Draft LTP Presentation Document

8/11/2019 Draft LTP Presentation Document

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Long-term Plan 2015 2025Options workshop

Presentations7 July 2014


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Table of contents

A) Mayors Opening Address (Mayor Len Brown)

To be tabled

1

B) Transforming Auckland Stephen Town (CE) 5

C) Opportuni ties to create capacity & deliver better valueAndrew McKenzie (CFO)

To be tabled

19

D) Resourc ing for critical infrastructure 23

Water supply and waste water pricing and efficiencies (Brian Monk) 25

Transport strategic options (David Warburton) 35

Alternate funding (Peter Winder) 41


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Mayors Opening Address(Mayor Len Brown)

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To be tabled

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4


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Transforming AucklandStephen Town (CE)

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LongtermPlan20152025

Transforming

Auckland

Affordabilityrequiresfocusonthe

thingsthatwillmakethemost

difference

Approach

The Mayor has set the political direction

Today provides an overview of the

organisations response

The detail comes later Seven Budget Committee workshops

Local boards and IMSB consider and provide

feedback to the Mayor

Sept 1 Come together to consider Mayoral proposal

Nov 5 - Decision-making for draft LTP

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Delivering on our visionThis session will cover:

What were doing to deliver the Auckland Plan

What are we currently doing?

What is planned?

What else could we be doing?

The prioritisation tools that will be used toensure focus and affordability

TheAuckland

Planisourticket

tothe

global

competition

amongstcities

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The Auckland Plan

Two

Geographic

Projects

Six

Transformational

Shifts

Auckland

Plan

Outcomes

Prioritisation This LTP needs to align our 10 year budget and our 30

year vision in the Auckland Plan

Ensuring affordability means we cant afford to do

everything now

Lower rates increases will require a significant overall costreduction

Our prioritisation tools are:

1. Six Transformational Shifts

2. Two Geographic Priorities

3. Ten Spatial Priorities

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Prioritisation other things considered

LTP scene setting workshop

Draft Local Board Plans released today

Aspirations for local communities

Public transport and

quality urban living

seen as the key driversof transformation

Transformational Shifts

The six Transformational Shifts

describe the change required to

achieve our vision

PrioritisationTool1

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Move to outstanding public transport

within one network

Transf

ormingAuckland

What we do now to deliver this shift

Rail system carries over 11 million trips per year

Bus network carries 53 million trips per year

Integrated ticketing

What is currently planned

Enhance and extend Rapid Transit Network

City Rail Link

57 electric trains

Improve bus and ferry network Improve access to quality PT

Enable and support growth close to PT

Radically improve the quality of urban living

TransformingAuckland

What we currently do

Plan and implement enabling housing (HPO), PAUP, open space,

recreation and facilities network

Influence and design buildings and public spaces

Deliver and operate Community and recreational facilities

Encourage healthy lifestyles parks, facilities, walking/cycling

Transport, water, wastewater, stormwater

What else we could do

Further enhance Aucklands Waterfront

Focus on spatial priorities

Embed Te Aranga Maori Design Principles

Seismic Stabilisation Fund for Privately Owned Heritage Homes

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Significantly lift Mori social and

economic wellbeing

Transf

ormingAuckland


Events

Marae redevelopment and housing initiatives

Identification and protection of sites significant to

Maori

Co-management of parks and reserves


Te Whai Painga - Mori social well-being Te Whai Tiaki Mori cultural well-being

Te Whai Rawa Mori economic well-being

Treaty settlements

Mori effectiveness

Substantially raise the living standards for all Aucklanders

and focus on those most in need



Knowledge, literacy, skills and competencies

Support economic growth at regional and local levels

Investment in events, innovations hubs and tourism infrastructure

Enable healthy, dry and warm homes

Community-based social development initiatives


Auckland Investment Office

Business, Attraction and Employment Growth Fund

Business Growth and Competitiveness

Transforming Aucklands Visitor Economy

Regional Innovation Hubs

Digital Auckland

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Transf

ormingAuckland

Dramatically accelerate the prospects of Aucklands

children and young people

What we currently do and have planned

I am Auckland Implement action plan

Playgrounds and play spaces

Youth development and civic participation

Youth facilities and community programmes

Youth grants and scholarships

Youth connections


Expand Youth connections across Auckland More Aucklanders, More Active, More Often

