000 Operational Programme Total $270,000 $320,000 $270,000 $170,000 $170,000 Operations and Maintenance Total $1,751,000 $1,785,000 $1,715,000 $1,615,000 $1,625, Operation of Stormwater Assets The stormwater activity is primarily managed and operated to meet the agreed levels of service in Section 4.5 by achieving 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; Operate to minimise the overall cost of the activity; and Compliance with Horizons Regional Council discharge consent permits. Other factors that directly influence the operation of the stormwater activity include: Meeting the requirements specified in Council strategies and specific management plans; and Compliance with national legislation with regard to health and safety and hazardous chemicals. In order to help ensure that levels of service and regulation requirements are met, Council monitors the stormwater pump stations. Council utilises data automatically collected by telemetry from equipment sensors at the critical stormwater assets. This helps operators to respond immediately to equipment failures network issue. In addition to automated monitoring operational staff also carry out manual monitoring in the form of visual inspections and manual recording of data. Council has a Business Continuity Plan (BCP) that provides management strategies for service disruptions (refer to Section ). The stormwater activity has (and is in the process of further developing) a specific BCP to cover operation of stormwater assets during a significant event involving disruption of service. 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 Stormwater Assets The stormwater assets maintenance strategy is intended to retain the current level of service in Section 4.5 while minimising costs by achieving the following: Maintaining operational functionality of the asset; and Preventing premature deterioration of the asset. Council s maintenance strategy is broadly based on the criticality of the assets: Assets rated as High Criticality are inspected frequently. A high level of preventative maintenance is carried out and component renewals are triggered based on the condition of the asset. 72

93 Section 6 Assets & Lifecycle Management 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. In the new AMP an enhanced focus on preventative inspections will be implemented. This will include annual inspections of large diameter culverts (>1.8m diameter) to identify debris and potential obstructions which may impact on capacity, annual mechanical and electrical condition survey of the pump stations and CCTV inspection and condition scoring of at least 2 to 3km of the stormwater network. This inspection and condition assessment work will be captured in the asset management system (IPS) and used to inform a more robust renewal programme, the aim of which is to bring down the number of reactive maintenance requests. It is expected that a significant number of flooding incidents will be confirmed as being unrelated to maintenance and operation of the current network and require significant capital investment to address. The development of the capital work programme will be informed by modelling and scenario assessment and determined by Council as outlined in Section Operation and Maintenance Delivery Delivery of the operation and maintenance services for the stormwater assets is carried out by City Enterprises, the operational unit of Council, under contract to City Networks (the asset owner) through a series of internal contracts (known as Service Level Agreements or SLAs). For the stormwater activity there are two SLA s in place which cover both operation and planned maintenance tasks and are summarised in Table 22. These SLAs run annually and are occasionally supplemented by additional SLAs for specific operational or maintenance tasks. In respect of the SLAs work is on-going to shift from lump sum agreements to measure and value agreements still with fixed prices for deliverables but with an enhanced focus on outcomes and outputs reported on monthly. The current level of expenditure on operation and maintenance delivery via SLAs is outlined in Table 21. Table 22: Current Operations & Maintenance SLA Costs SLA Ref Description Agreed Price 2017/18 10 Palmerston North and Ashhurst Stormwater Pump Stations Operation & Maintenance $41, Maintenance of Stormwater Reticulation, Streams and Channels $323,547 To operate the stormwater activity City Enterprises employs 0.5 FTE (full time equivalent) staff to operate and maintain the pump stations. This is supplemented by a varying number of staff to carry out stormwater maintenance. The organisational structure of the City Enterprises team in shown in Figure 19. Figure 19: City Enterprises SW Service Delivery Structure 73

94 Section 6 Assets & Lifecycle Management Operations staff are responsible for the operation of stormwater services on a 24 hours a day, 365 days a year basis including customer response (Request for Services) and have an emergency response capability. The increasing focus on the performance of the stormwater network and an increasing number of requests to investigate apparent performance issues is resulting additional demands on the existing staffing resources. Council has signalled to the Contractor a requirement for additional specialist stormwater resources to deliver the higher level of investigation, operation and maintenance services. An increase in the level of budget for contracted internal and external services will be required to fund this improvement. The Council is required by Section 17A of the Local Government Act to review the cost effectiveness of current arrangements for meeting the needs of communities within its district or region for good quality local infrastructure, local public services, and performance of regulatory functions. A substantial Council review is planned to reassess the future duration of its maintenance and renewal contracts for stormwater as part of its ongoing commitment to optimisation, both for management and value for money. 6.7 Renewal of Assets Overview Asset renewal is any work which 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. Minimise the whole of 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 History of Renewals Expenditure The expenditure on stormwater renewals over the last 10 years is summarised in Table 23 and Figure 20 and totalled some $4.5 million. The majority of this amount ($3.2 million or 70%) was invested in the renewal of a major stormwater culvert running much of the length of Ferguson Street extending from Botanical Road to Fitzherbert Avenue. The remainder of the renewals budget was spent on a range of 74

95 Section 6 Assets & Lifecycle Management small minor renewals at an average of $120k per annum. In the period to the level of renewals was significantly below budget, although the mismatch is accentuated by budgets carried forward between years. The absence of a city wide renewals programme identifying a range of priority renewal locations resulted in underachievement in renewals spending during this period. This deficiency has been addressed through this plan with the preparation of a 5 year rolling renewal plan, which will be subject to annual revisions and updates. Table 23: Summary of Historical Stormwater Renewals over Previous 10 Years Stormwater Renewals Actual (000) Budget (000) 2007/08 $51 $ /09 $681 $ /10 $751 $ /11 $647 $ /12 $290 $ /13 $502 $1, /14 $22 $ /15 $528 $ /16 $142 $ /17 $886 $825 Totals $4,500 $6,716 Figure 20: Graph of Historical Stormwater Renewal Expenditure Note: The large capital and renewal discrepancies in 2011/12 to 2013/14 are due to budgets being carried forward. 75

96 Section 6 Assets & Lifecycle Management The level of renewals expenditure has therefore been very low. While much of the network is in good condition there are issues with some of the older and smaller diameter stormwater services and their performance contributes to a significant numbers of customer related complaints. The focus of the next AMP period will be to target renewals expenditure in these problem areas and complete inspection and condition assessment work to determine more robustly the renewal requirements Renewal Strategies Council uses a combination of methods to develop the renewals programme: Forward projection of historical costs combined with broad estimates of asset depreciation; Predictive modelling based on age; and Work programmes developed from performance and condition faults identified in the network. The current stormwater renewals programme comprises the following on-going programmes: Stormwater collection network, including streams and channels; and Stormwater pump stations. Historically the value of these programmes has been largely based on historical cost. Given the relatively young age of much of the stormwater network, the age of the pipeline asset while an indicator of remaining useful life, is not a key factor in determining the renewals programme. The renewals programme for the next 5 years is based around addressing known deficiencies and performance problems in the network. The majority of the assets requiring renewal are small diameter services of more than 50 years age located in easements within private property. An annual programme of CCTV inspection of a selected cross-section of the stormwater network was initiated in 2016/17. This will be continued to confirm problem areas and further optimise the renewal programme. There are a number of 100 year old stormwater lines which comprise re-purposed sewer lines. These are a priority for inspection and condition assessment to confirm their condition and identify the priority if any for renewal. The budget for renewals for the next 5 years is based on replacement of currently identified problem assets and an assumption that assets of a similar type and age will also need to be renewed. The renewal programme will be refined on the basis of data from CCTV inspections over the first few years of the AMP. However at this stage it is expected that a budget of $500,000 to $600,000 per annum will be necessary to replace the problem parts of the network over the next 10 years. Inspection of the trunk network and larger diameter pipes may identify other condition issues which need to be addressed. If these faults are material, additional renewal funding may be required. Additionally if Council wish to address the current defects more quickly than planned then a more rapid programme of work could be implemented if renewal funding was increased over the short term. Long term profiling suggests that medium term renewal funding of around $300,000 would be adequate to maintain current service potential. 76

97 Section 6 Assets & Lifecycle Management Long Term Renewal Profile Expected Useful Life The expected useful lives used for estimating the replacement year are shown in Table 24. While standard lives for concrete pipes are typically 100 years, longer lives in the range of 100 to 175 years have been adopted on the assumption that in the absence of aggressive external soil environments and or excessive external loads, the limited periods for which stormwater networks function should contribute to them aging more slowly than water or wastewater assets. This assumption needs to be confirmed by robust inspection and condition assessment of a representative proportion of the network. This is expected to identify a more nuanced asset life profile with a proportion of older smaller diameter pipe being assigned lives well below 100 years. Table 24: Life Expectancy of Stormwater Assets Asset Type Expected Useful Life Stormwater Reticulation and Waterway Assets Stormwater Pipes Precast Concrete Box Culverts Standard Manholes Manholes with floodgates, valves Standard RC Inlet/Outlet Structures Inlet/Outlet Structures with Flood gates and grills Stormwater mains and sump connections Stormwater Kerb Connections RC Concrete Retaining & Flood walls Precast concrete Channel Lining Older Cast in situ Channel Lining Timber Retaining Wall Gabion Baskets and Reno Mattresses Timber fences Earth Stop banks Channels (earthworks) Storage Basins (earthworks) Non-Depreciable Non-Depreciable Non-Depreciable Stormwater Pump Stations Assets Civil Structures Pipework Mechanical plant e.g. pumps Electrical Equipment It has been assumed that large, well-constructed, reinforced concrete box culverts and large diameter pipes can have lives in excess of years both on the basis of their limited use but also because any minor faults or defects identified during routine inspections can be repaired and remediated without full replacement. Key factors influencing the rate of deterioration are likely to be the presence or otherwise of aggressive soils and excessive live loads associated with heavy vehicles. Given only a small proportion of the network is located in heavy vehicle trafficked routes and there is little evidence 77

98 Section 6 Assets & Lifecycle Management of significant external deterioration in any of the three waters networks the assumptions are considered fair. Reticulation Table 24 depicts the expected remaining life of the stormwater reticulation to be well over 50 years. Most of the Palmerston North stormwater network is still relatively young and in good condition based on the limited CCTV and condition assessment completed to date. Figure 21 indicates that only a very low level of age based renewal expenditure is likely to be required over the next 50 years. The enhanced programme of CCTV and condition assessment proposed in the AMP is intended to provide data to develop a more accurate renewal profile (see Figure 10). The predominant focus for renewal expenditure is on small diameter stormwater pipes located in private property easements, where pipe displacement, external damage as well as root ingress result in sub-optimal performance of the network. A five year programme of priority renewals of $500,000 per annum has been identified. Following the completion of these priority renewals it is expected that the level of renewal expenditure will fall, although as indicated in Figure 21 a significant length of pipe is predicted to require renewal from 2060 to It is expected that on-going condition assessment and renewal prioritisation will enable smoothing of this renewal profile to align more closely with the provision outlined in this AMP of $300,000 per annum. Additional renewal budget is required each year for other minor renewals of items such as flood gates, screens, penstock valves, damaged stormwater connections, and stormwater laterals in the road reserve. $5 $4 $3 $2 $1 $- 2018/ / /29 Replacement Cost [$M] 2033/ / / / / / /64 Figure 21: 50 Year Long Term Renewal Profile 78

99 Section 6 Assets & Lifecycle Management Pump Stations As with the pipe network, the pump stations are generally in good condition with the major civil components requiring little immediate attention. Council is undertaking an importance review of its three water assets and depending on the outcome, a programme of seismic strengthening may be identified as necessary. This would mirror existing programmes already underway for wastewater and water supply key assets. In contrast the electrical, control and mechanical assets in a number of the pump stations require some attention. In a number of pump stations the electrical and telemetry systems are aging and due to the age of the equipment no spare parts are currently available. Renewal of these components has been prioritised in the first three years of the AMP period as part of a programme to strengthen and upgrade Council s telemetry system for all three water services. While no structural renewals have been identified the forecast renewal expenditure for has been increased to provide for replacement of the electrical, telemetry as well as for renewal of more expensive pumps and controls systems at the larger pump stations. A detailed mechanical, electrical and controls condition assessment for all the stormwater pump stations will be undertaken in to inform the renewal expenditure profiling required to maintain the pump stations beyond the next three years. It is expected that additional renewal expenditure will be identified in addition to that allowed for in the current 10 Year Plan. Streams & Channels Stormwater channels deteriorate over time due to erosion, as well as slumping of stream banks. Regular inspection of the entire length of streams and channels is critical to identifying the extent of any remediation work. A generic provision has previously been included for targeted renewal works to be undertaken on priority sections of the streams and channels every year. Recent renewal works has made use of new reinforced earth technology which avoids the use of costly rock lining and promotes the establishment of an effective grass sward to prevent erosion. Further site specific assessment work is required to develop a robust condition assessment of the stream and channel network as well as the concrete inlet and outlet structures, flood gates and debris grills. The output will be a map of key sections of the network displaying sections where some investment in renewal is required in the next 10 years. Costs will then be developed for typical solutions in each location. This schedule of work will be combined with others developed for the pump stations and pipe network to create a more robust renewals programme. A key component of the channel network is the Napier Road Drain flume. While modelling work has indicated this has capacity for the projected flows from development in the Kelvin Grove area, there has been no detailed condition survey. A detailed condition assessment is proposed to confirm the likely timing of any renewal work. Of key concern is the zone of turbulence at the point of the hydraulic jump. Any renewal work will need to be carefully planned and timed to occur during the low flow period of the year. The total renewal programme expenditure for the first five years of this AMP is shown in Table 25. Table 25: Total Renewal Programme Forecast Expenditure Renewal Programme 2017/ / / / / / City wide Stormwater Network Renewals 20 City wide Stormwater Pump Station Renewals $266,200 $565,000 $590,000 $512,000 $547,000 $551,000 $0 $70,000 $70,000 $70,000 $- $- TOTAL $266,200 $635,000 $660,000 $582,000 $547,000 $551,000 79

100 Section 6 Assets & Lifecycle Management Delivery of Renewal Programme Renewal of stormwater assets is mostly carried out by City Enterprises; the operational unit of Council through project specific, internal contracts (known as Service Level Agreements or SLAs). Price contestability is monitored against market rates and prices for equivalent work undertaken in the private section. Specialised renewal work such as pump replacements and renewal of electrical components is delivered through external contractors, as is large diameter pipeline capital new and renewal projects for which City Enterprises has neither the capacity nor expertise to complete. Council is working towards securing longer term contracts with a number of key specialist external contractors (e.g. electrical and mechanical maintenance) both to ensure services are cost competitive but to ensure Council is given some service priority. 6.8 Development of Assets Overview 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; and 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. Stormwater asset development provides for a planned increase in the operating capacity or design loading to ensure the system is able to achieve the required standards of service. This generally involves upgrading the capacity and reliability of stormwater assets. The resulting improvement in service standards occurs through closing existing service gaps. The storm event of 24 July 1988 and the subsequent 1991 Comprehensive Stormwater Management Plan (CSMP) has guided the stormwater capital development works over the last two decades. The development of a city wide 2-D stormwater model along with a change in the focus of stormwater service towards mitigating property level flood damage loss, will provide the focus for the next 10 to 15 years. Development projects undertaken recently to address specific flooding issues include: Completion of the last section of the Ferguson Street stormwater main renewal from the Linton Street junction to Fitzherbert Avenue. Network improvements and installation of a new pump station in Sutton Place. Upgrading of Birmingham Pump Station by installation of a variable speed drive to control one of the pumps to better match initial stormwater flows. Construction of a wetland treatment pond and detention area in Norton Park. The main focus for development works over the next 10 to 15 years will be: 80

101 Section 6 Assets & Lifecycle Management To mitigate flood damage risks across the city by implementing targeted capacity, detention and stormwater diversion improvements. To improve stormwater discharge quality by targeting interventions in the areas of highest potential contaminant discharge. To provide stormwater services to new growth areas and ensure sustainable urban drainage systems are in place to mitigate both the stormwater flow and quality impacts of the new residential and industrial growth areas Development Strategies The development strategy for the stormwater assets includes the following: Development of the stormwater system to achieve the agreed levels of service and growth projections over the next 30 years. New stormwater infrastructure to service the proposed residential growth areas in Whakarongo and City West will be scoped and designed so as to ensure they can proceed when the land use zoning is in place and developer intentions have been confirmed. Capital funding for new stormwater infrastructure within the growth areas of $2.3 million has been allocated for the 10 Year Plan. Stormwater 2 D network modelling will be completed to confirm the flooding risks for each key catchment in the city for a range of return periods. The modelling will identify the specific return period at which the risk of significant property damage is low. Funding within the planning and investigations area has been provided for this work. For catchments with a LoS of less than 1 in 20 (inclusive of climate change), with significant properties at risk of flood damage from events with a frequency of less than 1 in 20 year ARI, work will be undertaken to identify if there are any feasible mitigation measures which can increase the LoS. The various mitigation options will be ranked on the basis of a cost benefit assessment. Funding will be sought from Council to implement the highest priority works over the 30 years of the AMP. The plan includes funding of $3.6 million over the duration of the 10 Year Plan to fund a number of capital improvements in some of the catchments with the highest flooding risks. Demand management approaches (Water Sensitive design and Sustainable Urban Drainage Systems) will be pursued to limit peak flows to pre-development levels for new growth areas. Policy and planning instruments will be utilised to look to apply similar stormwater performance outcome requirements on infill development to reduce the impact of development on existing networks. Additional funding in the policy and planning area has been provided to fund work to develop generic guidance and compliance material. Staged implementation of large capital new projects over 2 or 3 years to provide for the lengthy consenting, planning and consultation processes as well as ensure adequate time for tender and construction processes given the resource and capacity constrained external consultancy and contracting market 81

