PLAINS WATER SUPPLY ADVISORY BOARD MEETING

Transcription

1 PLAINS WATER SUPPLY ADVISORY BOARD MEETING AGENDA Meeting to be held in Committee Room 1, Civic Centre, Commerce Street, Whakatane at 10:00 am Marty Grenfell CHIEF EXECUTIVE 23 August 2016

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3 ITEM TABLE OF CONTENTS SUBJECT PAGE NO 1 Membership Apologies Announcements Public Forum Confirmation of Minutes Plains Water Supply Advisory Board Minutes 27 May Reports Plains Water Scheme Water Report from 1 July 2016 to 31 July Appendix 1 - Map of Potential Edgecumbe and Te Teko Water Supply Zone Appendix 2 - Report to Policy Committee 18 August Potable Water Supply Strategy... 18

4 1 Membership B Woods (Chairperson) Councillor R N Orr Councillor G F van Beek Rangitāiki Community Board Member G Bourk R Barkla W N Checkley W Geddes (S Geddes as alternate) W James G Smeaton 2 Apologies An apology from Board Member Wayne Checkley has been received at the time of compiling the agenda. 3 Announcements 4 Public Forum The Council has set aside time for members of the public to speak in the public forum at the commencement of each Council, Committee, Sub-committee and Community Board meeting (up to 30 minutes) when these meetings are open to the public. Each speaker during the public forum section of a meeting, may speak for three minutes. Permission of the Chairperson is required for any person wishing to speak at the public forum. The public forum procedure does not apply in respect of any hearing, including the hearing of submissions where the local authority, committee or subcommittee sits in a quasi-judicial capacity. With the permission of the chairperson, members may ask questions of speakers during the period reserved for public forum. If permitted by the chairperson, questions by members are to be confined to obtaining information or clarification on matters raised by the speaker. Page 4

5 5 Confirmation of Minutes 5 Confirmation of Minutes 5.1 Plains Water Supply Advisory Board Minutes 27 May 2016 Details of Meeting: Present: PLAINS WATER SUPPLY ADVISORY BOARD MEETING HELD IN COMMITTEE ROOM 1, CIVIC CENTRE, WHAKATĀNE ON FRIDAY, 27 MAY 2016 COMMENCING AT 10:00 AM B Woods (Chairperson), Councillors R N Orr and G F van Beek, Rangitāiki Community Board Member G Bourk, Messrs R Barkla, W Geddes and W James In Attendance: Apologies: Visitors: T Krawczyk (General Manager Infrastructure), S Agas (Manager Planning and Projects - Three Waters ), C Toms (Rating and Revenue Team Leader) and C B Hair (Administration Officer Policy) Apologies were received from Board Members W Checkley and G Smeaton S Geddes 1. CONFIRMATION OF MINUTES: Refer to pages 6-11 of the agenda. RESOLVED: THAT the minutes of the Plains Water Supply Advisory Board meeting held on Friday, 18 March 2016 be confirmed as a true and correct record. Bourk/Wilson CARRIED 2. APPOINTMENT OF WINI GEDDES: Refer to page 12 of the agenda. The Chairperson welcomed Wini Geddes to the Board with Simon Geddes as her alternate. Page 5

6 5.1 Plains Water Supply Advisory Board Minutes 27 May 2016 (Cont.) 3. PLAINS WATER SCHEME WATER SERVICES REPORT FROM 1 JULY 2015 TO 30 APRIL Water production 3.2. The Manager Planning and Projects - Three Waters advised that there was a correction to his first sentence which should state the reporting period was to 30 April 2016 and not 29 February 2016 as stated. In response to questioning regarding the increase in water production, the Manager Planning and Projects - Three Waters advised that it was unexpected, given the season had not been a dry one. However, the mechanical meters at the sources had been changed, which could account for the increase, as mechanical meters did slow down as they aged. Alternatively there could have been a genuine increase in the amount of water produced. He advised that they would keep monitoring the situation and report back to the Board Edgecumbe-Te Teko Water Supplies Annual Plan 2016/17 decision Refer to pages of the agenda and tabled document 29A. The General Manager Infrastructure outlined the Council s decision to implement Option 2 with refinements. The decision and reasons for the decision were included in the report on pages of the agenda. He tabled a map (refer to tabled document 29A) which illustrated the decision and showed the water main pipe (blue line) and the indicative areas of supply (pink shaded areas) that would be isolated from the Braemar/Johnson Road sourced water. He stated that the amended approach to Option 2 for water supply upgrades would link the Edgecumbe and Te Teko community reticulation systems and ensure their supplies met national drinking water standards. The upgrading project would also allow both communities water reticulation systems to be isolated from the Braemar Springs and Johnson Road bore sources, thereby removing any possible arsenic content above the drinking water standards from those sources. The General Manager Infrastructure stated that the Council believes that the linking of the two supplies (Paul Road bore to Edgecumbe and Tahuna Road supply) would also provide added resilience to the network and would go some way towards recognising the cultural link (whakapapa) that the Te Teko community has with the Paul Road water supply. The General Manager Infrastructure stated that the Council acknowledged that the preference of the Te Teko community was for an extended water scheme supplied from the Paul Road bore. However, the Council noted that the cost of providing this supply to all properties within the boundary defined by the Pahipoto and Ngā Maihi hapū would increase the cost from $5.1 million to $6-7 million, which the Council considered was prohibitive at this time. Given the high costs of extending the boundaries, the Council believed this project would require a staged approach, and would need to be considered as part of an overall Plains Water 50 Year Strategy. However, while the extended water scheme for the Te Teko Community did not extend as far as the outer boundaries defined by Pahipoto and Ngā Maihi hapū, and did not extend the current network, it would include additional areas along Te Teko Rd and along SH30 between Te Teko and Western Drain Road, and allow those areas to also be isolated from the influence of Braemar/Johnson Road-sourced water. Mr Geddes outlined the consultation that was undertaken at five marae in Te Teko and he stated that the results for all marae were similar. He stated that the trustees of the various marae, with their historic knowledge, had come up with similar boundaries for the Te Teko township. Page 6

