asset management plan for sewerage 2018/19 · 2018-11-18 · wsc sewerage amp 2018/19 4 v1.1 june...

WSCSewerageAMP2018/19 V1.1June20181

AssetManagementPlanforSewerage2018/19

ThisdocumentformspartofCouncil’sResourcingStrategy.

ItisupdatedannuallytosupportCouncil’sOperationalPlan.

DocumentRevisionStatus

Version Date Description

1.0 June2018 Draftfordiscussion

1.1 June2018 FinaldraftforCouncilconsideration

ThisversionisapprovedforCouncilconsiderationby:

BrendanHayes

DirectorEnvironmentalServices

RajuRanjit

DirectorEngineeringServices

DateofapprovalbyCouncil(ornoteasdraft):

DRAFT


TableofContents

1. ExecutiveSummary..........................................................................................................31.1ContextandPurposeofthisAMP................................................................................................31.2BestPracticeManagementofWaterSupplyandSewerageFramework....................................4

2. OperationalPrograms(Maintenance)..............................................................................62.1OperationPlan.............................................................................................................................6

2.1.1AssetRegister.......................................................................................................................62.1.2OperationalAnalysis+PerformanceRequirementsandConstraints...................................72.1.3SystemOperatingRules+FacilityOperatingProcedures.....................................................72.1.4DueDiligence,LicensingandReportingunderPoEOAct.....................................................72.1.5TradeWaste..........................................................................................................................8

2.2MaintenancePlan........................................................................................................................82.2.1ScheduledMaintenance.......................................................................................................82.2.2BreakdownMaintenance.....................................................................................................9

2.3PerformanceReporting................................................................................................................9

3. CapitalWorksPrograms(Renew/Upgrade/NewAssets+Disposals).............................103.1GrenfellSewageTreatmentPlant..............................................................................................103.2GrenfellSewerageReticulation..................................................................................................103.3GrenfellEffluentReuse..............................................................................................................113.4SewerageServicesforVillages...................................................................................................11

4. RiskManagement...........................................................................................................124.1ReportingonInfrastructureRenewalBacklogand‘Required’Maintenance............................12

5. AssetRegisterandAccounting.......................................................................................14

6. AssetHierarchy..............................................................................................................15

7. FinancialPlan..................................................................................................................15

8. Standards,SpecificationsandReferenceDocuments....................................................15

Appendix1–DescriptionofExistingSewerageSystem.........................................................16

Appendix2–KeyIWCMIssuesRelatedtoSewerage............................................................18

Appendix3–AdoptedLevelsofService(PerformanceTargets)...........................................19

Appendix4–LatestPerformanceMonitoringReport...........................................................20

Appendix5–CompliancewithBestPracticeFramework......................................................21

Appendix6–CustomerServicePlanforSewerageService...................................................22


1. ExecutiveSummaryCouncilisresponsiblefortheseweragesysteminGrenfellincluding33kmofreticulationmainsandonesewagetreatmentplant.Themains(pipesandmanholes)makeupthebulkofthereplacementcostofthesystem(almost$9M),althoughtheexistingtreatmentplant(valuedataround$3.5M)issoontobereplacedwithamodernplantthatcantreateffluenttofarhigherstandards(estimatedcostaround$9M)toenablemoreeffectivereuseofourwaterresources.

AdescriptionoftheseweragesystemisincludedinAppendix1.

IfCouncilistodeliversustainablebestvaluefromtheseassets,itiscriticalthatthenewsewagetreatmentplantdesignisoptimised(consideringcapitalandoperatingcosts,easeofoperation)andlikewisethatrenewalofmainsisoptimised(reliningpipeswheretherearerecurringproblemstoreducemaintenancecostsandimpactsofsewageoverflowsontheenvironmentandcommunity).

ThisAMPhasbeenpreparedtosatisfytherequirementsoftheNSWGovernment’sBestPracticeManagementofWaterandSewerageFramework,outlinedbelow.

1.1ContextandPurposeofthisAMP

CouncilhasadoptedasystematicapproachtoprioritisingitslimitedresourcesacrossallitsactivitiesviatheIntegratedPlanningandReporting(IPR)Framework,establishedundertheNSWLocalGovernmentAct.

ServiceDashboards(partofCouncil’sDeliveryProgram)presenta‘bigpicturesummary’highlightingissuesofconcernwiththevalueCouncilcanprovidenowandinfuturewithitsavailableresources.

ThesecondpageoftheDashboardssummarisestheinfrastructuresupportingtheserviceandthenidentifiesthemainprogramareasCouncilundertakestoprovidethisvaluetothecommunity,includingbudgets(alignedwiththeLongTermFinancialPlan)andperformancemeasuresforeach(i.e.theadoptedPerformanceTargetsaswellasmeasuresofotheractivities).

ThisAMPthenprovidesthedetailbehindeachoftheprograms,whichareclassifiedaseither:• ‘operational’(ongoingactivitieslikecleaning,maintenanceandrepairs,mowinggrass)or• ‘capital’(one-offactivitiestobuildnew,upgradedorrenewedassets).

ThismoredetailedanalysisintheAMPinformsthe‘bigpicturesummary’ofkeyconcernsonpage1oftheDashboardsaswellassupportinginformationrelatingtoinfrastructureassetreporting.

Insummary,theprimarypurposeofthisAMPistosupportCouncil’sdecision-makingaboutitsactivitiesrelatingtosewerageassetsbyclarifyingthecurrentsituationanddocumentingitsfutureprograms(actionsintheDeliveryProgramandOperationalPlan)inasimplemanner.

