Presenter: Jaco de Bruyn

Head: Integrated Planning, Strategy &

Information Management

Strategic Plans for Water and

Sanitation

City of Cape Town

Date: 14 May 2013

SUMMARY

How do we run the business within given Operating boundaries?

How do we respond to challenge?

Strategic and Integrated planning linking the City’s Vision and Strategic

Focus Areas to our own

Measurement against a Balanced Scorecard

Risk-based approach to resource allocation

Strong attention to customer, stakeholder and staff

Staying financially viable, balancing 1st world city development with

social indigent responsibility

Ensuring adequate water resources for future

Environment impact: Reduce demand, prevent pollution, reduce

energy consumption

Efficiencies: Professional staff and Technology

VISION & MISSION

CITY 5 PILLAR FOUNDATION

Caring, Opportunity, Inclusive, Safe, Well-run City

DEPT VISION

To be a “beacon in Africa” for the provision of Water and Sanitation

services

DEPT MISSION

We pledge to achieve our vision by creating a centre of excellence in

Water and Sanitation Department through:

• Optimizing resources

• Implementing environmentally-sustainable interventions

• Continuous improvement and Knowledge management

• Good governance

• Customer satisfaction and excellent Stakeholder relationships

VALUES

Underpinning Mission Statement

• INTEGRITY: highest level of ethics and fairness in all interactions

• RESPECT for all opinions and beliefs - employees as well as customers/

stakeholders

• CUSTOMER FOCUS:

• Meet customers’ needs with excellent service

• They are reason for existence

• Environment as silent equal customer

• Business model and relationship based on TRUST.

• TRANSPARENCY: Operate safely, openly, honestly. Transparency defined

by customers and stakeholders.

• PROFESSIONAL: Use the right competencies to find appropriate solutions

enriched with compassion, innovation, sustainability, cost-effectiveness,

accountability and excellence.

Business Operating Boundaries

Legis

lation/S

tandard

s L

imite

d R

eso

urc

es

Water & Sanitation

Business

Customer Satisfaction

HOW TO WE RESPOND?

Balance Scorecard, Measured performance :

Adopted American Society of Waterworks Model;

Risk-based Approach to resource allocation;

Alignment with IDP priorities

IDP SFA VS. W & S BUDGET DRIVERS IDP SFA BUSINESS FOCUS AREA RISK REGISTER

An Opportunity

City

Employee and Leadership

Development

Human Capacity Constraints

Infrastructure Stability Ageing Infrastructure

Water Resource Adequacy Security of water supply

Product Quality

Safe City Community Sustainability Pollution Risk

A Caring City Consumer Satisfaction Quality of service risk;

Meeting sanitation demands

Operational Optimisation Internal control risk

An Inclusive City Stakeholder Management and

Support

Well-Run City Financial Viability Business Financial Risk

Operational Resilience

IDP, BUSINESS FOCUS AREAS & RISK

MANAGEMENT

PE

RF

OR

MA

NC

E IN

DIC

AT

OR

S

PR

OG

RA

MS

/PR

OJ

EC

TS

STRATEGIC PLANNING IN DEPT

Top-down: participation in IDP and City-wide initiatives eg. Provincial

Working group, Urbanisation Framework, SDF, Growth Management

Strategy, DC Levy policy development

Formalised in Policies, strategies, GIS plans and the SDBIP

+

Bottoms up: Annual Strategy sessions organised by Director:

participation from “trench-face” staff invited via briefing sessions and

suggestion box, resulting in

Proposed updates of Vision/Mission/Objectives

A Strategic Grid grouped by the Department’s Strategic

Objectives (4), broken down to individual Action Plans (239)

STRATEGIC GRID FRAMEWORK

High-level objectives only become effective if

Cascaded down to Real Interventions & programmes,

Funded action plans and projects

with Individual responsibility

STRATEGIC GRID

INTENT/OBJECTIVES

STRATEGIC

INTENT

OBJECTIVE

CUSTOMER

SATISFACTION

AND GOOD

STAKEHOLDER

RELATIONSHIPS

• Ensure uninterrupted provision of quality services

• Improve quality of service;

• Introduce backyarders program

• Create jobs through EPWP;

• Support City Economic development by adequate

provision of services.