102 Section 6 Assets & Lifecycle Management Table 26: Examples of Stormwater Demand Management Strategies Demand Component Regulation Education & Environmental Enhancement Stormwater Examples Planning and consenting requirements for stormwater attenuation and detention in high risk catchments applying to all infill development. Strict regulatory control of minimum floor level using Building Regulations and proposed Stormwater Bylaw. Formal plan rules mandating sustainable urban drainage system design for all new growth areas created by way of a plan change. Promote greater public awareness of the impact of human activities and contaminants on the stormwater receiving environment. Promote watercourse enhancement activities to promote biodiversity and improve community ownership and engagement with the urban stormwater network. The Council will evaluate the selection criteria for the prioritising and programming of development projects. This will be based on a consideration of risk and benefits, affordability, ranking with other expenditure, existing asset performance with respect to levels of service and life cycle costs and efficiency. Project approvals will be supported by an economic appraisal using cost/benefit analysis techniques which take into account: Capital costs; Any change in net annual operating costs; Any change in annual maintenance requirements; and Any salvage value of existing assets or components. All development projects require completion of a Project Execution Plan for prior approval by the management team. Analysis of issues, options and a sensitivity analysis form part of this formal approval process. The design option chosen shall: Be in accordance with Council s Urban Design Strategy; Protect and enhance natural watercourses and streams as public amenities and minimise the impact or urbanisation on water quality; Utilise the full capacity of natural drainage channels wherever practical; Give preference to natural drainage systems over piped systems; Optimise life cycle costs for the assets created; and Consider options when evaluating upgrading options, including increasing pipe capacity, storage, re-vegetation, raising floor levels, creating secondary flow paths, purchasing affected properties, reviewing the level of flood protection, zoning land by way of the District Plan. The risk, costs and benefits of accepting new privately funded assets constructed in association with property development will be reviewed and a decision regarding approval will be made on a case-by-case basis by Council staff. When satisfactorily completed in accordance with approvals given, Council will accept such assets into public ownership. Council will not contribute to the cost of such works unless there are exceptional levels of service or equity issues. By recording the base line receiving water and first flush stormwater impacts and by actively following developments in Regional Council Policies under the Resource Management Act, a 82

103 Section 6 Assets & Lifecycle Management strategy will be developed to acquire appropriate stormwater discharge quality control assets. Such assets may include land and facilities for screening of gross pollutants and partial treatment of first flush flows. 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, beautification Non Asset Programmes Council will implement the following demand management strategies: Regulation: Strict regulatory control of minimum floor level using Building Regulations and the proposed Stormwater Bylaw. Operation - Flood protection: Demand strategies relating to the level of flood protection to be provided. Setting minimum design standards relating to the level of protection required. An objective of the Council is to protect urban properties from a 100-year flood event. The main source of flooding relates to the Manawatū River and streams that flow through the City. Stop banks are the usual form of flood protection with associated piped networks and pump stations designed to 100-year events. Demand substitution - Minimising effect of increased urban runoff: It is well known that as pastoral land is converted to urban development there is an increase in stormwater runoff entering drainage systems. As the population grows with increased urban development, this issue will become more of a concern. There may be a future need to develop drainage systems that both treat and reduce the quantity of stormwater entering drainage systems. Some alternative drainage systems that should be considered are groundwater recharge, swales and on-site detention. Education and environmental enhancement - Development of watercourse resources: Linked with the need to provide adequate flood protection watercourse, secondary flow paths, and detention areas are created that cannot be built on. These areas can be landscaped and developed in a way to provide recreational facilities and enhance the urban environment. This has the dual effect of meeting recreational demand and stormwater demand Development Programme As required by Section 3.0 of Schedule 10 of the Local Government Act 2002, this AMP identifies and differentiates requirements for additional asset capacity in terms of increased demand (e.g. growth) or increase in levels of service standards. A 30 year programme of development works is summarised in Table

104 Section 6 Assets & Lifecycle Management Table 27: Development Programme Expenditure Forecast Project Growth % LoS % Project Cost Timing 51 City Wide Stormwater Subdivision Contributions $50k pa On going 197 Urban Growth - North East Industrial Park Stormwater $1.08M 2018~/ Urban Growth Whakarongo Installation of stormwater system $1.68M 2018~/ City wide Stormwater Improvement Works $ ~/ Urban Growth City West Installation of stormwater system $1.53M 2024~/ City Wide Stormwater Pump Stations $1.5M 2018~/48 Projects to Support Growth The following projects are attributed directly to growth as a result of new residential and industrial/commercial developments. Urban Growth Areas Residential & Industrial Rezoning These projects provide the stormwater infrastructure required to service new growth areas zoned for residential and industrial/commercial developments, namely Whakarongo and City West (refer to Section 5.3 and 5.4). Project costs and timing are continuously being updated as both the land use zoning moves to final adoption and developer intentions are confirmed.. In all areas the necessary infrastructure comprises construction of stormwater detention areas to manage peak flows as well as treatment systems to capture contaminants. A significant portion of the cost is associated with land acquisition, although in some instances developers are required to provide the land at no cost to Council. Stormwater Subdivision Contributions A provisional allocation of funding is provided to enable Council to contribute to stormwater improvements by taking advantage of major sub-division development to construct additional or enhanced facilities with benefits beyond the subdivision. An example is a Council subdivision development contribution for the extra cost of upsizing a pipe for a subdivision so as to be able to service future as yet undeveloped land within the upper part of a catchment. Projects to Maintain and Improve the Level of Service These are capital projects that aim to improve or maintain the level of service of stormwater. City Wide Upgrading Stormwater Pipe or Open Channel Network This programme funds upgrades to existing parts of the network where flood frequency is greater than tolerable or existing levels of service have been eroded by infill development over the years. The approach to identifying upgrading locations, possible mitigation options and the priority for any works has been outlined in Section

105 Section 6 Assets & Lifecycle Management City Wide Regulatory Requirements Council has completed an initial environmental assessment of the impact of its stormwater discharge on the receiving environment. Following this review Council has engaged an external provider to develop a Stormwater Management Plan for the city which will identify priority catchments in respect of contaminant discharges where there are opportunities both at source and through cost effective network treatment to improve receiving water quality. Council are working with Horizons Regional Council to develop a regional approach to stormwater management. It is intended that the stormwater catchment planning approach would underpin a global or targeted stormwater consenting approach. Additional funding to support this approach in terms of consultancy support and water quality monitoring is included in the budget Delivery of Development Programme In general, capital new work programmes involving smaller diameter and less complex infrastructure will be carried out by City Enterprises through the SLA system. Large and complex projects, particularly where specialised technologies e.g. pipe thrusting or boring, will be tendered to the open market. To reflect the increasing complexity of major projects and the current resource constrained consultancy and contracting environment, major capital new projects will be programmed to occur over 2 or 3 years. This will allow for consenting, consultation and detailed design to occur prior to the year of implementation and also provide for implementation of construction works over more than 1 year. Providing longer for project implementation will help to ensure cost competitive tender prices in the current constrained construction environment, by giving contractors long lead times and inviting them to determine their own optimum construction programme. 6.9 Disposal of Assets There are no stormwater assets planned to be disposed of during the term of this AMP 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 Section 11 Continuous Improvement. Item 1, Development works planning (demand/los): Develop improved business case template to ensure full assessment of projects; and Document changes to AMP programmes that arise through 10 Year Plan and Annual Budget process. Item 2, Asset information: Update detailed asset component and condition information in AM system; Review AM system data quality process & improve as required; Review condition assessment programme and implement annual CCTV condition assessment of selection of critical and representative stormwater assets; 85

106 Section 6 Assets & Lifecycle Management 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: Develop robust work programme based on network condition and performance assessment to resolve known faults and levels of service issues; Continue to develop predictive modelling; and Develop processes to prioritise risk mitigation options. Item 4, Operations and maintenance: Further develop the measure and value SLA contracts to specify annual work scope and deliverables; Work on optimising O&M programmes; and Further develop processes to ensure competitive prices are obtained for all projects including significant portions of the O&M SLAs delivered by external contractors. Item 9. Delivery of services: Review delivery of services as required by LGA section 17A. Improve internal procurement process 86

107 Section 7 Risks and Resilience 7 Risks & Resilience Infrastructure risk management is the process of identifying risks that may affect the ongoing delivery of services from the 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 Operational risks: Operational risks identified in the Risk Management Policy, relevant to this activity, are as follows: 87

108 Section 7 Risks and Resilience Table 28: Summary of Operational Risks and Planned Mitigation 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. 1. Manage infrastructural assets in accordance with AMPs as funded through the 10 Year/Annual Budget. 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). 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. 2.1 Develop programme justification for the AMPs to feed into the annual planning process. 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. 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". Council does not deliver the capital (new and renewal) programmes within approved scope of works, planned timeframes and budget. 1. Set realistic capital revenue and expenditure budgets. 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. 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 88

109 Section 7 Risks and Resilience Operational Risk Corporate Mitigation Strategy Corporate Mitigation Action (& 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. 3. Obtain Management Team approval on all capital projects that require a Project Execution Plan (PEP) before commencement of the project. 2.1 Signed off by the relevant General Manager. 2.2 Review budget for reasonableness (all individual capital budgets). 3.1 Active management by General Manager. 3.2 Report to Chief Executive of all non-compliance instances. 4. Assess resources required to deliver the overall capital programmes. 5. Manage projects against recognised good practice. 4.1 Use the Works Programming Forum to enable both City Networks and City Enterprises to 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. 6. Monitor progress in the delivery of capital programmes. 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. 6.1 Monitor progress through Works Programming Forum. 6.2 Monitor progress of work through monthly financial reports, and the Project Status Reporting tool both in terms of actual year to date against the current financial budget and against the total project budget spanning more than one financial year. 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. 1. Develop and maintain high level PNCC Business Continuity Plan(s) (BCP). 1.1 Prepare and maintain high level PNCC Business Continuity Plans (BCP). Council's activity preparation in key areas does not align to the Long Term Plan (Long Term Plan) programmes approval and budget processes and vice versa. 2. Ensure integrated planning occurs across Council s recreation assets. 2.1 Concept and development plans are developed for Council s recreation facilities and reserves aligned to the Active Recreation Strategy. 89

110 Section 7 Risks and Resilience 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 16 demonstrates the risk management hierarchy from corporate risk management down to activity, project specific and operational risk management. Risk is managed at these 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. 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 22: 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 significant disruption in service and financial, environmental 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. 90

111 Section 7 Risks and Resilience Critical customers are those relying on essential services provided by the Council (e.g. protection of schools and hospitals from inundation). 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 AMP 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 29 contains the attributes and definitions for both dimensions. Table 29: 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 Stormwater 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. 91

112 Section 7 Risks and Resilience This process is summarised in Figure 23. Figure 23: 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 Stormwater 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 stormwater 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. 92

113 Section 7 Risks and Resilience 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 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 stormwater network is regarded as a lifeline utility. The Act states the duties of lifeline utilities at Section 60: 60. Duties of lifeline utilities Every lifeline utility must (a) (b) (c) (d) (e) ensure that it is able to function to the fullest possible extent, even though this may be at a reduced level, during and after an emergency: make available to the Director in writing, on request, its plan for functioning during and after an emergency: participate in the development of the National Civil Defence Emergency Management Strategy and civil defence emergency management plans: provide, free of charge, any technical advice to any civil defence emergency management group or the Director that may be reasonably required by that group or the Director: ensure that any information that is disclosed to the lifeline utility is used by the lifeline utility, or disclosed to another person, only for the purposes of this Act. 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 stormwater activity are as follows: Area of catchment/sub-catchment served; Number of people and properties adversely affected; Significant business activity interrupted; Consequential cost of failure; and Critical lifeline/disaster recovery asset. The critical assets for the stormwater activity comprise pipes, pump stations and stopbanks. Table 30 contains a summary of the criticality of these assets. 93

114 Section 7 Risks and Resilience Table 30: Critical Assets Critical Asset Criteria Dependent Customers & Services Assessed Overall Criticality Pipes SW pipes > 1.8m diameter Number of people and properties adversely affected. Consequential cost of failure Residents. Significant business activities. High Emergency services (hospitals etc.) SW pipes 1.2m 1.8m diameter. Number of people and properties adversely affected. Consequential cost of failure Residents. Significant business activities. Medium Critical customer Emergency services Culverts Number of people and properties adversely affected. Consequential cost of failure Residents. Significant business activities. Medium Critical customer Emergency services Pump Stations Fairs Road Ellesmere Crescent Guy Avenue Birmingham Ave. Number of people and properties adversely affected. Flow rate >750 L/s. Consequential cost of failure Residents. Emergency services High Clausen Street Bennett Street Paisley Street Number of people and properties adversely affected. Flow rate >750 L/s. Residents. Significant business activities. Medium Consequential cost of failure Critical customer, Stopbanks Kawau stream upstream of botanical Road Number of people and properties affected Residents. Medium Floodgates Number of people and properties affected Residents Medium Stormwater pipes smaller than 1.2 m in diameter are deemed to be noncritical, low criticality assets except where a critical customer, such as a hospital or a significant business activity, may be affected Resilience The approach taken in this plan is to assess the impact of particular natural hazards on the critical assets of the stormwater 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 adopted in 94

115 Section 7 Risks and Resilience this plan to reduce the risk. Section The interdependencies of other utility services are identified in 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 tentatively programmed to commence in 2018/19 see also Section Sources of Risk The sources of risk affecting the activity are as follows: Operational failures. Physical Asset risks. Project & planning risks. Natural hazards. Events & Incidents. The risks arising from these sources are elaborated on in Section Reference Documents Documents that have informed this plan include: 1994 Hazards Analysis Three Waters Risks & Responsibilities - Lifelines Project Report Hazard Risk Assessment for the Manawatū-Wanganui Region GHD Critical Assets Phase 1 Report Three Waters GNS Liquefaction Report City Infrastructure and Civil Defence Preparedness PNCC Engineering Standards Resilience Review. PNCC District Plan Section 22: Natural Hazards Floods. 7.3 Key Risks to the Stormwater 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/ planning 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. 95

116 Section 7 Risks and Resilience 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, third party accidental damage or contract management issues but do not involve a physical breakdown of the asset. They may also have other consequences as noted above. Table 31 contains a summary of the key operational risks for this activity together with planned mitigation measures additional to current practices. Table 31: Key Operational Risks Key Operational Risks Inadequate contract/sla management (SW05) Non-compliance with legislation and legal requirements (SW08) Power supply failure affecting pump operation (SW21) Discharge of contamination via stormwater network (SW22) Mitigation Measures Monitor customer feedback and trends. Review and improve contract auditing procedures. Improved KPIs. Staff training. Possible extension of QMS. New staff trained on internal contract management manual. Compliance monitoring. Management of consents. Relevant and specific contract conditions (including OSH pre-qualification, HSE Act, etc.). Install standby power generator connections at all pump stations. Monitor pump hours run to correlate with storage. Install telemetry at all pump stations. Written procedures in respect of spill response to contamination and pollution discharges to the stormwater network. Community education and behaviour change initiatives. Private property surveillance, audit and compliance enforcement of requirements under the Stormwater Drainage Bylaw. Stormwater network quality monitoring to identify problem catchments and contaminant sources in order to implement at source treatment interventions 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. Table 32 contains a summary of the key risks relating to asset failure. Table 32: Key Asset Failure Risks Key Asset Failure Risks Stormwater pump station failure (SW20) Mitigation Measures Complete detailed pump station condition assessments in order to develop a robust renewal and replacement schedule. Ensure a robust incident response plan is in place and all operational staff are familiar with the protocol. 96

117 Section 7 Risks and Resilience Key Asset Failure Risks Breaks and blockages in the pipe network (SW23) Erosion and scour (SW24) Mitigation Measures Test operation of all pump stations using mobile generator. Ensure telemetry is installed at all pump stations and telemetry fault data is analysed to identify specific performance issues and trends. Programme condition and performance assessment comprising CCTV inspection and scoring of both critical assets and a selection of the typical pipe materials across the network. Investigate blockage issues, capture information within IPS and analyse fault data to identify specific spatial or asset related trends or risks. Implement proactive inspections of critical large diameters services to ensure they are free of debris and they are capable of functioning as intended. Complete annual inspections of all channel and streams to develop a schedule of problem areas requiring maintenance and renewal. Update this condition schedule annually. Pipe sections of open drain where the lifecycle costs of reduced on-going maintenance and the benefits of improved safety justify the capital investment. Complete inspections of all stopbanked water courses after floods. Inspect all SW outfalls annually prior to autumn to ensure they are functioning optimally, with priority given to immediate maintenance and renewals works 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. Table 33 contains a summary of the key project and planning risks identified. Table 33: Key Project Planning Risks Key Project and Planning Risks Lack of skilled staff (SW02) Failure to deliver on projects and programmes (SW04) Inadequate asset management (SW07) Ineffective strategic planning (SW15) Inadequate communications and PR Management (SW16) 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. 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. 97

118 Section 7 Risks and Resilience Natural Disasters The impact of natural disaster hazard events on the infrastructure of the stormwater 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); Flood equivalent to the 2004 Lower North Island flood event (about a 1:100 year flood); and Volcanic an eruption of Mount Ruapehu with a 12 km high column. 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 34. Table 34: Other Events & Incidents Event or Incident Leakage or spillage of any dangerous substance, Technological failure Impact on Assets or Service Potential contamination of receiving waters and breach of discharge consent. Loss of telemetry at pump stations, resulting in loss of remote monitoring capacity, alarm notification and early warning systems. Climate change Increased rainfall and volatility of rain events see Section 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, flooding and volcanic 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 from liquefaction would has the potential to cause significant damage in a severe earthquake Seismic Hazard About 90% of the piped stormwater drains are made of brittle materials (reinforced concrete) that could be expected to suffer fractures and joint pull-outs resulting in blockage due to liquefiable and other soil material. Liquefaction would likely cause many manholes on the piped drain networks to be displaced resulting in them being sheared from their connecting pipework. This would reduce the effectiveness of the primary drainage system and lead to increased reliance on the secondary system (overland flow) 98