ServicenameShort descriptionKeyobjectivesfromCSP (acrossall QBLthemes)Valuenow

Performance Sustainability Risk/Resilience

Value10years

Performance Sustainability Risk/Resilience

Emerging issues:beyond10yearsCommunitysurvey Gap Consensus

Sub-service1 1.2 High

Sub-service2 -0.3 Low

Investment(proportion oftotalCouncil)

Operations(maint.+ops)

Capital(renew+new)

Depreciation AssetValue

Summaryofthekeyissues

Summaryofthekeyissues

0 1 2 3 4 5

Importance Satisfaction

0 1 2 3 4 5

Importance Satisfaction0 1 2 3 4 5


0 1 2 3 4 5


ServiceNameInfrastructure

Assetcategories,replacementvalues,consumption ratio(age),renewal ratio,capitalratio(newassets),highresidualriskbacklog

OperationalProgramsProgramPrioritiesProgram1 Priorities ResponsibilityProgram2 Priorities Responsibility4 yearBudget Revenue ExpenditureProgram 1Program2PerformanceMeasures andTargets

Capital ProjectsProject SelectionCriteria(informs priority list)Project area1 Criteria ResponsibilityProjectarea2 Criteria Responsibility4 yearBudget Revenue ExpenditureProjectarea1Projectarea2PerformanceMeasures andTargets

ReferenceDocumentsStrategicplans,policies,operationalplans,etc.

701SealedPavement

701kmSealedSurface

144kmKerbandGutter

474kmUnsealedRoads

148Concrete/Steel Bridges

11Timber Bridges

73kmFootpaths

OtherTransport Assets

Stormwater Drainage

Concernswithvaluedeliverednowandinfuture

(informedbyAMP)

Project $

A 100

B 50

C 75

Year1: 225

Projectsincapitalprograms(+commentary&analysis)

Project $

A 100

B 50

C 75

Year1: 225

D 125

E 80

Year 2: 205

Detailsofassetmaintenanceprograms

Supportinginformationforinfrastructurereporting

ASSETMANAGEMENTPLANSERVICEDASHBOARDS(DeliveryProgram)


Council’soverallobjectiveistodeliversustainablebestvalue(assetoutinthePolicyofthatname).

1.2BestPracticeManagementofWaterSupplyandSewerageFramework

TheNSWBestPracticeManagementforWaterSupplyandSewerage(BPM)Frameworkisthekeydriverforreformofplanningandmanagementandforcontinuingperformanceimprovementforlocalwaterutilities.Itisalsoapre-requisiteforaccesstosomegrantfundingprograms.

Thepeakplanningdocumentsarethe30-yearIntegratedWaterCycleManagement(IWCM)StrategyandStrategicBusinessPlans(SBP)forWaterSupplyandSewerage.Theseareproducedonan8-yearcycle4yearsapart,withthelatestdocumenttakingprecedence.

GiventhattheIWCMStrategyissupposedtoconsiderallurbanwaterissues(watersupply,sewerageandstormwater)andCouncilisonlyresponsibleforsewerageandstormwaterthereisaneedtocoordinatewithotherentitiesregardingpreparationoftheIWCMStrategy.

CentralTablelandsWaterCountyCouncil(anentitypartownedbyWeddin,BlaneyandCabonneShireCouncils)supplieswatertoGrenfell,QuandiallaandBimbi.CowraShireCouncilsupplieswatertoGreenthorpeandBumbaldry.

ACTION4.2intheImprovementPlanintheResourcingStrategyis:

LiaisewithCentralTablelandsWater(andpotentiallyCowraShireCouncil)aboutthepreparationofanIntegratedWaterCycleManagementStrategy.

BoththeIWCMStrategyandSBPmustincludea30-yearFinancialPlanorLongTermFinancialPlan(FP)and30-yearTotalAssetManagementPlan(AMP),1whichmustbeupdatedannually.2

CouncilhasadoptedanewapproachtocompliancewiththeBPMFrameworkinthecontextoftheIntegratedPlanningandReportingFramework(section1.1).ThekeydifferenceisthattheFPandAMParedistinct,stand-alonedocumentsintheResourcingStrategy,asshownbelow:

1AsperChecklistsfortheIWCMStrategyandSBP,NSWOfficeofWater(July2014).2AsperAppendixH‘StreamliningoftheNSWbest-practicemanagementframework’in2015-16NSWWaterSupplyandSeweragePerformanceMonitoringReport(May2017),NSWOfficeofWater.

StrategicBusinessPlan

AnnualReport*

OperationalPlan

DeliveryProgram

CommunityStrategicPlan

AssetMgmt.Plan(30years)LevelsofService

LongTermFinancialPlan(30years)

TypicalResidentialBill

IntegratedWaterCycleManagementStrategy(30years)• Keywater&sewerageissues(significantriskoffailureto

meetstatutoryrequirementsorlevelofservice)

• Options,feasibilityandtriplebottomlineranking(social,

environmental&economic)ofoverall‘scenarios’

• AdoptedIWCMScenario:bestvalueformoney

Resourcing Strategy*

CustomerServicePlan• areasserviced

• pricingandregulation

• waterconservation

• droughtmanagement

• drinkingwatermgmt.system

• environmentalmanagement

• OperatingEnvironment*

• ServiceDelivery*

• BestPracticeManagement*

*Review4yearlywithnew

DeliveryProgram(actionsin

ImprovementPlaninRS)

WorkforceMgmt.Plan(4years)

*IncludesCouncilImprovementActionPlan

*includeswater&sewerage

performancereporting


Thisapproachisintendedtosimplifythedocumentation,ensuringstrategiesdrivingactivitiesinCouncil’sseweragebusiness(intheDeliveryProgram)areclearandup-to-date.Italsointegrateswhole-of-councilissueslikeworkforcemanagementandcommunityengagement.

AnotherkeyreasonforthisapproachisthatCouncilhasrecognisedtheneedtofocuson‘keyissues’coveredbytheIWCMStrategyinthe8yearsbetweenformalrevisions.Currentissuesandproposedsolutions,whichinformactionsinCouncil’sOperationalPlan,aresummarisedinAppendix2.

ThekeyconcepttonoteistheframeworkaboveisthattheTypicalResidentialBillintheFPiswhatgeneratesrevenuestofundactivitiesintheAMPtodeliverLevelsofService(LoS)adoptedbyCouncil.Appendix3includesCouncil’sadoptedPerformanceTargets,or‘LoS’forsewerage.

AkeypartoftheBPMFrameworkisperformancereporting.Council’slatestresultsfromtheNSWWaterandSeweragePerformanceMonitoringReportisinAppendix4.ThisshowsthatCounciliscurrently78%compliant.Issuesidentifiedinclude:

• StrategicBusinessPlaninplace,butover4yearsold• Lackofappropriatenon-residentialchargesforsewerage• Lackofappropriatetradewastefeesandcharges.