ENVIRONMENTAL

SUSTAINABILITY

• Reduce pollution from non-compliant effluent;

• Reduce surcharges from sewers;

• Reduce reliance on Eskom power.

STRATEGIC GRID

INTENT/OBJECTIVES..

STRATEGIC

INTENT

OBJECTIVE

OPTIMISING

RESOURCE

UTILISATION

• Reach 95% staff complement;

• Improve productivity;

• Improve staff morale;

• Use available staff capacity effectively;

• Improve working environment;

• Establish most effective and efficient delivery mechanism;

• Use Budget Effectively;

• Efficient utilisation of water.

GOOD

GOVERNANCE

• Safeguard the Health and Safety of employees;

• Ensure sound professionalism;

• Improve communication within and outside the organisation;

• Ensure City assets are well maintained;

• Comply with SCM legislation.

STRATEGIC GRID

INTENT/OBJECTIVES..

STRATEGIC

INTENT

BROAD OBJECTIVES

CONTINUOUS

IMPROVEMENT &

KNOWLEDGE

MANAGEMENT

• Improve and retain institutional knowledge;

• Encourage innovation and creativity;

• Improve operational efficiencies and effectiveness.

FINANCIAL

SUSTAINABILITY

• Ensure adequate liquidity, revenue protection and budget

breakeven.

INFRASTRUCTURE

STABILITY

• Ensure timely maintenance, replacement, upgrading and

infrastructure expansion

WATER RESOURCE

ADEQUACY

• Ensure availability of water resources(with a diverse mix)

for the City

EMPLOYEE AND

LEADERSHIP

DEVELOPMENT

• Develop and retain skilled and competent staff;

STRATEGIES FOR SERVICES

TO ALL

Adequate water resources to meet demand

Spreading the water resource risk, reducing over-dependency on one

source (currently 98% surface water, rainfall dependant)

Infrastructure availability and stability

Efficient and effective operation of existing infrastructure – skills

training plus automation of certain processes

Quality monitoring of potable water and effluent

Extension of services to Informal Settlements

Backyarder programme

Financial sustainability - efficient metering, reducing water losses,

prioritizing capital investment, Water Management Devices

Free Basic Services and Indigent Policy – Free 6+4.7 kl/mth all

households, additional 10.5 kl/mth Indigent households

CHALLENGES TO SERVICES

FOR ALL

MAIN CHALLENGE IN INFORMAL SETTLEMENTS

Very high density - no space

On private land – not allowed permanent infrastructure

On unusable land eg. servitudes, flood plains

High growth and distribution unpredictable

Information - highly dynamic and unreliable

Vandalism and theft

FORMAL SECTOR CHALLENGES

Funding for resource and infrastructure

Vandalism of meters

CUSTOMER SATISFACTION:

BASIC WATER & SANITATION

CAUSE INTERVENTION

Informal Settlements

backlogs

Provide services depending on availability of

space and servitudes;

Pilot technologies choice;

Janitorial Service;

Staff Capacity enhancement;

Backyard Dwellings Pilots on council rented stock (Langa, Factreton

and Hanover Park);

Service extension to Council owned properties

Formulate W&S policy for the backyarders on

private land;

PLANS FOR SERVICES TO ALL

INFORMAL SECTOR

Five year Informal Settlement Services Plan addressing backlogs – sanitation

biggest challenge

Coordinating with Housing Programmes

Innovative methods and technologies

Awareness campaigns, partnerships with Communities

Balance funding for new services vs maintenance

FORMAL SECTOR

Integrated Master planning of infrastructure 10 year requirements (with other

Departments in line with City strategies)

