Renwick Water Metering Public Consultation 21st of February 2017

MDC Representatives Councilors Cynthia Brooks Geoff Evans Gerald Hope MDC Staff Richard Coningham (Assets and Services Manager) Stuart Donaldson (Planning and Development Engineer) Apologies Stephen Rooney (Ops & Maintenance Engineer) What are we here to discuss? The benefits for installing water meters in Renwick Should water meters be installed for Renwick

Topics Issues with the current water supply Pipe Replacement Program Future Capital Upgrades New Wells New Reservoir New Water Treatment Plant Reducing Water Consumption Proposed strategy Costs User charging Your Input

1. Issues with the current water supply Capacity Reduced capacity of the wells in summer Increased household demand during hot, dry summers Increasing population Water restrictions Water use is relatively high (719 l/p/d vs 450 l/p/d) Leakage and losses - Dec 2016 survey Water does not comply with the NZ Drinking Water Standards (NZDWS) for quality

2. Pipe Replacement Program 9.5km of AC pipe in Renwick Aggressive water in Renwick causing deterioration faster than normal in these pipes Average cost to replace is $250/m (subject to contract negotiations) Acceleration in replacements planned 150mm pipes to be replaced next 5 years 100mm pipes replaced over 11 years from 2022/23

3. Future Capital Upgrades New water Source New wells have been drilled in Conders Bend Road To be tested this winter to establish capacity and quality Subject to testing and resource consent it is proposed the wells will be used for the town’s supply New source cannot be used until treatment is installed Likely to be more reliable source (testing to confirm)

3. Future Capital Upgrades New Reservoir A new concrete reservoir is planned for 2017/18 Replace the existing nine small tanks that are old, insecure and require earthquake strengthening Proposed capacity of 1530 cubic meters of water This compares with average daily water demand of 1522 m3/d (2016). Peak summer day demand is 3500 m3/d New reservoir will ease day time peak demand periods but supply still restricted by limitation of well capacity To be located at existing treatment plant site

3. Future Capital Upgrades Water Treatment Plant Upgrade Current water supply is chlorinated but does not meet the NZ Drinking Water Standards Chlorine to be effective requires low turbidity water Chlorine is not effective against protozoa e.g. Giardia Future capacity requirements to be confirmed prior to upgrade. Water treatment is currently budgeted for 2018/2020 following construction of a new reservoir in 2017/18 Range of design options will be considered to treat the water from new source to meet the standards

4. Reducing Consumption Why the need to reduce water use? Although the Conders Bend Road wells are likely to be more reliable than the existing wells, there remains valid reasons to reduce water use Lessens capital costs of upgrades because the required capacity is reduced Lessens operating costs Improves prospects of resource consents for water abstraction

4. Reducing consumption - Universal Water Metering Where does the water go? Typically, inside a New Zealand home, water use is broken down into: 30% - baths and showers, 30% - toilet flushing, 20% - kitchen use and 20% - laundry This translates to between 180 and 250 litres per person per day, plus water used outside the house. Did you know that a garden sprinkler can deliver up to 900 litres an hour Summer garden water use can raise total average demand, inside plus outside, to 1,200 litres per person per day

4. Reducing Consumption - Universal Water Metering Rates – Renwick sample property rate charge 2016/2017 Under the Local Government Act - local assets can not be sold. Currently contract out services successfully. Municipal supply set at 5000m³/d (Renwick) as stated in the MEP. This accounts for predicted future population growth and community expansion.

4. Reducing Consumption - Universal Water Metering CURRENT SITUATION: National average 450 l/p/d This is equivalent to 4 baths per person per day. Renwick 2015 annual average 869 l/p/d This is equivalent to 7.5 baths per person per day. Renwick 2016 has reduced to 719 l/p/d Note – figures inclusive of leakage and losses in system.  2015 Population on water supply Annual Consumption (m3) Annual consumption (m3/p) Average annual consumption (l/p/d) Blenheim 24,196 6,320,397 261 715 Picton 4127 1,136,745 275 754 Renwick 2118 672,541 318 869 Havelock excl. Port 535 197,826 370 1012

4. Reducing Consumption Current measures Proposed measures Leakage surveys. Results from December 2016 survey Leaks = 3.3% of average day demand 2.1% on mains and 1.2% private Call for voluntary restraint on water use in summer Information provided to public to reduce consumption Regular monitoring and feedback to public Proposed measures Universal water metering More equitable method than restrictions

4. Reducing consumption - Universal Water Metering CURRENT SITUATION: Last 6 months - overlay of 2015/2016

4. Reducing consumption - Universal Water Metering With user charging Universal water metering has been shown to reduce consumption by on average 25% - i.e. from 719 l/p/d to 539 l/p/d. Kapiti – 26% reduction of Peak Day Demand (18 months) Tauranga – 30% in Peak Day Demand, 25% in average day demand Nelson City – 20% reduction, one of the lowest consumptions in the country 160 l/p/d Reducing consumption further with water metering prior to capital investment will reduce construction and operating costs.

4. Reducing consumption - Universal Water Metering Manual Meter Reading Manually read – estimated to take 3-4 days to read Renwick Provides total over fixed period Un-validated data i.e. human error inputting data Lower capital costs Higher maintenance costs Automatic Meter Reading Automatically read using a drive by device – estimated to take 1 hour to collect Renwick data Automated data collection – no human error Higher capital costs Lower maintenance costs

4. Reducing consumption - Universal Water Metering Smart Meters Data is automatically connected via transmitters to software Provides instantaneous consumption which can identify when leaks occur Automated data collection – no human error Higher capital costs Lower maintenance costs

5. Proposed Strategy Progress new water source – Conders Bend Road wells Universal metering Leakage detection and loss reduction Bore to property boundaries – continue with sonar detection Within property boundary – Metering Pipe renewal program will also reduce leakage Evaluate performance of the system Review Renwick capacity requirements prior to confirming water treatment plant

6. Costs Combined Water Scheme From 01/07/2017 all capital costs of water schemes will be distributed across users of Council provided water. 2020-2021 Forecast Water Rates and Charges ($) Due to the structure of the new scheme the costs of meter installation will be a ‘blip’ under the Combined Capital Water Scheme. $50m capital budgeted for Marlborough water projects for next 10 years (2015-2025) Council Water Scheme Ave Property land Value 2015-16 Actual Water rates Forecast Water Rates in 2015-25 LTP Combined Water Scheme Projection Blenheim $154,000 $440 $434 $562 Havelock $136,000 $693 $2,609 $825 Picton $119,000 $692 $845 Renwick $476 $1,689 Seddon $65,000 $441 $886 Wairau Valley $93,000 $318 $503

7. User Charging Setting the correct tariff will be fundamental to the successful implementation of a metering programme. The right tariff needs to prevent people wasting water but not penalise vulnerable groups. Options may include: Simple cost per m³ (1 m³ =1000 Litres) Fixed charge (fixed operational costs) plus a volumetric charge for consumption – e.g. Nelson City Block tariff structure where a certain volume of water is sold at a certain rate, as consumption increased above this ‘block’ the cost increases Seasonal tariff, similar to a block tariff but the cost increases during a peak period of the year

8. Your Input is Required Do you want to progress water meters?

Next Steps Report back to Council with findings from consultation and recommendations.