7 5.1 Plains Water Supply Advisory Board Minutes 27 May 2016 (Cont.) In response to questioning as to how these works would be paid for, the General Manager Infrastructure advised that the Council had approved a budget of $5.2 million, being $4.2 million for Edgecumbe and $1.0 million for Te Teko, funded by a subsidy of $2.1 million from the Ministry of Health, the use of $500,000 from the Plains Reserve Fund, with the balance being loan funded. In response to questioning as to whether there would be Ministry of Health subsidy available for the works benefitting the Te Teko community, the General Manager Infrastructure stated that he understood from the Ministry officials that there was no further subsidy money available. An extension of the current funding subsidy for Edgecumbe has been applied for and approved. In response to questioning as to what happens next, the Manager Planning and Projects - Three Waters stated that staff had started modelling work to finalise the boundaries. A tender would go out in September 2016 and the contract would be awarded in October 2016, with work being completed by June In response to questioning as to how the Council would deal with the issue of arsenic levels in the Braemar and Johnson Road supplies that were above the drinking water standards and used for domestic supply in other parts of the Plains Water Scheme, the General Manager Infrastructure stated that the Council was aware that the works would create a discrepancy in levels of service that would need to be addressed. The Board considered the Council resolution that funding models would need to be developed for both domestic and farm water supplies on the Plains Water Scheme in 2016/17 to come into effect in the 2017/18 financial year. The Board considered that, unless the funding model was changed, the costs would continue to predominantly fall on the higher volume users of the Plains Water Supply (the dairy farmers) at a time when the dairy industry can least afford it. This raised issues of fairness and equity and the obvious question of who pays for an increase in the levels of service for the domestic users. RESOLVED: THAT the report "Plains Water Supply Services Report from 1 July 2015 to 30 April 2016" be received. Bourk/Barkla CARRIED 4. PLAINS WATER 50 YEAR STRATEGY SECOND BORE AT PAUL ROAD BOREFIELD The Chairperson stated that the current scheme had developed in a piecemeal and adhoc manner, as a response to the Edgecumbe earthquake in 1987 and in response to pleas from people finding themselves with no water. The Board had determined to get away from this short-term reactionary type approach and the concept of a Plains Water 50 Year Strategy was developed. The 50 Year Strategy looked at the issues with the Plains water supply not being able to meet current or projected future demand, particularly in the Awakeri area and other areas outside the original Braemar water supply scheme boundary, as well as dealing with the arsenic levels above the drinking water standards. He stated that the original concept was to provide the same levels of service to all properties within the Braemar, Awakeri, Edgecumbe, Thornton and Onepū areas. Page 7

