sewerage asset management plan 2020 - 20491 19/03/2020 draft amp 2020 sm wb note: all figures...

May 2018 May 2018

Sewerage Asset Management Plan

2020 - 2049

Abbreviations

AAS Australian Accounting Standard

ADWG Australian Drinking Water Guidelines

AHD Australian Height Datum

BOD Biological Oxygen Demand

BPM Best-Practice Management (NSW Department of Industry (Water) Planning Framework for LWUs)

CCTV Closed Circuit TeleVision

CWP Capital Works Program

DCP Development Control Plan

DSP Development Servicing Plan

EP Equivalent Population

EPA NSW Environmental Protection Agency

ET Equivalent Tenement

FINMOD NSW Financial Planning Model (developed by NSW Department of Industry (Water))

I/I Inflow and Infiltration

IPART NSW Independent Pricing and Regulatory Tribunal

IWCM Integrated Water Cycle Management

kL Kilolitre (1,000 litres)

LOS Levels of Service

LTW Liquid Trade Waste

LWU Local Water Utility

ML Megalitre (1,000,000 litres)

OCC Orange City Council

p.a. per annum

SBP Strategic Business Plan

SPS Sewage Pump Station

TBL Triple Bottom Line

TRB Typical Residential Bill

WHS Work Health and Safety

WTP Water Treatment Plant (also: Water Filtration Plant)

WWTP Wastewater Treatment Plant (also: STP – Sewage Treatment Plant)

TABLE OF CONTENTS

1 Executive Summary ......................................................................................................................... 2

2 Strategic Objectives ......................................................................................................................... 4

3 Services Provided ............................................................................................................................. 6

3.1 Orange Sewerage Scheme ..................................................................................................... 6

3.2 Spring Hill and Lucknow Sewerage Scheme ........................................................................... 7

3.3 Recycled Water Scheme ......................................................................................................... 8

4 Levels of Service ............................................................................................................................. 10

5 Condition of Our Assets ................................................................................................................. 13

6 Operational Plan ............................................................................................................................ 16

7 Maintenance Plan .......................................................................................................................... 19

8 Capital Renewal Plan ..................................................................................................................... 21

9 Capital Upgrade & Expansion Plan ................................................................................................ 25

10 Asset Rationalisation and Disposal Plan ........................................................................................ 27

11 Financial Plan ................................................................................................................................. 28

11.1 Summary of Model Inputs.................................................................................................... 29

11.2 Sewer Fund Model Results ................................................................................................... 32

12 Key Performance Measures ........................................................................................................... 38

13 Risk Management Plan .................................................................................................................. 39

14 Performance Review and Proposed Improvement Plan ............................................................... 41

Appendix A: Operations and Maintenance Programs ........................................................................... 42

Appendix B: Four Year Renewal Programs 2019-2022 .......................................................................... 46

Appendix C: 30 Year Capital Works Program ........................................................................................ 51

Appendix D: 30 Year Financial Plan ....................................................................................................... 53

Appendix E: Sewerage Performance TBL Report.......................................................................................

Document Control

Rev No Date Revision Details Author Verifier Approver

1 19/03/2020 Draft AMP 2020 SM WB

Note: All figures expressed in this plan are in 2019/20 real (current) terms and NOT adjusted for inflation unless otherwise stated.


Orange City Council Page 2

1 Executive Summary

Orange City Council’s intention is to provide the City with a sewerage network that is serviced and maintained

to a level which reflects the community’s expectations and operates in a manner that is both functional and

cost effective. The sewerage asset portfolio had a fair value of $236,866,000 at 30 June 2019.

This plan assists Council in the decision making process and is presented at a high level to provide key

information that can be used in the determination of levels of service and funding required.

This plan’s primary objective is to meet the adopted Levels of Service, which cover the following areas:

Wastewater quality and protection of the environment

Availability and capacity of wastewater services

Response times for system failures

Note that the Levels of Service are the targets which Council aims to meet; they are not intended as a formal

customer contract. Council’s performance in these areas is also presented in Section 12 – Performance

Measures.

Table 1-1 identifies the asset categories in this plan, the thirty year average costs and funding gap if one exists

between available renewal budget and predicted renewal requirements.

Table 1-1: Sewerage Asset Portfolio Overview 2020-2049 (30yr Average Annual Costs)

Asset Renewal Upgrade & New Funding Gap Backlog 2020 Backlog 2049

Sewer Treatment Plant 765,000 312,000 529,000 -543,000 15,861,000

Sewer Pump Stations 140,000 121,000 255,000 6,000 7,647,000

Sewer Rising Mains - - 598,000 745,000 17,945,000

Sewer Trunk Mains - - 214,000 3,909,000 6,428,000

Sewer Reticulation Mains 700,000 330,000 -69,000 2,582,000 -2,075,000

Sewer Vents 8,000 - 15,000 -42,000 450,000

Other 205,000 110,000 - - -

Total 1,818,000 873,000 1,542,000 6,657,000 46,256,000

Negative figures indicate a surplus in the first year, which will be required to fund renewals in subsequent

years where there is a funding gap. If the programs are flexible this surplus may be able to be used in other

categories which have a funding gap. The renewal modelling shows that overall, the funding gap is increasing

over the 30 years towards 2049.



Figure 1-1 identifies the proposed expenditure over the next 10 years, with an increasing backlog at current

levels of funding for all sewerage asset categories. The backlog after 30 years is indicative of current levels of

renewal funding. The proposed Capital Works Program is detailed in Appendix C, including work for Renewals,

Upgrades and New Works.

Alternative funding scenarios are discussed in Section 11 – Financial Plan, including funding the renewal gap.

Figure 1-1: What will we spend over the next 10 years?

The current condition of our assets is shown in Figure 1-2 based on the value of each asset in each of 10

conditions ranging from 1 to 10, with 1 being near new and 10 as a completely failed asset.

Figure 1-2: What condition are our assets in?

0

5

10

15

20

25

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

$ (

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s)

Operations Maintenance Renewal Upgrade / Expansion Rolling Backlog

0

10

20

30

40

50

60

70

1 2 3 4 5 6 7 8 9 10

$ (

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Sewer Vents Sewer Treatment Sewer Trunk Mains

Sewer Pump Stations Sewer Reticulation Mains Sewer Rising Mains



2 Strategic Objectives

Council operates and maintains the sewerage network to achieve the following strategic objectives.

To satisfy community expectations and regulatory requirements at a reasonable cost.

To have sufficient capacity for community growth.

To provide an environmentally and financially sustainable service.

To develop public confidence in the staff and services..

Orange City Council developed a comprehensive community engagement strategy to ensure a broad range of

opinions, ideas and visions were captured to help shape the Orange Community Strategic Plan (CSP). The

outcomes and strategies supported by that plan are detailed in the Strategic Asset Management Plan,

Strategic Business Plan (SBP) and Integrated Water Cycle Management (IWCM) Strategy.

To assist in the delivery of the objectives in this plan, a number of key documents and systems have been

prepared and should be referred to in considering the findings in Table 2-1.

Table 2-1: Where can I find additional information?

Document / System Content

Annual Systems Performance Report (ASPR)

Performance of the sewerage system in regards to effluent quality and overflows

Asset Management Manual (AMM) Documents the procedures and processes for the management of assets

Asset Management Strategy (AMS) Overall direction of asset management and portfolio summary

Asset Management System (AIM) Electronic system that contains the asset register, condition ratings and used to model future renewals

Capital Value Register (CVR) Electronic system that stores the financial information of assets

Community Strategic Plan (CSP) Outcomes and strategies identified by the community

Condition Assessment Manual Details on the process of assessing condition, including photographic examples of various conditions

Council Asset Policy How we manage assets

Development Servicing Plans (DSP) Developer charges applicable to development for sewerage infrastructure

Enlighten GIS Geographical information system that produces maps of assets

Enterprise Risk Management (ERM) The identification and management of risks across Council operations

Integrated Water Cycle Management Evaluation Study (IWCM)

Sustainable management strategies for optimal management of all components of the water system (water, sewage and stormwater)

Liquid Trade Waste Policy (ST046) Identification and monitoring of trade wastes according to NOW and EPA Guidelines

Pollution Incident Response Management Plan (PIRMP)

Processes and procedures when we respond to an overflow event

Pollution Reduction Plan (PRP) Identifies high risk pump stations and overflow points

Sewer Infrastructure Strategic Policy (ST130)

Outlines Council’s commitment to sustainable and efficient sewerage services

Water Supply and Sewerage Strategic Business Plan (SBP)

Management of water supply and sewerage business



Figure 2-1 shows the strategic context for sewerage services. It demonstrates the link between the NSW Best

Practice Management (BPM) framework for Water Supply & Sewerage and how that integrates with the NSW

Integrated Planning & Reporting (IPR) framework.