WC/WDM

Smart metering

Sustainable funding

BACKYARD SETTLEMENT

PROGRAMME

Extend basic services to all backyard dwellers

Housing backlog cannot be met soon with new housing

Means of boosting densification

Not subject to sharing of landlord free allocation as before

Increases local load on existing infrastructure but slows down

provision of new greenfield infrastructure

Integrated programme driven by Human Settlement Directorate

Scope: Municipal Rental stock – 41 000 backyard structures

BACKYARD SETTLEMENT

PROGRAMME…

Basic Services Improvement and Access : Water, Pre cast concrete

toilet structure with tap, Pre – paid electricity to each dwelling

In–fill Housing Planning and Development (Sites identified in

Hanover Park)

Door–to–door Survey in 3 Pilot areas

Land Use Management : Split Zoning

Management : Matrix Management/ Inter- Departmental

Rehabilitation – Bulk and ageing infrastructure

Job Creation : Part of EPWP

Funding : USDG and EFF

ENSURING ADEQUATE WATER

RESOURCES

Demand may outstrip supply by 2019 (depending on WC/WDM

success) - another source must be in place

Working closely with the Department of Water Affairs in prioritizing

the next source

Options include Voëlvlei off-river dam raising, waste water reclamation;

desalination, Lourens river dam, Table Mountain Group Aquifer (ground

water), Stenbras dam raising

Feasibility study for desalination underway and that for wastewater

reclamation will commence soon

Not neglecting smaller sources of spring-water usage, rainwater

harvesting

INCREASE BULK WATER

SECURITY OF SUPPLY

CAUSE INTERVENTION

Water

Sources

TMG aquifer pilots

Desalination studies;

Water Reclaimation (treated effluent re-use);

Bulk Infrastructure Upgrade &BWAS

Water demand management initiatives;

Studies – Spring water / Rain water Harvesting / Voëlvlei

(DWA)

DWA initiatives / incentive based regulation approach

(Blue and Green Drop – High quality level of operations,

maintenance and staffing requirements).

ASSET LIFECYCLE PLANNING

Timely asset creation

Replacement and upgrading

Asset maintenance

Asset management

Primary level Asset Management plans in place

Pipeline and pump station condition assessment a priority over next 2-3

years, to be used to refine replacement plans

CUSTOMER SATISFACTION THROUGH

INFRASTRUCTURE STABILISATION

CAUSE INTERVENTION

Urbanisation /

Densification / New

Developments

New Infrastructure investment / capacity

expansion according to the Master Plan;

Upgrading WWTP capacities;

Servitude Management;

Ageing Infrastructure Develop & implement Infrastructure Asset

Management Policies and Plans;

Upgrading / Replacement of Assets;

Training of staff valve controls;

Material selection;

WATER LOSS REDUCTION

STRATEGY

Adapted SABS 0306:1999 and IWA standard:

NRW Volume and %, categorised losses rather than UAW%

Detail action plans being developed and implemented for

reduction of

Technical losses (Pipe bursts, Leakage, Treatment losses,

System losses)

Apparent losses (illegal connections, metering inefficiencies,

unmetered authorised consumption, unauthorised consumption,

Billing/accounting, meter reading)

Water balance reporting currently at City level, broken

down into Treatment and Reticulation processes only

23

WATER SUPPLY ZONES, DMA’S

System has 187 water supply zones

Prioritized programme by highest suspected loss:

Redefining and isolating zones, links and isolating valves,

operating rules

Enabling zonal measurement: new zone meters and data loggers

Division into further DMA’s

In parallel with Pressure Reduction Zone installation where

feasible

IWA reporting will be taken down to Districts, Zones and

DMA’s over next 2-3 years

24

IWA Table (2011/12)

25

Unbilled Metered Consumption

13.29

million m3/annum

Unbilled Unmetered Consumption

2.13

million m3/annum

Unauthorised Consumption

3.30

million m3/annum

Customer Meter Inaccuracies

17.71

million m3/annum

Leakage on Transmission and

Distribution Mains

30.80

million m3/annum

Leakage on Overflows at Storage

Tanks

0.32

million m3/annum

Leakage on Service Connections

up to point of customer meter

Neglible

Apparent Losses

21.01

million m3/annum

Real Losses

31.12

million m3/annum

System Volume

Input

330.05

million

m3/annum

Authorised

Consumption

277.92

million

m3/annum

Billed Authorised

Consumption

262.50

million m3/annum

Billed metered consumption

262.50

million m3/annum Revenue Water

262.50

million m3/annum

Billed unmetered consumption

0 million m3/annum

Unbilled

Authorised

Consumption

15.42

million m3/annum

Non Revenue Water

67.55million m3/annum

(20.5% of Input Volume)

Water Losses

52.13

million

m3/annum

(15.8% of Input

Volume)

NON – REVENUE REDUCTION Description 2010/11

(Baseline)

2011/12 Target(2015/

16)

Intervention

GOAL

A

Water Losses 19.8% 15.3% <15%

Apparent Losses (Unbilled Unauthorised Consumption)

7% 6.3% 4% - Meter replacement program

- Meter Audits and data clean-up

Unauthorised Consumption 1.0% 1% 1% Conforms to International benchmarks.

Water Audits would be useful in reduce

and maintaining

Customer Meter Inaccuracies 6.0% 5.3% 3%-4% - Water Audits

- Meter age analysis/Audits

Meter replacement Program

Real Losses 12.8% 9.3% 8%-9%

Leakage on Transmission and Distribution Mains

12.71% 9.18% 8%-9% -Pressure Management

-Leak Detection

-Pipe Replacement

Leakage on Overflows at Storage Tanks

0.05% 0.10% - Monitor and respond to concerns – pro-

active maintenance and on demand

maintenance/repairs.

Leakage on Service Connections

Negligible Negligible - -

GOAL

D

NRW 23.4% 20.5% <20%

Unbilled Authorised Consumption

3.61% 5.15% 2%-3% Metering and monitoring and pro-active

maintenance

SAP clean up

Apparent Losses (Unbilled Unauthorised Consumption)

7% 6% 3- 4% As stated in Goal A

Real Losses 12.8% 9.3% 8-9% As stated in Goal A

WC/WDM STRATEGY - ALL

INITIATIVES, 10 YR REQUIREMENT

BUDGET 10 YR INITIATIVE

CAPITAL R1 890 M • Pressure management

• Pipe replacement

• Treated effluent reuse

• Zone metering, logging

• Water meter replacement

OPERATING R668 M • Retrofit plumbing and leak repair

• Community engagement, Awareness campaigns

• Water management device/ Smart metering

• Leak Detection

• Feasibility studies/ research

• Infrastructure condition assessment

• Pipe, Valve, PRV maintenance

• Meter Audits

27

SAVINGS

Since 2007

million

m3/annum

28

Additional potential

49.47

Cumulative 82.02

(by 2020/21)

32.55

(by

2012/13)

Impact of WC/WDM Initiatives

29

HWR at 3.38%

(2016)

LWR at 2%

(2019)

Reduced from 3.38% to 2.88%

Additional Resource Required by

2017

Reduced from 2% to 1.40%

Additional Resources Required

by 2022

Impact of WC/WDM Initiatives

30

HWR at 3.38%

(2016)

LWR at 2%

(2019)

Reduced from 3.38% to 2.40%

Additional Resource Required by

2019

Reduced from 2% to 1.00%

Additional Resources

Required by 2025

REDUCING POLLUTION FROM SEWAGE

DISCHARGE, PREVENTING

INFRASTRUCTURE DAMAGE

By-law awareness promotion especially to BUS/COMM sector

Promoting use of Pre-treatment facility installations at source – cost-

saving through recycling

Approval of fines for the wastewater & industrial effluent by-law

Peace Officer training & appointment for all Inspectors to issue spot

fines, institute legal action (Criminal Procedure Act), amend by-law

Surcharge tariff also serves as punitive measure where allowable

limits exceeded

Pilot installation of automated pollution monitoring technology for

more efficient compliance monitoring & enforcement

31

REDUCE POLLUTION RISK

CAUSE INTERVENTION

Sewage overflows Sewer pipe replacement

Reduce storm-water ingress;