8 5.1 Plains Water Supply Advisory Board Minutes 27 May 2016 (Cont.) The Chairperson stated that the Board had understood that the economic feasibility of the draft 50 year Plains Strategy had been questioned and had therefore not yet been adopted by the Council. However the concept of a forward thinking Strategy for the Plains Water Scheme was still relevant and needed to be developed by the Council. The Board discussed the need to understand the drivers for water demand, how much water was needed and how much it would cost and who would pay. The Board considered that before any funding models could be developed, and before any meaningful public consultation could be undertaken, the Council needed to understand the water sources for the Plains Water Scheme. In particular, how much water would be available from the Paul Road bore. The Board believed there was no use in planning pipe works and volumes if there was no certainty over the water supply. The Board asked three questions: 1. Where was the scheme going to get water from? 2. Who was the scheme going to deliver water to? 3. How was the Council going to do it? The original assumption that the Paul Road bore had an unlimited supply of water and could be used for the Plains Water Scheme (on the western side of the Rangitāiki River) as well as an emergency supply for the Whakatāne-Ōhope water scheme, was now being revisited. The General Manager Infrastructure advised that the Bay of Plenty Regional Council was in the process of assessing the aquifer and would need further information before issuing any further consent. He stated that the Regional Council was required under the National Policy Statement for Freshwater Management 2011 (NPS) to know and understand the water quality as it was now, set out how to address the issues around preserving water quality and ultimately this would lead to setting limits around the quality and quantity of water available. The efficient use of current allocations in the Rangitāiki catchment was being considered at the moment because of the over-allocation of water resources, at least on paper, and the potential for intensification of dairying. The General Manager Infrastructure advised that the Council had applied for a consent to draw 61 litres per second, and the hearing for this would be held in August He stated that the Council had undertaken consultation with the community, including the Te Teko community, that had resulted in the Hikoi on the Council in December 2015 and the development of the options to reduce the arsenic levels to the Te Teko community, to those that complied with the drinking water standards. He stated that staff had applied for a further consent for an additional 60 litres per second, but had been advised by the Regional Council, that, until they had assessed the aquifer, the second consent would probably not be processed. The General Manager Infrastructure advised that it was an expensive exercise to put down a test bore, between $300,000 to $400,000. The Board expressed frustration that the second test bore had not been drilled and tested. The Board stated that without knowing how much water could be used from the Paul Road borefield, the Council staff could not provide any modelling of pipe sizes, develop pipe configuration for the scheme, develop solutions for those domestic users with arsenic levels above the drinking water standards, or develop funding models. Page 8

9 5.1 Plains Water Supply Advisory Board Minutes 27 May 2016 (Cont.) The Chairperson advised that the speakers at the BOP Federated Farmers conference that week had been about water, and he stated that farmers were very aware of the need to deal with the issues of water allocation in their rural communites. It was agreed that there was a heightened and growing awareness of the value of water, and the cost of supplying and delivering good quality water for communities and businesses. The General Manager Infrastructure advised that a report would be going to the next Projects and Services Committee on the 14 July 2016 which would canvass issues around the potential for expansion of the Paul Road bore to other areas of the Plains scheme, and the uncertainty around the granting of a new consent for additional water from the Paul Road bore, in the absence of new Freshwater Policy being developed by the Bay of Plenty Regional Council. He stated that the report would also consider how to develop funding models and how to deal with the issue of arsenic levels in the scheme that were above drinking water standards and used for domestic supply. RESOLVED: THAT the Plains Water Supply Advisory Board recommends to the Council: a. that a second bore be drilled at the Paul Road field; b. that the cost of the second bore be funded from the Plains Water Reserve account; and c. that a full testing be done on the second bore and that the results of the testing be provided to the Bay of Plenty Regional Council for the current resource consent for additional water from the Paul Road borefields. Reasons for Decision: 1. The Plains Water Supply Advisory Board (the Board) recognises that, until the source of the water from the Paul Road aquifer is known, a revised 50 year strategy cannot be developed. 2. The Board believes that, without knowing how much water could potentially be available from the Paul Road borefield, the Council staff could not provide any meaningful solutions or develop models of pipe sizes or pipe configurations for the future of the scheme, or develop solutions for those domestic users with arsenic levels above the drinking water standards, or develop funding models. 3. The Board believes that the Bay of Plenty Regional Council will require this ground truthing of the aquifer in order to make an informed decision around the amount of water available for allocation to the Plains water scheme and to determine the effect of the second bore on the aquifer and other users. The Board believes it is better that the Whakatāne District Council provides this information as part of the resource consent processes. 4. The Board understands that there is a risk and uncertainty around the test results from a second bore however, it is better to know what those results are now rather than later and were recommending that the second test bore be paid for from the Plains Water Reserve account. 5. The Board encourages the Council to provide leadership on this matter and to be forward thinking in the best interests of the District. Woods/Geddes CARRIED Page 9

10 5.1 Plains Water Supply Advisory Board Minutes 27 May 2016 (Cont.) ANNUAL PLAN PLAINS WATER The Council had agreed to keep the rates at the same level as 2015/16 given the balance in the operating reserve with the targeted rates as $120 excluding GST connection and 27 cents excluding GST for cubic metre rate with 90 cents per cubic metre for excess water. THE MEETING CLOSED AT 11:50 AM. Confirmed this day of CHAIRPERSON Page 10

11 6 Reports 6 Reports 6.1 Plains Water Scheme Water Report from 1 July 2016 to 31 July 2016 Subject: To: Meeting Date: Written by: File Reference: WATER REPORT FROM 1 JULY 2016 TO 31 JULY 2016 PLAINS WATER SUPPLY ADVISORY BOARD MANAGER THREE WATERS PLANNING AND PROJECTS A REASON FOR THE REPORT This report provides information on water activity in the Plains Water Supply Scheme during the reporting period of 1 July 2015 to 31 July WATER PRODUCTION Production Year Braemar Te Teko Johnson Road July June ,641, , ,875 July 2007-June ,318, , ,685 July 2008-June ,697, , ,168 July 2009-June ,777, , ,741 July 2010-June ,734, , ,030 July June ,713, , ,943 July June ,642, , ,410 July June ,789, , ,225 July June ,835, , ,290 July June ,871, , , WATER CONNECTIONS As at Braemar Te Teko Mapou Awakeri Total June ,655 June 08 1, ,679 Page 11