Figure 2-1: Strategic Planning Framework for Water Supply & Sewerage

The Orange Community Strategic Plan outcomes supported by this Sewerage Asset Management Plan include:

Theme: Preserve | Objective 8: Managing our resources wisely

o 8.1: Identify and deliver essential water, waste and sewer infrastructure to service the community

into the future.

o 8.2: Develop and promote initiatives to reduce water, energy and waste in consultation with the

community.



3 Services Provided

Orange City Council provides reticulated sewerage to the City of Orange and the villages of Lucknow and

Spring Hill.

3.1 Orange Sewerage Scheme

Orange City Council provides reticulated sewerage services to approximately 17,000 assessments. Sewage

from this area is collected through approximately 450km of sewer mains and 11 major pump stations. Sewage

is collected at the Orange Wastewater Treatment Plant (WWTP), which processes 3,000 to 4,000 ML annually

and has the capacity to service up to 60,000 equivalent population (EP) with capacity to provide full treatment

up to approximately 43.2 ML/day. The majority of treated effluent from the Orange STP is reused under an

existing water supply agreement with Cadia Holdings Pty Ltd for mineral processing. The balance of the

treated effluent is discharged under licence to Blackmans Swamp Creek.

Figure 3-1: Orange Sewerage Service Area



3.2 Spring Hill and Lucknow Sewerage Scheme

Orange City Council also provides reticulated sewerage to the villages of Lucknow and Spring Hill, serviced

through approximately 40km of sewer mains and 4 pump stations. Sewage is collected and delivered to the

Spring Hill Sewage Treatment Plant, which has the capacity to service up to 1,000 EP with capacity to provide

full treatment up to 2.3ML/day.

Figure 3-2: Spring Hill and Lucknow Sewerage Service Area



3.3 Recycled Water Scheme

Cadia Valley Operations (CVO) is under contract with Orange City Council to receive recycled water from the

Orange STP. This agreement currently gives CVO access to a minimum 10 ML/day with the ability to take up to

13 ML/day.

The water supply agreement started in December 1997 and was set to continue for the life of the mine.

Figure 3-3: Orange Effluent Reuse System

Orange Wastewater treatment plant

Blackmans Swamp Creek / Summer Hill Creek

Pump Station Effluent re-use

Environmental Flows



Table 3-1: What is provided? (at 30 June 2019)

Asset Category Dimension/Capacity Fair Value

Sewage Treatment 61000 EP -

Sewage Pump Stations 91 ML/d -

Sewer Rising Mains 34 km -

Sewer Gravity Mains 442 km -

TOTAL

236,866,000

The extension of sewerage services to new areas is dependent on a range of factors, detailed in the Integrated

Water Cycle Management (IWCM) Strategy, the most important of which relate the our Levels of Service:

Servicing new residential areas

The impact to existing customers

The environmental impact of effluent (raw or treated)

Affordable Typical Residential Bill (TRB)

Growth and Demand

In addition to assets constructed by Council, new sewerage assets are also acquired from land developments.

In the last 5 years (2013/14 to 2018/19 FY):

Council’s total gravity mains network has grown by 8.6%, from 407km to 442km (1.7% p.a.); and

The number of residential sewerage assessments has increased 6.7%, from 15,119 to 16,133 (1.3%

p.a.).

Acquiring these new assets commits Council to fund the additional operating, maintenance and renewal costs

associated with the assets.

Council has undertaken hydraulic modelling to determine what infrastructure would be required in the next 30

years to service new development and maintain levels of service for existing customers. This analysis was

collected in the “30 Year Infrastructure Strategy”. The projects included in the Infrastructure Strategy are

included in the Capital Works Program for growth.

Opportunities for Non Asset Service Delivery

Council has pursued a number of non-asset service delivery options which are detailed in the Strategic

Business Plan and IWCM. These include Trade Waste Policy, Inflow/Infiltration program, and energy efficiency

programs.



4 Levels of Service

One of the basic principles of sound asset management practice is to provide the level of service the current

and future community want and are prepared to pay for, in the most cost effective way (NZ NAMS 2007).

Sewer assets have been categorised into classes to assist in the determination of Levels of Service (LOS) which

are grouped into:

Community LOS – relates to how the community receives the service in terms of safety, quality,

quantity, reliability responsiveness, cost efficiency and legislative compliance; and

Technical LOS – are the technical measures of performance developed to ensure the minimum

community levels of service are met.

Table 4-1 outlines what the community desires for each asset Category and how Orange City Council will

deliver it. The Community desires have been determined in line with the Community Strategic Planning and

Strategic Business Plan processes.

Table 4-1: Customer Service Levels

CSP Type of Service (Community LOS)

Level of Service (Technical LOS)

CUSTOMER ENQUIRIES

14.2 Adequate response to complaints/enquiries

Respond to 95% of written complaints/inquiries within 5 working days.

Respond to 95% of personal/verbal complaints/inquiries within 1 working day.

WASTEWATER SERVICES

8.1 Properties are able to connect to the sewerage network

Connections for domestic sewerage should be provided to all houses, units or businesses within the defined service area.

Acceptance of commercial and industrial wastes (trade waste) should be in accordance with the approval conditions for each discharger.

8.1 Service is available to use at all times

Minimise frequency of overflows, breakdowns and chokes though maintenance and renewal programs.

WASTEWATER QUALITY

8.1 Effluent from Treatment Works

To meet licence regulations set by the Environmental Protection Authority.



Table 4-2: Reponse Times

Response times to System Failures

8.1 Priority 1 A major failure to contain sewage within the sewer system.

Typical Causes:

Main break

Choke (blockage)

Overloading of system

Failure of pumping station

Typical Effects:

Personal injury or risk to public health

Surcharge or overflow in dry weather

Surcharge or overflow in wet weather

Surcharge inside building

Surcharge outside a building, if posing a health risk

Major property damage, e.g. subsidence

Major environmental impact

We will aim to respond within:

30 min (business hours)

1 hour (after hours)

8.1 Priority 2 A minor failure to contain sewage within the sewer system.

Typical Causes:

Cracked pipe

Partial blockage of the sewer

Typical effects:

Surcharge outside a building, not posing a health risk

Minor property damage

Minor environmental impact, i.e. odour problems


1 hour (business hours)

1 hour (after hours)

8.1 Priority 3 A minor failure to contain sewage affecting a single property.

Typical causes:

Sudden extra hydraulic load which backs up but then clears itself

Partial main line choke

Partial house service choke

Broken junction connection

Typical effects:

Minor surcharge

Slow-moving toilet flush

Minimal or no environmental impact


1 hour (business hours)

2 hours (after hours)

Any requirements for further community consultations, particularly for Level of Service changes may cause a

significant impact on costs to deliver the services detailed in this plan. A review of Council’s performance in

delivering the sewerage service to the community is included in Section 12 – Performance Measures.



Table 4-3 provides a brief overview of the legislative framework in which Council operates its sewerage

network, and the requirements that the network is required to meet.

Table 4-3: Legislative requirements

Obligation Implications

PRICING

Local Government Act 1993 (and Regulations 2005)

Determining developer charges: o Provide a source of funding for infrastructure required for new urban

development o Provide signals regarding costs of urban development and encourage

less costly forms

Pricing principles to be adopted by local government authorities for water & sewerage

Guidelines for a ‘user pays’ charging system

ENVIRONMENTAL PROTECTION AND LICENCES

Protection of the Environment Operations Act 1997

Council holds environmental protection licences for the operation of the Orange and Spring Hill Sewerage Systems

HEALTH AND SAFETY

Work Health & Safety Act 2011 (and Regulation 2017)

Council is required to comply with Work Health and Safety in its sewerage service operations

Public Health Act 2010 Effluent disposal methods to protect public health

Prevention of the spread of disease

CONTRACTUAL ARRANGEMENTS

Cadia Valley Operations Recycled Water Supply Agreement

Contractual obligation for delivery of treated effluent to Cadia Valley Operations



5 Condition of Our Assets

Council maintains a Condition Assessment Manual that details the frequency of inspection and condition

rating to be used for all assets. This data is recorded in the Council Asset Management System and used to

predict the timing of renewal / maintenance requirements in the Long Term Financial Plan.

