funding mechanism consultation and proposed new treatment ... · part b –funding mechanism...

Funding Mechanism Consultation

and Proposed new Treatment

Plant

Franz Josef Wastewater – Information Session

Information Session

SCOPE

Introduction and Opening - Mayor Mike Havill

• Part A - Franz Wastewater backgroundVivek Goel – G.M. – District Assets

• Part B - The Funding Mechanism – Current consultationGary Borg – G.M. – Corporate Services

Tanya Winter – Chief Executive

• Part C - Proposed Treatment Solution – SupplementaryInformation

Vivek Goel – G.M. – District Assets

Gary Borg – G.M. – Corporate ServicesJim Ebenhoh – G.M. – Planning, Community and Environment

Introductions and Opening Message

MAYOR MIKE

HAVILL

Part A – Background

The Franz Josef Wastewater Treatment Plant (existing plant) consistsof two oxidation ponds that are intended to discharge treatedeffluent into the Waiho River. The existing plant is owned andoperated by Westland District Council (WDC).

The system was built in 1970’s with the very first discharge consentgranted on 14 November 1977 for a period of 20 years. Consentswere granted under Water and Soil Conservation Act 1967 at thattime.

The consents were then renewed and granted by WCRC inSeptember 2001 for period of 35 years, i.e. a final expiry in 2036.

Another variation to the discharge limits was approved in July 2015to help with the compliance matters.

Franz Josef Wastewater


Some facts Pond 1 (Primary Pond) = area 0.6ha = 6000m2

Pond 2 (Secondary Pond) = area 0.3ha = 3000m2

Base population (for current system) = 600 people

What is required to make the current system work?

An example of a possible layout forthe oxidation ponds.

A Hybrid System with assisteddisinfection including fixed mediaand a covered cell.

Area required: Approx. 4 times +Buffer Zones

Source: SKM report 2009 – Franz Josef performancereview and Upgrade Assessment

The options with oxidation ponds will be further discussed in Part C of this session

2016 Flooding in Franz Josef

Part B – Funding Mechanism

Background and Overview of the proposal

1. Current Ten Year Plan – Project consulted andapproved

2. 2016/17 Annual Plan Process – Project fundingconsulted

3. Current consultation – Funding optionsa) The submissions close on 8 September 2016b) Hearing will be on 14 September 2016

The Project – Long Term Plan

The project is included in the current Long Term Plan(2015-2025).

The cost spread in the LTP is:Financial Year ending Budgets Funding30 June 2017 $2,562,500 Loan: $1.5M

Subsidy/Grant: $1.0M

30 June 2018 $2,562,500 Loan: $1.5M

Subsidy/Grant:$1.0M

30 June 2019 $2,330,600 Loan: $1.0M

Subsidy:$1.3M

30 June 2020 $1,116,000 Loan: $1.1M

30 June 2021 $1,152,000 Loan: $1.1M

The Proposal

Current Consultation

We need to establish whether we have the right method in place to pay for

the new facility.

The options are:OPTION 1: STATUS QUO i.e. Current targeted and harmonised rating system across theDistrict.OPTION 2: 50-50 – i.e. 50% paid by Franz Community and 50% harmonised across theremainder of connections in the districtOPTION 3: 100% paid by Franz Community (This was the previous consulted option inAnnual Plan 2016/17)

Important Note: Council will continue to seek external funding from various sources. Anygrants/contributions received will be incorporated into the above options, which will lessen the netcapital funding requirement from ratepayers.

Funding Options

OPTION 1: STATUS QUO i.e. Current targeted and harmonised rating system across the District.

100% Funded by Westland – No externalContribution

Financial Yearending

LTP Ratesprojection

Revised Ratesprojections

30 June 2018 303 412

30 June 2019 340 409

30 June 2020 364 406

30 June 2021 389 402

30 June 2022 414 399

30 June 2023 410 396

30 June 2024 407 393

30 June 2025 403 390

Funding Options

OPTION 2: 50-50 – i.e. 50% paid by Franz Community and 50% harmonised across the remainder of connections in the district

50% Funded by Westland – 50% Franz CommunityFinancial Year ending LTP Rates projection Revised Rates projections

Rest of Westland

Franz Rates

30 June 2018 303 358 590

30 June 2019 340 356 583

30 June 2020 364 354 576

30 June 2021 389 352 569

30 June 2022 414 350 562

30 June 2023 410 347 554

30 June 2024 407 345 547

30 June 2025 403 343 540

Funding Options

OPTION 3: 100% paid by Franz Community (This was the previous consulted option in

Annual Plan 2016/17)

In this option rest of Westland rates are not affected by the project. The Franz rates are shown below.