12 6.1 Plains Water Scheme Water Report from 1 July 2016 to 31 July 2016 (Cont.) As at Braemar Te Teko Mapou Awakeri Total June 09 1, ,749 June 10 1, ,765 June 11 1, ,799 June 12 1, ,811 June 13 1, ,819 June 14 1, ,842 June 15 1, ,854 May 16 1, , CAPITAL RENEWAL PROJECTS 4.1. Edgecumbe and Te Teko Water Project Project Scope Following the Council s decision to implement a project to supply water to Edgecumbe and Te Teko from Paul Road water source, upgrade of Te Teko treatment plant and bore site to meet the current Drinking Water Standards and isolate Te Teko from Braemar and Johnson Road water sources, the staff proceeded with the design works and tender documents. The following works will be completed with this project: Conversion of existing test bore to a production bore and associated works, Installation of a water pump station at Paul Road bore site, Installation of a water treatment plant at Paul Road bore site, Installation of a bulk supply main from Paul Road to Edgecumbe, Link Paul Road bore with Te Teko via the new pipe and existing pipes, Isolation of Edgecumbe and Te Teko from Braemar and Johnson Road water sources, Installation of a bypass water line through Edgecumbe to supply water to Awakeri from Braemar source, Upgrading of Tahuna Road water treatment plant by installing UV treatment, Upgrading of Tahuna Road bore site. A map showing the potential Edgecumbe and Te Teko supply zone is attached to this report as Appendix 1. A decision on the Committee s recommendation to use Plains water reserve funds to install a second bore at Paul Road bore site has not been taken yet. This will be considered when the long term programme is developed for the water supplies. Page 12

13 6.1 Plains Water Scheme Water Report from 1 July 2016 to 31 July 2016 (Cont.) Progress to Date The project will be implemented with 3 separate portions. They are: Project Budget Installation of a bulk supply main from Paul Road water source to Edgecumbe and isolation of Edgecumbe and Te Teko supply from Braemar and Johnson Road sources. The water main from the bore site to State Highway 30 is a 350mm pipe and from State Highway 30 to Edgecumbe is a 250mm pipe. The reason for the larger pipe in the first section is to allow future water supply to Awakeri from Paul Road when needed. The tender document for this contract is ready to advertise. Conversion of the existing test bore at Paul Road to a production bore, installation of a water tank, pump station, treatment plant and associated pipework at Paul Road site. At present, the design and tender documents are under preparation. Upgrading of existing water treatment plant at Tahuna Road with addition of UV treatment and upgrading the bore site to meet requirements of Drinking Water Standards. Design and tender documents are under preparation. The available total project budget is $5.2 million. The Ministry of Health has approved $2.1 million as subsidy funds. A sum of $500,000 from the Plains water reserve will be used for the project. The balance will be loan funded Other Projects Apart from routine pipe sampling programme for the year, there are no other capital projects identified this year in the Plains Water Supply. 5. WATER STRATEGY REPORT A report titled Potable Water Supply Strategy was submitted to the Policy Committee held on 18 August 2016 written by General Manager Planning, Regulatory and Corporate Services and General Manager Infrastructure. The purpose of this report was to advise the Committee that there is a need to ensure the overall strategic direction for the management of reticulated water schemes is clear and need for clarification of the current management and governance arrangements for how water related priorities are set, implemented and monitored. The Policy Committee resolved the following: 1. THAT the report "Potable Water Supply Strategy be received; and 2. THAT the Whakatāne District Council acknowledges the need to integrate its decision making when setting priorities for the water activity, and to use the following strategic documents as key references for future planning of this activity: The Whakatāne and Plains Water Supply Strategy - Alan Bickers (May 2014) Draft Plains 50 Year Strategy Study OPUS (September 2014) with the Plains Water Supply Financial Viability of 50 Year Strategy - Rationale (November 2015) Plains and Awakeri Extension Water Upgrade Strategy - OPUS (April 2008) Whakatāne and Ōhope Water Upgrade Strategy Page 13

14 6.1 Plains Water Scheme Water Report from 1 July 2016 to 31 July 2016 (Cont.) Whakatāne Saline Intrusion Modelling and Study Whakatāne Water Treatment Plant Upgrade Report 3. THAT the Whakatāne District Council considers an alternative model for the management and governance of water activities that better integrates decisions across all water schemes. The report was sent out to Board Members prior to the Policy Committee meeting and is attached as Appendix 2 to this report. 6. FINANCIALS 6.1. Capital Projects Project Progress Budget ($) Expenditure year to date ($) Pipe sampling and condition assessment Pipe samples are collected when pipe breaks are occurred 16,500 3,790 Minor replacements and projects Scheduled in May/June ,000 18,000 Paul Road bore project including Edgecumbe supply main Project on hold until community consultation and annual plan process is completed 3,045,900 11, Operations and Maintenance Annual Plan budget ($) Year to date budget ($) Actual expenditure ($) Variance ($) Explanation 1,395,315 1,395,315 1,278, ,493 Less reactive maintenance during the year RECOMMENDATIONS: THAT the report "Plains Water Report from 1 July 2016 to 31 July 2016" be received; Attached to this report: Appendix 1: Potential Edgecumbe and Te Teko water supply zone Appendix 2: Report titled Potable Water Supply Strategy considered by the Policy Committee on 18 August Page 14

