Long Term Plan 2018-2028 Workshop

Water Services

Purpose: To discuss Water Supply and high-level direction of the AMP and LTP

13 June 2017

What does the community expect of Water Supply?

That its there when I turn on the tap!That its safe and OK to drink?

Water Supply is primarily about public health protection and risk management.

Presentation ContentPublic Health Contaminants, legislation & standards (DWSNZ), multi-barrier approachOur Water Supply Our sources, treatment and distribution systems

Risk Management General Risks Water Safety Plans Havelock North New Projects Operational Risks

Existing LTP Projects Condition assessments and renewals

FinancialLevels of Service, Growth, Climate Change, Fluoridation, Summary, Questions

Drinking Water Contaminants

Three broad categories of Drinking Water contaminants

• Microbiological• Chemical• Physical

Microbiological are the most important as they have the potential to cause widespread illness in very short period of time

Bacteria

time hrs bacteria0 11 642 4,0963 262,1444 16,777,2165 1,073,741,8246 68,719,476,736

E.Coli magnified 15,000 times

doubling every 10mins

From human or animal faeces. E-coli used as an indictor of probable presence.Removed by coagulation and filtration, destroyed by Chlorine

Viruses

• Smaller than bacteria• Use a living cell to

reproduce• Hepatitis A• Killed by Chlorine

Protozoa

• Cryptosporidium and Giardia • Caused many deaths around

the world with contaminated drinking water

• Very resistant to Chlorine• No medical treatment• Removed by coagulation and

filtration, inactivated by UV

Cyanobacteria

• Cross between a bacteria and algae• Some produce toxins, others do not• Blooms in water column of dams and lakes• Forms mats on stones in rivers• Many different types• Treated with activated carbon

Whau Valley Dam 2015

Chemical and Physical

• Generally not as immediate concerns as effects appear over long period.

• Can be caused by addition of chemicals during treatment processes.

• Often related to poor aesthetic quality of water. Iron, Manganese, Turbidity.

• Can use up chlorine and shield micro-organisms from treatment processes.

Legislative requirements

Health (Drinking-water) Amendment Act 2007Water Supplier must take all reasonable steps to:• Protect the source of drinking water• Provide a wholesome water supply.Must take all practicable steps to:• Comply with the Drinking-water

Standards of New ZealandMust • Prepare and Implement Water Safety

Plans (formally Public Health Risk Management Plans)

Multi Barrier Approach surface water

Barriers on Groundwater/Spring Sources

Whangarei Water Supply Area Sources and Treatment

Whau Valley: Source Treatment & Distribution Barriers

General Risks

• Contaminated Water Supply• Always a concern but multi barrier approach should reduce likelihood

• Water Outages• More likely, multi barrier can increase risk of outages• Equipment failure/power outage/drought• Critical customers• Increased storage vs water quality

Risk Management

It is always possible to put in place more barriers and add more redundancy to a system, thus reducing the risk of failure. However, this is not always practical or affordable. It is important to understand the level of risk associated with supplies. In order to standardize risk management within the water sector the Ministry of Health introduced a requirement for water suppliers to complete Water Safety Plans.

Water Safety Plans

• Formally Public Health Risk Management Plans• Required for all Water Supply Areas• Risks are assessed from Catchment through Treatment

process and Distribution Network. • Risks need to be addressed by

• Eliminating – Often capital projects• Minimising – Process improvement• Response – Contingency planning

Emergency Response – Chlorine LeakBreathing apparatus training

Havelock North

The incident at Havelock North in August 2017 and the subsequent inquiry have highlight a number of issues within the water sector. In light of this many water suppliers around the country are re-assessing their appetite for risk. Whilst a similar situation to Havelock North does not exist within Council’s supplies, improvements are recommended to ensure we maintain compliance with best practice and maintain risks at a reasonable level.