100% Funded by Franz Community

Financial Year ending LTP Rates projection Revised Rates projections(Change from LTP)

30 June 2018 303 919

30 June 2019 340 904

30 June 2020 364 890

30 June 2021 389 876

30 June 2022 414 861

30 June 2023 410 847

30 June 2024 407 832

30 June 2025 403 818

Comparison of Option 1,2,3 and LTP

50% Franz-50% Rest

External Funding

• Business Case to Central Government

• The business case has been reviewed and commentedon by LGNZ

• Council’s early discussions indicate the likelihood ofan independent application being accepted is low

• The National Tourism Infrastructure Fund has beencreated and Council has been directed to this fund

• Region wide affordability and comparatives will beconsidered by government.

Comparison with neighbours

District Average rate per property

(2016/17 Annual Plan)

Buller District

(Westport – Residential with 1-2connections)

$820.00

Greymouth District (Greymouth Town) $639.60Southland District

(Harmonised)

$364.97

Westland District

(Harmonised throughout)

$261.70

External Funding

• National Tourism Infrastructure Fund

• The government has released the criteria for this fund. Westland will submit and make applications to this fund.

• This work is now in progress.

• Discussions with stakeholders

• Initial discussions have commenced with stakeholders.• Proposals are commercially sensitive.• Any contribution will reduce the capital requirement on the

project

Part C - Proposed Solution – Supplementary Information

SCOPE

1. Continue on background from Part A

2. Timeline to date include non-compliance history

3. The solutions considered – including estimates

4. The proposed location

5. Environmental Effects and mitigation

Timeline – Franz WWTP

Treatment Options available

In Theory – 3 Forms of treatment can be applied depending on the desired outcomes.

1. Primary Treatment 2. Secondary Treatment 3. Tertiary or advanced Treatment

As identified on the timeline – WDC Staff has applied and tested possible economical solutions.

These include a range of options including assessments on introduction of mechanical aeration, floating media treatments, expansion at the current site and also possible engineered stop banks to lower the risks associated with Waiho River.

Expansion of current WWTP site

In 2009 – WDC commissioned investigations to assess the current WWTP site.

At that time the projections related to Franz Josef were estimated as:

The above estimates assumed to be around 2031 are well passed in the year 2012.


Based on then data – SKM suggested a staged upgrade to the existing oxidations ponds


The Expected Effluent Quality is based on then 2031 demand projections

Cost estimates – Option 3 - 2009

Current Costs in 2016/17

OPUS consultants have reviewed the reports and estimate the comparisons as below

Alternatives considered – 2012/13

With the same challenge as on date – take the cheapest option available, Council staff investigated further options available.

It was suggested that a secondary treatment introduction will be cheap and affordable and can possibly produce results as desired.

Floating media treatments were proposed and implemented . The solution failed. Costs – approximately $250k.

The solution was estimated close to $350k, however stage 2 was not completed as the technology did not produce the desired outcome.

Floating Media Treatments

Infiltration Gallery Issues

Solution : A Tertiary Treatment Plant

Based on the research and costings undertaken to date:• A High Rate Wastewater Treatment Process Plant

Following to be considered in the design:• Visual buffering• Noise• Odour• Ability of plant to handle future growth and• Ability to handle variable flows

Please refer Appendix 1 A of the proposal.

OPUS – Site Assessments

Waiho River future

The Proposed Site

Other Planning Matters

Like any Wastewater Treatment process, the plants will have to be designed carefully to address the following concerns: • Noise • Odour/Smell• Visual effects

All above factors have been taken into consideration while providing the scope of the plant to the proposers. These have been addressed in Appendix 1B of the proposal.

Consenting Process

• Land Use consent from WDC• Current discharge consents review and possible variations for

discharge point

The process to date

• Nov/Dec 2015 – Design Investigations commenced –Budget $150k.

• Best Value for money – Design and Build Option• 5 experienced companies selected for providing the

solution. – OPUS and WDC• Probity Auditor appointed• Procurement guidelines in accordance with MBIE and

SOLGM good practice.

• Refer to Appendix 1D of the proposal.

Environment Court Proceedings

• On 6 August 2015, WCRC made an application for Enforcement Orderpursuant to Section 316 of the Resource Management Act 1991.

• Council has since been in discussions and in mediation with WCRC. Theproceedings have been on hold since based on assurances from WDC.

• As per the last report submitted on 30 June 2016, Environment courts haveindicated, no further extension will be granted beyond 7 October 2016.

• As per our legal advise this is a serious situation and a decision is required byCouncil in this matter. A copy of the legal advice is now available on Councilwebsite as supplementary information to the consultation Proposal.


QUESTIONS ?

funding mechanism consultation and proposed new treatment ... · part b –funding mechanism...

Documents