15 6.1 Plains Water Scheme Water Report from 1 July 2016 to 31 July 2016 (Cont.) Report Authorisation Report writer: Final Approval: Santha Agas Tomasz Krawczyk Manager Planning and Projects - Three Waters General Manager Infrastructure Page 15

16 6.1.1 Appendix 1 - Map of Potential Edgecumbe and Te Teko Water Supply Zone Appendix 1 - Map of Potential Edgecumbe and Te Teko Water Supply Zone Page 16

17 - - Legend Potential Water Supply Area Sourced from the LINZ Data Service and licensed for re-use under the Creative ± Potential Edgecumbe and Te Teko Water Supply Area Path: C:\Users\caseyb\Desktop\ttws.mxd Date of issue: 23/08/2016 Scale: Author: 1:50,352 CB DISCLAIMER: While Whakatane District Council (WDC), has exercised all reasonable skill and care in controlling the contents of this information, WDC gives no warranty in relation to the material, including its accuracy, reliability and suitability and accepts no liability whatsoever in relation to any loss, damage or other costs (whether direct, indirect or consequential) relating to the use of any material, any compilations, derivative works or modifications of the material. Aerial Photography flown between 2001 and 2016, depending on the area. Parcel boundaries are to be taken as approximate only, not to be substituted for site specific survey. May contain LINZ data: Crown Copyright Reserved. Note: Place names may not conform to LINZ guidelines Position of all assets & historical sites are approximate, actual positions are to be verified on site. 17

18 6.1.2 Appendix 2 - Report to Policy Committee 18 August Potable Water Supply Strategy Appendix 2 - Report to Policy Committee 18 August Potable Water Supply Strategy Subject: To: Meeting Date: Written by: File Reference: POTABLE WATER SUPPLY STRATEGY POLICY COMMITTEE MEETING THURSDAY, 18 AUGUST 2016 GENERAL MANAGER PLANNING, REGULATORY AND CORPORATE SERVICES A REASON FOR THE REPORT The Council has a number of strategic documents related to the reticulation of potable water in urban and rural communities. As some of these documents focus on individual schemes or combinations of schemes, there is a need to ensure the overall strategic direction for the management of reticulated water schemes is clear. The current management and governance arrangements for how water related priorities are set, implemented and monitored should also be clarified. There are a number of key documents used as a reference to aid decision making that should be considered as part of a district wide approach to how this service is delivered. 2. BACKGROUND The Council operates ten public water supply schemes serving the urban communities of Whakatāne and Ōhope, Edgecumbe, Matatā, Murupara, Waimana, and Te Mahoe, while the rural communities on the Rangitāiki Plains and in Rūātoki receive reticulated water. The Plains Water Scheme provides water primarily (by volume) for the dairying industry but also domestically, but has physical limitations in terms of expanding the network for others. The activity also provides support services to Ruatāhuna. These schemes include 525 km of pipeline, 35 reservoirs, 9 treatment plants/headworks and 15 pumping stations connecting 12,530 properties in the District. The smallest scheme serves less than 100 people in Te Mahoe while the Whakatāne/Ōhope scheme serves about 18,000. There are 12 resource consents associated with these ten schemes with lapsing dated from 2019 (Tahuna Road) to 2026 or later (balance of the consents). The total valuation of our water assets is $98 million. The overarching objectives of the water supply activities are related to providing a quality water supply and an uninterruptable supply quality and resilience. 3. DISCUSSION There are a number of key strategic documents that have been prepared to manage the complexity of these ten water schemes. There are a number of identified issues and or risks associated with how the Council operates these schemes. There are also opportunities that could be considered for expansion but within a framework of changing legislation, limited knowledge about some water Page 18