Maungakaramea bore security

New Projects

As a result of the latest Water Safety Plan reviews and in light of the Havelock North inquiry findings the following new projects are recommended for inclusion in the first three years of the new LTP.

• Ruddells WTP upgrade• SCADA upgrade• Fairway Drive Pump Station upgrade• Whau Valley New WTP Improvements• Site Security Improvements

Ruddells Water Treatment Plant Upgrade

Risks- Increase in turbidity leads to ineffective treatment of

Protozoa. (Beca Report March 2017)Recommendation- Installed filtration system Requirements- Additional land- Package plant- Increase opex costsEstimated Cost $1 million

Possible Filter

SCADA Upgrade

SCADA and telemetry systems are critical to running modern process facilities. Our SCADA system is now over 12 years old, it uses old technology and old software. The programming is out of date.Risks- Old systems fail and compliance is lost or non potable water is produced

- Increase in opex costs due to callouts and breakdowns, systems no longer supported by suppliers.

Recommendation- Update SCADA system and radio telemetry network.Requirements- Strategic plan of SCADA system- Selection of preferred hardware, software, communications systems- Design, installation, programming and ongoing maintenance.Estimate Cost $1-$2million between Capex and Opex

SCADA screen - Ruddells

Fairway Drive Pump Station Upgrade

Fairway Drive Pump Station supplies water to the Northern part of the City including Kamo, Tikipunga and Hikurangi. There are 3 pumps in the building. When one pump is down, 2 pumps cannot meet peak demands. All three pumps are old.Risks- One pump failure could lead to loss of water to North of CityRecommendations- Upgrade all three pumps with new pumps of increased capacityRequirements- 3 new pumps and variable speed drives- Improve health and safety access to pump chamber- Upgrade transformer to cope with increase demand- Investigate emergency power generation requirementsEstimated Cost $500,000

Fairway Drive Pump Station

New Whau Valley WTP upgrade

The new Whau Valley WTP was originally designed to be similar to the existing plant. However, investigations and plant trials are indicating that improvements to the treatment processes are required to ensure ongoing compliance.Risks- Algal blooms become more frequent and require treatment- THM levels exceed 0.5 of MAV or standards increase- Iron and Manganese cause dirty water in networkRecommendations- Add new processes to treat these issuesPossible Requirements- Powder Activated Carbon to treat Algae and reduce THM levels- Second stage filtration for Iron and Manganese removalEstimated Cost $2 million

New Whau Valley Pilot Plant trails

Site Security UpgradeAll water treatment plant and reservoir/pump station sites still have access via keys and padlocks. Fences are basic chain fencing and only two water treatment plants are alarmed (buildings only). Access to sensitive sites needs to be better controlled, particularly where dangerous chemicals are stored.Risks- Vandalism, theft and potentially sabotage of water supply.- Poor records of who is accessing sites, relies on signing in.Recommendations- Upgrade security system to modern electronic access where applicable

– align with SCADA system to improve efficiency.Requirements- Electronic Access for individuals, Alarm systems, CCTVEstimated Cost $500,000

Sargeants reservoir

Other potential new LTP Projects

Renewals in conjunction with RoadingWater Services work with Roading and NZTA to ensure mains are upgrade, where appropriate, during roading projects. This is for mains that would not be due under the prioritization/end of life model. Exact yearly funding to be confirmed in conjunction with Roading.

Marsden Point Trunk MainThis project will complete the new trunk main from the treatment plant to the Refinery. It will help reduce the risk of water outages to the refinery and also cater for growth in the Ruakaka One Tree Point Area. Estimate Cost $1.6million

Operational Risks

Electrical/Mechanical Failure• Current run to failure strategy needs reviewing• Best for asset requires more proactive approach• Combination of sensible renewal strategy and effective maintenance schedules

Professional Support• Increase in complexity, hardware and software (modelling)• New standards and compliance, incl Health and Safety• Technical advice and local support• Combination of in house and outsourced• Knowledge management• Continuous Improvement and Ongoing Training

Other Risks• Backflow prevention• Leak Detection• Quality Control

Operational budgets to be reviewed to include best for asset maintenance schedules and improved knowledge management.

