1. Integrated Water Cycle Management Strategy
LGNSW Water Management Conference 2019 @ Albury
Roshan Iyadurai September 2019
2. Integrated Water Cycle Management (IWCM) Strategy
Local Government planning context
IWCM – why plan
What assistance is available from NSW Government
IWCM purpose & outcomes
Key drivers
IWCM issues paper development framework
IWCM strategy development framework
IWCM – community & stakeholder input
IWCM – what’s the connection with...
- safe and secure water program (SSWP)
- licensing & approvals
- water trading
- drought contingency/emergency works
- s60 approval
- levels of service (LoS), risk, cost & affordability
- DPIE performance monitoring & reporting
Q & A
3. Note 1 – IWCM Strategy mid-term review documents the review outcomes.
Currently this document is referred to as Strategic Business Plan
Local Government Planning Context & IWCM Strategy
NSW Government’s Best Practice Management Framework for Water
Supply & Sewerage
Resourcing Strategy– the later of IWCM Strategy and SBP
NSW IPR Framework for Council
Activities
IWCM Strategy
8 years
IWCM Strategy
Mid-term Review1– key
assumptions
8 years
4 years
- 30-year TAMP
- 30-year FP
- DC& ER Plan
Action Plan to
Council based on:
• ‘Roll forward’,
review & update of
TAMP
• Update of FP
• Review of DWMS
• Review of TBL
Performance
Report
1 year
Community
Involvement
Community
Involvement
4 years
4. • Customers expect continuous access 24/7
• Customers do not want price ‘shocks’
• Customers have an high expectation that the
water & sewer services is safe, secure &
reliable
• Expectation for fair pricing of service & full cost
recovery
• 30 – year plan, as these are long life assets
• Liability over a longer period
• Not all risks can be eliminated with design
IWCM Strategy – Why
Plan?
Capital costs
Hidden costs
?
5. IWCM – NSW Government Assistance
Financial grant under SSWP Stream 2
Technical
Presentations
Training – LWUs & Consultants
Our expectations when LWUs receives financial assistance under SSWP Stream 2:
Register Expression of Interest (EoI)
Obtain concurrence to Scope of Works
Seek technical assessment of tender proposal prior to engagement
Obtain concurrence to IWCM Issues Paper
Obtain concurrence to IWCM Strategy
Our expectations your IWCM strategy will based on sound analysis & evidence deliver:
A prioritised & implementable ‘blue print’ for your water service business
Tools that you can use in your annual business planning processes & future IWCM updates
6. IWCM Strategy – Purpose and Outcomes
The IWCM Strategy is a Local Water Utility’s “resourcing strategy” and much more…
• Sets the Levels of Service (LoS) framework linking objectives, service standards and performance indicators for the Water & Sewer business
• Identifies the issues and needs with respect to water security, water quality improvement, sewage management & distribution/collection system
works
• Identifies the ‘Right ‘ water supply and sewerage scheme options and ‘Right sizes’ the associated infrastructure components and non-build
measures
• Determines LWU’s implementation priority
• Identifies the ‘best value 30-year’ IWCM scenario on a triple bottom-line (TBL) basis for providing appropriate, affordable, cost-effective &
sustainable urban water services that meet community needs & protects public health & the environment
Outcomes:
• LoS Framework
• 30-year Total Asset Management Plan
• 30-year Financial Plan
• 5-year Outlook Drought Contingency & Emergency
Response Plan
• Develop/Update Development Servicing Plan
• Update water services pricing tariffs
• Develop/Update DWMS, RWMS, PIRMP, AMS&AV, CRMS
and DataMS
• Develop/Update Emergency Response Plan
7. Levels of Service (LoS) Framework
• linking objectives, service standards and performance indicators for water security, water
quality, sewage management and water service business
30-year Total Asset Management Plan
• New capex for growth and to meet service objectives
• Renewals to meet service objectives
• Non-build solutions (efficiency measures…)
• Resourcing requirements (staffing levels, skills and training needs, etc)
30-year Financial Plan - supports the asset management plan
• Determines the total revenue requirements and first cut developer charges
• Identifies borrowings, if any
• Enables Council to set the tariff structure & Developer charges
5–year Drought Contingency & Emergency Response Plan – supports continuity of service
• Identifies the critical assets
• Identifies the hazards & the impact of hazards on service continuity
• Risk based contingency measures to maintain service continuity
IWCM Strategy – Outcomes