19 6.1.2 Appendix 2 - Report to Policy Committee 18 August Potable Water Supply Strategy (Cont.) sources, climate change and competing demands. Decisions around the priorities have been made to complete the 30 Year Infrastructure Plan and Long Term Plan. Some of these documents are due for review. 4. ISSUES AND RISKS 4.1. Asset Management Plan The Asset Management Plan for this activity lists a number of risks that need managing. They are: Aging infrastructure; Population growth (in certain areas) and demand; Climate change, including effects from more frequent and more intense weather events such as droughts or floods; Compliance with Drinking Water Standards and changing environmental standards; Affordability and Level of Service; Water leaks and wastage; Vulnerability to natural disasters/resilience; Cultural issues; Providing satisfactory solution to the communities in unreticulated urban areas; These risks can result in: Insufficient water supplies during times of drought or emergency; Economically, the cost of desired infrastructure improvements may exceed the community s ability to pay; Discharges of chlorinated water from maintenance activities or pipe failures; Potential delivery of contaminated water through our schemes; Depletion of aquifers resources, through over abstraction; Potential impacts on customers satisfaction due to service failures, delays/responsiveness. Health and Safety risks associated with the operation, maintenance or construction of infrastructure; Effects on river ecology caused by river water extraction during low flows; Drinking water not meeting the Drinking Water Standards 2005 (amended 2008); Inadequate pressure and flow to fight fires. The Key Issues that are identified are compliance with the drinking water standards, leakage and security of supply again reflecting the objectives for the activity relating to quality and reliability (resilience) of supply The 30 Year Infrastructure Strategy and the Long Term Plan The 30 Year Infrastructure Strategy summarised in the Long Term Plan bring together some of these issues and defines the focus to be: Councils Aging Infrastructure - Infrastructure costs are high, and more than 70% of the Councils water supply pipes are over 50 years old. A large number of the Councils core infrastructure assets (across the 3 Waters Activity including water, wastewater and stormwater) will be coming Page 19

20 6.1.2 Appendix 2 - Report to Policy Committee 18 August Potable Water Supply Strategy (Cont.) to the theoretical end of their useful life within the next 30 years. $380 million (or 90% of the entire 3 Waters works programme) will be spent over that period to maintain and renew existing assets. Ensuring the health and safety of the environment and the community This issue recognises the need to upgrade plants to comply with new resource consent conditions. The resource consents for water activities expire in 2019 (Tahuna Road) with all others expiring in 2026 or later. This will also be achieved by improving service delivery to reduce the impact on the environment through water metering and public education to reduce water wastage and leaks. The identification of an alternative source of water for the Plains and Whakatāne/Ōhope is recognised, while minor works to maintain water supply quality to other schemes may be required. Risk posed by Natural Hazards Damage to assets can affect the ability of the Council to provide a continuous supply of water. Ōhope and Waimana are identified as vulnerable water sources to earthquakes. Increasing the level of service to ensure a reliable service Increasing storage to reduce service disruptions; increasing the level of infrastructure network capacity. Growth in Certain Areas adds pressure to the Councils Infrastructure Extension of services into new growth areas outlined in the District Plan; and prioritising other projects following further investigation and external funding. It is recognised that the 30 Year Infrastructure Strategy will need to be reviewed for the next LTP in Assessment of Water and Sanitary Services: Revision 3 December 2011 (Whakatāne District Council) In regard to reticulated communities, the issues identified in this assessment are security of supply for several smaller schemes and on the Plains. The Assessment recognised that external funding had been received to secure the source of water for some of these schemes, or to extend the scheme to include others not currently connected, and for the provision of additional storage. The Assessment considers the level of service to be provided across water schemes, uses the measure of taking all practicable steps to comply with the Drinking Water Standards as the level of service to be provided. Currently, all water supplies meet the microbiological criteria of the Drinking Water Standards, and nearly all water supplies can meet protozoa criteria with the exception of Te Mahoe and Plains supplies District Plan The District Plan outlines new residential zones that will need to have a potable water supply extended to swerve these areas when development occurs. This has been recognised through the Structure Plan process that requires the integration of infrastructure as part of the overall planning of a new growth area. The development contributions policy includes the methodology for seeking reimbursement of these costs. These growth areas are in Whakatāne. The draft 50 Years Plains Water Strategy outlines a potential expansion of the Plains Scheme but it probably overestimates the growth potential and relies on this growth to fund much of that expansion. This level of growth has not been factored into the development of the District Plan. To this extent the 50 Year Plains Strategy is aspirational. Page 20