H&S confined spaces training

Existing 2015 LTP projects

Whau Valley Dam Chimney drain upgrade

Construction completed in 1969 holds 1.9 million cubic meters

Chimney drain upgrade cost $2.6M

Whau Valley Dam

Watermain - breaks and performance issues

Output of Hansen Decision model and hydrant flow testing

Watermain renewals prioritised on based on poor performance

Years 1 -3 Years 4-10 total

Leaks breaks & condition $6.5M $1.8M $8.3MFlow & pressure $5.3M $7.3M $12.6M

Total for Poor Performance $11.8M $9.1M $20.9M

2015 LTP budget projected 2018 to 2028

$7.3M $25.8M $33.1M

End of expected life $20.1M $19M $39.1M

Prioritisation based on Number of breaks >5 in 3 years are planned for Y1-3 Condition rating of very poor planned Y4 onward Failed hydrant test replaced at end of expected life End of life mains without problems not expected to be replaced with

projected budgets “sweating the assets” until performance issues arise

Aging Assets

On average Water assets are half way through the expected life

Water Asset groups

% of Asset value

Replacement

Current value

Ave life remain-ing

WTP Assets 15% $51.8M 28.4M 55%

Reservoirs 15% $52.3M $32.5M 62%

Reticulation network

68% $237.7M $118.4M 50%

Water meters 3% $10.1M $5.6M 56%

Total $352M $185M 53%

Data from 2014 AECOM revaluation % expected to stay the same

39

28

54

73

39 43

179

141

15

2

27

95

< 3 Y E A R S L IFE 4 - 1 0 YEA RS 1 0 - 3 0 YEA RS > 3 0 Y EAR SKM

S

WATERMAINS EST IMATED REMAINING LIFE

Rider Distribution Trunk

Water mains break SH1

Northern Advocate, 4th April 2017 page 3

AMP Capital Projects Years 1-3 LTP $26.8MProject Cost Date Driver Risk

Whau Valley Chimney Drain $2.6M 2018/19 Not to current Stds High

Ruddells WTP upgrade $1M 2018/19 Contamination risk Med

SCADA upgrade $1M 2018/20 Control failure High

Fairway Pump station upgrade $0.5M 2018/19 High demand Med

New Whau Valley WTP 2nd stage $2M 2018/19 Disinfection byproducts Med

Site security upgrade $0.5M 2019/20 Sabotage MedReticulation renewals $11.8M 2018/21 Poor performance HighMeter renewals $0.9M 2018/21 Lost revenue Med

Station Rd trunk upgrade $0.8M 2019/20 Growth Totara Park Med

Vinegar Hill trunk upgrade $1.4M 2020/21 Growth Tikipunga MedThree Mile Bush Reservoir $1.2M 2020/21 Growth 3 Mile bush MedWaipu trunk upgrade $0.8M 2020/21 Growth Waipu Med

WTP equipment upgrades $1.3M 2018/21 Poor performance HighMain renewals with Roading $0.6M 2018/21 Reduced cost MedWater tanker & filling sites $0.4M 2019/20 Emergency supply Low

AMP Capital Projects Years 4-10 LTP $58.3MProject Cost Date Driver Risk

Dip Rd Reservoir $2.2M 2022/23 Capacity/growth Med

Waipu Reservoir $1.3M 2023/24 Capacity/growth Med

Maungakaramea Reservoir $0.6M 2024/25 Capacity/growth Low

Ruakaka Reservoir $0.8M 2026/27 Capacity/growth Med

Sargeants Reservoir & trunk $1M 2026/27 Capacity/growth Med

Fairway Drive Reservoir $0.8M 2027/28 Capacity/growth MedReticulation renewals $21.3M 2022/28 Condition & capacity HighMeter renewals $2.4M 2018/21 Lost revenue Med