Assets are rated on a 1 (Near New) to 10 (Completely Failed) scale consistent with the Maloney model and

advanced asset management practices as outlined in the IPWEA International Infrastructure Management

Manual. Details on how Council assesses condition and further information on the rating scale are contained in

the Condition Assessment Manual.

The intent of Council is not to undertake renewal on an asset until it reaches its ‘Intervention Level’, that is the

condition at which the community has determined renewal is required based on the LOS analysis. Typically

assets will be renewed by condition 8.

Asset Deterioration

Deterioration profiles have been developed that track the rate of deterioration expected over time for each

material type in each asset group. This information is used in our models to determine when an asset is

expected to be due for renewal, noting that assets will only be renewed when they reach their intervention

condition, not based on their age.

Figure 5-1 provides examples of several deterioration profiles used with the vertical column showing the years

remaining at a particular condition. For example, a VC main at condition 3 will last 85 years until complete

failure at condition 10.

Figure 5-1: At what rate do we expect our assets to deteriorate?

021426384

105

1 2 3 4 5 6 7 8 9 10

Sewer Reticulation Mains

Relined Mains AC, VCConcrete UPVC, PECast Iron, DICL

0

13

26

39

52

65

1 2 3 4 5 6 7 8 9 10

Mechanical Assets

20 year life 30 year life


0

9

18

27

36

45

1 2 3 4 5 6 7 8 9 10

Electrical Assets



0

17

34

51

68

85

1 2 3 4 5 6 7 8 9 10

Civil Assets





Asset Condition Assessment

Using the information from the deterioration profiles and the intervention level set for the class of an asset we

can determine the expected useful lives of our assets as detailed in Table 5-1.

Table 5-1: What are our Intervention Levels to Renew an Asset?

Category Component Intervention Level Useful Life

Trunk Mains Sewer Mains – Metallic (DICL, CI) 8 40 years

Sewer Mains – Concrete 8 100 years

Sewer Mains – AC 8 70 years

Sewer Mains – Earthenware (VC) 8 70 years

Sewer Mains – Plastic (UPVC, PE) 8 70 years

Sewer Mains – Relined 8 50 years

Reticulation System (Gravity & Pressure mains)

Sewer Mains – Metallic (DICL, CI) 8 40 years

Sewer Mains – Concrete 8 100 years

Sewer Mains – AC 8 70 years

Sewer Mains – Earthenware (VC) 8 70 years

Sewer Mains – Plastic (UPVC, PE) 8 70 years

Sewer Mains – Relined 8 50 years

Pump Stations Structures 8 20-80 years

Electrical 8 15-40 years

Mechanical 8 20-60 years

Treatment Plants Structures 8 20-80 years

Electrical 8 15-40 years

Mechanical 8 10-60 years

Condition inspections for above ground assets are conducted annually by competent operational staff who

maintain the assets being inspected, with a member of the asset team to determine the condition of the asset

being inspected. The method of condition assessment for underground sewerage assets is detailed in the

Condition Assessment Manual and is broken up as follows:

Level 1 assessment – a preliminary condition rating based on the asset age, material and pipe

diameter where no other information is available

Level 2 assessment – utilising operation and maintenance records (e.g. sewer choke information) to

gain an understanding of asset condition. Assets that are identified in a condition close to or exceeding

the intervention level are scheduled for a Level 3 assessment.

Level 3 assessment – formalised condition assessment, e.g. CCTV. Inspections are undertaken by

competent operational staff who are qualified to conduct CCTV inspection in accordance with WSAA

Conduit Inspection Code.



Asset Register

The asset register captures the asset data and condition data in a hierarchical structure. The adequacy of the

data and information captured is comprehensive, although is due to be reviewed to ensure the relevance of

the data captured. This includes making sure that data is not captured for data’s sake, and that resources are

available to keep the data up to date. The review of the data is included as an action in Section 13 –

Improvement Plan.

Each asset’s condition is maintained in the Asset Register and Figure 5-2 gives the condition profile based on

the dollar value of the top 4 valued assets in each condition.

An overview of the assets that are recorded in the Asset Register is provided in Table 3-1.

Figure 5-2: What Condition are our assets in?

0

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1 2 3 4 5 6 7 8 9 10

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Sewer Treatment

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10

1 2 3 4 5 6 7 8 9 10

$ (

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Sewer Pump Stations

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10

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1 2 3 4 5 6 7 8 9 10

$ (

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Sewer Trunk Mains

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Sewer Reticulation Mains



6 Operational Plan

The purpose of the Operational Plan is to ensure that service objectives (Levels of Service, statutory &

regulatory requirements and obligations) are achieved at the least cost and that the impact of any breakdowns

or outages is minimised. Operational Performance Indicators are shown in Section 12.

The operations plan is based on knowledge of the system assets and as such, there are ongoing requirements

for maintaining an appropriate asset register and for investigating the condition of key elements of the

systems that affect the ability to deliver the desired level of service. Contingency operations plans (emergency

response plans and business continuity plans) are being developed where the consequence of failure is

significant.

Existing operational systems, processes and procedures routinely deliver services that comply with levels of

service and regulatory requirements. Rapid changes in the operating environment in terms of customer

expectations, improved environmental outcomes, resource conservation and higher regulatory standards will

require commensurate improvements in operations.

Key operation issues include the following:

Asset condition and monitoring program.

Monitoring of operational performance.

Review and documenting of operating procedures.

Ongoing review of energy usage and reduction opportunities.

Operational activities are those regular activities that are required to continuously provide the service

including asset inspection, electricity costs, plant and overheads. Table 6-1 outlines the split of our operational

costs on an annual basis.

Table 6-1: What are our annual Operational Costs?

Item 30 yr Avg Annual Cost

Administration 2,849,000

Engineering 1,406,000

Operations 3,519,000

Energy 1,004,000

Depreciation 3,956,000

Interest 4,000

Total 12,739,000



Figure 6-1: What is the breakup of our Operational Costs?

Routine Operations

Normal operational procedures are undertaken in accordance with the Environmental Protection Licences for

each sewerage scheme and specify the level of service to be maintained.

It is recognised that monitoring telemetry and SCADA systems leads to best operating efficiency and improves

resource utilisation.

As well as ongoing operations, annual returns required for Environmental Protection Licences (EPL) through

the Environmental Protection Authority for the sewerage treatment system provides further opportunity for

performance review and if any issues may be present. The Spring Hill EPL only requires the annual return,

whereas the Orange STP EPL includes a further assessment with the Annual Systems Performance Report.

The operation of the treated effluent reuse system is documented in Council’s Recycled Water Management

System.

Emergency Response

Council has documented procedures in place in the Pollution Incident Response Management Plan. The

response plan includes actions in relation to pollution incidents including sewer overflows, treatment bypasses

and water quality results exceeding EPL limits.

Business Continuity

Emergency operational procedures are being developed by Council into a suite of Business Continuity Plans

where service fails at critical facilities. There are currently no Sewerage facilities that are being considered for

Business Continuity Planning.

Administration22%

Engineering11%

Operations28%

Energy8%

Depreciation31%

Interest0%

Administration

Engineering

Operations

Energy

Depreciation

Interest



Future Operational Expenditure

Increases to operations and maintenance expenditure occur when new assets are acquired through new works

and developer contributions. These extra costs would be identified at the project stage when undertaking a

life-cycle cost analysis of the asset to be built and included operational budgets. For example:

New sewer pump stations in new development areas, electricity and operational costs.

New reticulation mains in new areas adding to the overall network requiring inspection and flushing.

More sewage being treated at the sewer treatment plants, resulting in more chemical use and

electricity use.

Impact of Inflow/Infiltration Programs being implemented reducing the volume of sewage pumped

and sewage treated at the sewerage treatment plants.