119 Section 7 Risks and Resilience with the effect of increased frequency and duration of stormwater ponding in urban locations under normal conditions. Loss of power could be expected as a result of a major seismic event. None of the pump stations have permanently installed backup electrical power generation to operate the pumps. While a trailer mounted generator is maintained by City Enterprises which can be used for any of the stormwater or wastewater pump stations, it is likely that priority will be given to providing back-up power to critical wastewater pump stations. Table 35 provides a summary of the assessed resilience of the critical stormwater 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 increasing the resilience of the asset and managing service delivery following a seismic event. This will include a review of the desired level of resilience. The average resilience of the stormwater network as a whole is medium, noting that the network is essentially a gravity system that follows natural gradients and flow paths. Table 35: Resilience to Seismic Hazard Critical Assets 4 Criticality Current Level of Resilience Desired Level of Resilience Piped drains and manholes Medium - High Low Medium - High Culverts Medium Medium Medium - High Pump stations Medium - High Low - Medium High Stopbanks (PNCC owned) Medium Medium Medium - High Flood gates Medium Low - Medium Medium Flooding Hazard The purpose of the stormwater system is to protect property from inundation during frequent rainfall events which results in stormwater levels exceeding habitable building floor levels for the 1 in 100 year ARI rainfall event. The Horizons One Plan requires new structures, activities or critical infrastructure to be located in a floodway to be designed to be protected from a 1 in 200 year flood event. Horizons Regional Council has upgraded the river stopbank assets to provide protection to the urban areas for river flood events up to a 1 in 500 year ARI. Should the river stopbanks be breached or overtopped extensive flooding of hundreds of properties to levels above current floor levels would occur, in the eastern side of the city, Even with the river being contained within the stopbanks a major river flow event would result in localised flooding of areas of the City due to both capacity limitations in the stormwater network, and the backflow impact of the raised river levels preventing gravity discharges from many of the outfall structures discharging to the Manawatū River and Mangaone Stream. While the pump station network will provide some drainage capacity during these events, meaningful reduction in the localised flooding impacts would require a significant number of high capacity pumping stations to lift stormwater across the top of stopbanks from designated storage areas. Table 36 provides a summary of the assessed resilience of the stormwater assets to flood hazard. Where the current level of resilience is less than the desired level of resilience further work is to be 4 Refer to Section

120 Section 7 Risks and Resilience undertaken to determine options for future management and development of the asset. This will include reviewing the desired level of resilience. The resilience of the remaining network to flooding hazards is medium, taking into account the extensive secondary flow path network and informal local detention areas. Table 36: Resilience to Flooding Hazard Critical Asset Criticality Current Level of Resilience Desired Level of Resilience Piped drains & manholes Medium - High Medium - High Medium - High Culverts Medium Medium - High Medium Pump stations Medium - High Medium Medium - High Stopbanks (PNCC owned) Medium Medium High Flood gates Medium Medium High Volcanic Hazard Mount Ruapehu, Tongariro and Ngauruhoe are three active volcanoes located approximately 150 km due north of the City. They comprise the volcanic plateau of central North Island. In the event of a significant volcanic eruption of one or more of these volcanoes, the potential exists for an ash cloud to spread south with a resulting deposition of fine sediment across the entire City. This event occurred, at a moderate level, as a result of the 1996 eruption of Mount Ruapehu. The main risk associated with this hazard is the build-up of sediment in the City s stormwater drains and channels, reducing the capacity of these assets. Ash carried through to pump stations could have a damaging effect on pumps, through corrosion and/or choking of the pump impellors. Additional reactive network maintenance in the form of kerb and channel cleaning, pipe flushing and channel excavation would be required. Desilting of attenuation ponds and installation of temporary pumping arrangements in high criticality sub-catchments could be considered. Lahar flows would not impact on the City s stormwater catchments. Table 37 provides a summary of the assessed resilience of the critical stormwater assets to a volcanic hazard. Where the current level of resilience is less than the desired level of resilience, further work is to be undertaken to determine options for mitigation of the risk and further development of the asset to close the gap in resilience. This will include reviewing whether the desired level of resilience is appropriate. The resilience of the stormwater network to volcanic hazards is medium, noting the role of secondary flow paths in providing adequate drainage for most parts of city and the need to monitor the impact of potential accumulation of ash deposits on open channel capacity. Table 37: Resilience to Volcanic Hazard Asset Criticality Current Level of Resilience Desired Level of Resilience Piped drains & manholes Medium - High Medium Medium - High Culverts Medium Medium - High Medium - High Pump stations Medium - High Low High 100

121 Section 7 Risks and Resilience Asset Criticality Current Level of Resilience Desired Level of Resilience Stopbanks (PNCC owned) Medium High Medium Flood gates Medium Medium Medium - High Other Natural Hazards Other natural hazards with the potential to impact of the stormwater activity include: A major landslide into the Manawatū River near Ashhurst or Palmerston North could constrict river channel capacity reducing the capacity of the river and resulting in the Horizons stopbanks being overtopped during a lower frequency flood event. Lightning strike of a pump station could damage pump controls and electrical circuitry. A heavy snowfall could temporarily block stormwater inlet devices (roads side sumps etc.) resulting in localised flooding in the event of a simultaneous rain storm. Table 38 provides a summary of the assessed resilience of the assets to the other natural hazards identified above. 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 mitigation and development of the levels of resilience of the asset. This will include reviewing the desired level of resilience. Table 38: Resilience to Other Hazards Asset Criticality Current Level of Resilience Desired Level of Resilience Piped drains and manholes Medium - High High Medium High Culverts Medium High Medium Pump stations & manholes Medium - High Low Medium High Flood gates Medium Medium - High Medium Stopbanks (PNCC owned) Medium High Medium Interdependencies The critical assets comprising the stormwater activity are not stand alone. To operate effectively they are dependent on a variety of other utilities/infrastructure providers. Also, other utilities in turn rely on the continued serviceability of the assets for 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. Table 39 identifies the utility services that this activity depends on, the level of dependence and the mitigation measures in place. Table 39: Utility Services that the Stormwater 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 Pump stations Power supply. Surface and within property flooding Install generator connections at all pump stations and verify operability. Procure a dedicated mobile generator set for the stormwater activity. 101

122 Section 7 Risks and Resilience Critical Assets Utility Service the Asset is Dependent on Implications of Failure of the Asset Depended on Mitigation Measures Fuel supply. Surface flooding Acquire trailer mounted, mobile fuel supply tanks to service standby generators. Table 40 identifies the utility services that depend on critical Water Activity assets. Table 40: Utility Services that Depend on the Stormwater Activity Assets Critical Asset Utility Service that is Dependent on this Asset Implications of Failure Mitigation Measures Wastewater reticulation Separation of stormwater from wastewater reticulation Surcharging of wastewater reticulation. Overloading of WW treatment plant. Removal of SW connections from WW reticulation. Proactive programme of stormwater inflow and infiltration investigation and fault remediation in catchments with high wet weather wastewater flows. 7.5 Risk Management Strategy The approach to managing the stormwater 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 continuing to develop the understanding of the performance of the assets, and its condition as well as planning robustly for the 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 as well as address localised performance issues. Prioritising inspection, maintenance and renewal work in those areas with the highest levels of average annual damage associated with flood water entry to habitable dwellings and buildings. On-going development of the risk register to refine and improve understanding of those asset components that carry the highest risk. Investigating options for increasing the resilience of the asset and deploying 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 seismic strengthening of structures to meet importance level standards determined for the assets. Incorporating greater resilience when renewing or building new assets through selection of specific materials and more resilient 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 that contribute in this plan to mitigate risk and to increase resilience are summarised in Table

123 Section 7 Risks and Resilience Table 41: Risk Management Programme (30 years) Programme Impact on Risk & Resilience Forecast Expenditure Year Maintenance Renewal Development Investigation Readiness BCP Maximising performance of network to ensure effective operation and reduce risk Ensure the pipe and open channel network functions at its optimum capacity to maximise the level of service provided by the existing network. Increasing the capacity of the network in specific areas to mitigate significant flood damage risks, address level of service deficiencies and provide for growth 2D modelling of network including assessment of a range of mitigation scenarios to identify areas most vulnerable to flooding events and develop a priority list of capital improvement works required to improve resilience of the network. Asset management planning and emergency response plans identify the risks and resilience measures required to mitigate the impacts of natural hazards. $820K pa 2018~/48 $16.7M 2018~/48 $23.3M 2018~/48 $100K 2018~/19 $450K 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 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: 103

124 Section 7 Risks and Resilience 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 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. Civil Defence Emergency Management Amendment Act 2016 The changes to the Civil Defence Emergency Management Act strengthen recovery planning. This amendment specifically requires CDEM Groups to amend their plans by 1 June 2018 to include strategic planning for recovery from the hazards and risks in their district. Work on this amendment is currently underway. 104

125 Section 7 Risks and Resilience Business Continuity Plan A Business Continuity Action Plan has been prepared for the Stormwater 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 Stormwater Plan contains: The Stormwater Services call tree; Incident Stormwater Team; Stormwater services continuity and recovery strategies; Accessibility, Resources and Communication; Stormwater Disposal/Flood Protection; 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 service to critical customers would be a priority. Should the event have caused widespread disruption to the stormwater 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. On-going 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 Wanganui District Council Rangitikei District Council Manawatū District Council Tararua District Council Horowhenua District Council Transpower NZTA Spark NZ Chorus Electra First Gas Kordia Scanpower Kiwi Rail PowerCo GasNet Palmerston North International Airport Mid Central DHB Teamtalk 105

126 Section 7 Risks and Resilience Vodafone 2 Degrees Inspire Net The Lines Company Foodstuffs 7.8 Risks and 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. 106

127 Section 8 Sustainability 8 Sustainability This section sets out how the Stormwater activity contributes through the management of its assets to the sustainability of the city. The practise of asset management is itself based on sustainably delivering services to the community. 8.1 Eco City Strategy The Eco City Strategy is one of the Council s five strategies supporting its vision for the City and 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 in Table 42. Table 42: Eco City Strategy Priorities & Plans Eco City Strategy Priorities Eco City Strategy Plans 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 Water Waste Energy Environmental education Carbon emissions reduction In addition Council has determined a range of Sustainable Practices which are to be reflected in all of Council s strategies and plans. Key Sustainability Issues Key sustainability issues arising from these plans and impacting on the Stormwater activity are as follows: Climate change affecting rainfall intensity resulting in greater total and peak surface run-off. Effects of stormwater discharges on the water quality in the receiving environment. The quality of the stormwater discharges, particularly first flush of runoff from the built environment will need addressing if an improvement to the biodiversity of streams and gullies and better riparian ecology is to be fostered. The approach taken to addressing these issues is outlined later in this section. 107

128 Section 8 Sustainability 8.2 Climate Change Initiatives Climate change is recognised as a significant sustainability factor. The effects of climate change on the stormwater activity as a driver of demand has been covered in Section Approach Taken in This Plan Sustainability considerations are incorporated into the AMP through the following mechanisms: Operation and maintenance SLAs which target energy use efficiency as a key consideration on mechanical and electrical maintenance and renewals. Engineering Design Standards which require whole of lifecycle cost assessment and set out acceptable solutions for stormwater attenuation and detention devices and treatment systems. Stormwater Drainage Bylaw 2015 which provides for at-source improvement of stormwater discharges. City wide stream quality monitoring to support specific targeted initiatives to improve stormwater discharge quality. Use of Water Sensitive Design (WSD) and Sustainable Urban Drainage approaches for all new development areas. 108

129 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 stormwater activity based on the long-term strategies and tactics described earlier in the AMP. 9.1 Long Term Financial Forecast Figure 24 shows the thirty year projected operation and maintenance expenditure (interest and depreciation costs excluded). Depreciation for proposed future assets is included based on their expected life. $2.0 Management Delivery Operating Programmes $1.5 $1.0 $0.5 $ / / /25 Proposed Annual Expenditure [$M] 2027/ / / / / / /46 Figure 24: Thirty Year Operation & Maintenance Expenditure Forecast Figure 25 shows the thirty year projected renewals expenditure for the stormwater network. The significant gap between depreciation and renewals expenditure is due to the young age of much of the buried stormwater assets. While straight line depreciation records a steady decline in the asset value (depreciation) with age, the reduction in remaining life does not result in any significant decline in service potential of the assets and hence the requirement for renewal expenditure is not triggered.. The current renewal profile is based on an average of the remaining life however it is expected that many pipes will have lives considerably longer than the assumed median pipe age. Further CCTV and physical condition assessment is programmed within the AMP period to develop an optimised asset life profile. The renewals budget is higher in the first few years of the plan reflecting the identified need to replace poor condition aging brittle pipes of small diameter. These smaller diameter pipes account for the majority of the service requests, are typically located in private property easements. Renewal expenditure requirements in the larger diameter pipes are assessed to be low and will be associated with remedying faults associated with installation issues and third party service clashes or damage rectification. 109

130 Section 9 Financial Projections & Trends $2.5 Stormwater Network 3 Yr Rolling Avg. Depreciation $2.0 $1.5 $1.0 $0.5 $ / / /25 Proposed Renewal Expenditure [$M] 2027/ / / / / / /46 Figure 25: Thirty Year Projected Renewals Expenditure Figure 26 shows the thirty year projected new capital expenditure which largely comprises investment in new infrastructure in the new residential and commercial growth areas and some modest levels of new capital investment in capacity and improvements to mitigate identified constraints including piping problematic open drains.. Following completion of further development of the modelling work and scenario assessments to develop more detailed stormwater management plans, it is expected that requirements for additional capital new investment in mitigation works to reduce flood risk will be identified. Any additional investment will follow agreement through Council and the community of the need to improve the level of service. This plan provides for a long term average investment of $0.3 to 0.5M per annum in minor capital upgrades. The years of larger capital investment i.e. 2018/19, 2019/20, 2024/25 and 2025/26 coincide with investment in growth related infrastructure. 110

131 Section 9 Financial Projections & Trends $1.5 Stormwater Network $1.0 $0.5 $ / / / /28 Proposed Capital Expenditure [$M] 2030/ / / / / /46 Figure 26: Thirty Year Projected New Capital Expenditure A full breakdown of the thirty year projected costs is given in 0. Significant trends for the thirty year forecast are: Operational planning and policy: Expenditure remains steady throughout the planning period with key priorities for funding including advancing the 2D modelling and scenario assessment work, completing policy and regulatory work to support policy and plan changes, undertaking critical asset condition assessment and targeting stormwater discharge quality improvements in high risk subcatchments. The programme also includes provision for an annual programme of CCTV inspection and condition grading for a representative cross-section of the network over the first 5 years of the AMP. Operation and Maintenance: The operation and maintenance expenditure profile is based on the current asset mix and historical levels of maintenance incurred on the network. It is expected that some reduction in pipe network maintenance will occur as poorly performing parts of the stormwater network are renewed however any saving is likely to be offset by additional maintenance costs associated with treatment systems and stormwater detention and attenuation ponds which are vested with Council. Understanding of the cost of maintenance of dry and wet pond and wetland systems is limited and it is possible that O&M costs may need to rise to reflect the higher costs of these components of the network.. Renewals & Rehabilitation: The renewals profile reflects an initial 5 to 8 years period of investment to renew the backlog of currently identified problem pipe assets. Renewal funding requirements then drop to a steady $0.35 to $0.4 million per annum. Funding includes provision for targeted stream and drain renewals, minor pipe renewals and replacement of outlet, gate and other assets at risk of damage within the stream or active river discharge zone. Development: The new capital expenditure forecast is based on the timing of infrastructure required for growth in Whakarongo and the North East Industrial Area Extension. The other key focus determining the capital programme is the construction of new assets required to mitigate the effects of flood damage in at risk areas of the network. The spike in 2024/25 is associated with the assumed first stage of stormwater infrastructure investment required for the City West residential zone. 111

132 Section 9 Financial Projections & Trends 9.2 Asset Valuation Council water supply 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 43. The detailed valuation and valuation methodology are contained in the report entitled Revaluation of Infrastructure Assets for City Networks Unit (June 2017). Table 43: Asset Valuation for Stormwater Assets (30 June 2017) Asset Type Optimised Replacement Cost Optimised Depreciated Replacement Cost Annual Depreciation Pipes $136,558,367 $102,376,759 $845,133 Culverts $40,551,054 $27,100,932 $218,148 Manholes $23,498,230 $17,617,595 $157,992 Mains Connections $4,075,370 $2,875,262 $33,942 Sumps Connections $13,149,888 $9,123,071 $109,579 Kerb Connections $5,373,449 $2,519,195 $67,168 Flood Gates $495,220 $279,189 $4,120 Inlet and Outlet Structures $2,609,890 $1,949,354 $18,155 Storage Basins $2,694,200 $2,554,359 $27,972 Channels (Artificial) $9,055,545 $9,055,545 $ - Stop Banks $2,503,950 $2,503,950 $ - Protection Works $2,938,250 $2,169,917 $34,402 Pump Stations $2,529,831 $1,310,964 $59,511 Drainage Reserve Land $466,500 $466,500 $ - Total $246,499,744 $181,902,592 $1,576,122 The unit costs used were based on current Council contracts where available, or adjusted from previous contract rates. Otherwise they are based on contract rates that are typical for the industries. These rates were peer reviewed by an independent consultant. Depreciation has been derived using the expected lives listed in Section Confidence Levels The confidence in the asset data used as a basis for the financial forecasts has been assessed using the grading system in Table

