PALMERSTON NORTH CITY COUNCIL
Memorandum
TO: Finance
and Performance Committee
MEETING DATE: 17
September 2018
TITLE: Water
Source Development and Security - Programme Budget Adjustments
DATE: 21
August 2018
PRESENTED BY: Robert
van Bentum, Water & Waste Services Manager, Infrastructure
APPROVED BY: Ray
Swadel, Acting Chief Infrastructure Officer
|
RECOMMENDATION(S) TO Council
1. That the
budget for the 2018/19 Capital New Programme 985 “Kelvin Grove Water
Supply Zone - New Bore” be revised from $537,000 to $887,000 by
utilising:
· savings
of $100,000 from 2018/19 Water Capital New Programme 592 “Turitea WTP
– Sludge Handling and Disposal Improvements,
· savings
of $100,000 from 2018/19 Water Programme 1005 “Industrial Growth
– Installation of Water Supply Systems to an Expanded NEIZ, and
· reallocating
funding of $150,000 from Capital New Programme 246 Water Subdivision
Contributions.
2. That a new
2018/19 Capital New Programme called “UV Treatment for Papaioea Park
Bore 3” with a budget of $550,000 be approved by:
·
reallocating budget of $130,000 from 2018/19 Capital New Programme 1404
“Turitea WTP – New Retaining Walls on Access Road and
· approving
additional unbudgeted funding of $420,000.
3. That
approval be given to bring $750,000 forward two years in the LTP from 2020/21
to 2018/19 for Programme 1384 – Citywide New Water Reservoirs to
Enhance Supply Storage to enable construction of a contact tank at Railway
Road bore.
4. That the
budget for the 2018/19 Water Capital New Programme 593 “Water Safety
and Security Mitigation” be revised from $23,000 to $264,500 by
approving an additional $241,500 in unbudgeted funding.
|
1. ISSUEs
1.1 Council’s
Long-Term Water Supply Development Strategy, previously outlined to Council has
identified several key vulnerabilities in respect of the current water supply
source provision, particularly in respect of the level of redundancy to cater
for unplanned outages and seismic events. The strategy also sets out a
programme of investment in replacement and new bores required to maintain
current source capacity and provide for residential and industrial growth.
1.2 As
part of the 2018-28 Long Term Plan (LTP) Council has approved programmes of
work to improve resilience and meet expected new treatment standards for
surface water supply. In addition, Council had previously approved in 2017-18 a
programme of work to address water supply safety and security concern at the
Turitea WTP and the bores. Funding for some of these programmes has been
carried forward to enable completion of the programme of works in the 2018-19
year. The specific programmes include:
· Programme
985 (1235 c/fwd) – Kelvin Grove Water Supply Zone – New Bore - to
fund construction of a new bore at Kelvin Grove both to meet growth and provide
for resilience
· Programme
1384 Citywide – New Water Supply Reservoirs to Replace Earthquake Prone
Reservoir and Enhance Supply Storage Across City
· Programme
124 – Turitea Water Treatment Plant – for upgrades to the treatment
plant at Turitea to respond to Review of Drinking Water Standards
· Programme
593 – Water Safety and Security Mitigation
· Programme
1058 – Groundwater Bores Renewal - to fund renewal of existing bore
capacity to address the decline in bore yield over time.
· Programmes
1285, 1170, and 1005 to support growth by funding new bores and/or network
infrastructure in Whakarongo, City West and NEIZ.
1.3 While
the programmes provide significant capital funding for investment in new and
upgraded water supply source, treatment and storage infrastructure several
issues have emerged which necessitate and justify rescheduling of existing
funding within the first 3 years of the LTP, reallocation of 2018-19 capital
budgets and approval of additional unbudgeted expenditure. Four specific
issues, summarised below, are considered in detail in this report.
· Issue
1. Allocated budgets for completion and commissioning of the new Railway
Road bore under Programme 985 (1235 c/fwd) are inadequate to complete and
commission the bore.
· Issue
2. The new Papaioea Park bore, constructed under Water Capital Renewal
Programme 1058, cannot now be commissioned without provision of UV disinfection
which is beyond the scope of the original programme given that UV disinfection
has never previously been required for groundwater bores in Palmerston North.