ReviewStrategicBusinessPlan,AssetManagementPlanandFinancialPlanforSewerageBusinessinlightofGrenfellSewageTreatmentPlantbeinggrantfunded(explorepotentialtorampupfundingformainsrelining,rehabilitatingmanholesandinvestigatesewertovillages)


DevelopTradeWastePolicy,establishagreements(bestpracticemanagementrequirement)

AtablesummarisingkeyelementsofanIWCMStrategyandSBP,andrequirementsundertheBPMFramework,areincludedinAppendix5.ThisincludesdetailsofhowCouncil’ssimplifieddocumentationsatisfiestheserequirements.

AkeypartoftheSBPistheCustomerServicePlanforSewerage.ThisisincludedinAppendix6.WhiletheBPMFrameworkrequiresthatthisonlyneedstobeupdatedaspartoftheSBPonceevery8years,CouncilhasrecognisedtheneedtoreviewthiswitheachOperationalPlan(alongwiththerestoftheAMP)andcompletelyreviseitevery4yearsalongwiththeDeliveryProgram.


2. OperationalPrograms(Maintenance)OperationalprogramsintheServiceDashboardforSewerageandStormwater(theDeliveryProgram)havetwokeyelements:3

• Operation–operatingtheseweragesystem(treatment)toensurethatCouncil’sadoptedperformancetargets(Appendix1)areachievedattheminimumlong-termcost,andthattheimpactofanybreakdownsoroutagesisminimised

• Maintenance–maintainingindividualsub-systems,facilitiesandcomponentstoensuretheactualoutputs,reliabilityandavailability(asspecifiedintheOperationsPlan)areachievedinthemostcost-effectivemanner

Thesediscussedinthefollowingsections,whichechotheBestPracticeManagementGuidelines.

Asummaryofcurrentandprojectedoperationalcostsassociatedwithsewerageisinsection7.

2.1OperationPlan

ThefigurebelowshowsthekeyelementsoftheOperationPlanandhowthisrelatestootherelementsofthisAssetManagementPlan.

2.1.1AssetRegister

ThefoundationoftheOperationsPlanistheAssetRegister.Thisrecordsattributesofallinfrastructureassetsintheseweragesystem,includingthecurrentconditionandcapacity.

Councilhasrecognisedtheneedtoimproveitsassetregister(andkeepitup-to-dateinfuture)inordertobetterunderstandcurrentperformanceconstraintsinthenetworkandalsotoimprovebothscheduledandbreakdownmaintenanceprograms(section2.2).

AkeystepinthisisaddingutilitiesincludingtheseweragesystemtoCouncil’smappingsystem.

CouncilalsoneedstoundertakeCCTVinspectionofmainsandinspectionofmanholestoidentifyandprioritisesectionsforrenewal/relining(section3.2).

3TheCodeofAccountingPracticeprescribesinfrastructurereportingrequirements(SpecialSchedule7)intheoppositeway:‘operations’arepartof‘maintenance’,thoughmanyoperationsaren’tactuallymaintenance.

PerformanceRequirementsandConstraints(forsub-systemsandfacilities)

OperationalAnalysis

AssetRegister

PerformanceTargets(‘levelsofservice’)

Servicetobedelivered (Appendix1)e.g.quality,capacityandreliability

Assetsutilisedincl.conditionandcapacity

e.g.allowablefrequencyanddurationofoutages

SystemOperatingRules*(fornormalconditionsandsub-systembreakdown)

Howtooperatethesystemasawholeandindividualfacilitiesmosteffectively

Capabilityofsystemtoachievetargets

FacilityOperatingProcedures*(fornormalconditionsandcomponentbreakdown)

MaintenancePlan CapitalPlan

*includesduediligencerequirementsunderNSWProtectionoftheEnvironmentOperationsAct,1997

Scheduledandbreakdownmaintenanceactivitiestoensureactualoutputs,reliabilityandavailabilityofindividualsub-systems,facilitiesandcomponentsmeetsperformancerequirements

Rehabilitation,renewal,upgradeandnewassets(aswellasdisposalofoldassets)toachieveperformancetargetsandmeetfutureneeds

OperationPlan



AddutilitiestoCouncil’smappinglayer,undertakeCCTVinspectionsofmainsandinspectionofmanholestoidentifyandprioritisesectionsforrenewal/relining

2.1.2OperationalAnalysis+PerformanceRequirementsandConstraints

AnOperationalAnalysisisineffectacompleteinvestigationoftheadequacyofCouncil’sseweragesystemtomeetpresentandfutureneeds.ItdetermineswhetherthesystemiscapableofeconomicallymeetingCouncil’sperformancetargets.

Inadditionto‘finetuning’operations,theOperationalAnalysisprovidesessentialinputstothemaintenance(section2.2)andcapitalworksplans(section3)bydeterminingperformancerequirementsandconstraints(outputs,reliabilityandavailability)fortheindividualsub-systemsandfacilitiesmakinguptheseweragesystem.

Wheretheexistingsystemisinadequate,orwhereassetsarefoundtobeapproachingcapacityorreachingtheendoftheireconomiclife,theoutputwillincludeacapitalworksprogram.

Thetwokeycapabilityandperformanceissueswiththecurrentsystemare:

• thecapabilityofthesewagetreatmentplantwhichismeetingcurrentlicenceconditions,butproduceseffluenttolowerqualitythanmoremodernplants(bettereffluentqualityishighlydesirablegivenitisreused)–itsrenewalisbeingplannedatpresent(section3.1)and

• theconditionoftheolderpartsofthereticulation,whichisaproblembothduetothenumberofpipeblockages(chokes),butalsoduetothevolumeofinfiltrationtothesystem:wetweatherflowsatthesewagetreatmentplantare8-10timesdryweatherflows(whichmeansthattheplanthastotreatfarmoresewage–thiscostsextraandalsoreducestheeffectivenessofthetreatmentsystem,althoughthequalityofeffluentisstillwithinguidelines–oftenduetotheeffectsofdilutionaswellastreatment)–increasinginvestmentinreliningpipesaswellasrehabilitationofmanholesisdiscussedinsection3.2.