133 Section 9 Financial Projections & Trends Table 44: Confidence Grading Description 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 45 outlines the general confidence level for the asset data, including condition and performance. Table 45: Asset Data Confidence Indication Asset Asset Data Confidence Condition Data Confidence Performance Data Confidence Demand/ Growth Forecast Channels Flood Gated Structures Kerb Connections Land Drainage Land Drainage (Stop-banks) Main Connections Mains

134 Section 9 Financial Projections & Trends Asset Asset Data Confidence Condition Data Confidence Performance Data Confidence Demand/ Growth Forecast Culverts Manholes Pump Stations Storage Basins Sump Connections Inlet/Outlet Structures Reliability of Financial Forecasts Maintenance & Renewal Forecasts These are considered reliable estimates based on a known quantum and scope of work and a good historical cost database. There is some increasing uncertainty of forecasts over the long term due to lack of knowledge about real price changes of individual components. Appendix E provides the detailed financial forecasts for maintenance, renewal and capital programmes for the 30 years of the Infrastructure Strategy. Forecast confidence is in line with the definitions set out in section below Development Forecasts Years 1-3: The scope and pricing of work is considered reliable and based on known issues. 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 Potential Effects of Uncertainty 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 continuation of the stormwater level of service to the community is not overly sensitive to changes in particular programmes. Should the required level of funding not be available resulting in deferral of maintenance or renewal then will be a noticeable impact on the level of service for the properties served by the affected services. In respect of any deferral of development expenditure the impacts on growth could be significant and result in a delay to the development proceeding. In respect of the investment in network capacity improvements, the effect would be less immediate but would contribute to a gradual increase in the level of property damage loss overtime. Significant development projects that have a 114

135 Section 9 Financial Projections & Trends high level of uncertainty include the timing of urban growth beyond the Whakarongo Growth Area which is currently being developed including: 197-Urban Growth-North East Industrial Park Stormwater in 2019/20 and beyond; as well as 1065-Urban Growth-City West-Installation of Stormwater Systems from 2024/25 onwards. 9.5 Funding Policy The focus of this AMP plan is on identifying the optimum (lowest lifecycle) cost for maintenance, operation and provision of stormwater assets necessary to produce the desired level of service. Funding of the different types of expenditure is as follows: Operation & Maintenance Operation and Maintenance is funded from the general rate with a business differential Capital Renewal Capital renewal is funded from rates revenue to cover programmed renewal costs and if necessary from borrowing Capital Development Capital development works that are for an increased level of service are funded from borrowing. Works that are required as a result of growth are funded where possible from user charges such as development contributions Development Contributions Through the application of its Development Contribution policy the Council seeks to obtain contributions to fund the infrastructure that is required due to City growth. Programmes that are attributable to growth are shown in this AMP. Development contributions for stormwater are area specific. 115

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137 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. 117

138 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 will not provide a stormwater service to rural-residential and rural properties within the City boundaries. It is assumed rural-residential subdivision will occur in locations which do not require the Council to fund substantial upgrades to the stormwater 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. Target capital improvements to address flood damage risks in catchments where flood free LoS is less than 1 in 20 ARI (with climate change) Stormwater quality target levels of service to be developed over the next 3 years 10.8 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 Maintenance and operational costs are largely based on historical rates and assume similar contract rates throughout the planning period. As outlined enhanced health and safety and traffic management requirements have been factored into the AMP estimates. Inflation factors are applied at the 10 Year Plan level to accommodate a modest level of price inflation over the period of the plan. 118

139 Section 10 Assumptions 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 including subsequent changes to operational impacts or depreciation 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 That there are no major natural disasters during the planning period requiring additional funds. 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 required to achieve this. 119

140 Section 10 Assumptions Council Policy No significant change to Council policy that impacts on assets and services has been identified. Any significant change will require a full review of the AMP and the implications will be identified at the time Interest Rate An interest rate of 5.7% is used for debt on new capital work Resource Consents It is assumed that stormwater discharges can continue without consent over the first 3 years of the AMP, however, investment in monitoring and development of a city wide Stormwater Management Plan has been assumed. 120

141 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 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 & 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-Urban Development Capacity requirements. 121

142 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 Long Term 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. On-going condition and performance assessment of Council s assets has taken place during the period including recent CCTV of a cross-section of stormwater pipe assets. The data collected is assisting with developing an improved renewal programme. Further CCTV inspection and condition assessment will be prioritised particularly of the larger diameter assets to confirm they can operate as designed and of older smaller diameter brittle pipes to optimise the immediate renewal priorities over the next 5 years. 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 & Maintenance Operations and Maintenance Strategy The O & M 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 in-house service provider, have continued to be developed to improve transparency and accountability between funding and service provision. This has included transitioning from a Lump Sum contract to a measure and value with significantly greater detail around the specific items of work, required quality 122

143 Section 11 Continuous Improvement standards and the basis of payment. Further improvement of the definition of each work element is required as well as adoption of the Measure and Value approach across all the SLAs. The internal contracting arrangements are supported by an SLA system managed by a dedicated officer. There has been some work to upgrade the SLA system including introduction of some standard SLA templates and implementation of an automated manual claims process to speed up the monthly reconciliation process. This has been supported by a Collaborative Working Practices process between the two Units Market Comparability Procedure In conjunction with collaborative working practices, a market comparability procedure is built into the Service Level Agreement 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 scheduled maintenance tasks are now processed through IPS using the Field Inspector mobile solution which allows real time resolution of the work order created from IPS. Work is on-going to move all reactive maintenance tasks generated in Council s KBase system to the same mobile solution. This requires a software upgrade and a reliable connection to Council s GIS database 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 Planning system to ensure consistency with the Year Plan projections Asset Management Resources Loss of Key AM Knowledge Key systems to preserve 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. 123

144 Section 11 Continuous Improvement 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. The risk to Council associated with the impending retirement of the key staff member responsible for maintaining and updating the AMS has been identified and planning is underway to identify a means of increasing resourcing over an interim and handover period of at least 12 months to ensure risk to Council is mitigated. In addition at least two members of the team are being trained in the essentials of the IPS system to enable essential service to be maintained in the event of the incumbent being unavailable for an extended period. Opportunities to develop a shared resource across the three waters, roading and parks and property are being actively discussed 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 major natural hazards 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. 124

145 Section 11 Continuous Improvement 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

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147 Table 46: 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) Complete model development and scenario assessments to determine flood damage risks considering all trends (development extents, impervious area coverage, climate change impacts etc). Map flooding risks. Review impact of Council's strategies and policies on demand projections Identify and model potential mitigation options to address flooding risks.. Review project priorities based on risk/cost/benefit analysis Review mitigation strategies for major natural hazard events impacting on stormwater facilities. 2 wk CN/CF 1 wk AM 2 wk AM 2 wk AM 3 wk AM 8k 4k 4k 8k 20k 127

148 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 Document changes to AMP programmes that arise through 10 Year Plan & AP processes 2 wk AM 10k 2. Asset information 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 Implement mobile data capture solution to enable real time capture of data and improvement of asset data quality by field staff 2 mth AMSO 10k Review performance data needs (reporting & decision-making) and document data capture quality process. 2 wk AM 8k 128

149 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 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 Review financial data needed to support ODM and valuationimplement process 2 wk AM 8k Assess advanced AM system needs, and implement suitable application for predictive modelling. 2 wk AMSO 20k Undertake regular drain and watercourse inspections to determine condition and develop renewal priorities. Capture information in IPS. 3 wk CE 10k Complete 2 yearly condition survey of pump stations. 1 week External 10k 129

150 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 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 130

151 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 Compile a renewal programme for pipes, bores facilities, treatment plant, reservoirs and minor water facilities (accounting for condition & renewal profile depreciation) including consequences/risks of budget constraints 4 wk AM 20k 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 131

152 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 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 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 132

153 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 Scope up external contract for specialist mechanical and electrical maintenance services to achieve improved service, transparency and value 2 wk CE / 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 Develop overall AM strategy leading up to next AM review and get adopted by MT Develop a process for regular review of risk. AMP Coord/ Activity Manager AMP Coord. 2 wk AMP Coord. 1 wk AMP Coord. 1K 3k 8k 5k 133

154 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 Skill gaps in AM are assessed and training programmes implemented to close any identified gaps Promote organisational understanding of AM practices and outcomes 1 wk CNMT 1 wk SW AM 2 wk AMP Coord. 4k 2k 10k 134

155 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 8. Update AMP AMP Maturity Assessment & identification of key focus areas for 2021 Plans Prepare AMP using outputs of this improvement programme and incorporate further recommendations from the 2017 Peer Review & Audit NZ into the Plan Update AMP programme & financials AMP Coord. / AM AMP Coord. / AM 16 wk AM 4 wk AM 30k 12k 30k 16k 135

156 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 9. Delivery of services Review collaboration and procurement of services for managing and delivery of water services as part of Section 17A review Improve internal processes of CWP. SLA system and Market Comparability as required Scope & timing to be decided by Council Special Projects Manager 15k 136

157 Section 11 Continuous Improvement 137

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159 Appendix A Glossary Appendix A. Glossary 139

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161 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 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 which 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 141

162 Appendix A Glossary Term or Acronym Core Asset Management Critical Assets Current Replacement Cost Deferred Maintenance 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 Description 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. 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 stormwater 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. 142

163 Appendix A Glossary Term or Acronym Maintenance Maintenance Plan Maintenance Standards Net Present Value (NPV) Objective Operation Optimised Renewal Decision Making (ORDM) Performance Indicator (PI) Performance Monitoring Pipeline Asset Management System Planned Maintenance Rehabilitation Renewal Renewal Accounting Repair Replacement Description 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. 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 conditionbased. 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. 143

164 Appendix A Glossary Term or Acronym Remaining Economic Life Resilient Infrastructure Risk Risk Cost Risk Management Routine Maintenance Service Potential Strategic Plan Unplanned Maintenance Upgrading Valuation Description 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. 144

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

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167 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 Long Term 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) in each of the first 10 years covered by the strategy; and (b) (c) (ii) identify (i) (ii) (iii) (iv) in each subsequent period of 5 years covered by the strategy; and 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 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 include the following assumptions on which the scenario is based: (i) the assumptions of the local authority about the life cycle of significant infrastructure assets: 147

168 Appendix B Requirements of the LGA 2002 (d) (ii) (iii) 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 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) (b) 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 any other assets that the local authority, in its discretion, wishes to include in the strategy. 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: 148

169 Appendix B Requirements of the LGA 2002 (a) (b) (c) water supply: sewerage and the treatment and disposal of sewage: stormwater drainage: (d) (e) 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 (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. 149

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173 Appendix C Activity Performance Measures Table C1: Customer Level of Service, Performance Measures & Targets, & Performance Targets Key Service Criteria User Group Customer Level of Service Customer Performance Measure Current Performance Performance Targets 2018/ / / Onwards Technical Performance Measures How Measured Quality and Health Residential and commercial property owners and occupiers in urban areas connected to the Council s stormwater system The Council provides protection of habitable buildings in urban areas from flooding in major flood events. The number of flood events per year resulting in stormwater overflow entering a habitable floor in an urban area. 5 The number of habitable floors per 1,000 properties within urban stormwater service areas affected by a flood event per annum. 5 No events No events No more than 5 No more than 2 (60 properties in total) No more than 5 No more than 2 No more than 5 No more than 2 No more than 5 No more than 2 Record actual number & assess severity of event i.e. AEP for the relevant Tc. Record actual number & assess severity of event i.e. AEP for the relevant Tc. Emergency Management Office records. Emergency Management Office records. Reliability, Serviceability or Performance All residents in urban areas connected to the Council s stormwater system. The Council provides a reliable stormwater collection service. The number of complaints received about the performance of the Council s urban stormwater system per 1,000 properties connected per annum calculated as a 12 month rolling average No more than 15 (420 per annum total) No more than 15 No more than 15 No more than 15 Provision of 24/7 emergency response No more than 48 hours to restore service interruptions Flooding incidents caused by blockage < 10 per year K-base records K-base records K-base records No property affected more than twice in 5 year period K-base records 5 Mandatory measure from the Department of Internal Affairs 153

174 Appendix B Requirements of the LGA 2002 Key Service Criteria User Group Customer Level of Service Customer Performance Measure Current Performance Performance Targets 2018/ / / Onwards Technical Performance Measures How Measured The Council responds to failures and request for service in a prompt and efficient way. Median response time to attend to a flooding event (flood event is one where stormwater enters a habitable floor level) 5 No events < 2 hours < 2 hours < 2 hours < 2 hours RFS responded to in 2 hours (initial response only not resolution) K-base records, measured from time of receipt of notification to the time that personnel reach the site measure. Accessibility Residential and commercial property owners and occupiers in urban areas connected to the Council s stormwater system The Council provides stormwater collection service to residential and commercial areas of the City Percentage of time properties within the designated stormwater service area are able to connect to the stormwater network 100% At least 95% At least 95% At least 95% At least 95% Requests for new connections within the designated stormwater service area can be achieved Building control office records Sustainability All ratepayers Compliance with resource consent conditions for discharge from the Councils urban stormwater system that relate to environmental effects Number of Target Met No degradation of abatement notices. 6 the quality of the receiving water Number of infringement notices. 6 Target Met No degradation of the quality of the receiving water Horizons Regional Council Annual Compliance Monitoring Report Horizons Regional Council Annual Compliance Monitoring Report Number of enforcement orders. Target Met No degradation of the quality of the Horizons Regional 6 Mandatory measure from the Department of Internal Affairs. 154

175 Appendix C Activity Performance Measures Key Service Criteria User Group Customer Level of Service Customer Performance Measure Current Performance Performance Targets 2018/ / / Onwards Technical Performance Measures How Measured 6 receiving water Council Annual Compliance Monitoring Report Compliance with resource consent conditions for discharge from the Councils urban stormwater system that relate to environmental effects Number of successful prosecutions against the Council in relation to stormwater resource consents. 6 Target Met No degradation of the quality of the receiving water Horizons Regional Council Annual Compliance Monitoring Report The Council maintains and develops stormwater services to meet current and future agreed levels of service. A 30-year asset management plan is in place for the stormwater activity 30 Year asset management plan adopted by the Council in September 2013 AMP in place (key projects will be identified by modelling study) AMP in place (key projects will be identified from modelling study) AMP in place (key projects will be identified from modelling study) AMP in place and reviewed 3-yearly. Council s Annual Report Financial Management The Council manages its stormwater activity in a financially sustainable way Work programme is achieved within budget Target met 100% 100% 100% 100% Average household stormwater charges increase no more than 8% per year Council s Annual Report Describe work done and % budget spent for operations Council s Annual Report Describe work done and % budget spent for Capital works. Council s Annual Report 155

176 Appendix B Requirements of the LGA

177 Appendix D Risk Analysis/Framework & Register Appendix D. Risk Analysis/Framework & Register 157

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179 Appendix D Risk Analysis/Framework & Register Overview This Stormwater 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 stormwater 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 stormwater 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. The outcome of this evaluation is to be used to: Emphasize the importance of continuing to provide Council s stormwater services and manage inherent risks Continually identify improvements required to Council stormwater 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. 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 stormwater 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 159

180 Appendix D Risk Analysis/Framework & Register Levels of Risk The purpose of this risk plan is to identify the risks associated with the provision of stormwater 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 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 Corporate Risk Highest level covering risks for the entire organisation Activity Risk Considers risks from all perspectives affecting the management of the activity and its assets Asset Specific Risks Specific critical asset/ service risks, project risks 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 stormwater system and its 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 160

181 Appendix D Risk Analysis/Framework & Register 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 stormwater 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 has an existing corporate risk policy in place and a Risk and Audit Committee, 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. Significant risks identified in this plan will be entered into the corporate risk register. 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 3 and Table 4 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. 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 161

182 Appendix D Risk Analysis/Framework & Register 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 Risk - Likelihood of Occurrence Likelihood Rating Descriptor 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). 162

183 Appendix D Risk Analysis/Framework & Register 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 163

184 Appendix D Risk Analysis/Framework & Register Table Consequence Rating Area of Impact Factor Extreme Major Moderate Minor Insignificant Legal Legal Council sued or fined or otherwise liable for more than $20M Council sued or fined or otherwise liable for $5M - $20M Council sued or fined or otherwise liable for $250k-$5M Council sued or fined or otherwise liable for up to $250k Council prosecuted for minor offence Catastrophic environmental damage of national importance. Prosecution. Long term study. Impact permanent. Serious environmental damage of national importance. Prosecution. Long term study. Impact not full reversible. Serious environmental damage of national importance. Prosecution expected. Impact reversible within 10 years. Serious environmental damage of local importance. Prosecution probable. Impact fully reversible within 1 year Minor localised environmental damage. Prosecution possible. Impact fully reversible within 3 months. Political Appointment of a commissioner. Decision making process breaks down Council delays decisions. Breakdown in the relationship between council and the CEO Corporate image Image National adverse political comment for 1 month plus. Regional adverse political comment for several days. Local adverse political comment for one week. Local adverse political comment. Negative international multi media coverage for 1 month plus Negative international multi media coverage. Councillor/Management Time Unplanned collective 30 days of Councillor s or management s time days of Managers time Up to 2 days of Managers Time Service Delivery Service Delivery Water supply and sewage out for city for several days + Water supply and sewage out for two suburbs for one week. Water supply and/or sewage out for city for one day Water supply and/or sewage out for 2 suburbs for one day Water supply contaminated Permanent loss of solid waste facility Public amenity closed for one month or more Public amenity closed for 2 weeks or more Public amenity closed for 1 week or more Public amenity closed for less than 1 week. Systematic customer complaints or complaints relating to more than one business area Isolated customer complaints 164