· Issue
3. The development of a new bore at Railway Road and replacement bores at
Papaioea Park and Keith Street, has provided an opportunity to realise both
resilience and efficiency benefits associated with providing storage at each
bore location. Unfortunately funding under Programme 1384 of the LTP for
construction of storage is not scheduled to occur until 2019/20 and 2020/21.
· Issue
4. Additional water safety and security risks have emerged since
finalisation of the 2018-28 LTP, which Officers now believe need to be
prioritised in order to ensure PNCC maintains its current 100% drinking water
supply compliance record and meets its obligations under the Health and Safety
at Work Act – 2015.
1.4 Each
of the issues is detailed more fully and analysis provided of options for
reallocation of savings, transfer of funds by deferral of works in the current
year and as a last resort approval of additional unbudgeted expenditure. The
consequences of not progressing with the projects will be an inability to
complete and commission new and replacement bore capacity both to meet summer
peak demand requirements and on-going demand growth.
1.5 In
submitting this report, Officers wish to stress the challenges which are
currently facing the water supply sector, including the high level of national
scrutiny amid multiple external reviews, significant increased vigilance in
respect of compliance as well as the high level of uncertainty around
regulatory and compliance changes. It is within this context that Officers have
recommended a risk averse approach to providing and investing in water supply
services. It is regretted that this has led to a request for further unbudgeted
expenditure, however every attempt has been taken to identify offset savings
both in respect of 2018/19 capital programmes and future savings in respect of
both renewals and re-current operational costs.
2. Railway
Road Bore Commissioning – Programme 985
2.1 The
new Railway Road bore is a key component of the city’s investment in
additional source water capacity to meet growing residential and commercial
demand and provision of a second supplementary source of supply for the Kelvin
Grove zone. The bore will also provide critical back-up and resilience for the
Roberts Line and Keith Street bore stations in the event of unplanned outage.
2.2 The
drilling, testing and consenting of the Railway Road bore has been completed,
with the yield and water quality more than meeting expectation. Unfortunately,
the drilling work was protracted due both to the selected drilling method
(cable-tool) and low level of productivity of the contractor. The significant
delay of nearly a year has resulted in several unexpected changes to the scope
of works.
2.3 The
final commissioning components of the project have been designed and tendered
and final costs for many of these changes are now known. Significant scope
changes and additional costs have been incurred for the following:
· Changes
to HSNO regulations requiring more stringent provisions for storing and
handling chemicals including making provision for bulk transporter delivery of
chemicals
· More
stringent water quality monitoring following the Havelock North event requiring
additional on-line monitoring equipment
· Increases
in the cost of construction due to the delay in final design and tender for the
pump station and chemical dosing plant including civil works, electrical and
controls and pipe works
· Higher
than expected costs for installing a new transformer
· Additional
landscaping assessment, planting and fencing requirements
· Additional
costs to purchase land along the north-western boundary to mitigate the loss of
effective land footprint due to the landscaping offset requirements along each
of the Robert’s Line and Railway Line frontages
2.4 The
original approved budget for Programme 985 (1235 c/fwd) was $1,488,000 in the
2016-17 financial year. Carry forwards of $644,000 into 2017-18 and $537,000
into 2018-19 were approved by Council. The estimated cost to complete the
overall programme of work is now estimated to $1,838,000 or $350,000 more than
the original budget approved two years ago.
2.5 Officers
have considered carefully the range of programmes being delivered in the three
waters area to identify any potential savings to offset the additional costs.
Three programmes have been identified with currently identified savings or
unallocated funds. In two cases the savings have been identified following
confirmation of the scope required to deliver on the programme outcomes for
this financial year such that the budget reductions will not risk the
achievement of the programme outcomes. In the third case there is no confirmed
requirement for the work, as the requirements only emerge during the year. A
brief description of the specific savings proposed for re-allocation are
outlined as follows and summarised in Table 1 below.
· Programme
592-Turitea Water Treatment Plant - Sludge Handling and Disposal Improvements.
The scope of work has been confirmed and the cost is significantly less than
budgeted. Current budget of $154,304 has a confirmed required commitment
of $54,304 leading to a surplus of $100,000.