Anotherreasonforthehighwetweatherflowsisillegalconnections(ofstormwatertotheseweragesystem)andotherissueswithservicessuchaslowgullytrapsthatletinsurfacewater.Councilisundertakingaprogramofsmoketestingandotheractionstoaddressthis.

2.1.3SystemOperatingRules+FacilityOperatingProcedures

SystemOperatingRulessetoutthemosteffectivewaytheseweragesystemasawholeistobeoperatedundernormalconditionsandintheeventofabreakdown.TheaimistoachieveCouncil’sperformancetargetsattheminimumlong-termcost.

FacilityOperatingProceduressubsequentlysetoutthewayindividualfacilities(particularlythesewagetreatmentplant)aretobeoperatedinthecontextofthesystemoperatingrules,againundernormalconditionsandintheeventofacomponentbreakdown.

Councilhasundertakenlimiteddevelopmentofsuchdocumentationinthepast,howevertheimportanceofsuchdocumentationisacknowledgedasafundamentalriskmanagementstrategy,particularlygivenissueswithattractingandretainingappropriatelyqualifiedandexperiencedstaff.

Facilityoperatingproceduresandappropriatestafftrainingwillbespecifiedasanessentialdeliverableunderthecontractforthenewtreatmentplant.

2.1.4DueDiligence,LicensingandReportingunderPoEOAct

TheNSWProtectionoftheEnvironmentOperationsAct1997(POEO)providessubstantialliabilityintheeventofenvironmentalharm(section119).DueDiligenceshouldbeincorporatedintheOperationPlansinceitisoneofthefewdefencesavailabletobothindividualsandcorporationsundertheAct.


DueDiligenceimpliesthateffortsshouldbemadetoanticipatehazardswhichmayharmtheenvironmentandtakeallfeasiblestepstoprevent,controlandmitigatethepotentialoftheiroccurrence.

ThesewagetreatmentplantisrequiredtohaveEnvironmentalProtectionLicences(EPL)whichisadministeredbytheNSWEnvironmentalProtectionAuthority(EPA)undertheProtectionoftheEnvironmentOperationsAct1997.AnEPLallowsabusinesstooperateaslongasitadherestocertainconditionswhicharestipulatedineachlicence.TheEPLnumberfortheplantis1732.

Section153AoftheProtectionoftheEnvironmentOperationsAct1997requiresalicenceholdertoprepareaPollutionIncidentResponseManagementPlans(PIRMP)forthissite,whichCouncilhasdone.ThisisavailableonCouncil’swebsite,althoughitisdueforreview.Anewplanwillbepreparedaspartoftheconstructionofthenewplant.

Itisalsoalegislativerequirementthatwaterqualityandvolumetricmonitoringdataispublishedforthesesites.WaterqualitydataisavailableonCouncil’swebsite(althoughthelatestresultsneedtobeadded)andvolumetricdataisreportedregularlyinCouncilbusinesspapers.

2.1.5TradeWaste

Tradewaste(foodsolidsaswellasgreaseandoils)cancauseblockagesintheseweragereticulation(pipes)andcreateproblemswithtreatmentprocesses.

Managingtradewasteincreasesthecostsoftheseweragesystemforallusers,andsotradewastechargesareanappropriatewaytoaddressthis.TheyarealsoarequirementoftheBestPracticeFramework(section1.2).

WhileCouncilhasintroducedtradewastechargesandmostbusinessesproducingtradewaste(takeaways,restaurants,etc.)havegreasetrapsinstalledtominimisetheamountdischargedtothesewer,thereiscurrentlynoTradeWastePolicyoragreementsinplace.ThesearealsoarequirementoftheBestPracticeFramework,anditisimportantthatCounciladdressthis.


DevelopTradeWastePolicy,establishagreements(bestpracticemanagementrequirement)

2.2MaintenancePlan

ThepurposeoftheMaintenancePlanistoensurethattheactualoutputs,reliabilityandavailabilityoftheindividualsub-systems,facilitiesandcomponentsasspecifiedintheOperationPlanareachievedinthemostcost-effectivemanner.

Maintenanceisgenerallyplannedoneitherascheduledorbreakdownbasis,discussedbelow.

2.2.1ScheduledMaintenance

Scheduled(alsoknownasproactive,plannedorpreventative)maintenancehelpsavoidunexpectedfailures.Itisusedforcriticalitemswhereabreakdownwouldbecostlyandwouldcausesignificantinterruptionstothesewerageservicee.g.mechanicalandelectricalequipmentatthesewagetreatmentplant(pumpsandmotorsinparticular)mustrunreliablyatalltimesasthereislimitedcapacitytoholdflowsbeforethereisanoverflowtotheenvironment.

Scheduledmaintenanceiseitherfixed-timeorcondition-based.

Fixed-timemaintenanceisundertakenatpre-determinedintervalsinaccordancewithtechnicalmanuals,specificationsormanufacturerrecommendations(e.g.acarservicedevery10,000km).

Condition-basedmaintenanceisinformedbyconditioninspectionsandassessments,withmaintenancetasksbeinginitiatedoncetheconditionofacomponentreachesapre-definedtriggerpoint(e.g.toppingupoilinacarwhenthelevelgetsbelowacertainlevelonthegauge).

Condition-basedmaintenancemaybeassimpleaspaintingsomethingbeforeitbeginstorust,orascomplexasreplacingbearingsinamotorwhenavibrationanalysisindicatessubstantial


deterioration.Italsohelpstogeneratedataaboutdepreciationrates,whichinformspredictionofservicelifeofcomponentsandtheoptimumtimeforrefurbishmentorreplacement.

Currently,thereareonlyonepumprequiredtooperatethesewagetreatmentplant,andastandbyisavailable.Thepumpsaremaintainedasrequired,socurrentpracticesareadequate.

Provisionofmaintenancescheduleswillbeanimportantdeliverableforthecontractforbuildingthenewsewagetreatmentplant,whichisfarmoresophisticatedintermsofmechanicalandelectricalequipment.

2.2.2BreakdownMaintenance

Breakdown(alsoknownasreactive,unplannedorcorrective)maintenanceshouldbereservedforlesscriticalcomponents,forsituationswherescheduledmaintenanceisnotpossibleorwhereremedialactioncanbetakenquicklywithminimaldisruptiontoservices.

Councilhasabackuppumpforthesewagetreatmentplant,aswellasabackupgeneratorintheeventofapoweroutage.Sparesaregenerallyavailableforotheritems,sobreakdownsarewellcovered.

Inadditiontobreakdownmaintenanceatthesewagetreatmentplant,theotherkeyareaisinclearingofchokesinseweragepipes.ItisnotablethataccordingtoperformancemonitoringdatafromNSWGovernmentin2014/15(thelatestavailabledata),WeddinShireCouncilhadthesecondhighestincidenceofsewerchokes(blockages)inNSWper100kmofmain.4

Thetotalblockages(around209per100km)wasaboutdoublethatreportedinthe2013StrategicBusinessPlan(30-40intotalorabout95-120per100kmofmains).

Thisneedstobeinvestigatedfurtherintermsoftheaccuracyofreporting,buthighlightsapotentialneedforfurtherinvestmentinrelining(section3.2)asthislevelofbreakdownsisofconcern.

2.3PerformanceReporting

CouncilreportsextensivelyontheoperationalperformanceofitssewerageschemeinannualreturnstoNSWOfficeofWater.AsummaryofthelatestperformancereportisprovidedinAppendix4.Notablemeasuresinclude:

• Numberofchokes(blockages)perkmofmain• Percentageoftreatedeffluentthatwascompliantwithlicenceconditions• Operatingcostperproperty• Administrationandmanagementcost• Economicrealrateofreturn

Councilalsoreportsonthe‘backlog’and‘maintenance’figuresforitsinfrastructureasdiscussedinsection4.1.

4https://www.industry.nsw.gov.au/__data/assets/pdf_file/0020/147440/2015-16-nsw-water-supply-and-sewerage-performance-monitoring-report.pdf(page52)


3. CapitalWorksPrograms(Renew/Upgrade/NewAssets+Disposals)TheServiceDashboardforSewerageandStormwatersummarisesCouncil’smaincapitalworksprogramsrelatingtothesewerageservice.Therearereallyonlytwomainonesbeing:

• sewagetreatment• seweragemains

ThisAMPprovidesthedetailbehindthesecapitalprogramsincludingadiscussionofthecurrentinfrastructure,issuesofconcern,considerationsforfuturebudgetsandperformancemeasures.

Itisimportanttorecognisethatthelevelofdetailinthisframeworkwillimproveovertime.


Annualreviewofcapitalworksprogramsincludingpriorityprojects,budgets,fundingtoachieveperformancetargetsforrenewal,prioritiesforupgraded/newassets,longertermoutlook(includeinup-to-dateAssetManagementPlan).

3.1GrenfellSewageTreatmentPlant

Theexistingsewagetreatmentplantwasconstructedin1940.Itincludesprimary,secondaryandtertiarytreatmentofsewageandisabletomeetcurrentlicenceconditions,apartfromoccasionalnon-complianceduetothevolumeofwet-weatherflows(note:qualityisnotanissue).

WhileCouncil’scurrentplans(inthe2013StrategicBusinessPlan)hadproposedtofundtherenewaloftheplantin2029for$5.7M(in2013dollars)bycashreservesanda$2Mloan,agrantfromInvestmentNSWfor$8.8M(98%fundingoncurrentestimatesfortheplant)meansthatthisprojectisabletobebroughtforward.

Thenewplantwillhavebettereffluentquality,whichisimportantgiventhelevelofreuse,andwillalsohaveincreasedcapacity.Detailedplanningiscurrentlybeingundertaken,withtendersforconstructionexpectedtobesoughtin2019/20.

ItisimportantthatCouncilnowreviewitsfinancialplan(inthe2013StrategicBusinessPlan)totakeaccountofthegrantandtheincreasedoperatingexpensesthatwillcomewiththenewplant(thisisACTION4.1intheImprovementPlan).Ofparticularnoteistheopportunitytoincreasefundingforsomeoftheotherprioritiesidentifiedbelow.

Therearenomajorworksrequiredtokeeptheoldplantoperationaluntilthenewoneisbuilt.

Akeyissuewiththeexistingplant,whichwillremainanissuewiththenewone,isthelevelofinfiltrationinthesystem(highlightedinsection2.1.2).Thisneedstobeaddressedviaincreasedinvestmentinpiperelining(section3.2)andaddressingproblemswithservicesbyidentifyingillegalconnectionsofstormwatertotheseweragesystem(viasmoketesting)andotherproblemssuchaslowgullytrapsthatdrainsurfacewater..

3.2GrenfellSewerageReticulation

AllofGrenfell’sseweragesystemisgravitypipes,i.e.therearenopumpstationswithrisingmains.

Themajority(27.5ofthe33km)ofseweragereticulation(pipesandmanholes)wasbuiltin1942.Afurther2.5kmwasbuiltin1969.

Furtherextensionsin1998and2004ofaround3kmserviceHenryLawsonEstate.

Theolderpipeisvitreousclay,whichisgenerallyregardedtohaveaservicelifeof90years.Thismeanstheusefullifeofthesepipeswillexpireinaround2032(althoughtheactualusefulservicelifeofindividualpipeswillbeshorterorlongerthanthisaverage).

Theactualperformanceofthenetworkconfirmsthisestimate,withtheincidenceofsewerchokes(blockagesduetotreerootintrusion,brokenordroppedpipes)risingandWeddinShireCouncilreportingthesecondhighestnumberofsewerblockagesinthestate(refersection2.2.2).


Councilhasrecognisedtheissueandbeguninvestinginreliningofthesepipessomeyearsago,witharound5kmofpipesbeingrelinedsince2009.Council’s2018/19budgetincludes$200,000forthisworkalthough$100,000ofthisiscarriedoverasitwasnotspentlastyear.

Thecurrentfinancialplan(inthe2013StrategicBusinessPlan)allocates$100,000p.a.(in2013dollars)torelining,butthismaynotbesufficientgiventheextentofproblemsandthefactthatCouncilhasnotspentthisfullamountinrecentyears.