Otaika to City trunkmain $4.4M 2022/25 Supply security Med

Poroti trunkmain $1.4M 2022/24 Supply security MedOnerahi trunkmain $2.6M 2024/25 Supply security MedMarsden Point trunkmain $1.6M 2024/25 Supply security Med

Mains with Roading $1.4M 2022/28 Reduced cost MedWairua River Source/treatment- Poroti $13M 2024/27 Drought supply HighWTP Equipment $3.5M 2022/28 Performance High

Dip Rd reservoir

AMP Opex Projects Years 1-10 LTP $15.8M

Project Cost Date Driver Risk

Reservoir Rehabilitation $2.2M 2018/28 Condition Med

SCADA upgrade $1M 2018/20 Control failure High

Pipe-bridge re-coating $60K 2018/22 Condition Low

Engineering services $1M 2018/28 Projects High

Media & UV replacements $2M 2018/28 Compliance High

Professional services $1M 2018/28 Compliance MedCapital Project Opex component @10%

$8.5M 2018/28 Prudence

Water Finances

Where should we be heading?

-$15,000,000

-$10,000,000

-$5,000,000

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

2014

-201

5

2015

-201

6

2016

-201

7

2017

-201

8

2018

-201

9

2019

-202

0

2020

-202

1

2021

-202

2

2022

-202

3

2023

-202

4

2024

-202

5

Water Debt Profile (inflated)

Closing balance Grey in credit Red in Debt

CAPEX spend inflated

TRIM 14/54728

Current Level of service

We wish to change these?

Involves:• Simpler statements• Additional customer response• Consultation as part of LTP• Status quo or more

aspirational LoS and targets?

Council will provide safe drinking water with adequate pressures to the residents of the District connected to the water supply system

The water supply system is managed in a sustainable way and in times of emergency there is adequate water supply available

Proposed Level of Service changes

New LoS statements

Recommend: We change the wording & add in new LoSLeave the performance measures and targets as is for now.Mandatory measure not used for LoS. Are reported separately.

Community OutcomesEarly engagement planned this may effect LoS

2018 Levels of Service - Water

Our customers receive safe drinking water

Water is supplied continuously with flow and pressure adequate for customers’ use

Customer requests are responded to promptly

In times of emergency there is water available

We manage the water supply system in a sustainable way that also caters for growth

Planning for Growth

• Current capacity maps (excess or below EES)

• Hydraulic Model recalibration

• Consent applications & Plan changes

• Development contributions

• Review of 30:50 projects & timing

• Water Master Plans (Network boundaries)

• Water demand forecasting & climate change

Climate Change

• Potential issues that may occur as a result of Climate Change• Increase frequency of droughts, more severe• Increase in demand• More algal blooms• More severe weather events causing flooding and damage to facilities• Sea level rise may impact existing sources.

The most immediate concern is the increase in frequency of Algal blooms. This may require some improvement in treatment process in the short term. Other impacts of climate change will need to be monitored and catered for in future LTPs

Fluoridation

• Bill currently going through Parliament• Likely that DHBs will be given power to decide• Estimated capital cost $1.5M to upgrade all WTPs• Increase in Opex of approximately $100,000 per year• Potentially some Government funding• It is not proposed to make an allowance in this LTP for

Fluoridation

Summary

The focus of this LTP period for Water will be;• Commitment to Protecting Public Health• Ensuring compliance of all WTPs• Reducing risk of failure

• SCADA and security• Mechanical – pumps and WTP equipment• Reticulation – watermains and trunk mains• Whau Valley Dam

• Allowing for Growth - planned projects• Improved Management

• Expertise professional services & operators• Better condition assessment• Legislative compliance, H&S • Knowledge management

These topics will be the main emphasis of the 2018 AMP

Any Questions?