Auckland Skills and Employment Hub

Strategic Regional Grants Programme (all shifts)


Strongly commit to environmental action and

green growth

What we currently do or have planned

Waste minimisation and resource recovery

Rural fencing and planting

Monitoring, research and investigations

Maintain and optimise storm water network

Plant / animal pest control

Central interceptor Investment in public transport


Waste Minimisation

Low Carbon Auckland

Healthy Waterways

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Discussion/questions?

Geographic Projects

PrioritisationTool2

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The Southern Initiative

Transf

ormingAuckland


Deliver, coordinate, facilitate, partner


A cadetship programme between employers and MIT

Working with central government and NGOs to improve

numeracy and literacy in South Auckland

Support social and affordable housing projects


An integrated TSI Work Programme

City CentreThe City Centre



Shared spaces

Parks and open spaces

Roading, cycling and pedestrian infrastructure


Planning, design and construction of new shared spaces

Major street transformations - Quay Street, Victoria Street

Wynyard Quarter

Investment in PT infrastructure

Drive residential and commercial investment

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Discussion/ Questions?

LTP

Spatial

Priorities

SHAsNetwork

Requirements

Other

priorities

Auckland Development Strategy

identifies:

growth areas over 30 year

timeframe

network of centres

different roles and scales rural and future urban

areas Spatial prioritisation will enable

Council and CCOs to unlock

growth and development

opportunities


Spatial Priorities

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Spatial Priorities

Spatial prioritisation includes:

10 proposed spatial priority areas

Proposed future planning spatial priorities

Special Housing Areas (SHAs)

Network requirements

Other priorities

Provides lens to help prioritise and focus Council and CCO work

programme still investing across Auckland

This spatial prioritisation will inform the next phase of 2015-2025 LTP

New spatial priorities expected around every 5-10 years

Transf

ormingAuckland

Spatial

prioritisationInitial areas of focus

10 proposed spatial

priorities in yellow

Approved SHAs in red

Proposed future

planning spatial

priorities in green

(initial work required

to complete strategic

frameworks)


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Draft local board plans

Transf

ormingAuckland

Emerging themes align to Transformational Shifts

Protect, enhance and restore the natural environment

A transport system that is well connected and offers a range of

options

Communities with a sense of belonging

Places and opportunities for active and healthy lifestyles

Well planned vibrant town centres

Strong local economies

For consideration through this process

Discussion/questions?

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Feedback session 1

Transf

ormingAuckland

Where should our focus lie in

delivering the Auckland Plan in

a financially constrained

environment?

Does our current

plan provide the

right level of

focus on each

priority area?

Of the opportunities identified for

possible investment, what doyou see as the Top 3 to make a

difference?

Are there anygaps?

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Opportunities to create capacity& deliver better valueAndrew McKenzie (CFO)

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To be tabled

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Resourcing for criticalinfrastructure

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LTPOptionsandEvaluationPhase

7July2014

WatercareServicesLimited

FinancialManagementFunding

Funding

Watercareisselffunding noincomefromrates

Preventedbylawfrompayingadividend

Allrevenueisusedtofundourexistingoperationsandto

developnewinfrastructure

Primaryrevenuestreamscomprisewaterandwastewater

revenueandinfrastructure growthcharges(IGCs)whichcover

aportionofnewgrowthbasedcapitalexpenditure.

