Kaipara District Council Mangawhai Wastewater Strategy
The strategy and options for the Mangawhai Wastewater system by Kaipara District Council aim to protect the environment, support growth, and fulfill commitments to the community. The plan involves extending the current system to meet increasing demand and manage potential risks effectively. Key aspects include system components, capacity, funding options, debt management, and addressing future growth needs.
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Kaipara District Council Mangawhai Wastewater Strategy and Options 7 August 2017
Mangawhai Wastewater (MWW) Objectives & Background Part 1 System, Options, Growth & Demand Part 2 Connection policies, Anomalies & Alternative funding options Decisions required MCWWS Advisory Panel recommendations Conclusion
Objectives of MWW scheme & extension Need to protect the Mangawhai Harbour Support growth (Mangawhai Community Plan) Honour commitments Purpose of Local Government
Background Past Ground zero Phase 1 Phase 2 Phase 3 2012 2014 2015 now
Ground zero & now 2012 $m 2012 $m 2017 $m 2017 $m Attribution of MWW debt to communities Existing community (connected and connectable) 9.4 12.1 Mangawhai Harbour Restoration community 4 0 13.4 12.1 District wide- tranche 1 (balance capital cost) 11.3 9.8 District wide- tranche 2 (prior operating deficits) 7.1 0.6 18.4 10.4 Note 1 Sub-total current communities 31.8 22.5 Development years 1 10 6 Development years 11 and over 20.2 26.5 Sub-total future communities 26.2 26.5 Total 58.0 49.0 Note 1: to be finalised for year end
Need for MWW extension (ME3) Growth is happening:- Disposal will require expansion; Treatment plant can handle more with $1.8m upgrade; Reticulation needs to be extended.
Risks Managing capacity high peak loading over the Christmas / New Year period; long term increases in the average flows into the system due to ratio of permanent to holiday homes increasing Estimating pace of growth too fast, too slow changing demographics Debt Potential for stranded debt Managing extension
Part 1 ME3 System components & capacity Options, costs & funding Growth and demand
System components & capacity Private connections Currently 1,956 connected; 486 capable (total 2,442 at May 2017) Reticulation network Capacity 2,500, 2020 based on medium growth (77 pa) Treatment plant Capacity 2,500, 2020 based on medium growth (77 pa) Disposal of effluent Capacity 2,600, 2021 based on medium growth (77 pa)
ME3 - Option 1- Do minimum Extend disposal system, upgrade existing reticulation, upgrade treatment plant; Capacity 3,300 connections; reached in 2030 based on medium growth scenario; Cost over 10 years $4.35m.
ME3 - Option 2 - Reticulate Pockets Extend disposal system, upgrade existing & extend reticulation, upgrade treatment plant; Includes $3.7m to extend the reticulation; Capacity 3,300 connections - reached in 2030 based on medium growth scenario; Cost over 10 years $7.65m.
ME3 - Option 3 - Ecological plus pockets Extend disposal system, upgrade existing & extend reticulation, upgrade treatment plant; Includes $12.4m to extend the reticulation; Capacity 3,300 connections - reached in 2030 based on medium growth scenario; Cost over 10 years $16.35m.
ME3 - Option 4 - Additional Disposal Extend & additional disposal system, upgrade existing & extend reticulation, upgrade & augment treatment plant; Includes $17.6m to extend the reticulation; Includes $12.8m to augment the treatment plant; Capacity 4,700 connections - reached in 2052 based on medium growth scenario; Cost $34.78m mostly over 18 years.
ME3 comparison of options Uninflated 2018-19 2019-20 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 2026-27 2027-28 2028-29+ $m $ m $ m $ m $ m $ m $ m $ m $ m $ m $ m $ m Option 1 - Service 3,300 connections Extend irrigation system Upgrade existing reticulation Upgrade WWTP Additional Capacity for Growth - Council 0.95 1.20 1.80 - - 0.95 - - - - - - - - - - - - - - - - - - - - - 0.20 1.00 1.00 0.80 - - 0.40 4.35 0.04 1.24 0.04 1.84 0.04 0.99 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 Option 2 - Reticulate pockets, 3,300 Extend irrigation system Upgrade existing reticulation Extend reticulation (8 years) Upgrade WWTP Additional Capacity for Growth - Council 0.95 1.20 3.30 1.80 0.95 - 1.00 0.41 0.41 0.41 0.41 0.41 0.41 0.41 0.41 1.00 0.80 0.40 7.65 0.04 1.24 0.04 1.84 0.04 1.40 0.04 0.45 0.04 0.45 0.04 0.45 0.04 0.45 0.04 0.45 0.04 0.45 0.04 0.45 Option 3 - Ecological + pockets, 3,300 Extend irrigation system Upgrade existing reticulation Extend reticulation (8 years) Upgrade WWTP Additional Capacity for Growth - Council 0.95 1.20 12.00 1.80 0.95 0.20 1.00 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.50 1.00 0.80 0.40 16.35 0.04 1.24 0.04 1.84 0.04 2.49 0.04 1.54 0.04 1.54 0.04 1.54 0.04 1.54 0.04 1.54 0.04 1.54 0.04 1.54 Option 4 - Additional R, T & D, 4,700 Extend irrigation system New disposal system Upgrade existing reticulation Extend reticulation (13 years) Augment WWTP Additional Capacity for Growth - Council 0.95 2.23 1.20 17.20 12.80 0.95 1.49 0.20 1.00 1.40 1.40 1.40 1.30 1.30 1.30 1.30 1.30 0.50 6.50 10.50 1.00 0.80 0.40 34.78 0.04 1.24 0.04 1.84 0.04 2.39 0.04 1.44 0.04 1.44 0.04 1.34 0.04 1.34 0.04 1.34 0.04 1.34 0.04 1.84 18.49