8. IWCM Strategy – key Drivers
Lower LOS & Low Growth Developer charge
Residential
Charge
Grant
Non-Residential
Charge
Higher LOS & High Growth
Lower LOS & High Growth
Higher LOS & Low Growth
Developer charge
Residential
Charge
Grant
Non-Residential
Charge
TAMP
TAMP
TAMP
Developer charge
Residential
Charge
Grant
Non-Residential
Charge
9. Community
Expectations
Regulatory
Requirements
Past
Performance
Water Supply Systems
Levels of
Service
Framework
Stakeholder
&
Community
Review
Description of
Existing Urban
Water Services
30-year Water
Cycle Needs
Projection
Capacity &
Performance
Assessment of
Existing Urban
Water Services
& Management
Systems
Review
IWCM
Issues
Paper
Typical
Residential
Bill
Sewerage Systems
Urban Stormwater Systems
LWU
Serviced
Urban
Areas
LWU Un-
serviced
Urban
Areas
LWU
Manage
ment
Systems
Future
population &
development
Accounting for
climate, price &
other factors
influencing water
cycle
Water cycle
use analysis
& influences
Service area
current &
future
Current
customers
& end users
• Water security performance & needs assessment
• Water source risk review and barrier performance & needs
assessment
• Water supply system performance & needs assessment
• Sewerage system performance & needs assessment
• Impact review of stormwater on water & sewer system
• Performance review of on-site systems in LWU un-serviced
areas
• LWU Management Systems & plans effectiveness review
Catchment
characteristics
Metrology
information
System
characteristics
IWCM Issues Paper – Development Framework
11. IWCM: Community & stakeholder input
• The Checklist allows the LWUs to
tailor the community & stakeholder
input to meet your Council’s &
communities expectations based on
issues and resourcing needs.
Refer to IWCM Information Sheet 1
https://www.industry.nsw.gov.au/__data/assets/pdf_file/0020/218342/Stake
holder-and-community-input-into-integrated-water-cycle-management.pdf
lgnsw.org.au/amalgamation-toolkit/resources
12. SSWP
Enables a LWU to identify new risks or issues for consideration of co-funding
eligibility under SSWP Stream 1 (i.e. input to the risk prioritisation framework)
Identifies the best-value solution and the associated life cycle cost to resolve
the risks or issues
IWCM: What’s the connection with...
Level of co-funding available under SSWP
for preparing IWCM Strategy
* Percentage of the estimated total cost of funding
required to resolve the risk
13. • Builds the case for an increase/decrease in water entitlement to meet domestic
& associated commercial activity needs in a new &/or existing water source
• Builds the case for any extraction and works approval conditions such as e-flow
• Determines the need for any other approvals
• Establishes solution paths for licence/approval issues
IWCM: What’s the connection with...
Licensing & work approvals under WM Act:
• Need an approved IWCM
• Demonstrates the availability of risk management strategies
Water trading from LWU-SPAL:
14. • Its a planned long-term supply-demand measure needed to manage the forward-
looking growth and climate variability projections.
• The 5/10/10 design rule is generally used within the planning framework to size the
headworks to ensure water security that meets community expectations with moderate
restrictions.
IWCM: What’s the connection with...
IWCM Strategy:
• Its a response plan to ensure the water supply system does not run out of water.
• Sets out tactical measures to respond to water shortages and/or incidents, if they arise
in the immediate to short-term (for example, if inflows are worse than expected, water
quality event, asset failure, etc).
Drought Contingency & Emergency Response Plan:
Builds the case and considers how the drought contingency & emergency
infrastructure and non-infrastructure works ‘fits-in’ with the long term strategy
Drought contingency & emergency works:
15. A sound IWCM addresses the:
✓ first two steps of the approval process for
the construction or modification of a
treatment works (Initial consultation &
options report)
Additionally it also:
✓ ‘right’ sizes the scheme assets & measures
✓ Identifies the best value scheme option
✓ Confirms financial sustainability &
affordability
✓ Streamline the approval process
s60 approval process
S60 approval process steps for
treatment works:
Step 1 – Initial consultation
Step 2 – Options report
Step 3 – Concept design & environmental
assessment
Step 4 – Specification (D&C)
Step 5 – Tender (D&C)
Step 6 – Detailed design
Step 7 - Approval
https://www.industry.nsw.gov.au/water/water-
utilities/regulatory-assessments
IWCM: What’s the connection with...
