Integrated Water Cycle Management Strategy · - drought contingency/emergency works - s60 approval - levels of service (LoS), risk, cost & affordability - DPIE performance monitoring

Integrated Water Cycle Management Strategy

LGNSW Water Management Conference 2019 @ Albury

Roshan Iyadurai September 2019

Integrated Water Cycle Management (IWCM) Strategy

Local Government planning context

IWCM – why plan

What assistance is available from NSW Government

IWCM purpose & outcomes

Key drivers

IWCM issues paper development framework

IWCM strategy development framework

IWCM – community & stakeholder input

IWCM – what’s the connection with...

- safe and secure water program (SSWP)

- licensing & approvals

- water trading

- drought contingency/emergency works

- s60 approval

- levels of service (LoS), risk, cost & affordability

- DPIE performance monitoring & reporting

Q & A

Note 1 – IWCM Strategy mid-term review documents the review outcomes.

Currently this document is referred to as Strategic Business Plan

Local Government Planning Context & IWCM StrategyNSW Government’s Best Practice Management Framework for Water Supply & Sewerage

Resourcing Strategy– the later of IWCM Strategy and SBP

NSW IPR Framework for Council Activities

IWCM Strategy8 years

IWCM Strategy

Mid-term Review1– key

assumptions8 years

4 years

- 30-year TAMP

- 30-year FP

- DC& ER Plan

Action Plan to

Council based on:

• ‘Roll forward’,

review & update of

TAMP

• Update of FP

• Review of DWMS

• Review of TBL

Performance

Report1 year

Community

Involvement

Community

Involvement

4 years

• Customers expect continuous access 24/7

• Customers do not want price ‘shocks’

• Customers have an high expectation that the

water & sewer services is safe, secure &

reliable

• Expectation for fair pricing of service & full cost

recovery

• 30 – year plan, as these are long life assets

• Liability over a longer period

• Not all risks can be eliminated with design

IWCM Strategy – Why

Plan?

Capital costs

Hidden costs

?

IWCM – NSW Government Assistance Financial grant under SSWP Stream 2

Technical

Presentations

Training – LWUs & Consultants

Our expectations when LWUs receives financial assistance under SSWP Stream 2:

Register Expression of Interest (EoI)

Obtain concurrence to Scope of Works

Seek technical assessment of tender proposal prior to engagement

Obtain concurrence to IWCM Issues Paper

Obtain concurrence to IWCM Strategy

Our expectations your IWCM strategy will based on sound analysis & evidence deliver:

A prioritised & implementable ‘blue print’ for your water service business

Tools that you can use in your annual business planning processes & future IWCM updates

IWCM Strategy – Purpose and OutcomesThe IWCM Strategy is a Local Water Utility’s “resourcing strategy” and much more…

• Sets the Levels of Service (LoS) framework linking objectives, service standards and performance indicators for the Water & Sewer business

• Identifies the issues and needs with respect to water security, water quality improvement, sewage management & distribution/collection system

works

• Identifies the ‘Right ‘ water supply and sewerage scheme options and ‘Right sizes’ the associated infrastructure components and non-build

measures

• Determines LWU’s implementation priority

• Identifies the ‘best value 30-year’ IWCM scenario on a triple bottom-line (TBL) basis for providing appropriate, affordable, cost-effective &

sustainable urban water services that meet community needs & protects public health & the environment

Outcomes:

• LoS Framework

• 30-year Total Asset Management Plan

• 30-year Financial Plan

• 5-year Outlook Drought Contingency & Emergency

Response Plan

• Develop/Update Development Servicing Plan

• Update water services pricing tariffs

• Develop/Update DWMS, RWMS, PIRMP, AMS&AV, CRMS

and DataMS

• Develop/Update Emergency Response Plan

Levels of Service (LoS) Framework

• linking objectives, service standards and performance indicators for water security, water

quality, sewage management and water service business

30-year Total Asset Management Plan

• New capex for growth and to meet service objectives

• Renewals to meet service objectives

• Non-build solutions (efficiency measures…)

• Resourcing requirements (staffing levels, skills and training needs, etc)

30-year Financial Plan - supports the asset management plan

• Determines the total revenue requirements and first cut developer charges

• Identifies borrowings, if any

• Enables Council to set the tariff structure & Developer charges

5–year Drought Contingency & Emergency Response Plan – supports continuity of service

• Identifies the critical assets

• Identifies the hazards & the impact of hazards on service continuity

• Risk based contingency measures to maintain service continuity

IWCM Strategy – Outcomes

IWCM Strategy – key Drivers

Lower LOS & Low GrowthDeveloper charge

Residential

Charge

Grant

Non-Residential

Charge

Higher LOS & High Growth

Lower LOS & High Growth

Higher LOS & Low Growth

Developer charge

Residential

Charge

Grant

Non-Residential

Charge

TAMP

TAMP

TAMP

Developer charge

Residential

Charge

Grant

Non-Residential

Charge

Community Expectations

Regulatory Requirements

Past Performance

Water Supply Systems

Levels of Service Framework

Stakeholder

&

Community

Review

Description of Existing Urban Water Services

30-year Water Cycle Needs Projection

Capacity & Performance Assessment of Existing Urban Water Services & Management Systems Review

IWCM

Issues

Paper

Typical Residential Bill

Sewerage Systems

Urban Stormwater Systems

LWU Serviced Urban Areas

LWU Un-serviced Urban Areas

LWU Management Systems

Future population & development

Accounting for climate, price &

other factors influencing water

cycle

Water cycle use analysis & influences

Service area current &

future

Current customers

& end users

• Water security performance & needs assessment

• Water source risk review and barrier performance & needs assessment

• Water supply system performance & needs assessment

• Sewerage system performance & needs assessment

• Impact review of stormwater on water & sewer system

• Performance review of on-site systems in LWU un-serviced areas

• LWU Management Systems & plans effectiveness review

Catchment characteristics

Metrology information

Systemcharacteristics

IWCM Issues Paper – Development Framework

IWCM Strategy – Development Framework

IWCM: Community & stakeholder input

• The Checklist allows the LWUs to

tailor the community & stakeholder

input to meet your Council’s &

communities expectations based on

issues and resourcing needs.

Refer to IWCM Information Sheet 1 https://www.industry.nsw.gov.au/__data/assets/pdf_file/0020/218342/Stake

holder-and-community-input-into-integrated-water-cycle-management.pdf

lgnsw.org.au/amalgamation-toolkit/resources

SSWP

Enables a LWU to identify new risks or issues for consideration of co-funding

eligibility under SSWP Stream 1 (i.e. input to the risk prioritisation framework)

Identifies the best-value solution and the associated life cycle cost to resolve

the risks or issues

IWCM: What’s the connection with...

Level of co-funding available under SSWP

for preparing IWCM Strategy

* Percentage of the estimated total cost of funding

required to resolve the risk

• Builds the case for an increase/decrease in water entitlement to meet domestic

& associated commercial activity needs in a new &/or existing water source

• Builds the case for any extraction and works approval conditions such as e-flow

• Determines the need for any other approvals

• Establishes solution paths for licence/approval issues


Licensing & work approvals under WM Act:

• Need an approved IWCM

• Demonstrates the availability of risk management strategies

Water trading from LWU-SPAL:

• Its a planned long-term supply-demand measure needed to manage the forward-

looking growth and climate variability projections.

• The 5/10/10 design rule is generally used within the planning framework to size the

headworks to ensure water security that meets community expectations with moderate

restrictions.


IWCM Strategy:

• Its a response plan to ensure the water supply system does not run out of water.

• Sets out tactical measures to respond to water shortages and/or incidents, if they arise

in the immediate to short-term (for example, if inflows are worse than expected, water

quality event, asset failure, etc).

Drought Contingency & Emergency Response Plan:

Builds the case and considers how the drought contingency & emergency

infrastructure and non-infrastructure works ‘fits-in’ with the long term strategy

Drought contingency & emergency works:

A sound IWCM addresses the:

✓ first two steps of the approval process for

the construction or modification of a

treatment works (Initial consultation &

options report)

Additionally it also:

✓ ‘right’ sizes the scheme assets & measures

✓ Identifies the best value scheme option

✓ Confirms financial sustainability &

affordability

✓ Streamline the approval process

s60 approval processS60 approval process steps for

treatment works:

Step 1 – Initial consultation

Step 2 – Options report

Step 3 – Concept design & environmental

assessment

Step 4 – Specification (D&C)

Step 5 – Tender (D&C)

Step 6 – Detailed design

Step 7 - Approval

https://www.industry.nsw.gov.au/water/water-

utilities/regulatory-assessments



levels of service (LoS), risk, cost & affordability:

High LoS $$

Source: long-term financial planning; Practice Note No. 6; IPWEA

Please change only BLACK text

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Asset

ID

asset type,

location, etc

columns..