Watercaresrevenueandfinancingpolicyisalignedwith

AucklandCouncilguidingprinciples equity,transparency,

sustainability,efficiency

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Growth

AucklandCouncilsgrowthforecastsunderpin

Watercaresplanning

Populationgrowthwillincreasedemandfor

potablewater

800,000people(35yearsgrowthatmedium

forecast)

200,000m3/day

additional

water

demand

Growthcapexis42%oftotalcapitalspend

AlignmenttoAucklandCouncil

Plans Wherepossible,Watercareisprioritising

projectstodelivertheadditionalcapacity

requiredtosupportthegrowthprojectedinthe

AucklandPlan,

Unitary

Plan,

Special

Housing

Areas

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AssetManagementPlanning

Driversofcapitalinvestment Renewals: replacementofexistingassetsattheendof

theirlifetomaintaincurrentservicelevels

LevelsofServiceImprovement: upgradingofexistingassetsandtheprovisionofnewassetstomeethigherservicelevels

Growth: 1)upsizingofexistingassetsandtheprovisionofnewinfrastructuretoincreasecapacitytocaterforgrowth

2)Support

Auckland

Councils

plans

Infrastructureprojectsoftenaddressmultipledrivers

CapitalExpenditure

LastAMPforecast$4.8bn20152025

LatestAMPforecasts$4.1bn

Reductionof$700million

Currentyear

AMP

projected

$336

million

Yearendforecast$310million

Watercareisactivelylookingforopportunitiestoreduceexpenditure,optimisecapitalinvestmentanddeliverefficiencysavings

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Financial

Management

Pricing Pricing

Abalancebetweenfuturepriceincreasesanddebtlevelsis

requiredtofundtheAMP

Rangeofpriceincreasesmodelled

Projectedincreasesforwaterandwastewaterarecurrently

lookinglikeapprox.1%realperannum

IGCs

Fundnewgrowthcapitalexpenditure

Partiallysubsidisedbyexistingcustomers

Projectedincreasesatthisstageinlinewithwaterand

wastewater

FinancialManagementDebt

Debt

Alloptionstomitigateoveralldebtlevelsarebeing

reviewedincluding:

AMPexpenditureandtimingofexpenditure

Priceincreases

Expenditureefficiencies

Watercarestreasurystructureallowsaccesstobenefits

availabletoCouncil(lowerinterestrate)while

maintainingtheindependencethatensuresatight

focusonourfinancialobjectives,ourdebtandgearing

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Aucklandsnext

water

source

Waikato

Waikatoriveristheonlymajornextsource

Derisk ArdmoreandRedoubtRoad

Consentforadditional200,000m3/daywatertakelodgedwithWaikatoRegionalCouncillate2013

Lookingtosecureadditionaltakebyend2017

Contributionto

Auckland

Plan:

A

fair,

safe

andhealthyAuckland,wherepeoplevaluethe

excellentservicesandfacilitiesavailable

Whenwillitbeneeded?

Timingofthe2nd Waikatoplantandpipelinedependsonactualdemandvssupply

WaterDemandinfluencedbymanyfactors difficulttoforecastaccurately Climate

Demandsavings

(factored

in

15%

savings

to

2025)

Rateofpopulationgrowth

Customerbehaviours

Supplysidevariations Plantavailability

Lake(source)availability algalblooms

Peakcapacityaugmentation

Couldberequiredasearlyas2021

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Timingof

2nd

WaikatoPlant

&

Pipeline

TimingRiskMitigationPlans

HuiaWTPReplacement

Eliminatesludgebottleneckatexistingplant

Removeaverageandpeakcapacityconstraint

BoostpumpingexistingWaikatofrom150,000to

175,000m3/day

under

consideration

Requiresconsentforadditionaltake

Requiressecuringresourceconsentfortakeofwater

treatmentplantandnewpipeline

Planningandpreliminarydesignfor2nd PlantandPipelineFY20152016

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CentralInterceptor

Project

ReplacementfortheHillsboroughTunnelandManukauSiphon(Enterpriserisksassinglepointsoffailure)