· Programme
1005 – Installation of Water Supply Systems to an Expanded North-East
Industrial Zone. The immediate scope of work to extend the mains to
Richardson’s Line is confirmed and will be constructed this financial
year. A balance of $100,000 is available to support commissioning the Railway
Road bore, because the known development requirements will be met by the
expanded network, and funding in the following years will be available to
construct further network extensions.
· Programme
246 – Citywide Water Subdivision Contributions. This programme is
provided to enable Council to contribute to sub-division development costs for
water infrastructure where there is a wider benefit to the city. Historically
there has been a limited call on the funds. It is proposed to reallocate
$150,000 of the $200,000 budget leaving a remainder $50,000 to support any
applications. There is a risk that this provision will not be adequate and this
will require a further funding relocation or an approach for additional
funding.
Table 1 Proposed
Capital New Programme Budget Adjustments
|
Prog
ID
|
Description
|
2018/19 Budget
|
Proposed 2018/19 Budget
|
Change
|
|
985
|
Kelvin
Grove Water Supply Zone – New Bore
|
$537,000
|
$887,000
|
$350,000
|
|
592
|
Turitea
WTP – Sludge Handling and Disposal Improvements
|
$154,304
|
$54,304
|
-$100,000
|
|
1005
|
Installation
of Water Supply Systems to an Expanded NEIZ
|
$384,000
|
$284,000
|
-$100,000
|
|
246
|
Citywide
Water Subdivisions Contributions
|
$200,000
|
$50,000
|
-$150,000
|
|
|
Totals
|
$1,275,304
|
$1,275,304
|
$0
|
3. UV
Treatment for Papaioea park bore 3
3.1 There
are currently two existing bores at Papaioea Park with a combined yield
capacity of 270m3/hr. The bore capacity has declined significantly
over time, as for example in 2013, Bore 2 alone was capable of producing 400m3/hr.
In response to this yield decline and as allowed for in Programme 1058 -
Citywide Ground Water Renewal, construction of a replacement bore was commenced
in 2016/17. The drilling work for Papaioea Bore 3, installation of a
submersible pump and construction of the bore headworks was completed ahead of
proposed commissioning in January 2018. The bore test confirmed an available
yield of 360m3/hr.
3.2 Unfortunately,
during the commissioning process the unexpected presence of total coliform
bacteria forced a halt to commissioning works. This was completely unexpected
as thorough disinfection procedures had been followed for all elements of the
bore construction works including thorough disinfection of the pumps and pipe
work prior to installation in the bore.
3.3 It
was elected to flush the bore for an extended period from late January to April
2018 in the expectation that the bacteria would be cleared from the bore.
However, while the bacterial counts reduced during flushing to low levels, they
subsequently returned at higher levels post flushing.
3.4 Officers
and staff then implemented an in-situ disinfection procedure which involved
injecting a super chlorinated solution into the bore. This method which is
routinely used in Australia was approved by Horizons Regional Council and
undertaken on the 22 May 2018. Unfortunately, after a few days with bacteria
clear results, the coliforms returned albeit at very low levels. A few days
after the bore disinfection, a single positive e.coli was also recorded
during routine sampling. This has effectively disqualified the bore from
achieving secure status in the interim.
3.5 Under
the Current Drinking Water Standards, water from bores which achieve secure
status do not require treatment although a disinfection residual is recommended
to provide for contaminant entry to the distribution network. A key criterion
for achieving secure bore status is the absence of e.coli. from daily
sampling and testing over a 12-month period. However, interim security status
may be granted at the discretion of the Drinking Water Assessor while the daily
testing is in progress.
3.6 Bore
3 had been given an interim security determination based on being connected to
the same aquifer as Bore 1, only 23 m away, which had a long history of
bacterial and protozoal compliance. Unfortunately the single positive e.coli.
has triggered the requirement for 12 months of bacterial monitoring before
the bore can be commissioned in its current state. If any daily sample records
a positive e.coli. result then the 12-month monitoring period begins
again.
3.7 The
only practical way to enable the bore to be commissioned is to implement
treatment for both bacterial and protozoal compliance. Any treatment process
will also require 12 months of protozoal monitoring data.