Condition-

Rating Curve

to use

Consequence

of Failure (1 to

5)

Install

Year

Default

Useful

Life

Quantity

(unit)

Replacement

Cost Unit

Rate ($/unit)

Contingency

(%)

Current

Replacement

Cost

Condition

Assessment

Year

Condition

Rating from

Assessment

Condition

Assessment

Information

Check- should

be 'ok'

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Depreciated

Replacement

Cost

Condition

Rating in

current year

Risk in

current year

Current year Future Year

1

Future Year

2

Future Year

3

Future Year

4

Future Year

5

Future Year

6

Future Year

7

Future Year

8

Future Year

9

Future Year

10

Future Year

11

Future Year

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Future Year

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Future Year

20

LINEAR 5 1942 20 123.00 1.23$ 10% 166$ 2013 3 ok 142 71 50% 83$ 3 83 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$

LINEAR 3 1949 70 567.00 5.00$ 10% 3,119$ 2012 4 ok 84 64 76% 743$ 4 69 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 3,118$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$

LINEAR 3 2000 80 252.00 3.30$ 10% 915$ 2013 1 ok 80 13 16% 766$ 2 42 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$

LINEAR 5 2003 80 15416.00 3.30$ 10% 55,960$ 2010 4 ok 9 10 100% -$ 5 100 55,960$ 0$ 0$ 0$ 0$ 0$ 0$ 55,960$ 0$ 0$ 0$ 0$ 0$ 0$ 55,960$ 0$ 0$ 0$ 0$ 0$ 0$

LINEAR 1 2003 30 1461.00 5.60$ 10% 9,000$ 2013 4 ok 13 10 75% 2,250$ 4 46 0$ 0$ 0$ 0$ 8,999$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 8,999$ 0$ 0$

LINEAR 1 1966 100 144.00 5.60$ 10% 887$ ok 100 47 47% 470$ 3 33 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$

LINEAR 1 1964 80 24.00 1.23$ 10% 32$ ok 80 49 61% 13$ 3 37 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$

LINEAR 4 1942 70 213.00 3.30$ 10% 773$ 2005 3 ok 126 71 56% 338$ 3 72 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$

LINEAR 5 1963 100 56.00 5.00$ 10% 308$ 2000 3 ok 74 50 68% 100$ 4 87 0$ 0$ 0$ 0$ 0$ 0$ 308$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$

LINEAR 2 1976 80 732.00 5.60$ 10% 4,509$ 2012 4 ok 48 37 77% 1,033$ 4 57 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 4,509$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$

LINEAR 5 1965 100 421.00 1.23$ 10% 570$ ok 100 48 48% 296$ 3 73 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$ 0$

Total forecast renewal cost for year $55,960 $0 $0 $0 $8,999 $0 $308 $55,960 $0 $0 $3,118 $4,509 $0 $0 $55,960 $0 $0 $0 $8,999 $0 $0

Smoothed forecast renewalcost for year $18,653 $13,990 $12,992 $1,800 $1,861 $13,053 $13,053 $11,254 $11,877 $12,717 $1,525 $1,525 $12,717 $12,094 $11,192 $11,192 $12,992 $1,800 $1,800 $2,250 $3,000

Average (weighted) age of assets at end of the year 7.0 8.0 9.0 10.0 10.0 11.0 11.8 7.2 8.2 9.2 8.1 7.3 8.3 9.3 4.7 5.7 6.7 7.7 7.6 8.6 9.6$50,000

$60,000

Builds the case for an Council wide integrated planning & performance data

capture and management system

Identifies the strategic and operational data linked to the LoS framework to

facilitate on-going improvement

Builds the case for required LWU resources to meet LoS targets

Streamline on-going preparation of IWCM Strategy


DPIE Water performance monitoring & reporting:

IWCM

Q & A

Documents

Integrated Water Cycle Management Strategy · - drought contingency/emergency works - s60 approval - levels of service (LoS), risk, cost & affordability - DPIE performance monitoring