Impact of demand management strategies on indoor water use reducing volume of sewage pumped

and sewage treated at treatment plants.

Future operational expenditure is forecast to trend in line with the growth in the sewerage network. Forecast

operational expenditure levels are detailed in Section 12 – Financial Plan.



7 Maintenance Plan

The purpose of the Maintenance Plan is to support the Operation Plan by ensuring that the actual outputs,

reliability and availability of the sewer systems, facilities and components, as specified in the Operation Plan,

are achieved in the most cost effective manner.

Maintenance is the on-going work that is necessary to keep assets operating to ensure they reach their useful

life. It includes work on an asset where a portion may fail and need immediate repair to make it operational

again. It may be either planned where works are programmed in, cyclic in nature or reactive in response to

storm damage, vandalism etc.

Planned or scheduled maintenance is normally used for critical items where a breakdown would be

costly and would cause large interruptions to service. Scheduled maintenance can be fixed-time

interval or condition-based interval (e.g. every 10,000 pump run hours). These programs should be

documented in a Scheduled Maintenance Plan.

Reactive or breakdown maintenance is generally reserved for less critical assets, or for situations

where scheduled maintenance is not possible. These are usually carried out in response to service

requests.

Maintenance Programs

Current maintenance programs are designed to maintain sewer assets at their target levels of service and

minimise risk of future failure. Maintenance expenditure levels are considered to be adequate to meet

required service levels.

Future revision of this asset management plan will include linking required maintenance expenditures with

required service levels in the Community Strategic Plan. The level of service and standards of care for

maintenance is carried out in accordance with Council’s Asset Management Policy.

The proposed maintenance programs are detailed in Appendix A, with costs identified in Table 7-1.

Table 7-1: What are our annual maintenance costs?

Item 30 yr Avg Annual Cost

453 Sewerage Treatment $ 644,000

456 Sewage Pumping $ 202,000

458 Sewer Reticulation $ 364,000

Total $ 1,210,000



Figure 7-1: What is the breakup of our Maintenance Costs?

Future Maintenance Expenditure

Increases to operations and maintenance expenditure occur when new assets are acquired through capital

works and developer contributions. These extra costs are identified at the project stage when undertaking a

life-cycle cost analysis of the asset to be built and included operational budgets. For example:

Maintenance of new sewer pump stations in new development areas

New reticulation mains in new areas adding to the overall network requiring response when

choked/blocked.

Future maintenance expenditure is forecast to trend in line with the growth in the sewerage network. Forecast

maintenance expenditure levels are detailed in Appendix D.

Deferred maintenance, i.e. works that are identified for maintenance and unable to be funded, present a

higher likelihood of failure.This can happen if maintenance budgets do not increase in line with asset growth.

453 Sewerage Treatment

53%

456 Sewage Pumping17%

458 Sewer Reticulation

30%

453 Sewerage Treatment

456 Sewage Pumping

458 Sewer Reticulation



8 Capital Renewal Plan

Renewal works are Capital Work on an existing asset to replace or rehabilitate it to a condition that restores

the capability of the asset back to an acceptable level of service. The intervention level and estimated useful

lives are contained in Table 5-1.

Renewal will be undertaken using ‘low-cost’ renewal methods where practical. The aim of ‘low-cost’ renewals

is to restore the service potential or future economic benefits of the asset by renewing the assets at a cost less

than the full replacement cost. For example, re-lining sewer mains instead of re-construction.

This Asset Management Plan contains an analysis based on broad assumptions and best available knowledge

to date. Modelling is not an exact science so we deal with long term averages across the entire asset stock.

Work will continue on improving the quality of our asset registers and systems to increase the accuracy of our

renewal models.

Details of planned renewal activities proposed over the next four years are contained in Appendix B for each

asset category. The first year of the program will be considered in the development of the next Operational

Plan and the remaining three years of work will be assessed each year to confirm that the asset has reached its

intervention level prior to the work being scheduled.

Prioritising Renewals

Assets requiring renewal will be generally identified from estimates of remaining life and condition

assessments obtained from the asset register and models. Candidate proposals will be inspected to verify the

accuracy of the remaining life estimate and to develop a preliminary renewal estimate.Verified proposals are

ranked by priority and available funds and scheduled in future works programs.

Assets were identified for the renewal program based on the following criteria:

Not meeting the level of service (e.g. sewer overflows)

Poor condition/performance resulting in high risk to leave in service (identified from asset register)

from assets that have a level 2 assessment level

Assets that have been identified in poor condition/performance rating from a level 1 assessment have

been identified to undertake a level 2 assessment (e.g. Sewer mains that have been assessed to be in

poor condition are included in the upcoming CCTV program to confirm their condition before being

included in a renewal program).

Any other specialist evaluation study commissioned by Council (e.g. Treatment Plant Capacity Studies,

Pump station specialist inspections and studies)

A backlog of works (works that have been identified as required, but not able to be funded), may result in

reduced performance, e.g. overflows and odour problems.

This risk may be acceptable for some assets, but not for others. A criticality assessment has been undertaken

for these assets included in the Sewerage Asset Management Plan, and prioritise renewals based on their

consequence of failure. Assets that have a low consequence of failure that are a low risk to remain in service

are not included in Special Schedule 7 financial reports.



Renewal Expenditure

The costs presented in Table 8-1 identify the current level of funding for the required renewal programs and

the funding required to maintain the asset to what is considered an appropriate standard. The required

funding in that table is based on the intervention specified in Section 5.

For sewerage assets, an analysis has been undertaken to determine assets that are already at or above

intervention level that are not able to be funded in the next Operational Plan. This work is quantified in the

‘Backlog’ column.

Negative figures (in red) indicate a surplus for that particular category, however if the programs are flexible

this surplus may be able to be used in other categories which have a funding gap. Overall, however there is no

surplus in renewal funding.

Appendix B details the renewal programs over the next 4 years.

Table 8-1: What are our Renewal Costs, Gap and Backlog?

Activity Budget Required Gap Backlog 2019 Backlog 2048

Sewer Treatment 765,000 1,293,000 529,000 -543,000 15,861,000

Sewer Pump Stations 140,000 395,000 255,000 6,000 7,647,000

Sewer Rising Mains - 598,000 598,000 745,000 17,945,000

Sewer Trunk Mains - 214,000 214,000 3,909,000 6,428,000

Sewer Reticulation Mains 700,000 631,000 -69,000 2,582,000 -2,075,000

Sewer Vents 8,000 23,000 15,000 -42,000 450,000

Other 205,000 - - - -

Total 1,818,000 3,155,000 1,542,000 6,657,000 46,256,000

Figure 8-1: What will we spend over the next 10 years on Renewal?

0

1

2

3

4

5

6

7

8

9

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

$ (

Mill

ion

s)

Sewer Treatment Sewer Pump Stations Sewer Rising Mains

Sewer Trunk Mains Sewer Reticulation Mains Sewer Vents

Other Rolling Backlog



Figure 8-2: Rolling Backlog Split

Lifecycle costs

The lifecycle costs are determined based on the total cost of ownership of each asset including operations,

maintenance, renewal and disposal costs. The thirty year average annualised lifecycle costs for each

component is presented in Table 8-2.

Table 8-2: What are our Lifecycle Costs?

Category Units Rate Annual Average

Sewer Reticulation /km $ 19,034 $ 8,565,151

Sewage Treatment /1000 EP $ 29,353 $ 1,790,524

Sewer Pump Stations /ML $ 10,196 $ 919,720

0

1

2

3

4

5

6

7

8

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

$ (

Mill

ion

s)

Sewer Treatment Sewer Pump Stations Sewer Rising Mains

Sewer Trunk Mains Sewer Reticulation Mains Sewer Vents

Other



8.1 Intervention Levels – Phase Up/Phase Down

For each asset type, the “intervention level” condition is the condition at which renewal of the asset proposed

to be undertaken. Minimising the life cycle cost and indications of the desired level of service obtained

through community engagement have been considered in setting intervention level conditions.

As an example, the intervention level adopted for trunk mains (condition 7) is higher than the level adopted

for reticulation mains (condition 8) as it is a more critical asset type. Refer to Section 5 - Condition of Our

Assets for more details.