3.8 Following
discussions with the Drinking Water Assessor, Officers have received agreement
in writing that given the chance of any positive protozoa test result is
remote, interim security for protozoa, supported by 12 months of monitoring,
can be assumed provided UV treatment is implemented sufficient to achieve both
protozoa and bacterial compliance as required by the Drinking Water Standards.
Officers have initiated protozoa monitoring of the bore.
3.9 Officers
are working through the detailed scoping and design for implementing UV
treatment of the bore, however firm cost estimates for the supply and
installation of UV equipment and associated pipe works, building, electrical
wiring and controls based on similar installations in other New Zealand locations
are of the order of $550,000.
3.10 While
there is a chance that the 12 months of protozoa and e coli monitoring
may result in no further positive results, awaiting this finding will delay
commissioning of the bore until this time next year. There is also the very
real risk that a further positive result will reset in the clock being re-set
pushing out commissioning further. Without investment in UV disinfection, there
is no possibility of the bore being available to support summer water
requirements, and it is almost certain that a similar cautious approach with
implementing extended water restrictions will need to be applied this coming
summer as in 2017-18. It should be noted that some level of water restrictions
or conservation measures will be applied to manage demand to within consent
limits.
3.11 Connecting
the bore without UV treatment will result in a determination of non-compliance
with respect to the Drinking Water Standards. Such a decision is strongly
opposed by Officers as it undermines the strenuous efforts and significant
investment made in maintaining Palmerston North’s strong compliance
record.
3.12 Officers
have considered the full range of 2018/19 programmes of work to identify and
potential savings. Only one available reallocation has been identified as
follows:
· Programme
1404 - Turitea Water Treatment Plant – New Retaining Walls on Access
Road. The programme is provided to enable funding of new retaining walls
in response to instability. Recent inspection of the access road has not identified
any work requirements so the programme is currently unallocated. If the funds
are reallocated as proposed, there is the risk that Officers will need to
return to Council to seek funding for any remedial works. Current budget
of $130,000 has no current commitments and therefore the available budget for
re-allocation is $130,000.
3.13 Aside from
the programme reallocation identified, an additional sum of $420,000 of
unbudgeted expenditure in 2018/19 is required to provide the required budget of
$550,000 for the works.
3.14 Allowing
for the reallocation of $130,000 from Programme 1404, the net new borrowing in
2019/20 will be $420,000. The estimated additional rates impact of an
additional $400,000 of capital borrowing is an increase in rates of $30,000 per
annum from 2019/20 or an extra $1.1 on the targeted water rate.
4. Storage
and Treatment Enhancement at Bore Stations – Programme 1384
4.1 Council
approved Programme 1384 – Citywide – New Water Supply Reservoirs to
replace an earthquake prone reservoir and enhance supply storage in the 2018-28
LTP. The programme provides for spending of $8.2M over 10 years to build a new
treated water reservoir at Ngahere Park and smaller reservoirs at each of the
bore stations across the city.
4.2 The
bore station reservoir storage will achieve three distinct benefits related to
supply security, operational efficiencies and drinking water compliance
including:
· enable
bores to be either pumped or allowed to discharge by artesian head at a steady
rate to on-site storage extending the life of the bore and delaying new bore
investment
· provide
distributed treated stored water for emergency water supply post disaster e.g.
seismic event
· enable
bore water to be effectively treated with chlorine to achieve Drinking Water
Standard recommended Free Available Chlorine (FAC) levels of 0.2mg/l in the
network
4.3 The
bore station reservoirs as indicated will be sized to buffer within day peak flows
from the network so enabling the bores to fill the reservoir either by artesian
or low head pumping at a steady rate. Conservatively it is expected that this
will extend the typical life of the bores once drilled from 15 to 20 years i.e.
5 years more life. In addition, it is estimated that because the installation
of booster pumps provides additional peak day capacity with the current bores,
new bore investment to meet growth can be delayed by several years.
4.4 The
bore station reservoirs which will may vary from 250 to 1000m3 in
volume, will provide distributed stored water available in a post-disaster
situation e.g. seismic event, for tanker distribution. This distributed clean
water will be critical to cover the period prior to networks and source capacity
being restored.