ReliningworksareprocuredunderajointcontractarrangedbyCENTROC,whichmeanstheratesobtainedarequitecompetitive.Dependingontheextentofproblems,theneedforadditionalwork(e.g.servicejunctions)andsizeofthepipe$200,000willcoverreliningof1-1.5kmofpipe.

Councilalsoneedstoinvestinrehabilitationofmanholes(accesschambers)asmanyoftheseareinpoorcondition.Theseareanothersourceofinfiltrationinwetweather.ItisinCouncil’sinteresttoseektoreducetheadditionalinflowasthiswatermustthenpassthroughthetreatmentplant(addingtooperationalexpenseslikepower).

Giventhehighnumberofchokes,theopportunitypresentedbythesewagetreatmentplantbeingfundedbyagrantandthegrowingneedforreliningoftheoldpartsofthereticulationnetwork,Councilhasrecognisedtheneedtoreviewfundingallocationtorelining.ThisispartofACTION4.1intheImprovementPlanintheResourcingStrategy(referencedinsection1.2).

Basedontheassetregister,basicallyall12and15”pipeshavebeenCCTVinspectedalthoughnotall9”pipeshavebeenandveryfew6”pipesthathaven’tthenbeenrelined.CCTVinspectionsneedtobeprioritisedbasedonpipesizeaswellashistoryofproblems,proximitytowaterways,etc.

Thereisalsoprovisioninthefinancialplaninthe2013StrategicBusinessPlanfor$10,000every2yearsforsewermainextensions.Thisshouldbereviewed.

3.3GrenfellEffluentReuse

Currently,thereisaneffluentreusesysteminoperationthatisusedtoirrigateseveralparksandHenryLawsonOval.Thesystemisoldandbothpipesandpumpsneedreplacingwithinthenext5years.

Improvingthequalityofthiseffluentisoneofthedriversofreplacingthesewagetreatmentplant(section3.1).Thenewplantwillincludeconstructionofaneweffluentreusesystem.

3.4SewerageServicesforVillages

Allvillagesareonseptictanks–whichhaveanumberofissuesassociatedwithfailureoftheonsitesystem,egressofeffluentoffsiteandmaintenanceofthesystems.

The2013StrategicBusinessPlanforSewerageServicesincludedprovisiontoprovidesewerageservicestoQuandialla(population320)andGreenethorpe(population220)in2030-31atacostof$200,000each–althoughthisisconsideredinsufficienttocovertheseprojects.Carabagal(population214)alsoneedstobeconsidered.

Thedelayincommencingtheseprojectswasnotedasbeingprimarilyduetotheneedtoprioritisefundingtootherissuessuchasthetreatmentplant,buttheremaybeanopportunitytobringthisforward(whichshouldbeconsideredinthecontextofaction4.1above),particularlyiftherearegrantsavailabletohelpfundsuchworks–whichthereareatthemoment.ItmaybethatCouncilsimplyscopesuptheworksoitis‘shovelready’foragrantatthisstage.


4. RiskManagementAsdiscussedinsection4.3oftheResourcingStrategy,riskisoneofCouncil’sprimaryconsiderationswhenitisformulatingitsactivitiesintheDeliveryProgramsoastodeliver‘sustainablebestvalue’.

ThetablebelowsummariseskeyrisksandtreatmentplansCouncilhasinplacetomanagethese.

Risk TreatmentMethod

Releaseofrawsewagetotheenvironment

PollutionincidentresponsemanagementplandevelopedforGrenfellsewagetreatmentplant.

Chokescleared,pipesrelinedtoreduceblockagesinfuture.

Exposureofusersofparksandreservestopathogensfromeffluentreusescheme

Effluentqualitytesting,soiltestingonparksandfields

LackofqualifiedandexperiencedTreatmentPlantOperators

Trainingprograminplace,backupavailablewithintheorganisationandinneighbouringcouncils

Intermsofidentifying‘criticalassets’(assetshavingthepotentialtosignificantlyimpactontheorganisation’sobjectives),thekeyonesarethesewagetreatmentplantandlargertrunkmainscarryingthebulkofflowsinthetown.

Thescheduledmaintenanceprogramthatisproposedtobedevelopedforthenewplant(section2.2.1)willbeinformedbyassetcriticalitysovitalpumps,motors,etc.willbegivenmorefocuscommensuratewiththehigherrisk.Currentmaintenanceisconsideredadequate.

CCTVinspectionshavebeenundertakenonlargersizepipesasaprioritytoidentifytheneedforreliningworksherefirst(all12and15”pipes,althoughnotall9”pipeshaveyetbeeninspected–thishasbeenrecognisedasapriority).

4.1ReportingonInfrastructureRenewalBacklogand‘Required’Maintenance

Asdiscussedinsection4.4oftheResourcingStrategy,Councilhasadoptedarisk-basedapproachtoreportingoninfrastructuremaintenanceandrenewalbackloginSpecialSchedule7ofCouncil’sAnnualFinancialStatements(thesearealsokeyFitfortheFuturemeasures).

ItisimportanttonotethatthisdoesnotmeanthatCouncilisthereforeproviding‘sustainablebestvalue’,onlythatitisadequatelymanagingrisksassociatedwiththenetwork.Decisionsabouttheactivitiesthatwilldeliversustainablebestvaluearemadeinthecontextofsections2and3,whereCouncilprioritisesitsresourcestoparticularprogramareas.

Thefollowingassetsareidentifiedashavingahigherlevelofriskthatrequiresrenewaltoresolve.Notethatonlythoserequiring‘immediateaction’willbereportedasbacklog(theotherissueswillhelpinformdecisionsaboutfundinginsection3).

AssetatRisk WhatCanHappen?

RiskRating

UnfundedRisk(Renewal)Treatment

CosttoTreat($)

ResidualRiskRating

Noneidentified

Thefollowingmaintenanceprogramshavebeenidentifiedasbeingunder-fundedtotheextentthattheremay,potentially,bemaintenancedefectswithahigherlevelofriskidentifiedbutinsufficientfundstoaddresstheissue:



RiskRating

UnfundedRisk(Maintenance)Treatment

CosttoTreat($)

ResidualRiskRating

Noneidentified

Arisk-basedreviewofrenewalandmaintenanceofassetsonthisbasiswillbeundertakenasat30Juneeachyear.Wheretherewereinsufficientfundstomanageriskstoanacceptablelevel–wheretherewererisksassessedasrequiringimmediateaction(ratherthanprogrammingforactioninfuture)underCouncil’sRiskManagementPolicyandFramework–thefundingshortfallwillbereportedinSpecialSchedule7inrelationtothe‘costtobringtosatisfactory’(infrastructurerenewalbacklog)or‘required’(overandabove‘actual’)maintenanceasapplicable.