185 Appendix D Risk Analysis/Framework & Register Area of Impact Factor Extreme Major Moderate Minor Insignificant Repeated service standard failure or one that affects multiple people Isolated service standard failure Financial PNCC Financial Unplanned loss or cost to reinstate of $3.5M or greater Unplanned loss or cost to reinstate between $1.75M-$3.5M Unplanned loss or cost to reinstate between $1.0M-$1.75M Unplanned loss or cost to reinstate between $500k-$1.0M Unplanned loss or cost to reinstate less than $500k Ongoing loss of $400k pa Ongoing loss $200k-$400k pa Ongoing loss $100k-$200k pa 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) Community Health and Safety Community 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 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? 165

186 Appendix D Risk Analysis/Framework & Register After the likelihood and consequence factors have been determined, the level of risk is calculated by multiplying the Likelihood of Occurrence (Table) and Consequence Rating (Table) 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 Risk Matrix Likelihood Consequences Insignificant Minor Moderate Major Extreme A M M H C C B L M H H C C L M M H C D I L M M H E I L L M M F I I L L M Table 4: Comparative Levels of Risk Comparative Levels of Risk Risk Level Definition Action 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 C High Risk Critical Risk Risk and management strategy identified in AMP Failure management plans available. Risk and management strategy identified in AMP 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. 166

187 Appendix D Risk Analysis/Framework & Register 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 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 Determine Net Risk 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. 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. 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. Gross Risk Net Risk Future Risk Higher Risk Current practices and strategies Actions required to provide assurance that current practices remain effective Risk treatments to be applied Actions required to reach acceptable risk levels in future Lower Risk 167

188 Appendix D Risk Analysis/Framework & Register 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 decision-making (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. 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. 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: 168

189 Appendix D Risk Analysis/Framework & Register 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. Risk Action Plan Table 5 is compiled from the Risk Register and highlights the most significant risks faced by the Stormwater 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. 169

190 Risk Register The risk registers provided in the following tables for the current and future Stormwater activities of Palmerston North City Council have been developed in consultation with key staff. Table 5 Asset Management Risks Stormwater General Risks Risk Register 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 Current Practices/Strategies - What are we doing to avoid the risk or reduce its effect? Description 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? SW01 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 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 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 170

191 Risk Register 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 Current Practices/Strategies - What are we doing to avoid the risk or reduce its effect? Description 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? SW02 Lack of Skilled Staff Resources Caused by: Inability to attract key staff Inability to retain skilled staff Inability of external resources to provide Consequences: Operational loss Financial costs Loss of service level Poor (or no) decision making Operational Financial / Economic Reputation / Image 4 B H City promotion (Worklife 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 Suitable accommodation and work environment Use of consultants (and access to their wider network of non Council resources) Graduate Development Programme Scholarships for students Technical staff in house ISO 9001 WTP Succession planning Good 2 C M Water and Waste Services Manager Chief Executive Review & report situational risk profile at key intervals 171

192 Risk Register 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 Current Practices/Strategies - What are we doing to avoid the risk or reduce its effect? Description 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? SW03 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) 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) 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 Information management and responsibilities defined between PNCC staff and consultants/contracto rs Historical plans still not available electronically (DM system) Asset Management Information Group Institutional knowledge 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 172

193 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW04 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 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 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 Annual Budget/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 Services Engineer Water and Waste 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 Appoint dedicated and skilled project managers for high skill projects Provide 1 year lead in for major projects to enable consenting, design and tender processes to be completed ahead of construction 173

194 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW05 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 (KPIs, 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 Contract Management Manual Good 3 C M Civil Works Manager Utilities Monitor customer feedback and trends Review and improve auditing procedures for contracts Include specific and measurable KPIs in all SLAs linked to LTP and AMP outcomes 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 Develop more flexible software tools which enable the business rather than drive it Implement standard templates for routine contracts and engagements to ensure consistent inclusion of requirements Develop overarching conditions of engagement which drive consistency and performance across all SLAs 174

195 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW06 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: Poor quality assets constructed and/or vested Increased operational expenditure costs Interruption to services Health and environmental incidents Failure to meet legislative requirements Additional costs and time overruns Reduced lifespan (early 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 (KPIs, 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 Contract Management Manual Good 3 C M Services Engineer Water and Waste Water and Waste Services Manager Monitor customer feedback and trends Review and improve auditing procedures for contracts Include specific and measurable KPIs linked to AMP and LTP outcomes Higher level of financial reporting and feedback now required Ensure new staff trained on internal Contract Management Manual Develop more flexible software tools which enable the business rather than drive it Implement standard templates for routine contracts and engagements to ensure consistent inclusion of requirements Develop overarching conditions of engagement which drive consistency and performance across all SLAs 175

196 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW07 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 Suboptimal lifecycle cost Insufficient depreciation funding Inability to cater for growth Failure to meet 10 Year Plan commitments and service levels 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 Budget 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 Services Engineer Water and Waste Water and Waste Services Manager Asset Planning Engineer Continue to improve documentation around processes and practices External review Strategy to move to Advanced asset management status 176

197 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW08 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 Legal action and resulting costs and consequences Poor public image Operational Financial / Economic Reputation/ Image Health and Safety 5 A C Compliance monitoring Contract Conditions (including OSH prequalification, 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 Services Engineer Water and Waste Water and Waste Services Manager Regional Plan One Plan requirements becoming more stringent Adopt continuous improvement approach to all activities Identify opportunities for improving performance ahead of compliance changes Keep informed of trends and look to anticipated changes making budgetary provision for potential changes 177

198 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW09 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 Environmental Public Health Operational Financial / Economic 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 Fair (untested) 4 E L 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 178

199 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW10 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 Environmental Public Health Operational Financial / Economic 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 Fair 4 C H Water and Waste Services Manager Incident Response Plan Critical assets identified for networks, maintenance regime based around these Review and identify critical hazard for each critical asset Develop importance criteria for design of new critical infrastructure 179

200 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW11 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 underresourced Decisions made on political grounds ahead of defensible decision making Operational Reputation/ Image 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 Good 3 E L Chief Executive Water and Waste Services Manager Continue to manage process through CEO / workshops 180

201 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW12 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 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 Fair 4 D M Water and Waste Services Manager Monitor external environment and adapt programmes and implementation plan to match likely infrastructure requirements 181

202 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW13 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 Operational Financial / Economic Reputation/ Image 4 D M Asset management process Prioritising projects/ 10 YP and Annual Budget process Experienced staff reporting needs to Council Good 3 E L Services Engineer Water and Waste 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 SW14 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 Operational Financial / Economic 4 B H Development contributions policy and enforcement Asset management process Prioritising projects/ 10 YP process and Annual Budget 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 Good 3 D L Services Engineer Water and Waste Water and Waste Services Manager Forecast likely scenarios regarding effects of budget changes including deferments Escalate issues to higher levels e.g. Lobbying Central Government 182

203 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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 Available Options What can we possibly do (brainstorm) to further reduce the risk level or provide assurance that current practices remain effective? SW15 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 Services Engineer Water and Waste Water and Waste Services Manager Continue current practices Increase City Networks input into district plan review Ensure City Networks actively participate in strategy and plan development SW16 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 Historic perception of expectations Consequences: Increased costs Poor relations between council and community Negative publicity and reputation Lack of public support for works and new initiatives Difficulty getting consents 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) Customer service interface (K Base) Access to communications tools Web, Intranet, Newsletters (Square Circular) User friendly website (PNCC website rated highly in survey) Fair 3 C M Services Engineer Water and Waste 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 183

204 Table Asset Management Risks Stormwater 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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? SW17 Flooding of habitable portions of a residential dwelling (under capacity network) Caused by: Under capacity network elements Network affected by stream and river levels Stream levels higher than adjacent ground levels Consequences: Street ponding Affected access and livelihood Financial costs Loss of service level Negative publicity Public Health Reputation/ Image Operational Financial / Economic Environmental 3 A H Comprehensive SW Management Plan Limited modelling Design in accordance with PNCC Engineering Standards for Land Development (ESLD) Development Team within City Networks to manage development, subdivision control Publc feedback, K Base and complaints Operations staff in place response times as per service levels (Roading contractor in road reserve) In-house planning and design Asset Management / Annual Budget / 10 YP process CDEM response to flooding Some stormwater pump stations Fair 3 D M Services Enginee r Water and Waste Civil Works Manage r Utilities Ongoing system upgrades Ongoing modelling Stream diversion Look at further pumping actions to reduce street ponding 184

205 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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? SW18 Flooding of habitable portions of a residential dwelling (extreme weather event beyond practical capacity) Caused by: Extreme weather events (including stream and river level effects) Climate change Consequences: Affected access and livelihood Financial costs Loss of service level Negative publicity Public Health Reputation/ Image Operational Financial / Economic Environmental 3 A H Comprehensive SW Management Plan Limited modelling Design in accordance with PNCC Engineering Standards for Land Development (ESLD) Development Team within City Networks to manage development, subdivision control Public feedback, K BASE and complaints Operations staff in place response times as per service levels (Roading contractor in road reserve) In-house planning and design Asset Management / Annual Budget / 10 YP process Regional Emergency Response Plan / Civil Defence Policy to design overland flowpaths for extreme events Regional Council has adopted 1 in 200 year criteria as a response to climate cahnge River and large urban stream monitoring and maintenance by Regional Council CDEM response to flooding Fair to Good 3 C M Services Enginee r Water and Waste Civil Works Manage r Utilities Rapid flood hazard mapping Interpret Regional Council climate change criteria Important to continue to monitor performance of existing systems Develop management KPIs to accurately reflect likely performance of systems 185

206 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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? SW19 Flooding of habitable portions of a residential dwelling (silt, vegetation and debris) Caused by: Silt/Sediment, Vegetation or Debris (e.g. dumped fill or rubbish) - blocking catchpits and manholes Inlets/outlets, roadside drains and ponds reducing capacity Stream sedimentation Consequences: Affected access and livelihood Financial costs Loss of service level Negative publicity Public Health Reputation/ Image Operational Financial / Economic Environmental 3 A H Public feedback, K BASE and complaints Operations staff in place response times as per service levels (Roading contractor in road reserve).. Weed spraying and sediment removal under SLAs Open channel cleaning under SLAs Control of physical works, contract and consent conditions Dredging of urban streams to remove accumulated sediment Pre-heavy rain warning inspection Capital works identified and programmed to do improvements to channels Fair 2 C M Services Enginee r Water and Waste Civil Works Manage r Utilities Investment in additionalk stormwater drainage capacity will need to be supported by assessed reductions in risk and damage costs Continue to implement at source sustainable approaches to managing stormwater runoff by detention, attenuation and promoting infiltration 186

207 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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? SW20 Stormwater pump station failure Caused by: Failure of pumps, pipework or structure Lack of maintenance Inadequate operation Asset deterioration Lack of capacity Poor design and construction Vandalism Consequences: Flooding, street ponding Affected access and livelihood Financial costs Loss of service level Negative publicity Environmental Public Health Reputation/ Image Legislative - Operational 3 A H Most pump stations have SCADA monitoring Operations SLA response within service level timeframe. After hours service. Telemetry indicates failures. Battery backup to allow response time Some pump stations have capacity for generator connection Ability to supplement pumping Relationships with power companies (notification of outages and backup options) Duty and standby (alternate) at all pump stations/ backup pumps at some stations Inspection programme (in house) Professional services and in house for design work Operations manuals for all stations Security at all pump stations, padlocks at all, fencing dependent on location / risk / number of incidents Programmed preventive maintenance Renewal programme (upgrades, replacement and rehabilitation) Public feedback/ monitoring of complaints, K BASE PNCC ESLD and consent processes for new / vested assets Good 3 E L Services Enginee r Water and Waste Civil Works Manage r Utilities Incident Response Plan Need to test pumps with generator Telemetry for all pump stations 187

208 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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? SW21 Power failure affecting pump stations: Power outage of 3 hours Caused by: Intermittent power supply Power surges Vandalism Consequences: Flooding, street ponding Affected access and livelihood Financial costs Loss of service level Negative publicity Environmental Public Health Reputation / Image - Operational 3 A H SCADA monitoring at most pump stations Operations SLA with response within service level timeframe. After hours service. Telemetry indicates phase fail. Battery backup to allow response time Ability to supplement pumping Relationships with power companies (notification of outages and backup options) Some pump stations have capacity for generator connection Good 3 E L Services Enginee r Water and Waste Civil Works Manage r Utilities Install generator connections at all pump stations and procure mobile stand-by generation which can be used at all pump stations Monitor pump hours run to correlate with storage Provide telemetry for all pump stations 188

209 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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? SW22 Discharge of contamination via stormwater network Caused by: Lack of effective source controls (e.g. landfills, physical works) Lack of maintenance Fuel off road surface Cross contamination Consequences: Pollution of receiving waters Financial costs Negative publicity Operational Environmental Public Health Legislative Reputation/ Image 3 B H Public feedback, K BASE and complaints Pollution hotline for regional Council Communications team/ media liaison CDEM have spill response for fuel and other contaminants Regional Council spill response team Operations staff with response times as per service levels Control of physical works by PNCC and others Development Team within City Networks to manage development, subdivision control Regional One Plan Monitoring of trade waste (dedicated Trade Waste Officer) Ability to regualte stormwater discharge under trade waste bylaw Capital programme in 10 YP for installation of SW treatment devices Assessment of Environmental Effects for SW discharges as part of consent application Low impact design criteria in ESLD Fair to Good 3 E L Services Enginee r Water and Waste Civil Works Manage r Utilities Clear procedures for spill response for stormwater Community Education Utilise bylaw provisions to impose obligations on property owner to minimisie contaminant discharge, install treatment and divert to sewer Ongoing monitoring to target where to locate treatment devices 189

210 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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? SW23 Breaks and blockages in the pipe network Caused by: Tree roots Pipe decay Geological failure Poor design or construction Silt entering older pipes at joint failures Flap gate and pen stock failure Consequences: Flooding Stream backflow (open gates) Scouring Operational loss Financial costs Loss of service level Operational Environmental Public Health 4 B H Overland flowpaths Future capacity planning (capacity issues) Public feedback, K BASE and complaints Operations staff with response times as per SLA Control of physical works by PNCC and others Development Team within City Networks to manage development, subdivision control Reactive replacement upon failure Liaison with PNCC City Networks Parks and Reserves (arborists) Asset Management, 10 YP and Annual Process Renewal and upgrade programmes Use of external professional services and contractors Inspection programme for flap gates Good 2 D L Services Enginee r Water and Waste Civil Works Manage r Utilities Assess and monitor condition of pipe network to identify priorty areas for repair and renewal Develop CCTV and physical inspection regime for critical assets and selection of smaller less critical pipes 190

211 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 Current Practices/Strategies What are we doing to avoid the risk or reduce its effect? Description 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? SW24 Erosion and scour Caused by: Inappropriately designed or constructed outfalls Inappropriately located outfalls Naturally unstable soils Increase in runoff Consequences: Damage to stopbanks Damage to property and assets SW25 Lack of necessary reticulation in existing areas Caused by: Lack of planning Lack of funding Previously unidentified need (e.g. older, low areas) Climate change High water table Consequences: Flooding Ponding Downstream effects Increased capacity requirements as a result of climate change Environmental Operational Reputation/ Image Legislative Operational Environmental Public Health Reputation/ Image 1 B L Operations staff with response times as per service levels Design in accordance with Councils ESLD Public feedback, K BASE and complaints Development Team within City Networks to manage development, subdivision control Outfall inspection programme Stopbanks inspected periodically Regular channel and stream inspections 2 C M 10 YP, Annual Budget and Asset management processes (e.g. reticulation extension programme) / Consultation Public feedback, K BASE and complaints. Analysis of trends Operations staff response times as per service levels Comprehensive SW Management Plan Timely SW improvement works during roading renewals/ projects Flooding upgrades budget Fair 1 C L Services Enginee r Water and Waste Civil Works Manage r Utilities Good 2 E I Services Enginee r Water and Waste Civil Works Manage r Utilities Pipe sections of open channels subject to major scour Implement renewal works to strengthen banks and secure outlets Manage vegetation to ensure protective cover which does not limit conveyance capacity to significant extent Develop SW Catchment Management Plans utilising Modellingto identify network gaps Review KBase queries to identify recurring stormwater ponding areas to assess whether network improvements are required Inspect stormwater systems in private property alignments where capacity and performance is often impacting on drainage performance 191

212 Appendix E. 30 Year Financial Forecasts 192

213 Table E1: Thirty Year Operational Expenditure OPERATIONAL EXPENDITURE ['000s] 2018/ / / / / / / / / / / / / / /33 Activity Delivery $512 $514 $519 $520 $530 $542 $552 $563 $563 $565 $565 $566 $566 $568 $568 Service Level Agreements $445 $447 $452 $453 $463 $475 $485 $496 $496 $498 $498 $499 $499 $501 $501 External Contracts $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 Activity Management $969 $951 $926 $925 $925 $926 $925 $925 $926 $925 $925 $926 $925 $925 $925 Overheads and Personnel $630 $631 $626 $626 $626 $626 $626 $626 $626 $626 $626 $626 $626 $626 $626 Consultancy $115 $95 $76 $75 $75 $76 $74 $74 $76 $74 $74 $76 $74 $74 $74 Insurance $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 Legal $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 Miscellaneous (General) $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 Software Licenses $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 Rates $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 Electricity $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 Operating Programmes $270 $320 $270 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $ Sustainable Practices Within the Three Waters $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $ Joint Water Quality/Cultural Monitoring Framework $100 $150 $ Third Party Stormwater Flood Problem Resolution $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 Interest $302 $346 $378 $388 $384 $385 $407 $415 $412 $404 $373 $349 $325 $293 $257 Depreciation $1,787 $1,809 $1,837 $1,862 $1,884 $1,905 $1,930 $1,933 $1,935 $1,939 $1,942 $1,944 $1,949 $1,951 $1,956 TOTAL EXPENDITURE $3,840 $3,890 $3,840 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,