21 6.1.2 Appendix 2 - Report to Policy Committee 18 August Potable Water Supply Strategy (Cont.) 4.5. Plains Water Unlike other water schemes provided by the Council, the Plains water scheme provides a supply for both dairying activity and domestic use. The Council is in the difficult position of having to meet drinking water standards for its domestic consumers but in a situation where the bulk of the supply is used for dairying purposes. The Plains Water Supply Advisory Board has commissioned and contributed to several reports associated with the development of this supply including: The Whakatāne and Plains Water Supply Strategy - Alan Bickers (May 2014) Draft Plains 50 Year Strategy Study OPUS (September 2014) with the Plains Water Supply Financial Viability of 50 Year Strategy - Rationale (November 2015) Plains and Awakeri Extension Water Upgrade Strategy - OPUS (April 2008) The Council has received but not adopted these reports, recognising that they provide a sound basis for decision making but do not provide a complete answer either individually or collectively to the direction of the scheme. The recent decision of the Council to invest $5.2m in the development of an alternative supply from Paul Road and its use to serve predominantly domestic supplies in Edgecumbe, Te Teko and the surrounding rural properties, shows that these reports are important but not blue prints for what should happen for this scheme. These reports are the culmination of the Plains Water Supply Advisory Boards strategy to plan longer term for the scheme (set a vision) which is commendable. It is an approach that now needs to be undertaken for all schemes across the district, to ensure integration and appropriate setting of priorities between schemes. The Bickers report assesses the relationship between the objectives of the Plains Water Scheme and those of the Whakatāne/Ōhope schemes. Given the recent decisions of the Council in relation to the Paul Road bore, the relevance of the Bickers report becomes more significant in terms of the resilience of the Whakatāne and Ōhope supply. The 50 Year Strategy and Rationale financial analysis suggests further work is needed to better determine priorities for the Scheme, factoring in terms of affordability and funding, upcoming changes in policy in freshwater management and its implications for current water users, and population growth. In particular, the assumption of growth should be set aside and a more focussed discussion with the community should occur concerning levels of service that are both achievable and financially affordable. The Council should also consider whether priorities that improve water quality and security of supply for existing users should take precedent over discussions about expansion of the scheme. This should again be considered in terms of a district wide approach, including setting priorities for the Council in its water activity Other Issues Water quality varies across the schemes with some schemes not currently meeting drinking water standards. The sources of these supplies vary from springs to rivers to groundwater aquifers. The range of surface water sources means there are risks in terms of reliability, due to fluctuations in flow, level of treatment, storage capacity, and other environmental risks such as salinity, arsenic levels, cyanobacteria, climate change and natural hazards. The effects of climate change on the quality and supply of surface water may need to be further investigated to understand the long term sustainability of these sources of supply. Continued involvement in the Lifelines Forum and Natural Page 21

22 6.1.2 Appendix 2 - Report to Policy Committee 18 August Potable Water Supply Strategy (Cont.) Hazards Forum should enable better long term decision making and planning to reduce risks associated with natural hazard events and climate change. We have very little understanding of the vulnerability of our existing water reticulation networks to hazard events. The Whakatāne Water Treatment Plant has been seismically upgraded but still sits on a known fault line. The changing legislative framework in which freshwater management decisions are being made places a degree of uncertainty on future security for existing and expanding schemes. These changes will be ultimately reflected in the renewal of our resource consents, and the potential for less allocation of the water resource and/or increased compliance costs associated with meeting resource consent conditions. Proposed changes to the Local Government Act will also place greater emphasis on alternative governance arrangements for water schemes. There are existing and new economic opportunities that will rely on freshwater takes such as those recognised in the Toi Moana Bay of Plenty Economic Action Plan (Bay of Connections), delivering on the Regional Growth Study objectives. The freshwater management programme will lead to decisions about water allocation being based on need. While these provisions are likely to favour municipal supplies, the overall amount of water being allocated will need to be justified (based on growth, resilience and the like) and efficiency in supply and use will need to be shown. There is a good level of engineering knowledge about how to source and process potable water and to operate and maintain the current networks. There is less knowledge about the sustainability of water sources we rely upon. This is part of the work being undertaken by the Regional Council to better understand the groundwater aquifers in particular. Some of our systems are less resilient to known hazard risks, and the mitigation of that risk is not well planned for. There are some historic issues associated with the location of parts of the network on private land that need to be finalised through legal agreement. The community now expect to have a stronger influence over how decisions on the management of infrastructure are made; meaning decisions are not just about how to engineer a solution but also how to consider other values associated with water, including the recognition of cultural values associated with water and other competing demands for that water. Greater planning in areas of community engagement, especially iwi and hapū, needs to be factored in to project planning. Some hapū are claiming ownership of the water source. The current funding model for water supplies is generally based on equalisation of costs across all schemes, with two exceptions Murupara and Plains Water. The Council has asked that the funding model for the Plains Water Scheme be reviewed. This will require a wider review of the equalisation of water schemes. 5. STRATEGIC DIRECTION OF DISTRICT WATER SUPPLY The documents listed above, as well as the following reports: Whakatāne and Ōhope water upgrade strategy, Whakatāne saline intrusion modelling and study, Whakatāne water treatment plant upgrade report, and other documents and reports concerning the smaller schemes provide a wealth of information about the state of our infrastructure and issues, risks and opportunities of these schemes. They should all be given equal weight in providing a context for integrated decision making on a district wide basis. In summary, they suggest the focus should remain on: Page 22