Evaluating “phase up” and “phase down” scenarios provides information on costs or savings and other impacts

to the community based on higher and lower Levels of Service (LOS) options.

A phase up scenario may mean that mains are renewed at condition level 6 for trunk mains and condition 7 for

reticulation mains, and a phase ramp down scenario could be where mains renewed at condition level 8 for

trunk mains and at condition 9 for retic mains.

The average annual renewal costs under each of the scenarios modelled are listed in Table 4.2 below.

Table 8-3: What is the cost of increasing intervention levels by 1 condition point?

Asset Category Scenario 30yr Avg Ann Cost

Base Case Movement

Sewer Rising Mains Phase Up $ 641,000 $ 598,000 $ 43,000

Sewer Reticulation Mains Phase Up $ 334,000 $ 631,000 $ 295,000

Sewer Trunk Mains Phase Up $ 269,000 $ 214,000 $ 55,000

Sewer Pump Stations Phase Up $ 600,000 $ 395,000 $ 205,000

Sewer Treatment Phase Up $ 2,165,000 $ 1,293,000 $ 871,000

Sewer Vents Phase Up $ 27,000 $ 23,000 $ 4,000

Table 8-4: What is the cost of decreasing intervention levels by 1 condition point?

Asset Category Scenario 30yr Avg Ann Cost

Base Case Movement

Sewer Rising Mains Phase Down $ 597,000 $ 598,000 $ -2,000

Sewer Reticulation Mains Phase Down $ 926,000 $ 631,000 $ -297,000

Sewer Trunk Mains Phase Down $ 170,000 $ 214,000 $ -44,000

Sewer Pump Stations Phase Down $ 318,000 $ 395,000 $ -77,000

Sewer Treatment Phase Down $ 811,000 $ 1,293,000 $ -483,000

Sewer Vents Phase Down $ 19,000 $ 23,000 $ -4,000

The average annual renewal costs are identified in Table 8.3 and 8.4, however the extra maintenance costs

that would be required because of renewal delay under the phase down option have not been captured. More

sewer chokes, equipment breakdown or other issues could occur due to a decline in the average condition of

the sewerage network.



9 Capital Upgrade & Expansion Plan

Upgrade and expansion works are those capital works that create a new asset that did not previously exist, or

works which upgrade or improve an existing asset’s capacity.

Upgrades enhance an existing asset to provide a higher level of service, for example improving capacity in an

area, and improving wastewater quality (identified in the Capital Works Program as Level of Service works).

New assets are those created to meet an additional service level requirement or increase the size of a

network, for example, servicing new development areas.

Works for growth may be funded in part through developer contributions in the form of Section 64

contributions, a Voluntary Planning Agreement, or as part of a subdivision development. These works are

identified in the Capital Works Program for ‘Future Growth’. They are usually not eligible for grant funding

Upgrade works (Level of Service works) need to be funded from within the existing revenue stream of the

Sewer Fund. Upgrade works may also be eligible for grant funding.

Project Identification and Strategies

New assets and upgrade/expansion of assets are identified from studies completed by Council. These will be

included into Integrated Water Cycle Management (IWCM) Plan scenarios. The current capital works projects

have been identified from the following sources:

Orange STP Capacity Study 2015

Spring Hill STP Capacity Study 2015

30 year Infrastructure Strategy 2014

IWCM Evaluation Study , May 2013

Interim Sewer Development Servicing Plan, November 2012 – currently under review

Council has an adopted strategy for the expansion of sewerage network with the following new / upgraded

assets proposed over the next 30 years to meet demand and levels of service.



Capital Expenditure

Table 9-1 indicates the major projects and groups of new and upgraded assets proposed, a complete list is

contained in Appendix C.

Table 9-1: What are the major projects proposed over the next 10 years?

Project Reason Year(s) Total Budget

Orange STP – Inlet Works Upgrade LOS 2019/20 – 2020/21

4,850,000

Orange STP – UV Design, construction and dechlorination

LOS 2022/23 – 2023/24

4,350,000

Orange STP – Digestor Upgrade LOS 2026/27 – 2029/30

2,700,000

Orange STP – Aeration Upgrade LOS 2020/21 – 2022/23

1,900,000

SPS – Leeds Parade Rural Residential New SPSs Growth 2020/21 – 2025/26

1,648,000

SPS – Clergate Road/Leeds Parade New SPSs Growth 2023/24 – 2024/25

1,119,000

North Orange Sewer Strategy Growth 2020/21 – 2021/22

3,234,000

Spring Hill / lUkcnow Sewer Strategy LOS 2020/21 – 2025/26

2,800,000

Figure 9-1: What will we spend over the next 10 years on Upgraded and New Assets?

0

1

2

3

4

5

6

2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 2026/27 2027/28 2028/29

$ (

Mill

ion

s)

451 Sewer Administration 453 Sewer Treatment 456 Sewage Pumping 458 Sewer Reticulation



10 Asset Rationalisation and Disposal Plan

Disposal is any activity associated with disposal of a decommissioned asset including sale, demolition or

relocation. Assets with a condition rating of 9 (poor condition), where Council has received no contact through

the Customer Request System indicating that the community don’t require the asset (as they have raised

concerns or complaints about the asset condition) may be considered to be a redundant asset or not utilised

and therefore decommissioned and disposed unless it is considered critical infrastructure

Table 10-1: What assets are we planning to dispose of?

Asset Reason Year Cost

Spring Hill Wastewater Treatment Plant

Asset is to be replaced with a new Sewer Pump Station to enable treatment of all wastewater at the Orange Wastewater Treatment Plant

2025/26 (part of Spring Hill-Lucknow Sewer Strategy)

2,000,000

Turner Crescent SPS Asset is currently non-operational (no power connected & no pumps in well)

Asset is no longer required (further development has removed the need for this pump station – connected now via gravity sewer to North Orange 1 SPS)

Asset is located on residential block that might be able to be sold for development should the pump station be fully decommissioned.

UNSCHEDULED 40,000

Orange Wastewater Treatment Plant – Trickling Filters

Asset no longer required 2028/29 1,850,000



11 Financial Plan

This financial plan is based on Orange City Council’s financial statements from 2017/18 (Special Schedule 5 and

6), which are a key component of Council’s strategic business plans for water supply and sewerage.

A 30-year financial plan has been prepared for Council’s Sewerage business. The NSW Financial Planning

Model (FINMOD) has been used for preparing this Financial Plan.

This Financial Plan sets out the long term price path (Typical Residential Bills) Council will need to levy in order

to fund the recurrent cost and capital investment required for delivering the levels of service set out in this

Asset Management Plan.

A summary of the expenditure projected over the next 30 years is included in Appendix D. Funding for

management of assets can come in a variety of sources as detailed in the table below.

Table 11-1: Where does our Income come from?

Item 30yr Avg Annual Income

Fees & Charges 13,748,000

Interest 1,011,000

Other 559,000

Grants 161,000

Contributions 2,138,000

Total 17,617,000

Figure 11-1: What is the breakup of our income streams?

Fees & Charges-78%

Interest-6%

Other-3%

Grants-1%

Contributions-12%

Fees & Charges

Interest

Other

Grants

Contributions



11.1 Summary of Model Inputs

Historical Financial Data

Historical financial data was obtained from Special Schedules 5 & 6 of Council’s 2017/18 annual financial

statements.

Initial Data

Data used in the modelling is shown in Table 11-2. The values are those recommended by Orange City

Council’s Finance Department.

Table 11-2: Initial Data

Parameter Value

Inflation Rate 2.5%

Borrowing Interest Rate 3.0%

Deposit Interest Rate 1.75%

Term of new loan 10

Average life of new system assets 70

Assessments and Growth Projections

The figures used for the existing number of assessments and the projected growth are given in Table 11-3.

Table 11-3: Sewer Assessments

Item Exiting Assessments (June 2019)

Growth Projection

Residential Assessments 16133 0.9%

Non-Residential Assessments 1235 0.9%

Typical Developer Charges

Developer charges, together with the annual charges, are Council’s two sustainable sources of income. In

order to project the annual charges, the income from developer charges needs to be estimated.

For assessing the developer charges for new development, it was assumed that each new residential

assessment will be 1 ET (Equivalent Tenement) and on average, each non-residential assessment will also be 1

ET.

Table 11-4: Sewer Developer Charges per Assessment

Item Developer Charge

Residential Development 4948

Non-Residential Development 4948



Operation, Maintenance and Administration Costs

As a default, FINMOD assumes no change in the real operation, maintenance and administration (OMA)

historical costs per assessment, and increases the total annual OMA expenditure in line with growth. These

costs are adjusted annually for inflation.

Additional OMA costs to the sewer fund have been considered in this financial plan, as detailed in Table 11-5.

Table 11-5: Additional OMA costs to the sewer fund

Item Additional OMA costs to Sewer Fund

Energy Costs

Adjustment to Electricity Contract -$53k from 2019/20, adjusted annually for CPI

Other Revenue

Internal loan incomes – loans to the Water Fund and General Fund from the Sewer Fund1

$ 8.66M @ 2% interest only over 20 years until 2034/35

$ 3.3M @ 2% interest over 24 years until 2040/41

$ 2.493M @ 2% interest over 10 years until 2026/27

Non-Residential Income

One of the inputs to FINMOD is the proportion of income from annual charges that will be provided from

residential customers. This input variable has a significant impact on the outcomes, as typical residential bills

are affected by the contribution of non-residential customers to the total income from annual charges.

For the sewerage scheme, the historical split between residential and non-residential customers has been

assumed to continue for the next 30 years.

Table 11-6: Sewer Income Split

Item User Charges

Residential Assessments – Service Availability 76.44 %

Non-Residential Assessments – Trade Waste 23.56 %

Total 100 %

1 Annual Financial Statements June 2018 – Note 22



Capital Works Program

The sewerage business is a highly capital-intensive service, with capital costs representing about 70% of the

cost of providing the sewerage service.

Council’s capital works program is divided into three categories:

New Assets for improved standards (e.g. improvements to wastewater effluent quality).

New Assets for growth.

Renewals – replacement of assets that have reached the end of their useful life.

The 30 Year Capital Works Program is included in Appendix C. A summary is shown in Table 11-7

Table 11-7: 30 Year Sewer Capital Works Program

Category 30 Year Total Capital Works

New Assets for Improved Standards $ 8,535,000

New Assets for growth $ 16,389,000

Renewals $ 55,222,000

Total $ 80,146,000



11.2 Sewer Fund Model Results

The main output parameter of this financial plan is the Typical Residential Bill (TRB) in current (2019/20 $)

dollars over the next 30 years. The TRB is the annual bill paid by a non-pensioner2 resident.

The purpose of the financial modelling is to identify the lowest TRB that will enable Council to fund the

operation, maintenance and development of the system. The TRB is a measure of affordability, and sets the

price path Council needs to set in order to meet the proposed levels of service.

It is important to note that the financial outcomes (e.g. TRB, cash and investments) are shown in 2019/20

dollars. CPI adjustments are required annually.

Financial Data

The Sewerage Fund at 30 June 2019 had cash and investments totalling $47,234,000 and borrowings of

$995,000. According to Council’s loan repayment schedule, the existing loans will be repaid over the next 20

years.

The minimum Cash and Investments modelled in the sensitivity analysis has been kept above approximately

10% of business income in the first few years, or $6,500,000.

Capital Works and Growth

The capital works and growth projectsions are shown graphically in Figure 11-2.

Figure 11-2: Sewerage Capital Works and Growth

2 Pensioners receive a $87.50 pensioner rebate for each of water supply and sewerage



Typical Residential Bill

Council levies a uniform residential sewerage charge of $523 in 2019/20. Over the next 4 years, this represents

a Typical Residential Bill of (adjusted annually for CPI of 2.5%):

2019/20 - $523

2020/21 - $536

2021/22 - $549

2022/23 - $563

Results Summary & Recommendations

The results are summarised in Figure 11-3. The main output parameters shown in the figure are all in 2020/21

dollars:

Typical Residential Bill:

The modelling indicates that the current TRB is sufficient to fund the operation and development of the

sewerage network identified in the current Capital Works Program (Appendix C), without the need for

borrowing.

There is provision to reduce the current TRB – refer to the sensitivity analysis for the minimum TRB

required for each scenario.

Cash and Investments:

The cash grows over the modelled years. It accumulates in periods when capital investment is low, and

then the reserves are reduced as money is invested in new assets and renewals but is overall increasing

towards 2049.

Borrowings:

Loans are required when accumulated cash and investments are insufficient to fund capital works. The

base case includes all new works are funded through accumulated cash and investments, and no

borrowing is used.



Figure 11-3: Sewer Fund Base Case Results (2020/21 $)



Sewer Fund Model Sensitivity Analysis

A sensitivity analysis was carried out in order to assess the sensitivity of results to the input parameters. The

results of the sensitivity analysis are shown in Table 11-8. Four additional cases were modelled, as described

below:

Minimum Required TRB: the TRB was reduced until the minimum Cash and Investments over the 30

Year model was at $6.5M. The following scenarios also used this threshold to calculate the TRB.

Slow growth: The growth projections were modified from the figures in Table 11-3, to a growth rate of

0.5% p.a. over the 30 year planning period.

The Cash & Investments at year 30 was modelled to be the same as current 2020 levels ($47 million).

Fully funding the renewal gap: the capital works program was increased to fully fund the renewal gap

identified in Section 8 through accumulated surpluses.

Table 11-8: Sewer Fund Sensitivity Analysis

Scenario Assessment Growth Rate Total Capital Works

C&I Final Year ($M)

TRB 2020$

BASE CASE Status Quo (Existing TRB)

0.9 $80,146,000 128 523

1. Status Quo (Minimum TRB)

0.9 $80,146,000 6.8 315

2. No net decrease in Cash and Investments

0.9 $80,146,000 50.5 390

3. Slow growth (Minimum TRB)

0.5 $80,146,000 6.9 337

4. Increased Total Renewals (Minimum TRB)

0.9 123,900,000 6.5 377

The sensitivity analysis indicates that the minimum TRB for sewerage is highly sensitive maintaining the

reserves of Cash & Investments at current levels, which shows the highest TRB, increasing the total capital

works program, which shows the next highest TRB.

However, both scenarios have significantly less TRBs than the base case (current TRB) of $523p.a.

The sensitivity analysis also indicates that the lowest TRB is found in Case 1, where the renewal program is

kept at current funding levels (and the renewal gap as demonstrated in Section 8 exists), and the reserves are

used to fund the capital works program.

The following figures show a comparison of the cases.



Figure 11-4: Sewer Fund Sensitivity Analysis – TRB



Figure 11-5: Sewer Fund Sensitivity Analysis – Cash and Investments

Figure 11-6: Sewer Fund Sensitivity Analysis – Borrowing



12 Key Performance Measures

Department of Industry (Water) publishes the NSW Benchmarking Report in May each year for the previous

financial year. Orange City Council’s performance as a sewerage utility is also reported via the Triple Bottom

Line (TBL) report each year. The 2018/19 TBL Report is due to be published in May 2020. Table 12-1 shows a

summary of the performance indicators included in the annual TBL Report.

Those areas where current performance has not met target performance are addressed in the Water and

Sewer Annual Report.

Table 12-1: How did we perform in 2018/19? – TO BE PROVIDED WB

Category Key Performance Measure

2017/ 2018

2018/ 2019

Target 3 National Average4

Pricing Typical Residential Bill $/assessment 498 - ●

Residential Access Charge $/assessment 498 - ●

Non-residential sewer charge

c/kL 234 - ●

Finance Operating Cost per property

$/property 389 - ●

Economic Real Rate of Return

ratio 1.7 - ●

Customer Average Sewerage Interruption

mins 75



13 Risk Management Plan

Council is committed to the identification and elimination or reduction of risks associated with hazards that

arise throughout Council operations as far as reasonably practicable. To facilitate this process an Enterprise

Risk Management Plan has been developed which includes the management of risks for each of its assets.

From this Plan the key Risks have been identified in Table 13-1.

Table 13-1: Critical Risks and Treatment Plans

Asset at Risk What can Happen Risk Rating

Risk Treatment Plan

All Assets Ageing asset failure impacting ability to provide services

Moderate Undertake criticality assessment, ensure implementation of CCTV inspection process

Sewage Treatment

Mechanical/Electrical failure affecting effluent quality

Major Operational procedures and BCPs.