214 OPERATIONAL EXPENDITURE ['000s] 2033/ / / / / / / / / / / / / / /48 Activity Delivery $569 $569 $571 $571 $572 $572 $574 $574 $575 $575 $577 $577 $577 $539 $578 Service Level Agreements $502 $502 $504 $504 $505 $505 $507 $507 $508 $508 $510 $510 $510 $472 $511 External Contracts $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 Activity Management $925 $923 $923 $923 $922 $922 $922 $922 $922 $922 $922 $922 $922 $922 $925 Overheads and Personnel $626 $624 $624 $624 $623 $623 $623 $623 $623 $623 $623 $623 $623 $623 $626 Consultancy $74 $74 $74 $74 $74 $74 $74 $74 $74 $74 $74 $74 $74 $74 $74 Insurance $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 $105 Legal $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 $10 Miscellaneous (General) $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 $11 Software Licenses $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 $9 Rates $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 Electricity $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 $88 Operating Programmes $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $170 $ Sustainable Practices Within the Three Waters $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $150 $ Joint Water Quality/Cultural Monitoring Framework Third Party Stormwater Flood Problem Resolution $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 Interest $222 $190 $151 $107 $63 $30 $20 $10 ($2) ($12) ($23) ($27) ($24) ($22) ($14) Depreciation $1,958 $1,962 $1,965 $1,970 $1,972 $1,976 $1,979 $1,983 $1,985 $1,990 $1,992 $1,996 $2,000 $2,005 $2,009 TOTAL EXPENDITURE $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,740 $3,

215 Table E2: Thirty Year Renewal Expenditure RENEWAL EXPENDITURE ['000s] 2018/ / / / / / / / / / / / / / /33 Stormwater Collection 20-City-wide - Stormwater Pump Station Renewals $70 $70 $ $ $ $ $ City-wide - Stormwater Improvement Works $565 $590 $512 $547 $551 $528 $405 $456 $295 $350 $300 $350 $300 $350 $300 TOTAL RENEWAL EXPENDITURE $635 $660 $582 $547 $551 $558 $405 $456 $325 $350 $300 $380 $300 $350 $330 RENEWAL EXPENDITURE ['000s] 2033/ / / / / / / / / / / / / / /48 Stormwater Collection 20-City-wide - Stormwater Pump Station Renewals - - $ $ $ $ $ City-wide - Stormwater Improvement Works $350 $300 $350 $300 $350 $300 $350 $300 $350 $300 $350 $300 $350 $300 $350 TOTAL RENEWAL EXPENDITURE $350 $300 $380 $300 $350 $330 $350 $300 $380 $300 $350 $330 $350 $300 $

216 Table E3: Thirty Year Capital New Expenditure CAPITAL NEW EXPENDITURE ['000s] 2018/ / / / / / / / / / / / / / /33 Stormwater Collection 51-City-wide - Stormwater Subdivision Contributions $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $ Urban Growth - North East Industrial Park Stormwater $20 $ $20 $ $20 $ Urban Growth - Whakarongo - Installation of Stormwater Systems $380 $350 $300 - $350 $ City-wide - Stormwater Improvement Works $563 $512 $461 $400 $100 $300 $300 $300 $300 $300 $300 $300 $300 $300 $ Urban Growth - City West - Installation of Stormwater Systems $779 - $ C/fwd - Urban Growth - Whakarongo - Installation of Stormwater Systems $ City-Wide SW Pump Stations - - $ $ $ $100 - $100 - TOTAL CAPITAL NEW EXPENDITURE $1,101 $1,162 $911 $450 $500 $770 $1,379 $350 $1,200 $350 $370 $700 $350 $450 $350 CAPITAL NEW EXPENDITURE ['000s] 2033/ / / / / / / / / / / / / / /48 Stormwater Collection 51-City-wide - Stormwater Subdivision Contributions $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $ Urban Growth - North East Industrial Park Stormwater $20 $ Urban Growth - Whakarongo - Installation of Stormwater Systems City-wide - Stormwater Improvement Works $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $300 $ Urban Growth - City West - Installation of Stormwater Systems C/fwd - Urban Growth - Whakarongo - Installation of Stormwater Systems City-Wide SW Pump Stations $100 - $100 - $100 - $100 - $100 - $100 $100 $100 $100 $100 TOTAL CAPITAL NEW EXPENDITURE $470 $600 $450 $350 $450 $350 $450 $350 $450 $350 $450 $450 $450 $450 $

217 Appendix F Asset Lives Appendix F. Asset Lives 197

218

219 Appendix F Asset Lives Table F1: Expected Useful Asset Life Asset Type Stormwater Pipes Precast Concrete Box Culverts Standard Manholes Manholes with floodgates, valves Standard RC Inlet/Outlet Structures Inlet/Outlet Structures with Flood gates and grills Stormwater mains and sump connections Stormwater Kerb Connections RC Concrete Retaining & Flood walls Precast \concrete Channel Lining Older Cast in situ Channel Lining Timber Retaining Wall Gabion Baskets and Reno Mattresses Timber fences Earth Stop banks Channels ( earthworks ) Storage Basins ( earthworks) Expected Useful Life Non-Depreciable Non-Depreciable Non-Depreciable 199

220

221 Appendix G Resource Consent Details Appendix G. Resource Consent Details 201

222

223 Appendix G Resource Consent Details Table G1: Stormwater Consents Consent No. Expiry Date Asset Type Consent Subtype Location Description Jun Pohangina River Discharge Permit Discharge to Water Wyndham Winchester and Mulgrave Streets Ashhurst To discharge stormwater to the Pohangina River via a watercourse Aug Pohangina Rd Drainage Discharge Permit Discharge to Water Pohangina Road & Davis Road To discharge stormwater through a culvert under Pohangina Road May Manawatū River Discharge Permit Discharge to Water Manawatū River State Highway 3 bridge Ashhurst To discharge stormwater to the Manawatū River Mar Mangaone Stream Stop Bank Discharge Permit Discharge to Water Downing Street Palmerston North Discharge of stormwater through the pipe associated with the excavation and disturbance of the inland tow of the Mangaone stopbank and to maintain the works Jul Mangaone Stream Bed Land Use Consent Construct Pirani Place Palmerston North To excavate and disturb within 8 metres of the inland toe of the Mangaone stopbank to install maintain and use a pipeline through the stopbank and to excavate and disturb the bed of the Mangone Stream to construct and install stream scour protection works for the purpose of stormwater drainage and to maintain these works Jul Mangaone Stream Bed Discharge Permit Discharge to Water Pirani Place Palmerston North To discharge stormwater through the pipe to the Mangaone Stream Dec Mangaone Stream Stop Bank Land Use Consent Construct Downing Street Palmerston North To excavate and disturb within 8.0 metres of the inland toe of the Mangaone stopbank to install maintain and use a pipe through the stopbank for the purpose of stormwater drainage and to maintain the structures Jul Tributary of Kahuterwawa River Discharge Permit Discharge to Water Unnamed stream by keebles bush on Tennent Drive Palmerston North To discharge stormwater to unnamed tributary of the Kahuterawa Stream Apr Kawau Stream stopbank Land Use Consent Misc. True left & right banks of Kawau Stream To install protection works & construct stopbanks & retaining structures on both banks of the Kawau Stream between Seddon Street & Wood Street bridge Palmerston North 203

224 Consent No. Expiry Date Asset Type Consent Subtype Location Description Apr Kawau Stream stopbank Land Use Consent River Control Works True left and right bank of Kawau Stream generally located between Persson place and Wood Street bridge To install protection works and construct stopbanks and retaining structures on the true left and right banks of the Kawau Stream between Seddon Street bridge and Wood Street bridge Palmerston North Apr Kawau Stream stopbank Discharge Permit Discharge to Land True left and right bank of Kawau Stream generally located between Persson place and Wood Street bridge To install protection works and construct stopbanks and retaining structures on the true left banks of the Kawau Stream between Seddon Street bridge and Wood Street bridge Palmerston North Apr Kawau Stream stopbank Water Permit Divert True left and right bank of Kawau Stream generally located between Persson Place and Wood Street bridge To install protection works and construct stopbanks and retaining structures on the true left bank and right banks of the Kawau Stream between Seddon Street bridge and Wood Street bridge Palmerston North May Pump Station on Kawau Stream Land Use Consent Misc. Kawau Stream at Clausen Street To construct a stormwater pumping station on the true left bank of the Kawau Stream approximately Aug Flood Protection Kawau Stream Land Use Consent Misc. Kawau stream between Seddon & Featherston Streets Palmerston North To reconstruct the existing flood protection works on both banks of the Kawau Stream between Seddon Mar Kawau Stream stopbank Land Use Consent Misc. Kawau Stream drainage reserve between Clausen Street & 18 Montrose To install & maintain a structure under the bed & stopbanks of the Kawau Stream between Clausen Street & Montrose Place Palmerston North Dec Roberts Line Water Permit Divert Roberts Line, Palmerston North To divert water into a piped stormwater system on properties located on Roberts Line Jan Turitea Stream Discharge Permit Discharge to Water Turitea Stream corner Old West Road and Turitea Road Palmerston North To discharge up to 2.2 m3 per second of uncontaminated stormwater into the Turitea Stream on the corner of old west road and Turitea Road property Mar Kawau Stream Land Use Consent River Control Works Kawau Stream located between corner of Havill and Rangitikei Street and 36 Havill Street To excavate and disturb the bed of the Kawau Stream to place a flood protection culvert structure in the reach of the Kawau Stream and to maintain these works 204

225 Appendix G Resource Consent Details Consent No. Expiry Date Asset Type Consent Subtype Location Description Mar Kawau Stream Water Permit Divert Kawau Street located between corner of Havill and Rangitikei Street and 36 Havill Street The diversion of the Kawau Stream associated with the placement of a flood protection culvert structure in the reach of the Kawau Stream and the maintenance of these works Mar Kawau Stream Discharge Permit Discharge to Water Kawau Stream located between corner of Havill and Rangitikei Street and 36 Havill Street The discharge of silty sediment associated with the placement of a flood protection culvert structure in the reach of the Kawau Stream and the maintenance of these works Jul Ashhurst Stream Land Use Consent Construct Ashhurst Stream Ashhurst To excavate and disturb the bed of the Ashhurst Stream to remove an existing culvert to excavate and place a new culvert and to maintain those works Jul Ashhurst Stream Water Permit Divert Ashhurst Stream Ashhurst To permanently divert the flow of the Ashhurst Stream and the associated discharge of silty sediment to water associated with the removal of an old culvert and the placement of a new culvert in the Ashhurst Stream Jul Ashhurst Stream Land Use Consent River Control Works Ashhurst Stream Ashhurst To undertake associated stream protection works associated with the removal of an old culvert and the placement of a new culvert in the Ashhurst Stream and to maintain these works Nov Kawau Stream Bed Land Use Consent Construct Kawau Stream To excavate and disturb the bed of the Kawau Stream and the associated diversion of water of the Kawau Stream to place a flood protection culvert structure in the reach of the Kawau Stream between Havill Street Palmerston North and the associated discharge of silting sediment to water and to maintain the works Nov Kawau Stream Bed Water Permit Divert Kawau Stream between Havill Street Palmerston North To excavate and disturb the bed of the Kawau Stream and the associated diversion of water of the Kawau Stream to place a flood protection culvert structure in the reach of the Kawau Stream between Havill Street Palmerston North and the associated discharge of silty sediment to water during and to maintain these works 205

226 Consent No. Expiry Date Asset Type Consent Subtype Location Description Nov Kawau Stream Bed Discharge Permit Discharge to Water Kawau Stream between Havill Street Palmerston North To excavate and disturb the bed of the Kawau Stream and the associated diversion of water of the Kawau Stream to place a flood protection culvert structure in the reach of the Kawau Stream between Havill Street Palmerston North and the associated discharge of silty sediment to water and to maintain the works Nov Tributary of Manawatū River Land Use Consent Construct Cashmere Drive Palmerston North To place fill to excavate and disturb the bed of the unnamed tributary of the Manawatū River to place and use a culvert and structures for erosion protection Nov Tributary of Manawatū River Water Permit Divert Cashmere Drive Palmerston North To divert the flow of an unnamed tributary of the Manawatū River and associated discharge of sediment to water Oct Kawau Stream Bed Land Use Consent Construct Kawau Stream Havill Street and Guy Avenue Palmerston North To excavate and disturb the bed of the Kawau Stream and for associated discharges of sediment to surface water during the installation of a culvert structured in the bed of the stream and to use and maintain these works and associated discharges and surface water in the Kawau Stream Oct Kawau Stream Bed Water Permit Divert Kawau Stream Havill and Guy Streets Palmerston North To temporary and permanently divert the water of the Kawau Stream in the reach of the Kawau Stream between 56 & 78 Havill Street and 67 to 71 Guy Avenue Palmerston North associated with the installation of a culvert structure in the Kawau Stream (consent no ) Oct Kawau Stream Bed Land Use Consent Construct Kawau Stream Havill Street Wood Street and Guy Avenue Palmerston North To excavate and disturb the bed of the Kawau Stream and for the associated discharges of sediment to surface water during the installation of a culvert structure and associated works in the bed of the Kawau Stream and to use and maintain these works and for the associated discharge of sediment to surface water in the stream 206

227 Appendix G Resource Consent Details Consent No. Expiry Date Asset Type Consent Subtype Location Description Oct Kawau Stream Water Permit Divert Kawau Stream Havill Street Palmerston North To temporarily and permanently divert water in the Kawau Stream associated with the installation of a culvert structure and associated works in the stream and maintain the permanent diversion of water in the stream 207

228

229 Appendix H Condition & Data Confidence Grading Descriptions Appendix H. Condition & Data Confidence Grading Descriptions 209

230

231 Appendix H Condition & Data Confidence Grading Descriptions The following condition grading standards are from the International Infrastructure Management Manual 2011: 211

232

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

234

235 Appendix I Six Year Asset Renewal Programme Table I1 depicts currently prioritised renewal works identified for the next six years. All the projects have been or will be CCTV inspected to confirm the urgency of the work and the most appropriate renewal approach. More detailed investigation work is planned to confirm renewal requirements for the stormwater mains at the Botanical Road end of Ferguson Street, which is scheduled for 2022 and has an estimated cost of $1 million. Table I1: Summary of Stormwater Pipe Renewal Programme as Currently Scoped Programme and Renewal Project List 2018/19 [$] 2019/20 [$] 2020/21 [$] 2021/22 [$] 2022/23 [$] 2023/24 [$] 1062-City-wide - Stormwater Renewal Works $564,648 $590,051 $511,998 $546,952 $550,802 $528,132 Minor and Reactive Works $100,000 $100,000 $100,000 $100,000 $100,000 $100,000 Tweed Street $129,887 Carlisle $334,761 Botanical Rd - Marriner St $5,729 Cobb PL $660 Dampier Ave $2,220 Cowley PL $2,536 Union $3,170 Flint $228,563 Hull PL $370 Pioneer Highway $86,713 Strathmore - Botanical $45,496 Vernon - Aberdeen $44,927 Victoria at College $69,668 Astrid Ct. - Stoke PL $2,115 College at Pitama $184,605 Fairs Rd $121,111 Featherston St - Moheke Ave $1,652 Havelock Ave to Dove PL $1,147 Moheke Ave $1,950 Newton PL - Tremaine Ave $1,926 Rangiora Ave $1,790 Savage Cres $2,860 WARWICK PL $1,660 Webb $88,091 Worcester - Hereford $3,090 Botanical at Brentwood $103,011 Busby PL $1,629 Halswell Crescent $223,401 Kensington Mews $2,460 Kent Crescent $4,

236 Appendix I Six Year Asset Renewal Programme Programme and Renewal Project List 2018/19 [$] 2019/20 [$] 2020/21 [$] 2021/22 [$] 2022/23 [$] 2023/24 [$] Kipling $102,213 Perth PL $1,882 Pioneer Highway - Humphries PL $3,540 Wainui Ct $3,077 Wikiriwhi Cres - Pitama Rd $1,729 Ferguson at Botanical $450,802 $428, City-wide - Stormwater Pump Station Renewals Pirani Pl storm pump station control and telemetry upgrade Downing St storm pump station control and telemetry upgrade Wilson Cres storm pump station control and telemetry upgrade Wikiriwhi Cres storm pump station control and telemetry upgrade Storm pump station control and telemetry upgrades $70,000 $70,000 $70, $30,000 $35,000 $35,000 $35,000 $35,000 $70,000 $30,