4.5 The
bore station reservoirs will also provide the necessary storage volume to
enable breakpoint chlorination of the bore water to be achieved and enable
water with FAC levels of 0.2mg/l in the network to be delivered. Currently
because of concerns with discoloured water generation as a result of direct
chorine injection into the delivery pipeline, Council relies on chloramine as
the disinfection residual for network disinfection. While widely used in
overseas jurisdictions, New Zealand Drinking Water Standards promote FAC.
4.6 In
December 2017 the Government appointed panel released their Stage Two Report on
the Havelock North Drinking Water Inquiry, which set out strong recommendations
that the secure bore status be removed and that treatment and compliance with
the Drinking Water Standards be made mandatory. At this stage Council is still
awaiting the government’s decision on the recommendations. However the
panel were adamant in their recommendation that mandatory treatment be an
immediate priority for all bores.
4.7 Chlorination
by means of chlorine gas is the preferred treatment method of Council both due
to its cost and because Council already provides for chlorination albeit to low
levels. The key change is achievement of FAC levels not less than 0.2mg/l
within the reticulation. Officers have identified that the only practical way
to achieve FAC in the treated water is to provide a contact tank
post-chlorination.
4.8 Programme
1384 already provides for funds to construct a reservoir tank at each of the
bore stations. Given commissioning works are underway at three bore sites,
Officers have identified the value of aligning reservoir construction with the
bore commissioning. Alignment of the two programmes and completion of the work
in 2018/19 will result in some capital savings. Delay of the reservoir
construction by 2 years will require both pipe work and chlorination
installation modifications at an estimated additional cost of $80,000. These
costs are avoided if the programmes are aligned.
4.9 Officers
are seeking to bring forward $750,000 from 2020/21 for Programme 1384 to fund
one reservoir at Railway Road bore site.
4.10 The key
disadvantages of not proceeding immediately with the storage tank at the
Railway Road bore includes additional costs to modify pipe connections in 2
years’ time, the delay of the opportunity to optimise the life of the
bore and the likelihood that construction of storage will soon become mandatory
if is as expected the Drinking Water Standards are revised. An assessment of
the net impact on rates is set out in Table 2 below based on the following
assumptions:
· new
bore life extended from 15 to 20 years with storage
· cost
of modifications if storage construction is delayed - $80,000
· delay
to the date for investment in the new Whakarongo bore of 1 year
4.11 The impact
of bringing forward the reservoir programme budget and delaying the new bore
investment at Whakarongo is small compared to the impact of delaying renewal
investment in bore development and renewal. The net impact on rates is small
with an increase in years 1 to 3 and a reduction in years 4 to 7 of the
LTP. Over the 10 years of the Plan, there is a net reduction of -$54,000
in borrowing largely due to the deferral of the investment in the new
Whakarongo bore by one year.
Table 2 Assessment
of Impact of Bringing Forward Reservoir Construction in Programme 1384
|
Prog ID
|
Description
|
18/19 ($000)
|
19/20 ($000)
|
20/21
($000)
|
21/22 ($000)
|
22/23 ($000)
|
23/24 ($000)
|
24/25 ($000)
|
25/26 ($000)
|
26/27 ($000)
|
27/28 ($000)
|
|
Current Programme Schedule
|
|
|
1384
|
New
Water Supply Reservoirs
|
|
$513
|
$1,783
|
$0
|
$1,869
|
$0
|
$1,966
|
$0
|
$2,071
|
$0
|
|
1004
|
Whakarongo
– New Waters Systems
|
$135
|
$739
|
$836
|
$1,463
|
$323
|
$0
|
$0
|
$0
|
$0
|
$0
|
|
Revised Programme Schedule
|
|
|
1384
|
New Water
Supply Reservoirs
|
$750
|
$513
|
$1033
|
$0
|
$1,869
|
$0
|
$1,966
|
$0
|
$2,071
|
$0
|
|
1004
|
Whakarongo
– New Waters Systems
|
$135
|
$739
|
$336
|
$500
|
$1,463
|
$323
|
$0
|
$0
|
$0
|
$0
|
|
Difference
Capital New
|
$750
|
$0
|
-$1250
|
-$963
|
$1,140
|
$323
|
$0
|
$0
|
$0
|
$0
|
|
Rates
Impact
|
$21
|
$52
|
$17
|
-$62
|
-$69
|
-$13
|
$0
|
$0
|
$0
|
$0
|
5. Programme
593 – Water Safety and security Mitigation
5.1 For
the last two financial years, Council has approved new or re-allocated capital
funding of $138,000 for a series of security and safety initiatives to address
identified risks and vulnerabilities in the water supply system which increased
the risk of either delivery of unsafe drinking water or technical
non-compliances which threatened Council’s 100% compliance record for
bacteria and protozoa free drinking water. Specific initiatives funded from
this programme included:
· Renewal
of several critical variable speed drives
· Replacement
of the in-line valves between the raw and treated water mains at Turitea WTP
· Purchase
of a replacement bore pump for the Takaro bore
· Modification
of the filter modules at Turitea to prevent contamination
· Replacement
and lowering of the Railway Road bore pump
· Raising
of the Takaro bore head (still in progress)
5.2 While
the last of the upgrade and improvement works is due to be completed in the
current financial year, staff has continued to review and assess risks and
vulnerabilities. During the 2017-18 year staff has identified three additional
areas of safety and security concern. These have been highlighted by internal
audits and by several incidents which have highlighted weaknesses in existing
monitoring systems and processes.