Sewage Treatment

Extra Costs incurred to treat sewage in wet weather flows

Moderate Inflow/Infiltration Program

New Developments

Failure to adequately service new areas

Moderate Infrastructure modelling, Development Control Plan

Pump Stations Mechanical/Electrical failure affecting service

Moderate Pump maintenance program

Reticulation Effluent quality degradation in reticulation below standards

Minor Flushing Maintenance Program

One of the outcomes of this assessment is the determination of Critical Assets. Critical Assets are specific

assets which have a high consequence of failure but not necessarily a high likelihood of failure. By identifying

critical assets and critical failure modes, Council can appropriately target and refine inspection regimes,

maintenance plans and capital expenditure plans.



Operations and maintenance activities may also be targeted to mitigate critical assets failure and maintain

service levels. These activities may include increased inspection frequency, higher maintenance intervention

levels, etc.

Pumping stations where there is a potential for failure to risk public safety, public health or property have

been identified as critical, as has the Sewage Treatment Plants.

Table 13-2: Critical Assets

Critical Assets Critical Failure Mode Treatment Plan

Orange Sewerage Treatment Plant

Mechanical/Electrical Assets:

Reduced flow output

Excessive or unusual vibration

Excessive or unusual noise

Excessive or unusual temperature increase

Leakage from seals

External corrosion

Oil or grease leaks

Pollution Incident Response Management Plan

Spring Hill Sewerage Treatment Plant

Mechanical/Electrical Assets:

Reduced flow output




Leakage from seals

External corrosion

Oil or grease leaks


North Orange 1 Pump Station North Orange 2 Pump Station March Road Pump Station Beer Road Pump Station Lucknow 1 Pump Station

Reduced flow output




Leakage from seals

External corrosion

Oil or grease leaks


Lucknow 1 Rising Main Beer Rd Rising Main North Orange 1 Rising Main North Orange 2 Rising Main March Rd Rising Main

Corrosion

Joint leakage

Biofilms

Fracture

Longitudinal split

Circumferential break

Leaching of lime and calcium silicate hydrates




14 Performance Review and Proposed Improvement Plan

Achievements

The following actions have been completed since the development of the last Sewerage Asset Management

Plan:

Annual budgets have been updated

Complete condition rating of all above-ground assets

Asset data hierarchy reviewed

Risk Assessment completed for sewerage service through Enterprise Risk Management System

Review of Customer Request Management system reporting categories for Water & Sewer

Improvement Plan

Asset Management improvements pertaining to the asset management system, or Council’s approach to asset

management, are identified in the Asset Management Strategy. The improvements in Table 14-1 are

specifically to improve the asset management of the sewerage network only.

Table 14-1: Improvement Plan

Action Responsibility Target Progress

Implement Maintenance Scheduling Work Orders System

AE, WE, WTS December 2016

ON HOLD – to be implemented with AMG Working Group

Develop an Inflow/infiltration Management Plan

AE, WE FY2020 In progress – sewer flow gauging program

Review CRM categories CS FY2020 In progress



Appendix A: Operations and Maintenance Programs

458 Sewerage Reticulation

Reoccurrence per year Task

Nu

mb

er

Ora

nge

Re

ticu

lati

on

Spri

ng

Hill

Re

ticu

lati

on

Cad

ia E

fflu

en

t

Activity Type

z46

5

z46

5

-

OPERATIONS

No programs

MAINTENANCE

Cleaning – Chokes Unplanned – Locate fault & repair .0024 1 1

Cleaning – Flushing Planned – Frequency based 1 1 1

Inspections – CCTV Planned – Frequency based .0654 1 1

Inspections – Manholes Planned – Frequency based .0673 1 1

Mains Repair Unplanned – Locate fault & repair .0024 1 1 1

Root Foaming Planned – Frequency based 1 1

Sewer Reconstruction Planned – Condition based 1 1



453 Sewage Treatment


Nu

mb

er

Ora

nge

STP

Spri

ng

Hill

STP

Activity Type

z46

5

z46

9

OPERATIONS

EPA Testing Planned – Compliance based .0649 12 12

Sampling Planned – Compliance based .0871 12 12

Operations Planned – Frequency based .0622 365 52

Sludge Transport Planned – Frequency based .0872 1 -

Trade Waste Monitoring Planned – Frequency based .0603 1 -

Trade Waste Operations Planned – Frequency based .0603 1 -

Electrical Testing & Tagging Planned – Frequency based .0626 1 1

Confined Space Equipment Inspections Planned – Frequency based .0628 1 -

Gas Monitor Inspections Planned – Frequency based .0628 1 -

MAINTENANCE

Flowmeter Calibration Planned – Frequency based .0024 1 1

Instrument Calibration Planned – Frequency based .0024 1 1

Lab gear servicing Planned – Frequency based .0024 1 1

Cleaning – Clarifiers Planned – Frequency based .0622 1/7 -

Cleaning – Lagoons Planned – Frequency based .0623 - 1

Gantry Inspections Planned – Frequency based .0622 4 -

Servicing – Aerators Planned – Frequency based .0024 1 1

Servicing – Blowers Planned – Frequency based .0024 2 -

Servicing – Boilers Planned – Frequency based .0024 2 -

Servicing – Centrifuge Planned – Frequency based .0024 1 -

Servicing – Compressors Planned – Frequency based .0024 4 -

Servicing – Pumps Planned – Frequency based .0531 1 1

Electrical Repair Unplanned – Locate fault & repair .0626 1 1

Mechanical Repair Unplanned – Locate fault & repair .0024 1 1



456 Sewage Pumping – Major Pump Stations


Nu

mb

er

Air

po

rt S

PS

Bee

r R

oad

SP

S

Dea

n D

rive

SP

S

Lake

Can

ob

ola

s SP

S

Leec

hat

e SP

S

Luck

no

w N

o 1

SP

S

Luck

no

w N

o 2

SP

S

Mal

lee

Pla

ce S

PS

Mar

ch R

oad

SP

S

Mit

chel

l Hw

y SP

S

No

rth

Ora

nge

1 S

PS

No

rth

Ora

nge

2 S

PS

No

rth

po

int

SPS

Ph

illip

Str

eet

SPS

Sieb

en D

rive

SP

S

Shir

alee

No

1 S

PS

Shir

alee

No

2 S

PS

Sop

hie

Pla

ce S

PS

Spri

ng

Hill

No

1

Spri

ng

Hill

No

2

Turn

er C

res

SPS

Wo

od

war

d S

tree

t

SPS

Activity Type

Z46

3

Z10

56

9

Z46

1

- - Z46

3

Z46

3

Z46

1

Z10

57

0

Z46

1

Z18

84

4

Z18

84

5

Z46

1

Z46

1

Z46

1

Z46

1

Z46

1

Z46

1

Z46

3

Z46

3

Z46

1

Z46

1

OPERATIONS

Operations Planned – Frequency based .0062 52 52 52 52 52 52 52 52 52 52 52 52 52 52 52 52 52

Confined Space Equipment Inspections Planned – Frequency based .0683 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Gas Monitor Inspections Planned – Frequency based .0683 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Electrical testing & tagging Planned – Frequency based .0626 1 1 1 1 1

MAINTENANCE

Lagoon cleaning Planned – Frequency based .0623 1

Gantry Inspections Planned – Frequency based .0622 1 1 1 1 1 1

Servicing – Generators Planned – Frequency based .0024 1

Servicing – Pumps Planned – Frequency based .0531 1/2 1 1/2 1/2 1 1/2 1 1/2 1 1 1/2 1/2 1/2 1/2 1/2 1/2 1/2

Electrical Repairs Unplanned – Locate fault & repair .0626 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Mechanical Repairs Unplanned – Locate fault & repair .0024 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

Pump Well wash downs Planned – Frequency based .0024 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12

Rising Main inspections Planned – Frequency based .0024 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4



456 Sewage Pumping – Single Pump Units


Nu

mb

er

Air

po

rt E

ast

SPS

Bla

cket

t P

lace

SP

S

Bo

tan

ic G

ard

ens

Caf

é SP

S

Bu

sh F

ire

Shed

Mo

lon

g SP

S

Car

eflig

ht

SPS

Clin

ton

Str

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SPS

Oly

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ic P

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l SP

S

Fore

st R

oad

Pre

ssu

re

Sew

er

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PS

Shep

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ds

Lan

e P

ress

ure

Sew

er

Activity Type

Z46

3

Z46

1z

Z46

1

Z14

40

9

Z46

1

Z46

1

- Z46

1

Z46

1

Z46

1

OPERATIONS

Nil

MAINTENANCE

Electrical Repairs Unplanned – Locate fault & repair .0626 1 1 1 1 1 1 1 1 1 1

Mechanical Repairs Unplanned – Locate fault & repair .0024 1 1 1 1 1 1 1 1 1 1

Rising Main inspections Planned – Frequency based .0024 4 4



Appendix B: Four Year Renewal Programs

The following programs are based on best available information with the first year of works expected to be

delivered within budgetary constraints. The following years will be validated each year with a review of the

condition so that assets are only renewed at the intervention level. Works that can’t be funded within the 4

years but which are expected to be due based on modelling are grouped as ‘unfunded works’.

