Appendix 5: Budgeted capital expenditure on supplying drinking water

Local authorities: Planning to meet the forecast demand for drinking water.
Local authority Main challenges identified Capital expenditure set out in the 2009-19 long-term council community plan
Tauranga City Council The Council has identified the main future challenge as supplying water for growth and development along the coastal strip – Papamoa and Te Tumu. The current water supply network is not able to meet the projected growth. From an efficiency point of view, it makes more sense to have a water source and treatment plant located closer to that growth. Budgeted $227,658,000 for the period 2009-19 on projects including:
  • Waiari project – third water scheme;
  • reservoir construction;
  • new reticulation for Papamoa East;
  • new watermains for Papamoa;
  • new reticulation for Pyes Pa West;
  • new reticulation for the Tauriko Business estate;
  • new watermains for Welcome Bay/Ohauiti/Pyes Pa;
  • new watermains for Te Papa Peninsula;
  • new watermains for Oropi Road;
  • new watermains for Bethlehem;
  • contribution to Western Bay of Plenty District Council under Sub-Regional Water Resource Agreement; and
  • other assets upgraded or renewals.
Nelson City Council The Council has identified the main future challenges as:
  • the fair to poor condition of the Maitai pipeline, which the Council defines as its highest risk water asset because of its vulnerability to earthquakes, land slips, and rockfalls, and which is to be replaced by a new trunk watermain down the Maitai Valley;
  • trunk mains and reservoirs, which need extensions and additions to meet growth demand;
  • backflow prevention (to guard against contamination from accidental flows into the system), which is incomplete (dual check valves fitted to all residential water meters are to be replaced in 2013-16, and protection devices in commercial and industrial premises need upgrading);
  • reticulation condition, which involves continuous monitoring and maintenance/replacement; and
  • water supply grading, which is Ab: A for source and treatment, and b (below the standard suggested by the Ministry of Health) for distribution. Aa grading would depend on improvements including additional storage, water loss reduction, and backflow prevention.
Budgeted $46,653,000 for the period 2009-19 on projects including:
  • Stoke high-level reservoir ($1.3 million);
  • Stoke trunk watermain ($0.7 million);
  • Maitai second pipeline ($27.6 million);
  • Atawhai reservoir No. 2 ($1.5 million);
  • Observatory Hill reservoir ($0.2 million);
  • Atawhai trunk watermain ($3.9 million); and
  • Atawhai reservoir ($0.2 million).
Tasman District Council The Council has identified the main future challenges as:
  • water quantity – insufficient water sources in most of the water supply systems to meet current and expected future demand (for example, because of limited storage capacity in the Waimea aquifer);
  • water quality – all of the water supply systems will need upgrades to comply with the drinking water standards, and saltwater intrusion is a risk to the Waimea and Richmond (urban) supplies; and
  • asset information – the Council's understanding of the age and condition of its drinking water assets varies.
Budgeted $76,953,459 (inflated) for the period 2009-19 on projects including:
  • water treatment plant upgrades to comply with the drinking water standards for Eighty Eight Valley, Brightwater, Collingwood, Kaiteriteri, Murchison, Pohara, and Redwood Valley ($5,070,751);
  • Watermain replacement along SH6 from Three Brothers Corner to Ranzau Road ($876,328);
  • Dovedale – new water supply from the Motueka River Valley, includes wells, treatment plant,and delivery pipework ($2,138,944);
  • CTA/Coastal Pipeline ($11,727,203);
  • Motueka – construction of new town supply ($19,297,937);
  • Richmond Major Projects ($16,471,221):
    • reticulation renewals or upgrades;
    • re-zoning;
    • Richmond East;
    • treatment plant;
    • new groundwater source; and
    • Lee Valley dam contribution;
  • Takaka Fire Fighting Improvement ($1,099,496); and
  • Wakefield – construction of new source and treatment plant ($3,855,936).
Kapiti Coast District Council The Council has identified the main future challenge for supplying drinking water as reducing consumption to a reasonable level (targeting 400 litres peak consumption per person per day) and providing a sufficient supply of drinking water to meet that.