5.3 The
first area relates to monitoring of fluoride levels in treated water. Aside
from Turitea WTP which has on-line monitoring, all the bores rely on weekly
sampling and testing. During the year there were two technical non-compliances
in respect of fluoride levels in the treated water supplies at Ashhurst and
Longburn. These have indicated a need to strengthen monitoring systems in this
area.
5.4 Secondly
the specific requirements and obligations for the water sector of several
recent national legislative changes have become clearer. These requirements
relate particularly to the obligation of the employer for their staff and
specific controls and safeguards for chemicals in the workplace. The two
relevant pieces of legislation are:
· Hazard
Substances and New Organisms Amendment Act – 2015 and
· Health
and Safety at Work Act – 2015
5.5 The
third area of security concern has arisen in respect of unplanned power outages
at the Turitea WTP. During 2017/18 power supply to the Turitea plant was lost
on two occasions and for different reasons the back-up generator failed in both
cases to supply power in time to avoid a loss of monitoring data, although
there was no risk of unsafe drinking water being supplied. While in both cases
operators were alerted to the issue and restored normal operation within hours,
the consequences of the data monitoring gap is a non-compliance with respect to
the Drinking Water Standards.
5.6 The
risk associated with the current weekly fluoride sampling and testing at the
bore stations while compliant with the Drinking Water Standards, was exposed in
the last year. In one instance elevated levels of fluoride were dosed to the
supply (Longburn) for a number of days following an error on the part of an
external contractor. Officers recommend that the current weekly manual sampling
and testing be replaced with on-line monitoring at all bore sites. On-line
monitoring will provide alarm alerts when fluoride levels stray outside the
target range, enabling timely response before there is any material delivery of
water with elevated fluoride levels to the network. Council had already
implemented day tanks at each bore which limit the total volume of fluoride
solution which can be added in a single day.
5.7 The
total cost for installing on-line fluoride monitors at each bore is estimated
to be $9,500 per site or $66,500 for all 7 bore stations. This work is
considered high priority or Priority 1.
5.8 Following
the passing into law of the new HSW Act and HSNO Amendment Act, and feedback on
interpretation of the compliance requirements, Operations Staff have received
expert advice and completed condition assessment of the Turitea WTP and bore
installations to identify necessary improvements. There are a significant
number of modifications to meet all aspects of the new legislation. The
specific areas of improvement required include:
· improvements
to platforms and hand rails, installation of new permanent stairs where
removable ladders had been used and installation of mountings for safety
harness systems to access tanks and chambers for routine and scheduled
maintenance (estimated cost $95,000 – Priority 1)
· installation
of weighing systems and seismic restraints to the chlorine installations at
four bore sites (estimated cost $65,000 – Priority 2)
· installation
of emergency shutoff systems for chlorine gas at 5 bore sites (estimated cost $75,000
– Priority 2)
5.9 Finally
Officers are recommending improvements at the Turitea WTP, to prevent any
unplanned loss of power or plant malfunction which results either in a
monitoring data gap of more than 3 minutes or treated water which is outside
the compliance standard from being delivered to the network. Despite operator
vigilance and significant additional investment in renewals and safety
upgrades, there have been 7 incidents in the last two years which have met
these criteria.