456 Sewage Pumping – Sewage Pump Stations

Pump Station Asset / Project Renewal Year Renewal Cost

Blackett Place – eone Electrical - Blackett Place 2020 $ 5,594

Leechate SPS - 10L/s Electrical - Leechate SPS 2020 $ 123,524

March Rd SPS - 165L/s Ventilation System - March Road SPS 2020 $ 16,848

TOTAL 2020 $ 145,966

Nil - - -

TOTAL 2021 $

Nil - - -

TOTAL 2022 $

March Rd SPS - 165L/s Wet Well Lid - March Road SPS 2023 $ 9,126

TOTAL 2023 $ 9,126

March Rd SPS - 165L/s Old Wet Well Lid - March Road SPS 2024 $ 9,126

March Rd SPS - 165L/s Telemetry - March Road SPS 2024 $ 16,848

TOTAL 2024 $ 25,974



453 Sewage Treatment – Sewage Treatment Plants

Plant Treatment Unit Asset / Project Renewal Year

Renewal Cost

Orange 400 Activated Sludge (Secondary Sedimentation)

Clarifier 7 Chain Scraper MF2.2 2020 $ 98,280


Clarifier 7 Chain Scraper MF2.2 Motor 2020 $ 11,340

Orange 500 Chlorination Plant Turbidity Analyzer - Chlorine Room 2020 $ 10,800

TOTAL 2020 $120,420

Nil - - - -

TOTAL 2021 $

Orange 700 Anaerobic Digestion Plant (Sludge Treatment)

Sludge Circulation Pump P7509 Motor

- Heat Exchange

2022 $ 6,048

TOTAL 2022 $6,048

Orange 000 Site Works & Process Control

Telemetry MTU - Wastewater Plant 2023 $ 113,400

Orange 400 Activated Sludge (Aeration & Anoxic)

Redox Sensor Probe - Anoxic Tank 2023 $ 22,680

Orange 400 Activated Sludge (Aeration & Anoxic)

Combined Amonia/Nitrate Probe - Anoxic Tank

2023 $ 22,680


Scum Pump P4901 Motor - Secondary Clarifiers

2023 $ 1,512

TOTAL 2023 $160,272

Orange 700 Anaerobic Digestion Plant (Sludge Treatment)

Mixer M7514 - Secondary Digestor $ 22,680

Spring Hill

Effluent Pump Station Effleunt Pump 8011 $ 4,914

Spring Hill

Effluent Pump Station Effluent Pump 8012 $ 4,914

TOTAL 2024 $ 32,508



456 Sewage Pumping – Sewer Rising Mains



458 Sewer Reticulation – Sewer Gravity Trunk Mains (CCTV)



458 Sewer Reticulation – Sewer Gravity Reticulation Mains



Appendix C: 30 Year Capital Works Program

$’000

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CAPITAL WORKS PROGRAM

Total New Assets for Improved Standards 100% 255 1,495 0 550 4,550 1,435 250 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

Total New System Assets for Growth 100% 812 3,007 1,767 1,065 605 1,549 3,623 432 45 135 45 2,045 45 135 45 45 45 135 45 45 45 135 45 45 45 135 45 45 45 135

Total Renewals 100% 1,745 6,145 1,425 3,195 1,395 1,405 1,463 1,493 1,363 3,213 3,963 3,463 1,393 1,363 1,363 1,363 1,463 1,393 1,363 1,363 1,363 1,463 1,393 1,363 1,363 1,363 1,463 1,393 1,363 1,363

TOTAL CAPITAL WORKS 2,812 10,647

3,192 4,810 6,550 4,389 5,336 1,925 1,408 3,348 4,008 5,508 1,438 1,498 1,408 1,408 1,508 1,528 1,408 1,408 1,408 1,598 1,438 1,408 1,408 1,498 1,508 1,438 1,408 1,498

451 SEWAGE ADMINISTRATION

Sewer Temporary Flow Survey 100% 0 200

Sewer Model Update 100% 0 90 0 0 0 90 0 0 0 90 0 0 0 90 0 0 0 90 0 0 0 90 0 0 0 90 0 0 0 90

CCTV (Centroc) - 900mm C6 Trunk Main 100% 0 50

CCTV (Centroc) - Sample of Sewer Mains for Reval

100% 0 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 0 0 0 0 100 0 0 0

Water & Sewer Revaluation (50% Sewer Fund)

100% 0 0 30 0 0 0 0 30 0 0 0 0 30 0 0 0 0 30 0 0 0 0 30 0 0 0 0 30 0 0

TOTAL 451 SEWER ADMINISTRATION 0 440 30 0 0 90 100 30 0 90 0 100 30 90 0 0 100 120 0 0 0 190 30 0 0 90 100 30 0 90

453 SEWAGE TREATMENT

Sewer Treatment Renewals 100% 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213 213

Primary No 2 Coating 100% 0 0 0 0 0 0 250

Carbon dosing 100% 0 75 0 0 0 845

Secondary Clarifier Upgrade 100% 100 100 100 100 100 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110 110

Cadia Tank 1 Roofing 100% 0 0 0 0 0 90

Cadia Tank 2 Chlorine Booster 100% 0 0 0 0 0 500

Cadia UV design, construction and dechlorination

100% 0 0 0 250 4,100

Sewage Treatment Plant Inlet Works Upgrade

100% 350 4,500

Aeration Upgrade 100% 0 100 0 1,800

Orange STP Dechlorination (Effluent) 100% 0 0

Orange STP Biosolids Handling 100% 0 0 0 0 450

Back-Up Diesel Generator 100% 0 0 0 300

Orange STP Digestor Upgrade 100% 0 0 0 0 0 0 0 100 0 0 2,600

Concept Design - Water infrastructure 100% 25

STP Process Water Upgrade 100% 0 470



$’000

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PROJECT DESCRIPTION

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Decommission Trickling Filters 100% 0 0 0 0 0 0 0 0 0 1,850

Orange STP Upgrade 50% 50% 0 0 0 0 0 0 0 0 0 0 0 4,000

TOTAL 453 SEWER TREATMENT 688 5,458 313 2,663 4,863 1,758 573 423 323 2,173 2,923 4,323 323 323 323 323 323 323 323 323 323 323 323 323 323 323 323 323 323 323

456 SEWAGE PUMPING

Sewer Pump Station Renewals 100% 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140

Lake Canobolas Sewer Upgrade 100% 0 800

Burrendong Way Rural Residential 100% 0 50 0 0 0 854

Leeds Parade Rural Residential 100% 0 50 0 20 0 0 1,578

Bloomfield Servicing Strategy 100% 0 50

Burrendong Way Pump Station Access Road

100% 30

Operations Shed 100% 200

TOTAL 456 SEWAGE PUMPING 370 1,090 140 160 140 994 1,718 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140 140

458 SEWER RETICULATION

Sewer Reconstructions 100% 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Vent Conversions CVR 11599 100% 42 42 42 42 42 42

Sewer CCTV - Unit 969 100% 0 150

Flow Gauges / Modelling 100% 45 150 150 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45 45

Manholes 100% 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

Sewer Main Relining Program 100% 70