Annualreviewofrisksassociatedwithmaintenanceandrenewalactivitiestoinform‘requiredmaintenance’and‘bringtosatisfactory’reportinginSpecialSchedule7;otherrisks(e.g.needforupgraded/newassets)alsoidentified;AMPupdatedifrequired.

Inadditiontothoserequirements,Councilwillalsoconsiderhigher-riskissuesassociatedwiththeneedtoupgradeorconstructnewassets(notethatthesearespecificallyexcludedfromthe‘backlog’reporting).Thefollowinghavebeenidentifiedatthistime:


RiskRating

UnfundedUpgradeorNewAssetTreatment

CosttoTreat($)

ResidualRiskRating

Noneidentified


5. AssetRegisterandAccountingAsdiscussedinsection4.1oftheResourcingStrategy,ifCouncil’soperatingrevenuesaresufficienttocovertheexpensesassociatedwithits‘daytoday’operatingactivities(discussedinsection2ofthisAMP)anditsdepreciationexpensesthenitisverylikelytobefinanciallysustainable.

Thisisbecausedepreciationisameasureoftheannualisedcostofowninganasset,calculatedbydividingitsreplacementcostbyitsservicelife.

Councilwillbeabletoaffordtorenewitsexistingassetsoverthelongtermifitisprojectingongoingoperatingsurpluses(i.e.operatingexpenses,includingdepreciation,exceedrevenues),evenifitneedstoborrowmoneytocoverashortfallincashatsomestageoverthelongterm.

Councilwillalsobeabletoaffordanyneworupgradedassetsif,whenthedepreciationoftheseassetsisaddedtooperatingexpensescurrentlyprojectedintheLongTermFinancialPlan(LTFP),Councilstillhasanongoingsurplus.

Allofthishighlightstheimportanceofanaccurateassetregister,whichnotonlyidentifiesallCouncilassets,buttheirvalueandcurrentcondition.Thisinformationisequallyimportanttoeffectivelyplananddeliveroperationalandcapitalprograms.

Italsohighlightstheimportanceofaccurateestimatesfordepreciation,andforaligninginformationintheLTFPandAMPs(e.g.ifpipeswillonlylast70yearsbutCouncilisdepreciatingthemover90yearsintheLTFP,therewillbeashortfallinfunds).

Onceworks(intheAMP)areactuallycarriedout,itisvitalthattheassetregisterisupdated(e.g.torecordthatanewassetwasbuilt).Thecostsoftheworkalsoneedtobecaptured(thiswillhelprefineestimatesforreplacementcostofsimilarassets).Thereisalsoanopportunitytoreviewtheactualservicelifeoftheassetthatwasrenewedorreplaced(tohelprefinedepreciationestimates).

ThefunctionalityofCouncil’scorporatefinancesystemisabarriertoimprovementshere.


Captureassetrenewals,disposalsandadditionsfromcapitalworksprogram;reviewassumptions(valuation/servicelife)inthiscontextandanyotheravailableinformation(inspections,floods,etc.)


Implementworksordersystemtocapturecapitalworks(detailsofassetscreated/disposed,costs)–afterGLrestructure(action1.3)

TheNSWOfficeofWaterpublishestheNSWReferenceRatesManualforValuationofWaterSupply,SewerageandStormwaterAssets(whichisupdatedannually).CouncilalsoparticipatesinCENTROCprogramsforjointvaluationofsewerageinfrastructure.Further,themaincapitalcoststhatinformvaluationsispiperelining,andthisiswellunderstood(beingacontractrate).

Thetablebelowsummarisescurrentconditiondataandproposedcollectionoffuturedata.Notethatthenextfullrevaluationof‘otherstructures’and‘depreciablelandimprovements’(whichcoversthemajorityofassetsinthisAMP)isduein2021.

AssetCategory CurrentConditionData(methodanddate,reportref.)

Confidencelevelindata

NextProposedDataCollection(methodanddate,reportref.)

Seweragetreatment

SewerageReticulation

AustralisAssetAdvisory,2017

In-house,agebased,2017

Medium

Medium

2022(byexternalvaluer,forrevaluation)

2022(inhouse,forrevaluation)


6. AssetHierarchyAnassethierarchyisanimportantinputtoprioritisationofresourcesformaintenance,renewalandupgrades/newassetsinsomeassetclasses(e.g.roads)butislessusefulinrelationtosewerageassets.Effectively,thecriticalityofseweragereticulationisafunctionofthenumberofpropertiesservedandproximitytosensitiveareas(e.g.waterbodies)ifthereisanoverflow.

7. FinancialPlanAsdiscussedinsection3(ACTION4.1),thecurrentfinancialplaninthe2013StrategicBusinessPlanneedsreviewinthecontextofthegrantforthereplacementoftheGrenfellSewageTreatmentPlantandpotentialneedtofundotheractionssuchasmainsrelining,manholerehabilitationandprovisionofseweragetothevillages.Otherassumptionsintheplansuchasoperationalcostsforthenewplantandtheallowanceforsewermainextensionsshouldalsobereviewed.

Figuresinthetablebelowsummarisetheprogrambudgetsforoperations(section2)andcapitalworks(section3)relevanttosewerageassets.ThisistakenfromtheServiceDashboardforSewerageandStormwaterwhichreflectsCouncil’scurrentbudget.

Oncethefinancialplanforsewerageservicesisreviewed(asperaction4.1),thisshouldbeincludedinthisdocument.