5.10 Officers
have scoped and confirmed that the installation of automatically actuated
shutdown valves on both the inlet to and outlet from the Turitea Water
Treatment Plant will ensure that whatever conditions occur in the plant, any
data loss or non-compliant water can be used to trigger valve activation.
Closure of the two valves will provide confidence to the Drinking Water
Assessor that no treated water was delivered to the network during any event.
The valves will be powered from the existing IPS (interruptible power supply)
to ensure near failsafe operation.
5.11 Currently valves
can only be shut manually which continues to expose Council to a potential
non-compliance given the plant is unmanned for most of the time. Despite the
significant investment in improved systems, data capture and equipment
reliability, there can be no guarantee that an outage will not occur. The firm
estimate of cost to implement the auto shut system is $80,000 including
electrical and controls.
5.12 Officers
have considered the priorities for all the above improvements and are seeking
funding in the current year for the priority 1 works namely on-line fluoride
monitors, health and safety improvements and the auto-shut system at the
Turitea WTP. Funding to implement the priority 2 works namely chlorine gas
storage and safety improvements will be applied for in the 2019-20 financial
year.
5.13 The risk
of not implementing the Priority 1 improvements as proposed includes:
· potential
non-compliance with the fluoride requirements under the Drinking Water
Standards
· potential
prosecution in respect of the HSE Act in the event of an health and safety
incident resulting in injury which can be traced to the failure to mitigate the
risks identified
· potential
non-compliance with the Drinking Water Compliance requirements particularly in
respect of loss of monitoring data and/or provision of non-compliant drinking
water
5.14 While none
of the risks being addressed are likely to result in provision of unsafe
drinking water, they all directly impact on compliance by Palmerston North with
legislative obligations and failure to do so will contribute to reputational
risk. Officers therefore seek additional unbudgeted funding for the 2018/19
year for Programme 593 – Water Safety and Security Mitigation of $241,500
to take the programme budget to $264,500 to provide for the following work:
· on-line
fluoride monitoring equipment for all bore stations - $66,500
· health
and safety improvements to platforms, railings, ladders and harness attachments
- $95,000
· auto-shutoff
valve installation at the Turitea WTP - $80,000
5.15 The
financial impact of the additional capital borrowing of $241,500 is an
additional $16,000 per annum in rates starting in 2019/20 or $0.75 on the
targeted water rate. The additional cost needs to be weighed against both the
reputational and other non-financial impacts of a serious water supply
non-compliance or serious health and safety incident.
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Does the Committee have
delegated authority to decide?
If Yes quote relevant clause(s)
from Delegations Manual <Enter
clause>
|
No
|
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Are the decisions significant?
|
No
|
|
If they are significant do they
affect land or a body of water?
|
No
|
|
Can this decision only be made
through a 10 Year Plan?
|
No
|
|
Does this decision require
consultation through the Special Consultative procedure?
|
No
|
|
Is there funding in the current
Annual Plan for these actions?
|
No
|
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Are the recommendations
inconsistent with any of Council’s policies or plans?
|
No
|
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The recommendations contribute
to Goal 4: An Eco City
|
|
The recommendations contribute
to the outcomes of the Eco City Strategy
|
|
The recommendations contribute
to the achievement of action/actions in the Three Waters Plan
The actions contributed to
include:
· provision of a
safe water supply to the city
· increase water
supply source capacity through the development of additional bores
· enhance and
improve efficiency of water networks
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Contribution to strategic
direction
|
The recommendations will
ensure Council is able to develop adequate new source capacity to maintain
and augment source capacity as bore yields decline at Papaioea Park.
The recommendations will enable completion of the Railway Road bore and so
secure additional source water to meet industrial and residential growth in
the Kelvin Grove zone. The recommendations will enable optimising of the
investment in the new Railway Road bore by allowing for network peak demand
to be supplied from storage and so enable the deferral of a new bore at
Whakarongo for a few years until average daily demand requires. The
recommendations will ensure Council continues to achieve 100% bacterial and
protozoal compliance with the Drinking Water Standards and meets it legal
obligations under the Health and Safety at Work Act.
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Attachments
Nil
