30 Year Infrastructure Strategy and Asset Management Plan Briefings to Councillors

10 February 2015

Agenda• Overview Mark W• Linking to Draft LTP- Reserves Rosie- Rivers and Drainage Geoff- Roading Frank, Steve M- Stormwater Jon, Mark N- Wastewater Stuart, Mark N- Water Stephen, Mark N- Timetable for Council Mark W

Why Have Them? S.10 Local Government Act 2002• Purpose of Local Government

(1) The purpose of Local Government is:(a) To enable democratic local decision-making and action by,

and on behalf of, communities; and(b) To meet the current and future needs of communities for

good-quality local infrastructure, local public services and performance of regulatory functions in a way that is most cost-effective for households and businesses.

(2) In this Act, good-quality, in relation to local infrastructure, local public services and performance of regulatory functions, means infrastructure, services and performance that are:

(a) Efficient; and(b) Effective; and(c) Appropriate to present and anticipated future circumstances.

Local Government Act 2002S.11A Core services to be considered in performing roleIn performing its role, a local authority must have particular regard to the contribution that the following core services make to its communities:• Network infrastructure• Public transport services• Solid waste collection and disposal• The avoidance or mitigation of natural hazards• Libraries, museums, reserves, and other recreational facilities

and community amenities.

30 Year Infrastructure StrategyA Specific Statutory Requirement (2014)

S.101B Infrastructure Strategy(1) A Local Authority must, as part of its Long Term Plan,

prepare and adopt an Infrastructure Strategy for a period of at least 30 consecutive financial years.

(2) The purpose of the Infrastructure Strategy is to:a) Identify significant infrastructure issues for the Local Authority

over the period covered by the Strategy; andb) Identify the principal options for managing those issues and the

implication of those options.

Local Government Act 2002S.93G Information to be adopted by Local Authority in relation to Long Term Plan and Consultation DocumentBefore adopting a consultation document under Section 93A, the Local Authority must prepare and adopt the information that:(a) Is relied on by the content of the Consultation Document

adopted under Section 93A; and(b) Is necessary to enable the Auditor-General to give the

reports required by Sections 93C(4) and 93D(4); and(c) Provides the basis for the preparation or amendment of

the Long Term Plan.

Asset Management

• Is undertaken everyday:– Operations– Maintenance– Renewals– Capital UpgradesAre all components

• Planning for it just makes sense! (notwithstanding the statutory requirements)

Infrastructure Plan – Inputs and Outputs

Scope – 30 Year Infrastructure Strategy • Covers those Required by LGA

– Water supply– Wastewater– Stormwater– Flood protection and control (Rivers and Drainage)– Roads and footpaths

• Detailed Asset Management Plans are prepared for these and also LGA “core assets”– Reserves and Amenities– Solid Waste (by the Solid Waste Management and Minimisation

Plan)

Dollars Involved2014 Valuation (Replacement

2013-14 Total Operating Expenditure

Water Supply $200.7 million $8.2 million

Stormwater $107.0 million $1.7 million

Wastewater $133.9 million $9.5 million

River and Drainage $128.2 million (2008) $5.0 million

Roads and Footpaths $642.4 million $19.9 million

Reserves and Amenities $54.3 million $8.5 million

$1,266.6 million $52.8 million

A lot of value at stake!

30 Year Infrastructure Strategy Plan 2015-45• New LGA requirement• Covers “core” assets not all assets• First 10 years from Long Term Plan and Asset

Management Plans• Last 20 years

– Renewal projections (based on asset lives)– Significant issues, options and implications– Projected operating and capital expenditure for each

activity

Major Issues – All Activities Urban Growth

• Matching urban growth demands with required infrastructure upgrades without unjustified rating impacts

Major Issues – All Activities - Urban Growth (Cnt’d)

How do we manage?• Use of development contributions to fund growth• Depreciation reserves provide funding• Close monitoring of population and market movements• Work in cooperation with developers• Build “just in time”• Good design and project management

Major Issues – Three Waters

Renewal Funding Particularly in latter years as Blenheim reticulation needs renewal

How do we manage?• Continue to fully fund depreciation• Improve asset condition rating data• Develop better knowledge of actual deterioration v.

theoretical• Confirm renewal works with field staff practical knowledge

Major Issues - WaterSmall township water treatment upgrades to meet

NZDWS (affordability)How do we manage?• LTP includes a proposal to

partially fund Seddon water treatment costs from the wider Marlborough district. This could be used for other small townships

• Robust design and consultation processes

• Do not treat if still unaffordable

Major Issues – Water (Cont’d)

Demand Management– (Short term) – Picton, Havelock, Renwick– (Long Term) – Blenheim

How do we manage?• Demand management reduces water usage to delay

expensive or difficult supply upgrades• Tools being used or considered include:

– Water use restrictions– Metering and user pays– Leak reduction– Pressure reduction– Conservation education

• Used when Benefits > Costs (Benefits includes deferral CapEx)

Major Issues - WastewaterReticulation upgrades to manage overflows –

Picton and Blenheim

How do we manage?• LTP includes reticulation

upgrade budgets• Picton resource consents

obtained for managed overflows at much less frequency than current

• Blenheim consents will also be required

Major Issues – Wastewater (Cont’d)

Blenheim sewage treatment plant upgrades to meet possible consent renewal requirements (2028)

How do we manage?• Ensure monitoring of recent upgrade discharge results is

accurate and understood• Optimise the performance of the existing plant• Provide upgrade options well analysed for cost v. benefit• Consult well

Major Issues - Wastewater (Cont’d)

Blenheim pump station seismic upgradesHow do we manage?• The LTP includes budget for these upgrades

Major Issues - Stormwater

Comprehensive stormwater discharge consents to be obtained for Blenheim’s stormwater management areas

How do we manage?• Ensure monitoring of existing

discharges is accurate and understood

• Provide necessary upgrade options well analysed in terms of environmental effects

• Consult well

Major Issues – Stormwater (Cont’d)

Meet improved levels of service expectations – capacity and environmental

How do we manage?• Environmental – as for the previous slide• Capacity

– Ensure current capacity is well understood– Model to provide future change consequences– Design and consult well

Major Issues – River Control

Climate change impacts assessment to guide longer term upgrade and design

How do we manage?• Improve understanding of

climate change and sea level rise projections

• Use models to consider options to maintain current levels of service or accept reduced levels

Major Issues – River Control (Cont’d)

Lift maintenance and renewal levels to ensure levels of service are sustained (short term)

How do we manage?• LTP budgets include increased expenditure

Major Issues - RoadingBlenheim Ring Road Intersections and

Linkages to State Highways

Site Work Planned Cost

Seymour Street/High Street Intersection Twin lane roundabout $300,000

Seymour Street/Maxwell Road intersection Twin lane roundabout $400,000

Scott Street/Seymour Street New roundabout $300,000

Redwood Street/Kinross Street New roundabout $200,000

Redwood Street/Alabama Road Twin lane roundabout $300,000

Total $1,500,000

Major Issues – Roading (Cont’d)

How do we manage?• Total funding required is $1,500,000. Other intersections

identified with future delays, but fundable from the minor works budget.

• Funding projected for 2029/30 and 2030/31 years.

Major Issues - Roading (Cont’d)

Climate change and increased storm damage• Gradual increase in intensity and frequency of storms.• In steeper terrain significant damageHow can we manage?• The LTP provides for an annual budget increase of

$2 million per annum for emergency reinstatement from 2015.

• Increase the capacity of drainage assets

Major Issues - Roading (Cont’d)

HPMV Forestry Route Upgrade and Renewal Costs

• (Forestry extraction Northbank, Port Underwood, Croisilles, Kenepuru, Waihopai Valley, Wakamarina, Taylor Pass, Kaiuma Bay)

How do we manage?• A budget of $1.15 million in 2016/17 (Northbank) and

thereafter $600,000 per annum has been provided for HPMV rehabilitation

Major Issues - Roading (Cont’d)

Forestry Road Cartage• Public perception• Road damageHow do we manage?• Consider various tools eg; length restrictions, barging• Negotiate agreements with foresters to

– Limit volumes– Control hours– Contribute $ to damage

Major Issues - Roading (Cont’d)

• Bridge Renewal Upgrade (28)– For those bridges which are at or past their useful life or

needed for HPMVs. How do we manage?

– Budgets 2015/16 to 2023/24 total $3.15M– Taylor River bridge on Main Street $3M budgeted for

2025/26 and 2026/27

Asset Management Plans (AMPs)• AMPs are being continually updated as information on

assets improves and management changes are made.• Councillors are involved in this through their Committee

and Council decision making and involvement in consultation on projects.

• For LTPs (every three years) the AMP documents are updated to incorporate these changes.

• They are management documents but Councillors are able to access them if they wish (and want to read 000s of pages about detailed technical and management material)!

Contents of AMPs

• AMPs are prepared according to international and New Zealand Standards and Guidelines and with close Audit New Zealand scrutiny

• Typically our AMPs includes chapters covering:– Introduction/overview of assets, strategic goals, stakeholders etc.– Levels of service– Future demand– Life Cycle Management Plan (how we operate/maintain and renew

or replace assets to maintain levels of service)– Financial (valuations, OpEx, CapEx)– Plan improvement and monitoring (AMIS, GIS, modelling,

forecasting etc)

Levels of Service Workshops 2014• Councillors were briefed on Levels of Service (LOS) in

August and September 2014.• “Levels of Service” are outcomes customers and

stakeholders desire.• They have a major impact on community benefits, costs

and levels of satisfaction.• LOS are the basis for service delivery by staff and

contractors.• Councillors supported the Levels of Service presented.• Feedback from the Residents’ Survey also supports

current LOS.• LTPs include projects which will improve LOS over time.

Levels of Service - Major Improvements AMP and LTP

Water• Drinking Water Treatment

• AMPs and LTP include budgets for treatment. Upgrades to:

• Seddon and Rural Awatere (2015-2017)• Renwick (2019 – 2021)• Havelock (2021-2023)

• Capacity• AMPs and LTP provides

budgets to cater for growth capacity requirements.

• Demand management is promoted in:

• Picton, Renwickto delay very expensive capacity upgrades (ie; Benefit/Cost basis).

• Techniques include:• Leakage identification and

repair.• Pressure management.• Water metering• Education

• Reservoir upgrades/additionsare budgeted for:• Blenheim/Taylor high

reservoir (2016/17)• Havelock (2018/19)• Renwick (2016/17)• Budgets for Elevation and

Riverlands are already in place.

Levels of Service – Major Improvements – Water (Cnt’d)

• Firefighting flowsUpgrades to improve firefighting flows have been budgeted for Blenheim and modelling is being used to investigate needs in Renwick and Havelock

Major Improvements - Wastewater

• Sewage overflows in wet weather– Significant reticulation upgrades are budgeted for

Picton and Blenheim to reduce the incidence of overflows.

• Unsewered areas– Budgets provide for St Andrews (2018/19) and

Burleigh (2020/21) to be connected to Blenheim sewer system.

– Significant consultation will be undertaken prior to final commitment to these projects.

Major Improvements - Stormwater• Blenheim Stormwater Strategy• The Strategy involves progressively:

– Assessing discharge quality and options to improve that where considered necessary.

– Coping with growth.– Obtaining catchment based discharge resource

consents.• Significant capital budget increases have been

provided to achieve this.

Major Improvements – Rivers and Drainage• Meeting LOS

– Budget increases are required over the next five years to maintain/renew river protection assets (eg; stopbank rock protection) at the required LOS.

Major Improvements – Reserves and Amenities• Implement Outdoor Sports Facilities Plan• LTP Capital budgets for implementation of

priorities as:– Lansdowne Park

• Lighting, field reconfiguration, new car parking, existing carpark sealing, new and improved surfaces, netball relocation $3.5 million

• Cricket nets and wickets upgrades $.4 million• A & P Grandstand/Admin upgrade $1.5 million• Equestrian Centre $1.0 million

$6.4 million• All require debt funding (rates)

Major Improvements – Reserves and Amenities (cont’d)

• Upgrade Public Conveniences– Blenheim facilities upgrades

(including accessibility) $1.135 million• Community Buildings/Facilities

LTP budgets provided for:• Seddon Community Centre

and Blenheim Youth Centrefollowing the Council prioritisation meetings

• Small Township UpgradesLTP budgets provided $5.5 million

Major Improvements - Roading

• Improve footpath standards (Budget includes increased maintenance, renewal and improvement $)

• Extend cycleway network• Provide for HPMV use

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