Growth & Demand Growth Using the medium growth scenario (77 dwellings pa) Same basis as for the Mangawhai Community Plan Demand Determines where reticulation should go Ecological option may divert away from demand areas
Summary of financial modelling Summary Base ME3- Op1 ME3- Op2 ME3- Op3 ME3- Op4 MCP w Op2 average for 10 years Rates $m Rates increase % 33.9 2.6% 33.9 2.6% 33.9 2.6% 33.9 2.6% 33.9 2.6% 34.8 3.0% Operating revenue Capital revenue Total revenue $m 50.4 9.8 60.2 46.6 10 56.6 50.4 10.1 60.5 50.4 10.2 60.6 50.4 10.2 60.4 51.3 10.6 61.9 37.5 38.2 38.1 38.5 38.5 39.6 Activity operating costs $m Capital expenditure $m Growth (base) Level of service Renewal New 0.3 4.3 16.6 0.3 4.3 16.6 0.3 21.5 0.3 4.3 16.6 0.7 21.9 0.3 4.3 16.6 1.7 1.7 0.3 4.3 16.6 1.7 22.9 0.3 4.3 16.6 2.1 23.3 21.2 Total position at year 10 Debt $m 36.5 45.7 47.6 60.9 61.7 62.5 Net debt as % of revenue (LGFA 175%, policy $170%) 103.7% 70.6% 73.6% 94.5% 95.7% 93.7% Net interest as a % rates (Limit 25%) Debt as a % net assets 9.7% 8.9% 6.1% 6.6% 6.3% 0.3% 7.6% 6.8% 7.7% 13.1% 9.1% 6.9%
Summary of Funding implications Development contributions $ (excl GST) Current DC 21,237 Base 13,784 ME3 option 1 (do minimum) 17,111 ME3 option 2 (pockets) 17,959 ME3 option 3 (ecological) 20,193 ME3 option 4 (additional R, T & D) 20,027 ME3 option 4 - 25% 23,880 ME3 option 4 + 25% 19,966
Part 2 ME3 Connection policies Anomalies Alternative funding options
Connections Policy Three parts to the Policy Requirement to connect Private costs and funding Operation and maintenance of private connections
Five Groups of Properties Property Groups with connection potential A Existing connectable properties with an existing dwelling (83[1]) B Existing connectable properties without a dwelling (384) C Future connectable properties with an existing dwelling (297) D Future connectable properties without a dwelling (149) E New properties created by subdivision or development (Estimate 2,765) [1] All rating unit data is at 7 April 2017
Requirement to Connect Options Property A B C D E Group Option 1 Connection optional Option 2 As soon as At time of As soon as practicable, eg At time of At time of practicable, eg on development on reticulation network development or development or Connecting development or or building extension or on building consent building promoted building consent or consent development or building consent failure of on-site consent or failure of on-site system system
Private Costs and Funding Options for ownership, operation and maintenance B C D E Property A Group Option 1 All full private Full cost including After calendar 2009 Full cost including Full cost including cost including grinder pump. - Full cost including grinder pump. grinder pump. Full private grinder pump. Grinder pump to grinder pump. Grinder pump to Grinder pump to cost Grinder pump to vest in Council Grinder pump to vest in Council vest in Council vest in Council vest in Council Before calendar Option 2 2009 - Grinder Partial pump funded by assistance Council Note: The Advisory Panel recommended that Council fund a grinder pump if required if the dwelling existed pre-2009
Operation and Maintenance Situation X - Single dwelling private drain directly between the dwelling and the public drain; or Situation Y - Multiple dwelling common private drain serving a number of dwellings/ premises and connecting the public drain; or Situation Z - Cross-property private or common private drain, with the drain crossing other properties to reach the public drain.
Operation and Maintenance cont. Options Option 1 Full Option 2 Council Option 3 Private Option 4 Full private provision/ private provision/ Council Council responsibility All full private costs responsibility responsibility responsibility Situation X Single dwelling (Gravity) to be met by owner Electricity costs Groups D, E Groups A, B, C Situation X Single dwelling (Pressure) only A, B C, D, E and replacement D, E A, B, C, D, E Situation Y Multiple dwelling common private drain (Gravity) A, B, C, D, E Situation Y Multiple dwelling common private drain (Pressure) A, B, C, D, E Situation Z Cross property common or private drain (Gravity) A, B, C, D, E Situation Z Cross property common or private drain (Pressure)
Anomalies Property C s Historical exemption from paying capable to connect
Policy Costs Grinder costs Gravity/pressure ratio No. of additional grinders required Funding of any new grinders plus all depreciation Subsidised connection costs Capital contributions v DC s Group C s PDA s
Alternative funding options Additional targeted rates for Undeveloped land, and/or Mangawhai harbour restoration or some other area The purpose would be to manage Debt & timing (financial exposure risk) issues, and/or Reduce per unit DC s, and/or Reduce per SUIP network charges, and/or Fairness & equity issues.
Decisions Required Provide for current requirements Option 2 recommended Plan for the future Option 4 recommended Policy decisions Council policy stance Connections policy Financial & funding policies
MCWWS Advisory Panel recommendations Material: Advisory Panel Report - July 2015 Draft update on MCWWS Advisory Panel Recommendations - August 2017
Conclusion Must go forward Growth - but what pace? The past is always with us Significant policy & financial considerations Debt management Affordability Distribution of costs Fairness