237 Appendix J Stormwater Catchments Appendix J. Stormwater Catchments 217

238

239 Appendix J Stormwater Catchments Greater City Area This in turn is delineated into: Cloverlea - Generally north-west of the Mangaone Stream. The adjoining portion drains via floodgates to the stream whilst the remainder enters the Taonui rural catchment by way of Whiskey Creek entering the Manawatū River at Rangiotu by way of Bourke s Drain. Pioneer Highway - Main Street - The upper reach of this catchment is Terrace End. The main stem is piped along Main Street through the Central Business District to emerge from a 1.5m diameter pipe at Shamrock Street and discharge to the Pioneer Highway drain. This joins the Mangaone Stream at the Pioneer Highway Bridge. The drain is presently stop banked from the Mangaone Stream to Mariner Street with plans for the continuation of this work to Shamrock Street. Two major tributaries are conveyed along rectangular section cast insitu conduits. Both were constructed with the cover slab at the then ground level and consequently both have suffered from the ravages of other service providers installing pipes and cables through the waterways. Further, the present day structural loadings have also caused considerable deterioration of the conduits. The Ferguson Street conduit constructed 1915 to 1920, intercepts circular pipes at Linton Street, flows to Botanical Road and discharges to the Pioneer Highway main stem. The other conduit is generally within private property following the now largely obliterated toe of the escarpment between Church Street and Ferguson Street. It was constructed over the period 1925 to 1935 and intercepts circular pipes at Dahlia Street, passes under the parking lots of Foodtown/K Mart and Pack N Save, meets Church Street at West Street then joins the main stem at Lyndhurst Street. Kawau - The main collector from this catchment is the Kawau Stream rising to the north in the vicinity of J F Kennedy Drive, including the Fair and Kilsby regions of Milson, Takaro, Highbury and Amberley Avenue areas to join the Mangaone Stream just upstream of the Pioneer Highway Bridge. A major tributary rises in Clyde Crescent and drains the Rangiora Avenue, Hospital and Roy Street areas to join the main stem at the Tremaine Avenue end of North Street. The tributary waterway is generally lined with hand placed masonry and the main stem downstream of the North Street confluence is stop banked. Less than half of the total length of stream flows within public reserves. Milson - The main collectors in this catchment are natural watercourses, previously tributaries of the Kawau Stream, but now diverted direct to the Mangaone Stream at J F Kennedy Drive. The catchment includes the north end of Kelvin Grove, Rossmont, MacGregor Street, the Airport and Apollo Parade. It includes considerable greenfield areas and even when fully developed residentially will be comprised of 35% of land zoned rural. Kelvin Grove - This catchment also is an historic contributor to the Kawau Street now diverted by way of the canal under Napier Road and adjoining Ruamahanga Crescent direct to the Manawatū River. Stormwater is presently delivered to the escarpment flume by a 1.8m diameter pipeline from the largely developed Kaimanawa Street area. The other significant section of the catchment, that is, the Roberts Line, James Line area, is comparatively undeveloped. The collector from this area is being constructed in stages and will terminate at the flume as a 2.1m diameter pipe. Hokowhitu - This catchment contains a number of cut-off Manawatū River meanders through which the streams at Jensen Street and the Awatea flow. The gradients of the stream are very flat, as are those of the inter-connecting pipelines and thus ponding occurs in various locations as a result of the discharge limitations. 219

240 Appendix J Stormwater Catchments The Jensen Street ponding area provides a balancing storage area for the sub-catchment that includes Churchill Avenue and then discharges to Hokowhitu Lagoon. The lagoon discharges to the river by way of floodgates 1.2m diameter pipeline. The Awatea Stream discharges to the Manawatū River by way of a 53cm diameter pipe fitted with floodgate and penstock at the outlet. Flood flows are diverted to Hokowhitu Lagoon through a 1.35m diameter pipe. A number of smaller sub-catchments drain directly to the river or by way of a collector channel within the golf course at Brightwater Terrace, or by way of Hokowhitu Lagoon. Riverdale - Bordered by Fitzherbert Avenue, College Street and Maxwells Line; this area drains to the river by way of numerous separate outlets. Racecourse - A ponding reserve within the catchment provides storage when the penstocked outlet to the Mangaone Stream is closed. The main stem of the waterway is the new piped course of the downstream remnant of the Kawau Stream rising at Pioneer Highway. Awapuni - A ponding reserve within the catchment provides storage when the penstocked outlet to the Mangaone Stream is closed. The main stem of the waterway is the now piped course of the downstream remnant of the Kawau Stream rising at Pioneer Highway. Ashhurst The township has been reticulated in part with outlets to existing open channels and streams. Much of the existing residential area street system has yet to be kerb and channelled and thus the reticulation has yet to be extended. The collectors for the two major catchments require significant upgrading works. Western Catchment - Numerous sub-catchments drain directly to the Ashhurst Stream which rises in the rural land to the north of the township, form the western border of the present residential area and joining the Manawatū River downstream of the SH3 bridge. Eastern Catchment - Presently collected in a watercourse that is piped along the downstream reach by 60cm diameter pipe. This and watercourse flows along the toe of the main Ashhurst tenancy escarpment. It then flows down the next escarpment to the lower terrace by way of enclosed flume and joins the Pohangina River upstream of the Railway bridge. Aokautere/Massey This catchment is dominated by deeply incised gullies draining direct to the Manawatū River. A major collector pipeline in Aokautere Drive conveys stormwater from the residential zone to the south and conveys it directly to the Turitea Stream at Old West Road. 220

241 Appendix K Management and Reliability of Data Appendix K. Management and Reliability of Data 221

242

243 Appendix K Management and Reliability of Data Data and 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 K1. Table K1: 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 development of infrastructure is based on spatial projections of both the location and rate of growth provided by Council planners, followed by modelling to determine the additional demand for stormwater services due to that demand. This enables development of options for mitigating the additional stormwater flows. Assumptions are made that sustainable approaches to managing stormwater runoff are utilised wherever practical. 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. 223

244 Appendix K 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 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 network performance and for identification of problem areas. Spatial location and level checks in ponding areas can be used to provide a coarse calibration check for stormwater modelling 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 Also used to monitor and manage the performance of the service provider and check their compliance with key KPIs in their SLAs. Submissions made to various Council processes Used to inform Council s LOS decision and as a check that particular service areas have been identified. Part of ongoing Council process Used to inform campaigns to improve understanding of the stormwater system, how it operates and its limitations. Communitrak Survey undertaken periodically Used to inform Councillors about trends in customer satisfaction with services being delivered. Assists with Council s LOS decision making Reputable survey Survey undertaken every 3 years 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 224

245 Appendix K 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 Knowledge Asset age and physical attributes Asset Information System (Infor Public Sector) 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 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. Checks on integrity & accuracy of information are provided by operation staff who confirm asset details when they are working on maintenance and capital works in the field Asset condition Information collected from CCTV surveys and physical inspections of all critical assets and a cross-section of non-critical assets. 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 reliably inform a 5 level grading system. Needs to be added to on a continuous basis. Physical inspection of critical assets to be undertaken on annual or 2 year cycle. CCTV inspection of a crosssection of non-critical assets to be completed every year to ensure all assets are inspected within a 20 to 30 year timeframe. Asset performance Information from monitoring, customer complaints and scheduled inspections is captured in Asset Management System Inform further investigation and fault finding to identify defects or performance issues. Where performance is related to capacity use to inform detailed catchment modelling to identify any capacity improvements. 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. 225

246 Appendix K 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 Analysis of asset information From information collected & input into the AMS etc. Modelling of both current situation and future condition allowing for full development and the influence of climate change. Asset information enables robust determination of capital improvements which will deliver sustainable and durable long term improvements in service. Predictive modelling to determine asset renewal profiles under different risk scenarios 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. It is intended to give customers and contractors the ability to report on errors in the asset data and so assist the improvement process. Analysis can 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 investigation. 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. 226

247 Appendix K 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 Stormwater Management and Strategy Plans where these exist. Modelling scenario assessment work which seeks to identify the impact of future growth pressures and changes in rainfall frequency and intensity Stormwater modelling reports and strategy plans. Identifies 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 as well as benefits. 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 2D Modelling of PNCC stormwater systems Tonkin and Taylor 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 K. 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 227

248 Appendix K Management and Reliability of 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. Definition of Data Confidence Rating Table K2: Confidence Grading Description 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. 228

249 Appendix K Management and Reliability of Data Assessment of Confidence in Key data Inputs to AMP Table K3: Confidence Grading Description Data Confidence Assessment Comment Demand drivers 2 Demand drivers in respect of stormwater drainage capacity include: Additional runoff from development in new greenfield areas and infill in existing parts of the city Changes to the pattern and intensity of rainfall across the city Changing expectations around the acceptability of stormwater ponding in existing communities and areas of the city with very limited stormwater levels of service e.g. Bunnythorpe, Longburn and older parts of Palmerston North Additional drivers in respect of improving stormwater quality arise from: National and regional legislative drivers around improving freshwater quality and reducing discharge of contaminants Community expectations in respect of reducing stormwater contamination and improving the aesthetics and biodiversity of the open drains and water courses These drivers are resulting in significant uncertainty around the expectations for new and improved stormwater services. Growth projections 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. Asset useful lives 2 The current useful lives are based on asset lives detailed in the IIMI guidelines. For some asset types where there is local evidence that the asset may last longer, useful lives have been extended. It is however clear that there are some assets which require immediate renewal and have not reached the assumed maximum life. Currently this is not reflected in the useful lives profile. Following further CCTV work, some adjustment to the useful lives will be undertaken. Asset values 5 Asset values are based on the latest information for renewal and capital construction costs for work undertaken in the last two years by Council. Where no work has been done estimates for work undertaken by local Councils within the region have been used. Condition of asset Performance of Network 2 Asset condition assumptions are based on typical condition scores for stormwater assets in other TAs and physical inspection and CCTV condition assessments of a very limited portion of the PNCC network. 3 Recent modelling of the primary and secondary system has highlighted the anecdotal evidence that flooding issues are not widespread and relate to informal overland flow paths. At risk catchments are those with significant numbers of properties built at or below the road. There is also evidence that parts of the primary network are not performing optimally and further work will be undertaken to identify the issues. Addressing capacity constraints resulting from infill development and climate change is the key area of uncertainty. Greenfield areas provide opportunities to design systems with extensive detention and attenuation which will robust provide for future requirements. 229

250 Appendix K Management and Reliability of Data Data Confidence Assessment Comment Operational forecasts 3 Forecasts of operational costs are uncertain due in large measure to the increasing demand from both Councillors and the community for greater action around responding to perceived stormwater service defects and performance issues. Many of the issues are historical and relate to poor planning and decision making in respect of previous development resulting in development with no effective stormwater drainage or construction of habitable buildings close to or below stormwater ponding or overland flow levels. Renewal forecasts Development forecasts 2 While additional funds have been allocated for the next 3 years to renew already identified portions of the network requiring renewal, the lack of CCTV inspection and performance data for the majority of the network, means there is little information about the quantum of legacy and poor condition assets that will need renewal in the AMP period. 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 very low. 3 Current planning forecasts are considered robust and potentially overestimate the demand for both residential and commercial property particularly in greenfield areas. The key uncertainty is in the relative proportion of infill and greenfield growth. There is significant investment in intensification within the city which will continue to result in challenges for the existing stormwater network with more stormwater being discharged to an already at capacity primary network. 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. 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. Costing is based on market rate information. 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

251 Appendix L Final Peer Review Report Appendix L. Final Peer Review Report 231

252

253 233

254 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

255 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

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

257 AECOM PNCC Asset Management Review Asset Management Review AMP's E-1 Appendix E Stormwater AMP PNCC AM Assessments 2018 AMP 2017 Stormwater AMP Assessment Item 1 Alignment Score 2-3 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. Table 2 sets out how the Stormwater Activity contributes to the following 2 (of 5) City Goals An innovative and growing city An eco-city. It is understood that the 5 City Goals stated in the AMP are the proposed Palmerston North City Community Outcomes for the LTP. The contribution of the Stormwater Activity to City Goals is expressed in Table 3 as Priorities. These read more like strategies than statements of how the Stormwater Activity contributes to City Goals e.g. Create and enable opportunities for employment and growth sounds more like a strategy than a contribution of the Stormwater Activity contributes to City Goals. The following are examples of typical statements by means of which the contribution of stormwater management to Community Outcomes might be demonstrated. Roading 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 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 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

258 AECOM PNCC Asset Management Review Asset Management Review AMP's E-2 an issue Audit NZ have raised in audits of other organisations. The Levels of Service for the Stormwater Activity set out in Table 7 cover the following key service criteria: Quality and Health Reliability, Serviceability or Performance Accessibility Sustainability Financial Management It is noted that Responsiveness is included with Reliability, Serviceability or Performance. How these Service Criteria align with and contribute to City Goals could be more explicit. Details of this alignment are probably best appended. 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. 2016/2017 performance is shown relative to performance targets in the levels of service/key performance indicators Table 7 in Section of the AMP. It is noted that the only KPI where the target level of performance was not fully achieved was: The number of complaints received about the performance of the Council s urban stormwater system per 1,000 properties connected per annum calculated for a rolling 12 month period. Section covers Service Level Gaps. The service gaps discussed appear to generally reflect the failure to achieve this KPI. Development Strategies in and Development Projects in Table 25 also generally reflect the identified service gaps. Section of the AMP sets out the Asset Management Policy and Strategy for Palmerston North City Council. The Stormwater AMP reflects this Policy and Strategy. Ideally, the financials in the AMP would be presented in a way such that principal bottom lines can be readily reconciled with the financial statements in the Council Long Term Plan. This is important as Audit NZ have the very reasonable expectation that the AMPs will clearly provide the basis and justification for the financial statements in the LTP. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

259 AECOM PNCC Asset Management Review Asset Management Review AMP's The following is an extract from the 2015/ year plan (The draft 2018/2028 LTP was not available at the time of writing). The following expenditure forecasts are taken from the 2017 Stormwater AMP Lifecycle Programmes 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A E-3

260 AECOM PNCC Asset Management Review Asset Management Review AMP's E-4 These are then summarised in the Financial Forecasts in Appendix E. There appears to be a mismatch between the Operations and Maintenance financials in Table 19 of the lifecycle programmes and the financials in Table E1 Appendix E. The total operational expenditure in Table E1 ($3.570m) is significantly less than the comparable figure of $3.926m in the 2015/ year plan although it is recognised this may reconcile in the 2018/ year plan. Table 23 reconciles with the financial summary in Table E2. It is extremely important that there is a clear line of sight from the budget figures in the LTP back to the consolidated financial projections in the AMP and from there back to the budgets in each of the lifecycle programmes. Audit New Zealand have the very reasonable expectation that the AMP will be the sources of financial forecasts in the LTP and that this can be readily verified by comparing both documents. Inability to demonstrate this clear line of sight will undermine the credibility of both the AMP and of the LTP. Opportunities for Improvement 1. Show more clearly the alignment between the Levels of Services set out in Section 4 of the AMP, the Activity Contribution to City Goals and therefore the City Goals. The diagram above provides one example of how this alignment might be demonstrated. 2. Ensure there is a clear line of sight from the Financial Projections on the LTP back to the consolidated financial projections in the AMP and from there back to the budgets in each of the lifecycle programmes 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

261 AECOM PNCC Asset Management Review Asset Management Review AMP's E 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

262 AECOM PNCC Asset Management Review Asset Management Review AMP's E-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 Roading 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. The AMP is founded on a statement of the services to be provided to each of the main customer segments together with the standards to which these services will be provided. Table 7 of the AMP identifies the following User Groups for the Stormwater Activity. Residential and commercial property owners and occupiers in urban areas connected to the Council s stormwater system All residents in urban areas connected to the Council s stormwater system All ratepayers The services to be provided to these different user groups are set out in the Customer Level of Service column in Table 7. Objectives and performance indicators to measure achievement of those objectives tend to go together. An alternative approach is to describe what we are aiming to deliver to our customers as a service objective as illustrated in the example below 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). The point of service for stormwater is identified in Section 2.1. The Customer Levels of Service for Stormwater set out in Table 7 of the AMP cover the following key service criteria: Quality and Health Reliability, Serviceability or Performance Accessibility Sustainability Financial Management There is a good range of Customer Performance Measures for these service dimensions. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

263 AECOM PNCC Asset Management Review Asset Management Review AMP's E-7 Technical Levels of Service are included in Table C1 in Appendix C Activity Performance Measures. Tables 7 and C1 incorporate the Local Government Mandatory Performance Measures set out in the Non-Financial Performance Measures Rules 2013 although it is noticed that the wording used in the Non-Financial Performance Measures Rules 2013 has been modified in some of the measures used in the AMP. It is suggested that a commentary is provided where the wording in the Non-Financial Performance Measures Rules 2013 has been modified to minimise the possibility of suggestions of non-compliance with the rules. Performance targets for each LOS are stated for a 10 year horizon. It is unclear how these performance targets were set and whether any analysis of the benefits and costs of different performance targets has been carried out. Anticipated changes in target levels of service are stated and there is a discussion of service gaps. Opportunities for Improvement 3. Provide a commentary on the justification for any variances between the wording of measures in the Non-Financial Performance Measures Rules 2013 and the wording of the corresponding measures in the AMP. 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

264 AECOM PNCC Asset Management Review Asset Management Review AMP's E-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 5 principal drivers of demand. The impact of development on stormwater runoff volumes (percentage of hard surface). The type and nature of land use activity. The impact of climate change and community expectations concerning acceptable levels of annual average flood damage. The extent to which sustainable urban drainage solutions are incorporated into future developments Regional and national legislative and regulatory changes setting performance standards for the quality of stormwater discharges. The demand drivers in Section 5.1 appear to partly overlap with 7 factors that are expected to impact on the management and development of the stormwater assets. It is suggested that only one set of drivers is used. It is also suggested that The impact of climate change and community expectations are 2 separate drivers and although there is a relationship between the two, community expectations would still be likely to be a driver even in the absence of climate change. Growth in the City is discussed as a driver of demand. Section 5.6 then identifies Other Factors Influencing Demand and Consumption Projections or Patterns as: Changes in percentage impervious areas. Changes in land use type and commercial activity. Implementation of sustainable urban drainage systems. Changes in regulatory and legislative requirements. These repeat the principal drivers of demand in 5.1, although in different words and with the exception of climate change and community expectations. These four factors are then discussed although the discussion on Changes in percentage impervious areas and Changes in land use type and commercial activity appear in Section 5.7 Demand Management. Climate change is then discussed in Section 5.9. While drivers of demand are identified and discussed, the reader is left with the impression So what? What is that likely to mean for the flood risk in Palmerston North and expansion of the stormwater infrastructure? It is accepted that it is difficult to quantify the effect of changes in demand on stormwater 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 conclusion arising from the discussions of drivers of demand setting out what changes in drivers of demand are likely to collectively mean for the flood risk in Palmerston North and expansion of the stormwater 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

265 AECOM PNCC Asset Management Review Asset Management Review AMP's E-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. There is comprehensive coverage of risk in the Appendix D of the AMP with a summary of the approach set out in Section 7. Risks are managed in accordance with a Corporate Risk Management Policy 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 table following Figure 2 in Appendix D sets out the Risk Consequence Rating system. It is noticed that in this table Environmental is not identified as an area of impact with environmental damage being included in the Legal category. It is suggested that particularly for an activity such as stormwater which is an environmentally sensitive activity, Environmental should be a separate consequence category. Figure D2 sets out a risk management process which includes the identification of risk. 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). It is suggested that this process diagram should also include reference to objectives in the risk identification phase. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

266 AECOM PNCC Asset Management Review Asset Management Review AMP's E-10 Appendix D incorporates a comprehensive risk register setting out gross risks, current controls, residual (net) risks with current controls and possible additional controls that could be implemented. It is noted that the colour coding of risks in this register appears to be different to that used in Table 3: Risk Assessment Matrix for example Gross Risk SW05 is identified as a critical risk but is coded grey which is the coding for an insignificant risk and Net Risk SW05 is identified as a medium risk but is coded blue which is the coding for a low risk. Opportunities for Improvement 6. Add consideration of objectives to Figure D2 - risk management process recognising that it is impact on objectives which makes a risk a risk. 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

267 AECOM PNCC Asset Management Review Asset Management Review AMP's E-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 which have the highest consequences should they fail. Section states that Criteria for assessing criticality are: Area of catchment/sub-catchment served; Number of people and properties adversely affected; Significant business activity interrupted; Consequential cost of failure; Critical lifeline/disaster recovery asset. Criticality of treatment plant assets is based on the consequence of failure of each component and its role as part of the treatment process overall. Risk and criticality are linked. Whereas risk is a combination of consequence and probability, criticality is about consequence only. Consequence of activity risk is assessed in the AMP in terms of the following: Legal Environmental Corporate Image Service delivery Financial Community Health and Safety. In the interests of consistency, the same criteria should be used to assess criticality. For example should an asset whose failure would be likely to lead to severe property or environmental damage, national headlines and prosecution of the Council be considered a critical asset? It probably should. Section sets out how the Council s maintenance strategy is linked to asset criticality with different inspection and maintenance regimes for: Highly critical assets Medium and Low criticality assets Non critical assets Criticality is also taken into account in making renewal decisions. Taken overall, criticality is well done in the Stormwater AMP. 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. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

268 AECOM PNCC Asset Management Review Asset Management Review AMP's E 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

269 AECOM PNCC Asset Management Review Asset Management Review AMP's E-13 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 Roading AMPs should incorporate the NZTA Business Case Approach to ensuring appropriate and cost effective maintenance programmes. Operation & Maintenance of Assets is set out in Section 6.7. The purpose of asset operation and maintenance is clearly set out as being to ensure that assets will operate as designed and continue to do so reliably when required. An optimum level of maintenance will also maximise the value to be obtained from the community s investment in the stormwater assets. There are defined maintenance strategies based on the criticality of assets set out in Section It is important that utilities are operated correctly in accordance with the designer s intentions. There are seven stormwater pumping stations, the majority of which are highly critical. Operation and maintenance of key stormwater utilities should be carried out in accordance with defined procedures which are documented in operations manuals. The risk register in Appendix D indicates that there are operations manuals for all stormwater pump stations. These manuals also provide a basis for audits to be carried out to ensure utilities are being operated and maintained correctly. As indicated in Item 1there appears to be a variance between the Operations and Maintenance Forecast Expenditure in Table 19 and the summary in Appendix E1. 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 Ideally the AMP would provide additional commentary on the basis of the justification for the expenditure forecasts in Table 19. The Operation & Maintenance of Assets section of the AMP should explain this is what we need to do (and why) and these are the costs arising from that. Such a commentary might be along the following general lines: The budget has been derived from historic costs that have been established as being sufficient to carry out the maintenance and operation programme and which have been amended as necessary to allow for changes in management activities and practices. The forecast for expenditure is based on assumptions that: The overall condition of the network will not change significantly over the next 15 years (see renewal strategies). Extensions of the stormwater system will represent only a small proportion of the entire system (see demand projections). The level of maintenance required will not increase (and may decrease), reflecting an increase in the overall condition of the 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

270 AECOM PNCC Asset Management Review Asset Management Review AMP's E-14 stormwater network as a result of the asset renewal programme. There will be a significant increase in the price of the operation and maintenance contract (a 5-year contract) when it is competitively re-tendered. (this reflects our assessment of the market for this type of work). Opportunities for Improvement 8. Ensure there is a clear line of sight from the financial forecasts in the operations and maintenance programme to the consolidated financial projections in Appendix E to the financials in the published LTP. 9. Provide additional commentary justifying the budgets arising from the maintenance and operations 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

271 AECOM PNCC Asset Management Review Asset Management Review AMP's E-15 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. Roading 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 The renewal of assets is covered in 6.8. The renewal programme is determined from consideration of criticality, condition, asset performance and the value to be obtained from investment in asset renewal. Renewals are carried out in accordance with a 5 year rolling renewal plan. Figure 21 sets out the long term renewal profile for the stormwater network. This is based on the expected useful lives of the different asset types. The lives of some of these assets appear considerably longer that those adopted by some other territorial authorities, particularly the life of 150 years adopted for sump leads. This does not make these lives wrong, but it is important to have a sound justification where significantly non-standard lives are used to counter any suggestions that future renewal requirements are being underestimated. As would be expected from the asset lives adopted, proposed expenditure on renewals is 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 10. Provide additional justification for the useful lives adopted for the stormwater assets. 11. 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 stormwater 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

272 AECOM PNCC Asset Management Review Asset Management Review AMP's E-16 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. Roading 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 All asset development proposals should be clearly linked to a current or anticipated service gap. This may be a customer or technical service gap and should ideally relate to a service standard that is defined in the AMP. This reflects the first Development Strategy in of the AMP which is for Development of the stormwater system to achieve the agreed levels of service and growth projections over the next 30 years. If levels of service are linked back to Community Outcomes/Council Objectives then by linking development proposals to service gaps it follows that these proposals will, if adopted contribute to the achievement of Community Outcomes, which is the intent of the LGA There is a discussion on service level gaps in Section of the AMP. Service gaps appear to relate to Capacity constraints (and condition issues) in some older areas of the city. Proximity of some areas to major overland flowpaths. Insufficient reticulation in some areas. Discharge of contaminants to some watercourses. Section states that 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; and Changes to levels of service. It is important to be able to reconcile the justification for development work with current or projected service level gaps. An economic appraisal of proposed projects is required using cost/benefit analysis techniques which take into account: Capital costs, Any change in net annual operating costs, Any change in annual maintenance requirements, and Any salvage value of existing assets or components. A Project Execution Plan for is required for prior approval by the management team. Schedule 10 of the LGA 2002 requires capital development expenditure to be identified as being required to service gaps arising from a need to: meet additional demand for an activity (growth); or improve the level of service. The Development Programme Budget in table 25 shows the proposed levels of expenditure in each category. The service gaps that these projects relate to is unclear. Opportunities for Improvement 12. Provide a clearer link between the proposed development programme and current and projected gaps between target LOS shown in Section 4 of the AMP and current service capability. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

273 AECOM PNCC Asset Management Review Asset Management Review AMP's E 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

274 AECOM PNCC Asset Management Review Asset Management Review AMP's E-18 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 K 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. Section 9.3 sets out an assessment of confidence in asset data used as a basis for the financial forecasts. This indicates a relatively high level of confidence in this data (B- reliable overall). It is also noted that there does not appear to be an assessment of confidence in unit rate data which also feeds into confidence in the capital programmes. Opportunities for Improvement 13. 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

275 AECOM PNCC Asset Management Review Asset Management Review AMP's E-19 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 9.4 sets out an assessment of the Reliability of Financial Forecasts. It would be expected that Section 9.4 would be derived from Section 9.3 Confidence Levels. The linkage between Section 9.4 and Section 9.3 is unclear from the AMP. It is also noted that there does not appear to be an assessment of confidence in unit rate data which would also affect confidence in the capital programmes. Ideally there would also be an assessment of confidence of other key projections in the AMP such as the demand projection. In Section 9.4 Reliability of Financial Forecasts assessments are made of the reliability of Maintenance and Renewal Forecasts and of Development Forecasts. The conclusions are that short to medium term forecasts are generally considered reliable with uncertainty increasing over the longer term. It is unclear how the assessments of confidence levels in data in 9.3 feed into the assessments of confidence in forecasts in 9.4 or what level of analysis has been carried out to reach the conclusions in Section 9.4. There needs to be an audit trail behind these assessments of reliability. 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 14. Improve the linkage between assessments of confidence in data and assessments of reliability in programmes and provide appropriate analysis to justify the assessments of confidence in projections and programmes. (the actual analysis could be appended or held outside the plan) 15. 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

276 AECOM PNCC Asset Management Review Asset Management Review AMP's E-20 Assessment Item 11 Performance Measurement Score 2 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. Appendix C - Activity Performance Measures. Performance targets are provided for each of the years 2018/19 to 2020/21 and for the period 2021 onwards. It is unclear from the AMP whether performance relative to the Technical Performance Measures is formally recorded. 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. Results where a comment on the performance achieved may be appropriate are indicated in the table below: 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

277 AECOM PNCC Asset Management Review Asset Management Review AMP's E-21 Opportunities for Improvement 16. 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). 17. Consider adding a separate section on performance to the AMP setting out performance as suggested in OFI 21 above 18. Provide a commentary when a performance target is not achieved or when there is a significant variance between target and actual performance. 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

278 AECOM PNCC Asset Management Review Asset Management Review AMP's E-22 Assessment Item 12 Sustainable Funding Score 1-2 Why is this important? Our Findings Long term expenditure projections are a fundamental part of AMPs. These should be matched by a projection of the level of funding that is required to sustain the activity over the long term. This is needed to close the loop. Long term funding projections should include funding to cover operating costs, asset replacement (if depreciation funding is used for this purpose it should be sufficient to cover long term asset renewals), interest on debt that will be needed to bridge periods when accumulated expenditure exceeds accumulated depreciation and funding to service debt associated with additional assets. These funding projections in the AMPs should be prepared in consultation with the finance manager. These funding projections should be updated regularly to take account of inflation and be based on realistic asset valuations. It should be possible to reconcile the long term sustainable funding projections in the AMPs with funding provided through the LTP and explanations should be provided for any significant variances between the two. Section 9.5 of the AMP covers the Funding Policy. This section sets out the basis of funding for the different categories of expenditure: Operation & Maintenance Capital Renewal Capital Development. It also summarises the Council s approach to development contributions. Asset management is intended to support the sustainable long term provision of services. There is no indication given in the plan of whether the proposed level of funding in the AMP is sufficient to sustain the activity over the long term, whether it supports the principle of intergenerational equity and if significant changes in funding levels (excluding adjustments for inflation) will be required in the future. The financial forecasts in Appendix E set out long term (30 year) operating and capital expenditure projections. They do not give any indication of the funding that will be applied to the Activity or whether the long term budget for the Activity is balanced. Ideally the coverage in the plan of funding should go beyond the funding policy, it should show the long term levels of funding that will be necessary to sustain the activity over the long term. This will help highlight possible future funding problems (such as abrupt changes in the level of funding that will be required and indicate whether the Activity as described in the AMP is sustainable over the long term. Opportunities for Improvement 19. Consider adding long term funding projections to the plan showing the levels of funding that are expected to be necessary to sustain the activity. 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

279 AECOM PNCC Asset Management Review Asset Management Review AMP's E-23 Assessment Item 13 Readability Why is this important? Our Findings AMPs potentially have a wide range of audiences Asset Managers AMPs should actively guide asset managers in the management of asset based services Senior management AMPs should be readily comprehensible to senior management and provide senior management with a high level understanding of what the activity involves, what it is trying to achieve, any significant issues and risks the activity is facing, how it is managed and costs of the activity. Elected members - AMPs should be reasonably comprehensible to elected members, and provide elected members with a high level understanding of what the activity involves, what it is trying to achieve and why, any significant issues and risks the activity is facing, and costs of the activity. It should provide elected members with confidence that the activity is being well managed Interested members of the community - AMPs should be reasonably comprehensible to interested members of the community, and provide elected members with a high level understanding of what the activity involves, what it is trying to achieve and why, any significant issues and risks the activity is facing, and costs of the activity. Audit New Zealand - AMPs should provide Audit New Zealand with confidence that the activity is being managed appropriately It is therefore important that AMPs are readable and readily comprehensible It is stated in Section 1.1 Purpose of this Plan that the AMP is intended to be appropriate for a readership including elected members of the Council, executive management, interest groups, and business partners associated with the management of the Stormwater activity, along with interested members of the community. AMPs provide an opportunity for asset managers to demonstrate the quality of their management of asset based services. They should provide confidence to interested parties that the activity covered by the AMP is being well managed. For most audiences this necessitates a reasonably concise document. The Stormwater AMP is a well written AMP which contains the information that would be required by a diverse readership and conveys this information in a logical and comprehensible manner. It has continually developed and evolved over a number of years. Moving forward there is some detail in the plan which could be appended as part of the process of ongoing evolution of the AMP. Opportunities for Improvement 20. Consider transferring some of the more detailed information in the AMP to appendices as part of a process of evolution towards a higher level document (Note: no score is assigned to this item) 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

280 AECOM PNCC Asset Management Review Asset Management Review AMP's E-24 General Observations This is fundamentally a good AMP. It is logically structured and covers all elements that would be expected in an AMP for an activity such as managing the effects of stormwater runoff. The AMP demonstrates ongoing development and improvement over the years. It was noted from Section 2.3 Activity Rationale that the reason PNCC provides a service to manage stormwater runoff comes across as being because Territorial authorities exist principally to supply services that help to promote the social, economic, environmental and cultural well-being of their communities and because: Stormwater assets are strategic assets owned by Council, and there are restrictions in the Local Government Act 2002 on the divestment of strategic assets Council is a major contributor to stormwater runoff within the City The services provided by the Stormwater activity contribute to the vision and goals adopted by Council for the City The impression gained from the way this is worded is that PNCC provides for the management of stormwater runoff primarily for legislative reasons. It is suggested that the focus of this section should be changed to emphasise that PNCC provides for the management of stormwater runoff because this supports a healthy community and public safety, protects against property damage and contributes towards a health environment (that it would do even in the absence of legislative requirements). PNCC may wish to check compliance of their asset management policy (Section 3.4.1) and strategy (Section 3.4.2) with the requirements of the ISO Asset Management Standard. It is likely there will be an increasing expectation that organisations asset management practices are generally compliant with this Standard (but probably not of formal certification to the Standard). There would be merit in including a Management Review process as part of Section 11 Continuous improvement. Management Review Meetings, typically held at intervals of 3-6 months, consider the performance of the activity, significant issues that have arisen, customer feedback, and any other matters that are relevant to improving the management of the activity. They provide an opportunity to periodically take stock of how things are going and take appropriate action as may be appropriate. With the passing of the Health and Safety at Work Act 2015 the AMP may be a little light on identifying and managing Health and Safety risks associated with the stormwater infrastructure (apart from illness arising from contaminated water or similar ). PNCC and individuals within the Council may be exposed to liability in the event of harm to persons occurring which is associated with the stormwater infrastructure unless PNCC has identified risks associated with that infrastructure and eliminated or minimised those risks so far as is reasonably practicable.. The AMP should ideally include a projection of future asset values that will result from implementation of the programmes in the AMP. Audit NZ have raised this in audits elsewhere. A projection of future asset values which shows a declining trend in the overall value of the network may (but will not necessarily) indicate that there is an issue building with deferred renewals. A declining valuation over time would therefore need to be explained. The LGA 2002 requires any significant negative effects that may be associated with an activity to be identified. Section 2.6 covers Significant Negative Effects of the Activity This section sets out potential negative effects whereas it is only necessarily to state actual effects or effects that are likely to occur and only if these are considered significant. It is questionable whether Flooding of habitable residential and commercial buildings resulting in financial loss associated with property damage and disruption to normal activities is a negative effect of the activity. This is because the stormwater activity does not cause the flooding, but instead exists to mitigate against it. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A

281 AECOM PNCC Asset Management Review Asset Management Review AMP's E-25 The process that can be followed to identify significant negative effects is to firstly define the criteria by which significance will be determined. This is normally the social cultural economic and environmental wellbeing of the community (this was previously specified in the LGA 2002 but has since been removed). Possible negative effects arising from the stormwater activity are then assessed (with current controls in place) relative to the criteria to determine which negative effects are significant. Only negative effects which have been identified as significant from a process such as this should be reported in the plan. The process itself should be appended. An example of an assessment of negative effects is set out below. This is only one of a number of possible approaches. 16-Apr-2018 Prepared for Palmerston North City Council Co No.: N/A