ProvidescapacityforgrowthforInnerWestIsthmus,CentralCBDandEasternsuburbs

Reducesthefrequencyandvolumeofoverflowsfromthecombinedseweragesystem

ContributiontoAucklandPlanAgreenAuckland,

where

our

waterways

and

coastlines

are

clean

andfulloflife

NoadditionalriskstoManukauorWaitemataharboursactuallyreducesrisks

SchemeTiming

Mainspinetunnelcurrentlyprogrammedtobecompletein2023

CollectorsewersconnectingCSOstomaintunnelprogrammedtobecompletein2034

Schemetiming

could

be

modified

to

defer

capitalexpenditure

2Stageconstruction

Stage1fromMangereWWTPtoMaysRoad(toaddressEnterpriserisk)

Stage2fromMaysRoadtoWesternSprings

willdefercapitalbutathighertotalandNPVcost,limitsgrowthanddelaysenvironmentalimprovements

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CentralInterceptor

InService2023

CentralInterceptorOption

Constructin

Stages

CSOCollectorSewers

Progressivelyinservicefrom2025to2033

CentralInterceptor:Possiblealternative

staging

Stage1:MangereWTPtoMayRoad

Stage2:

May

Road

to

Western

Springs

AdditionalStagingCost

Demobilisation/Remobilisation

Additionalcivilworks

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3

AP & Basic Transpor t Networks 30yr Spend Profi le

Airport Rail Line and Mt Roskill Rail Spur Parnell Station and electrification Papakura to Pukekohe

Penlink and funding for regional arterials (e.g. Lake Road, GreatNorth Road, Great South Road, Mill Road)

Walking and cycling initiatives 20% less of the cycle networkdelivered by 2025

Higher amenity and customer friendly infrastructure supporting thenew integrated PT network

50% funding to remove rail level crossings North Western Busway and other bus rapid transit improvements 60% less funding for greenfield growth areas in second and third

decades Reduced renewal funding leads to decreased asset condition over

time and increased maintenance

AP Transport Netwo rk

Basic Transport Network

$m

$m

Example projects in the AP Transport Network

CRL completed Half Airport Rail Line & Mt Roskill Rail Spur or equivalent Regional arterial improvements Walking and cycling initiatives 60% of cycle network by 2025 Customer focussed new integrated PT network completed Funding to support removal of rail level crossings Rollout of busways and bus rapid transit in the North West and

South East Full delivery of transport infrastructure for greenfields Full funding to renew transport assets (to deliver existing levels of

service)

Under Auckland Plan priorit isation, projects unlikely inthe Basic Transport Network

AC providedenvelope inclNZTAsubsidy to AT(ExclsCRLand EMUs)

4

Level of service 2

No assets worse thancondition grade 4

Level of service 2

No assets worse thancondition grade 4

Increasin

grisksafety,public

perceptio

n,networkperformance

Renewals expenditure tomaintain level of service

Increasing m aintenance costs as conditi on deteriorates

New

Maintenancecosts $

Possible delay

Years

No delayBridge

Footpath

Optimising asset management / renewals

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5

Project lifecycle new capital

Glenfield Road Corridor Upgrade

Dominion Road Corridor Upgrade

6

0

0.5

1

1.5

2

2.5

3

3.5

Auckland PlanTransport Network

BasicTransport Network

Renewals ActiveSystems, Local Board Initiatives etc SafetyRoads PT - other PT - EMUs PT - CRL

4yr CAPEX (2014/15 2017/18)

$b

Set as a response to AucklandPlan transport targets

Set basedon AucklandCouncilreducedfundingenvelope(2.5% rates)

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7

Potential 2014/15 Impacts

Reducedspendonrenewalsbasedon$45mreduction:

30%(70km)reductioninfootpathandcycleways pa

20%(90km)reductioninroadrehabilitationandresealingpa

30%reductioninspendonroading projects

40%reductioninspendonPTprojects(exclCRLandEMUs)

30%

reduction

in

spend

on

walking

and

cycling

initiatives

8

Challenges - transport

Industry

- impact on the construction sector

- productivity and momentum

- programme cant be turned on and off

PT new network infrastructure and services, limited RTN

Assets - levels of service

Freight economic impact on freight and commercial vehicle movement

Congestion managing a more congested roading network

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9

Challenges community / funders Community - expectation management

Reduced jobs

Growth supporting projected population growth acrossAuckland

Messaging to funders

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AlternativeTransportFunding

Phase2

IndependentAdvisoryBody

FormerlytheConsensusBuildingGroup

Newnamereflectstheneedtoactasan

advisortocouncilwhileretaining

independenceduring

the

LTP

consultation

period.

Theirroleistodeveloptwopotentialfunding

pathwaysforconsiderationbytheGoverning

Body.

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ProjectAim

TosupporttheGoverningBodytomakea

decisioninJune2015aspartoftheadoption

ofthe20152025LongTermPlan,onhowto

respondtotherecommendationsfromthe

CBG,byundertakingfurtherworktorefinethe

choiceoffundingpathway.

Projectobjectives

Tocompletetheanalysis,evaluationand

reportingnecessarytoenabletheGoverning

Bodytomakeaninformedandrobustdecision

over

which

funding

pathways

to

include

in

theDraftLongTermPlaninDecember2014.

Toproviderobust,evidencebasedadvicetothe

GoverningBodyonwhichfundingpathwaysto

includeforconsultationintheDraftLongTerm

Plan,basedontheviewoftheIAB.

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TheIAB

StewartMilne(Chairman)

GarryTaylor(EDS)

StephenSelwood(NZCID)

KimCampbell(AucklandBusinessForum)

TonyGarnier(AucklandBusinessForum)

ShaunAwatere(LandcareResearch)

DonnaWynd(ChildPovertyAction)

RobertReid(FirstUnion)

CameronPitches(CampaignforBetterTransport)

DavidAitken

(National

Road

Carriers)

PaulShortland(CycleActionAuckland)

AndySmith(WalkAuckland)

SimonLambourne(AIAL)

AucklandPlanTransportNetwork(withnewfunding)

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BasicTransportNetwork(without

new

funding)

FundingGapProfile

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Approachto

LTP

Transport Network StatusQuo(low

investment)

Existing toolsfunding

pathway

high

investment

Roadchargingfunding

pathway

high

investment

BasicTransport

Network

Auckland Plan

TransportNetwork

Fundamentalchoices:

Twolevelsofinvestment

Twofundingpathwaysforhighinvestment

FundingPathwayOptions

1. ExistingTools:

SignificantincreaseinRates,FuelExciseandRUCplus

Tollsonnewroads(i.e.Penlink,ornewHarbourCrossing)

Usesexistingfundingmechanisms

Exploringdifferent

targeted

rates

Exploringregionalvnationalfueltax

2. RoadCharging:

SingleCordon,IsthmusCordon,MotorwayNetwork

Charges

Motorwaynetworkchargeisthemostpromising

Requireslegislation

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Investigations RoadChargingSchemeDesignDeloitte

Stage1drawsoninternationalexperience

Stage2willdevelopanAucklandoperatingmodelandcostconstructionandoperation

ImpactonBusiness&Households MarketEconomics

Targetedinterviews

Econometricmodelingtodemonstrateimpactsandpossiblemitigation

Investigations

TransportSystemModelling Council,AT

UsesCouncilsART3model

SupportedbyAT

Exploringoptions

for

more

detailed

networkmodels

EvaluationandEconomicAnalysis

Multicriteriaassessmentprocess

EconomicevaluationbasedonNZTAmethod

Documents

Draft LTP Presentation Document