In addition, it faces a specific challenge in some areas of its district. By approximately 2015/16, in Waikanae, Paraparaumu, and Raumati,the Council expects summer demand to exceed the amount of water it can legally take on a regular basis under its resource consents.

Another challenge for the Council is covering the cost of water services and upgrading and improving the water supply systems, considering the district's limited rating base.
Budgeted $60,193,000 for the period 2009-19 on:
  • water storage – investigations, preferred options, site selection;
  • construction of preferred option;
  • Waikanae treatment plant upgrade;
  • Riwai reservoir upgrade;
  • Otaki reservoir; and
  • Hautere – network augmentation and renewal.
Opotiki District Council The Council has identified the main future challenges as:
  • Compliance with the drinking water standards. Water is drawn from sources that are not secure, and some of the community water supply systems are not disinfected. This poses a significant human health risk associated with waterborne diseases, including those caused by Giardia and Cryptosporidium.
  • Its ability to raise enough revenue to cover the costs of the infrastructure renewals and upgrades needed to comply with the drinking water standards. About 70% of the land in the district is non-rateable (most of the district land is owned by the Department of Conservation). The combination of a small rating base and a high unemployment rate in the district poses a challenge for the Council when attempting to raise enough revenue to cover infrastructure investments.
Budgeted $1,114,000 for the period 2009-19.
Christchurch City Council The Council has identified the main future challenges as:
  • upgrading its systems on Banks Peninsula to provide sufficient water quantity and adequate quality;
  • risk mitigation action required in the northwest section of the city, through either UV treatment or installation of deeper wells, or a combination of the two approaches (water is currently drawn from a shallow well and is therefore not a secure source, as defined by the drinking water standards); and
  • ensuring that there is sufficient water supply infrastructure in the southwest section of the city to encourage growth.
Budgeted $157,639,000 (inflated) for the period 2009-19 on projects including:
  • drinking water standards rural upgrades ($2,302,000);
  • Little River (Banks Peninsula) water supply ($4,656,000);
  • drinking water standards compliance ($9,554,000);
  • backflow prevention ($68,000);
  • water supply growth programme ($35,899,000);
  • water supply renewals and replacements ($92,755,000);
  • water supply security ($392,000); and
  • water supply for Akaroa ($8,338,000).
Central Otago District Council The Council has identified several interrelated challenges:
  • Reducing demand because consumption is currently very high. High consumption is problematic for two reasons. First, the Council expects Otago Regional Council to reduce the amount of water the Council can take when some resource consents are renewed. Secondly, the size of new infrastructure required is affected by consumption (that is, the more water required, the larger the infrastructural requirements).
  • Complying with the drinking water standards. Upgraded infrastructure is required before the Council can comply.
  • Affordability and funding of the required infrastructure upgrades.
Other challenges include:
  • Current water supply systems are energy intensive. Reticulation requires a lot of pumping, and therefore electricity, which is increasing operating costs. The systems were originally designed to pump a lot of water in a low operating cost environment.
  • Pressure management – the system for pumping water from source to reservoir produces very high pressure, increasing the risk of leaks.
  • Improving operational staff training levels. Through its new asset management plan, the Council has identified a lack of staff training as a key risk for water supply services.
Budgeted $51,326,977 for the period 2009-19 on a large number of projects on nine separate water supply systems, including new water treatment plants, telemetry, reservoirs, valves and hydrants, tobies, backflow prevention, water meters, investigations, asset management plans, bore redevelopment, and reticulation.
South Taranaki District Council The Council has identified the main future challenges as:
  • infrastructure upgrades are required to manage risk, increase resilience, and improve the efficiency of the systems;
  • current water treatment systems will not comply with the drinking water standards, and investment in new infrastructure is required to comply with those standards; and
  • risks to security of supply from drought, and pressure from Taranaki Regional Council to minimise the amount of water taken from some sources and find additional sources of water.
Budgeted $81,079,000 for the period 2009-19 on 50 projects covering improvements to water treatment plants, pressure management, water meters, backflow prevention, reticulation networks, and investigating new sources of water.
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