8. Standards,SpecificationsandReferenceDocumentsVariousdocumentsrelatingtotheNSWBestPracticeManagementofWaterandSewerageFrameworkisavailableat:

https://www.industry.nsw.gov.au/water/water-utilities/best-practice-mgmt

PollutionIncidentResponseManagementPlanandEffluentQualityDataforWeddinSTP:

http://www.weddin.nsw.gov.au/environmental-services/sewage-treatment-plant

OPERATIONALPROGRAMS

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22SewerageRates&Charges 541,375SewerageAdmin/Mgmt. 152,808SewerageMains 36,000SewageTreatment 106,000Sewerage-rates,staffcosts 31,730TOTALSEWERAGE 541,375 - - - 326,538 - - -

CAPITALPROGRAMS

2018/19 2019/20 2020/21 2021/22 2018/19 2019/20 2020/21 2021/22GrenfellSewageTreat.Plant 509,000 520,000SeweragePipes 250,000BetterPracticePolicies 10,000TOTALSEWERAGE 509,000 0 0 0 780,000 0 0 0

ProgramArea Revenue Expenditure(excl.Depreciation)

ProjectArea Revenue Expenditure


Appendix1–DescriptionofExistingSewerageSystemSewageinGrenfelliscollectedvia33kmofgravitysewerreticulationandtransferred(withoutpumps)totheGrenfellSewageTreatmentPlant(STP),whichwasconstructedin1940.StormoverflowsfromthereticulationsystemdischargeintoEmuCreek.

TheGrenfellSTPhasacapacityof2500EPandprovidesprimary,secondaryandtertiarytreatment.BasedonCouncil’sannualreturns,theGrenfellSTPiscurrentlymeetingdischargequalityrequirements.TreatedeffluentisdischargedtoEmuCreekandtheremainderisreusedfortheirrigationofseveralparksandrecreationalareas.

Figurefrom2013StrategicBusinessPlan(reticulationisshownontheleft):

Amapofthereticulationnetworkisshownonthefollowingpage.


Appendix2–KeyIWCMIssuesRelatedtoSewerageUndertheBestPracticeManagement(BPM)ofWaterSupplyandSewerageFramework,a‘keyissue’isonewhereCouncilisunabletomeetitsperformancetargetsortomeetstatutoryrequirementsand/ortoincreasecapacitytoaddresstheneedsofnewdevelopment.

WhiletheBPMFrameworkonlyrequiresthosekeyissuesthathavenotbeendealtwithintheIntegratedWaterCycleManagementStrategytobeidentified,thetablebelowincludesallsuchissuessothatitisclearthoseissuesthatCouncilisaddressing,too.

KeyIssue Details CurrentStatus

ConditionandcapabilityofGrenfellSewageTreatmentPlant

Infrastructureisreachingtheendofitsusefullife.

Whileperformancemeetscurrentlicencerequirements,moremoderntreatmentprocessesareavailabletoimproveeffluentquality,whichisimportantasitisreusedonparksandsportinggrounds.

NewSTPinplanningphase

Tendersforconstructionareexpectedtobeadvertisedby2019/20

Conditionofseweragereticulation(pipesandmanholes)

Mostofthenetworkwasbuiltin1942andislikelytobereachingtheendofitsusefullifeinthenext15years.

Councilisreportingthatitisdealingwithasignificantnumberofsewerchokes(blockages),whichhighlightsthatthepipesareinpoorcondition.

Wetweatherinflowstothesewagetreatmentplantareveryhigh(8-10timesdryweatherflow),whichimpactstreatmentefficiencyandincreasescosts.

Areliningprogramisinplace,butitisperhapsnotsufficienttokeeppacewithdeterioration.

Littleinvestmentiscurrentlybeingmadetoaddressmanholesinpoorcondition.

Issueidentifiedandactionsinplacetoinvestigatefurther,includingconsideringtheoptionoframpingupreliningwork.

Issueofinvestingmoreinproblemmanholesalsobeinginvestigated.

Infiltrationfromothersources

Anothercontributortohighwetweatherinflowstosewagetreatmentplant.

Smoketestingbudgeted,althoughitneedstocontinue.

Sewerageservicesforvillages

ThevillagesofQuandialla,GreenethorpeandCarabagalareallservicedbyseptictanks.

Problemsincludefailureofonsitesystems,egressofeffluentoffsiteandmaintenanceofthesystems.

Thereisaneedtoundertakefurtherinvestigationofdesignissuesandcostsoftheseworkstoenablethemtobeconsideredinfinancialplans.

Ideally,Councilwouldhavethedesigns‘shovelready’foragrant.

Asnotedinsection1,CouncilneedstocoordinatewithCentralTablelandsWaterandCowraShireCouncilregardingthebroaderIWCMStrategy.


Appendix3–AdoptedLevelsofService(PerformanceTargets)ThelevelsofservicebelowwereadoptedinCouncil’s2013StrategicBusinessPlan(pageix).

Asdiscussedinsection3.2,Counciliscurrentlyfindingasignificantlyhighernumberofchokes(mainblockagesandcollapses,‘category3systemfailures’below).

TheseperformancetargetsneedtobereviewedinthecontextofactionsinthisAMP.


Appendix4–LatestPerformanceMonitoringReportTobeincluded.


Appendix5–CompliancewithBestPracticeFrameworkAtabletobeincludedsummarisingkeyelementsofanIWCMStrategyandSBP,andrequirementsundertheBPMFrameworkaswellashowCouncil’ssimplifieddocumentationsatisfiestheserequirements.


Appendix6–CustomerServicePlanforSewerageServiceUndertheBestPracticeManagementFramework,theCustomerServicePlanistobeincludedintheStrategicBusinessPlanforSewerage,whichmeansthe‘current’CustomerServicePlanistheonedatingfrom2013.AsidentifiedinthisAMP,thereareanumberofissuesneedingreviewincluding:

• Council’sabilitytomeetitsadoptedlevelsofservicerelatingtothenumberofblockages/chokes(sections2.2.2,3.2)

• Council’sapproachtotradewaste(refersection2.1.5)• Pricingfornon-residentialcustomerstocomplywithbestpracticeframework(asdiscussed

inthe2013StrategicBusinessPlan)• Actionswithregardstoavailabilityoftheservice,i.e.sewerageforvillages(section3.4)

ThestatusoftheseissueswillbeconsideredwhenthisAMPisupdatednextyear.ConsiderationwillbegiventoadoptinganewCustomerServicePlanatthattime.