Manhole covers replacement

Condition Assessment CCTV;

Sewer pipe upgrade;

Education Awareness;

Servitude management;

Pump station upgrade;

Sewer grade lines reviews

WWTW legacy design upgrades

Sludge Disposal Upgrade sludge management facilities;

Alternative methods of sludge disposal

REDUCING POLLUTION OF

WATER BODIES & CATCHMENTS

Awareness promotion

Pollution investigation projects, as per SLA with Catchment, Storm-

water & River Management branch

Random inspections of storm-water outlets in industrial areas

Enforcement, Issuing of spot fines relating to storm-water

management by-law

33

CITY INTEGRATED PLANNING

Depends on interdepartmental cooperation and data

standardisation

Spatial plan is GIS-based to translate strategies in IDP to

specific potential recipients of services

Mapping of Infrastructure capacity shortfalls (requires

good Master Planning / Hydraulic models as informant)

Mapping of planned capital infrastructure

Matching to planned/estimated housing needs (City and

private sector) in order to prioritise

Overlay service sector maps to get integrated view

34

ENSURE OPERATIONAL EFFICIENCY,

FINANCIAL VIABILITY

CAUSE INTERVENTION

Inefficient Processes/

Inappropriate working

environment

Implementation of ISO

First level response

Centralised accommodation

Regional Depots;

Depot rehabilitation/maintenance

Collection of cash /

Revenue generation

requirement / Growth in

subsidised demand /

Price Elasticity / Rising

Energy Costs

WMD / Smart metering

Increase in debt actions

Revenue Protection

Purification of data

Meter readability

Meter Audits

Waste to Energy / Hydro-Electricity

Capacity Constraints: WWTW

36

37

CAPITAL BUDGET

LARGER

PROJECTS

Example: Northern Area Sewer

38

Budget: R 125 million

Northern Area

Sewer

BUILDING PROFESSIONAL STAFF

Programme of building in-house skills - Engineers versus

project coordinators, Career paths created

Skills transfer included in contracts with consultants

working on current projects:

Hydraulic modelling and Integrated Master Planning: update

current city-wide model (Includes water balance, conceptual

planning, development applications) = FIRST IN SA

DIMS information system update – real-time time series reporting

to all desktops = FIRST IN SA

Pressure management zones (*)

Design of infrastructure (*)

Multi-skilling/ diversification

Training to enable Professional Registration

39

PROJECT PRIORITISATION MODEL

Developed to quantify priority of investment (capital and

operating projects)

Spreadsheet model, considering in 4 main focus areas:

Project why, what, where, when

Strategic linkages (IDP, IMP, WSDP, AMP)

Risk Register

Legal (commitments)

Ecomonic benefits (catchment households, litres/household,

indigent %, jobs created)

20 year lifecycle costs (capital, operating impact)

Project Gantt & readiness

Financial benefit (NPV/Cost, IRR)

40

PROJECT PRIORITISATION MODEL..

Multi-criterion decision analysis model yielding a project

score out of 10

Projects compete within baskets that each get a

proportion of funding:

Capex or Opex

Investment category

Capacity = new

Continuity = replace, refurbish

Capability = institutional efficiency

Risk Category

Aligns with new SAP Project module under development

Side benefit of encouraging better project planning &

definition 41

SMART METERING

Previous successful initiatives:

AMR pilot (2 100 meters, 3 types of suburbs)

Water Management Devices (widely used, very

effective for WDM, prevention of bad debt, limitation of

leaks)

Current tender issued for award 2013, to

encourage development of Smart meter

combining the best of all previous incl.

Prepayment

42

Thank You!

43