23 6.1.2 Appendix 2 - Report to Policy Committee 18 August Potable Water Supply Strategy (Cont.) 1. Security of water sources to manage supplies to reduce the risk of contamination (salinity, cyanobacteria, arsenic, pathogens); the need to establish alternative supplies to build resilience; secure resource consents to allow the take of water to meet existing and planned growth into the future; increase knowledge of water sources through data collection, analysis and investigation, and collaboration with the Regional Council. This includes compliance with the requirements of statute. Current action: Security of water schemes within 5 years 2. Treatment and storage of supply we need to efficiently and affordably treat water to meet drinking water standards and to be able to store sufficient volume for a minimum of 48 hours. This includes compliance with the requirements of statute. Current action: Increase water storage capacity in Whakatāne and Plains within 5 years 3. Distribution of water - Our assets are aging and maintenance of our existing supply network must remain a priority; condition monitoring to lead to wise investment. In renewing assets, there is scope to consider the upgrading of pipes to meet growth aspirations (capacity), or to reduce risks associated with climate change or natural hazards (location, type of pipe, capacity). This includes compliance with the requirements of statute. It also includes the expansion of the network through growth. Current actions: Pressure and flow issues resolved within 1 to 2 years 4. Efficiency of water management to identify and prevent wastage through leakages; better demand management; completion of water metering programme; and delivery of public education programmes. Current actions: Preparation of water conservation strategy for all water schemes within the next 2 years; Create but water zones in all water schemes for better management of water, within the next 2 years. 5. Levels of Service Currently to meet drinking water standards, and firefighting pressure in urban areas; review whether alternative levels of service are acceptable in some rural situations. Current actions: Prepare long term water programme for Plains Water Scheme within the next 2 years. 6. MANAGEMENT AND GOVERNANCE To achieve a clear focus on items 1 to 5 across the district, the Council may wish to consider existing management and governance arrangements involving more active leadership by the Council. The Council receives update information on the current capital projects, and it periodically reviews the direction of water services at the time of developing the Long Term Plan. However, the Plains Water Advisory Board tends to be relied upon to give guidance to Council on that scheme, but does not have the delegated authority to make any decisions. It is recommended that the Council become more active in setting priorities and monitoring progress taking a holistic and integrated approach to the management of all water schemes across the district. Page 23

24 6.1.2 Appendix 2 - Report to Policy Committee 18 August Potable Water Supply Strategy (Cont.) 7. ASSESSMENT OF SIGNIFICANCE The decisions or matters in this report are not considered significant in accordance with the Council s Significance and Engagement Policy. The report does not suggest a change in the approach already adopted in delivering water supplies to the community, but recommends that Council consider a more integrated approach to the management and governance of its schemes. 8. COMMUNITY INPUT The evolving nature of the district water schemes, their management and governance will need to be something that the new Council should consider. Those decisions will determine whether further community input is required. 9. CONSIDERATIONS 9.1. Financial/budget considerations There are no actions coming from this report that will have a financial or budget consideration in themselves. The focus areas and the governance options discussed may lead to changes in budgets but these changes will need to follow proper budget processes Policy and planning implications The purpose of the report is to indicate whether there is good alignment between the various statutory and other strategic documents. This brief analysis suggests there is good alignment in terms of identifying the issues and risks associated with the schemes, but further clarity could be provided between how priorities are set between schemes. In saying that, it is clear that the main direction set through budgets is focussed on maintaining the services we already have Authority The Council has the authority to make the decisions in this report. 10. CONCLUSION There are several strategic documents that are generally consistent in their identification of issues and risks associated with providing a consistent quality of water without interruption. There are challenges across schemes, generally based on securing water sources, treatment and storage of supply and distribution of supply. The existing reticulated network requires continued investment to maintain what we have and to improve security of supply for existing users. This is generally a supply for predominantly domestic use, with the exception of the Plains Water Scheme where farm use has been mixed with domestic supply, leading to the need to provide better quality water for residents but that is largely used in the dairying industry. There are new challenges coming in the form of policy that will manage water allocation rates and volumes to match need. That will mean municipal supplies will need to base applications for resource consents on established use and reasonable foreseeable future demand. Changes to the Local Government Act may also lead to how water schemes are governed. Page 24

25 6.1.2 Appendix 2 - Report to Policy Committee 18 August Potable Water Supply Strategy (Cont.) The Council should take a more active leadership role in managing priorities in the water activity, taking a long terms integrated and district wide approach to decision making. The various strategic documents that exist should all been given equal weight and be used as reference documents for decision making. RECOMMENDATIONS: 1. THAT the report "Potable Water Supply Strategy be received; and 2. THAT the Whakatāne District Council acknowledges the need to integrate its decision making when setting priorities for the water activity, and to use the following strategic documents as key references for future planning of this activity: The Whakatāne and Plains Water Supply Strategy - Alan Bickers (May 2014) Draft Plains 50 Year Strategy Study OPUS (September 2014) with the Plains Water Supply Financial Viability of 50 Year Strategy - Rationale (November 2015) Plains and Awakeri Extension Water Upgrade Strategy - OPUS (April 2008) Whakatāne and Ōhope Water Upgrade Strategy Whakatāne Saline Intrusion Modelling and Study Whakatāne Water Treatment Plant Upgrade Report 3. THAT the Whakatāne District Council considers an alternative model for the management and governance of water activities that better integrates decisions across all water schemes. Report Authorisation Report writer: First Approval: Final Approval: David Bewley Tomasz Krawcyzk Marty Grenfell General Manager Planning, Regulatory and Corporate Services General Manager Infrastructure Chief Executive Page 25