16. IWCM: What’s the connection with...
levels of service (LoS), risk, cost & affordability:
High LoS $$
Source: long-term financial planning; Practice Note No. 6; IPWEA
Please change only BLACK text
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Asset
ID
asset type,
location, etc
columns..
Condition-
Rating Curve
to use
Consequence
of Failure (1 to
5)
Install
Year
Default
Useful
Life
Quantity
(unit) Replacement
Cost Unit
Rate ($/unit)
Contingency
(%)
Current
Replacement
Cost
Condition
Assessment
Year
Condition
Rating from
Assessment
Condition
Assessment
Information
Check- should
be 'ok'
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U
C
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i
o
O
v
e
r
r
i
d
e
Adopted Useful
Life
Age in current
year
%
Useful
life
consum
ed as at
current
year
Depreciated
Replacement
Cost
Condition
Rating in
current year
Risk in
current year
Current year Future Year
1
Future Year
2
Future Year
3
Future Year
4
Future Year
5
Future Year
6
Future Year
7
Future Year
8
Future Year
9
Future Year
10
Future Year
11
Future Year
12
Future Year
13
Future Year
14
Future Year
15
Future Year
16
Future Year
17
Future Year
18
Future Year
19
Future Year
20
LINEAR 5 1942 20 123.00 1.23
$ 10% 166
$ 2013 3 ok 142 71 50% 83
$ 3 83 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$
LINEAR 3 1949 70 567.00 5.00
$ 10% 3,119
$ 2012 4 ok 84 64 76% 743
$ 4 69 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 3,118
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$
LINEAR 3 2000 80 252.00 3.30
$ 10% 915
$ 2013 1 ok 80 13 16% 766
$ 2 42 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$
LINEAR 5 2003 80 15416.00 3.30
$ 10% 55,960
$ 2010 4 ok 9 10 100% -
$ 5 100 55,960
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 55,960
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 55,960
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$
LINEAR 1 2003 30 1461.00 5.60
$ 10% 9,000
$ 2013 4 ok 13 10 75% 2,250
$ 4 46 0
$ 0
$ 0
$ 0
$ 8,999
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 8,999
$ 0
$ 0
$
LINEAR 1 1966 100 144.00 5.60
$ 10% 887
$ ok 100 47 47% 470
$ 3 33 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$
LINEAR 1 1964 80 24.00 1.23
$ 10% 32
$ ok 80 49 61% 13
$ 3 37 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$
LINEAR 4 1942 70 213.00 3.30
$ 10% 773
$ 2005 3 ok 126 71 56% 338
$ 3 72 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$
LINEAR 5 1963 100 56.00 5.00
$ 10% 308
$ 2000 3 ok 74 50 68% 100
$ 4 87 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 308
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$
LINEAR 2 1976 80 732.00 5.60
$ 10% 4,509
$ 2012 4 ok 48 37 77% 1,033
$ 4 57 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 4,509
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$
LINEAR 5 1965 100 421.00 1.23
$ 10% 570
$ ok 100 48 48% 296
$ 3 73 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$ 0
$
Total forecast renewal cost for year $55,960 $0 $0 $0 $8,999 $0 $308 $55,960 $0 $0 $3,118 $4,509 $0 $0 $55,960 $0 $0 $0 $8,999 $0 $0
Smoothed forecast renewalcost for year $18,653 $13,990 $12,992 $1,800 $1,861 $13,053 $13,053 $11,254 $11,877 $12,717 $1,525 $1,525 $12,717 $12,094 $11,192 $11,192 $12,992 $1,800 $1,800 $2,250 $3,000
Average (weighted) age of assets at end of the year 7.0 8.0 9.0 10.0 10.0 11.0 11.8 7.2 8.2 9.2 8.1 7.3 8.3 9.3 4.7 5.7 6.7 7.7 7.6 8.6 9.6
$50,000
$60,000
17. Builds the case for an Council wide integrated planning & performance data
capture and management system
Identifies the strategic and operational data linked to the LoS framework to
facilitate on-going improvement
Builds the case for required LWU resources to meet LoS targets
Streamline on-going preparation of IWCM Strategy
IWCM: What’s the connection with...
DPIE Water performance monitoring & reporting:
