Executive summary

3 Waters

The strategic priorities for the 3 waters network are:

• meeting the water needs of the city for the next 50 years from existing water sources
• adapting to a variety of future scenarios for climate change and fluctuations in population
• reducing our reliance on non-renewable energy sources and oil-based products
• improving the quality of our discharges to minimise impacts on the environment
• ensuring that, as a minimum, key service levels are maintained into the future
• limiting cost increases to current affordability where practical
• adopting an integrated approach to management of the 3 waters and embracing the concept of kaitiakitaka.

Transport

The strategic priorities for Dunedin’s transport network are:

• improving Dunedin’s road safety record
• providing safe, viable transport choices
• strengthening connections to, within and between Dunedin’s centres
• supporting safe and efficient freight movement
• ensuring the ongoing resilience of Dunedin’s transport system and key infrastructure.

Water supply

Due to significant investment in the city’s water supply assets over the past two decades, Dunedin City has high quality drinking water that complies with the Ministry of Health Drinking Water Standards. However, there are capacity issues in some areas of the network and some of the smaller, rural plants need work to improve reliability of treatment standards. In addition, as the infrastructure has been developed over a long period of time, some infrastructure does not meet today’s requirements such as required fire flow pressures.

Wastewater

While the majority of the city’s wastewater treatment plants are generally in good condition, there are many mechanical and electrical plant items that are reaching, or have reached, the end of their asset life. There are also some areas of the network and that are in poor condition due to the age of the pipes, resulting in stormwater and groundwater infiltrating the network, which can lead to wastewater overflows and ‘wash-out’ of the treatment plant process, particularly during heavy rainfall events and high tide. The condition and reliability of the rural wastewater systems vary across the five schemes.

Stormwater

The provision of stormwater services across the city includes the DCC, Otago Regional Council (ORC) and private watercourse (both open and piped) infrastructure. During heavy or prolonged rainfall, the drainage network no longer copes with flows in some areas, resulting in damage to property. Flows have increased due to changing climate and rainfall intensities, but also from development of the surrounding land. Issues can arise when a private watercourse has not been maintained or when private pipes are no longer of a size to safely convey flows.

Transport

There has been limited increases in renewals investment in the Dunedin transport network over the past five years, however, the cost of delivering renewals has increased by approximately 50%. The network has deteriorated as a result. Footpaths are generally in poorer condition than the roads. The city suffers from high crash statistics, particularly between motor vehicles and vulnerable roads users (i.e. cyclists and pedestrians). Resilience in the transport network infrastructure is under increasing pressure as many assets are becoming more at risk from flooding, erosion and king tides. Generally, the network has sufficient capacity with congestion only experienced in short morning and afternoon commuter peaks. Gaps still exist in the cycling network across the city with approximately 50% of the strategic cycleway network currently implemented.

Regulatory, legislative and service delivery changes

The New Zealand Government is undertaking a substantial change programme that is expected to impact Dunedin’s infrastructure services in the coming years. This includes reform of three waters regulatory and service delivery arrangements, freshwater reforms, review of the resource management system, changes to the way we provide for and manage urban growth, and reform of government and industry procurement systems. In addition, the Government Policy Statement on land transport, which sets out the Government’s strategic direction for the land transport system over the next 10 years, is issued every three years.

3 waters regulatory and service delivery reform

The 3 waters industry is entering a period of significant change:

• there is a drive to improve the environmental performance of wastewater and stormwater systems
• drinking water regulation is changing
• a new water services regulator, Taumata Arowai, has been established
• the Government has proposed substantive reform of the 3 waters service delivery model, including the establishment of public, multi-regional water services entities, in response to affordability and capability challenges facing the sector.

More stringent regulation of 3 waters activities means that current levels of service will need to increase. Government funding for accelerating investment in 3 waters assets has already begun in connection with the Government’s Three Waters Reform Programme.

Essential Freshwater Programme

The Government has also introduced changes to freshwater regulation through the Essential Freshwater Programme, which relate to the environmental regulation of stormwater and wastewater discharges and protection of drinking water sources.

The National Policy Statement for Freshwater Management 2020 (NPS-FM 2020) came into effect in September 2020.Regional councils are required to notify new or amended regional plans that give effect to the NPS-FM 2020 by 31 December 2024. These changes will have significant flow-on effects for 3 waters activities, through anticipated changes to permitted activities and more stringent requirements around discharges. Changes to engagement requirements are also expected which will promote tangata whenua involvement in freshwater management and decision making, and to ensure Māori freshwater values and the principals of Te Mana o te Wai are identified and provided for.

Resource management system review

In 2020, an independent panel appointed by the Minister for the Environment completed a comprehensive review of New Zealand’s resource management system. The review’s scope included looking at the Resource Management Act 1991 and its interfaces with the Local Government Act 2002, the Land Transport Management Act 2003, and the Climate Change Response Act 2002. The review recommended that the current Resource Management Act be replaced with three new pieces of legislation; a Natural and Built Environments Act, a Strategic Planning Act and a Managed Retreat and Climate Change Adaptation Act. The panel’s report is expected to be followed in 2021 by consultation to develop government policy and a framework to link together the key pieces of legislation.

Urban Growth Agenda

The Urban Growth Agenda is a Government work programme that aims to remove barriers to the supply of land and infrastructure and make room for cities to grow up and out. It has five interconnected focus areas: infrastructure funding and financing; urban planning; spatial planning; transport pricing; and legislative reform.

The National Policy Statement on Urban Development 2020 (NPS-UD 2020) came into effect on 20 August 2020. The NPS-UD contributes to the Urban Growth Agenda by addressing constraints in New Zealand’s planning system to ensure it enables growth and supports well-functioning urban environments. The NPS-UD 2020 categorises Dunedin as a tier 2 urban environment, bringing into effect a range of provisions relating to the amount of development capacity required to be serviceable with infrastructure.

Government Policy Statement on land transport

The Government Policy Statement on land transport (GPS) sets the Government’s priorities on land transport investment over the next 10-year period.

The strategic priorities for GPS 2021 are:

• Safety – developing a transport system where no-one is killed or seriously injured
• Better Travel Options – providing people with better transport options
• Improving freight connections
• Climate Change – developing a low carbon transport system that supports emission reductions.

Investment in the transport network is typically co-funded by Waka Kotahi New Zealand Transport Agency (Waka Kotahi). Co-funding levels in DCC transport investment are generally linked to the level of alignment with the GPS.

The DCC’s response

The DCC is managing the regulatory and legislative issues for 3 waters by undertaking strategic planning for network and treatment assets and progressing a proactive and comprehensive transition work programme to prepare for 3 waters reform. These projects include:

• asset management and policy improvements
• asset ownership options
• strengthening regulation
• servicing growth
• contract and capital delivery improvements
• system planning.

Replacing and renewing Dunedin’s ageing infrastructure

Some assets of the 3 waters and transport networks require replacement based on their age and the likelihood they will not be able to maintain service levels in the future. Issues include cracked earthenware sewers letting in groundwater and causing overflows, and the transport network becoming unsafe. Without continued spending on renewal of these assets they are likely to deteriorate further. The DCC will increase spending on renewals over time. In some circumstances, ‘like-for-like’ renewals may no longer be enough to meet the needs and expectations of the community and regulators. This means it is likely the proportion of new capital against renewals funding will increase to allow for upgrades, particularly as the Government’s 3 waters regulatory reform programme is implemented over the coming years.

The DCC will manage the renewal and replacement of ageing infrastructure by planning to renew assets as they reach the end of their useful lives or are in poor condition and to increase the level of renewal delivery year on year. There is also the ability to re-allocate funding from later years through the Annual Plan process to accelerate renewals if increased delivery is achieved. Renewals are targeted in areas with the highest risk and where possible are programmed to enable efficiencies between 3 waters and transport projects.

Responding to changes in demand for infrastructure

The DCC growth projections indicate Dunedin’s population will increase from 126,255 (2018 Census) to be 144,249 by 2068. This will have an impact on the city’s infrastructure. 3 waters and transport are planning for growth through specific capacity assessments and targeted capital works to meet projected demand.

The DCC is seeing growing diversity of travel choice across Dunedin; public transport, walking and cycling continue to be increasingly attractive options for people to get around the city or to and from work. The DCC will continue to invest in infrastructure to support and enable all transport modes across the city.

The Dunedin City District Plan controls what people can do on their land and how it can be developed. The main goal of the District Plan is to sustainably manage the natural and physical resources of Dunedin to meet the needs of current and future generations and to provide for their social, economic and cultural wellbeing and for their health and safety.

Under the Resource Management Act 1991, the DCC is required to review the District Plan every 10 years. A full review of the first Plan started in 2012. This review produced the Proposed Second-Generation Dunedin City District Plan, known as the 2GP. The 2GP is an entirely new plan, with a new format, new zones, objectives and policies, and many rule changes. The DCC must provide infrastructure to service relevant areas within the 2GP. The DCC initiated variation 2 to the 2GP on 12 February 2019. The purpose of the change was to identify targeted actions to address the shortfall in housing capacity over the next 10 years, in order to meet the DCC’s obligations under the National Policy Statement for Urban Development.

The DCC will manage the response to changes in demand for infrastructure by planning and investing for a medium-high growth scenario over 2019-28 and a medium growth scenario from 2029 onwards. The 2021-31 capital programme is funded to investigate, and design new infrastructure required for the 2GP and Variation 2. The delivery of new infrastructure for 2GP and Variation 2 will be undertaken within the first 10 years of the programme and will be prioritised on demand in different areas. Remaining lower demand areas for 2 GP and Variation 2 infrastructure will be delivered over a longer period.

Public health and environmental outcomes

The 3 waters and transport networks provide important public health benefits to the community and deliver services which can impact on the natural environment. The provision of drinking water, wastewater and stormwater services directly affect public health and environmental outcomes through providing safe drinking water and management of wastewater and stormwater discharges. The provision of a safe and reliable transport network that supports the use of active transport modes directly affects public health through reduced road trauma and connected communities that are fit and healthy.

The DCC will manage the response to public health and environmental outcomes by increasing investment over time through existing renewals programmes and planning for changes to regulation and legislation.

Resilience to natural hazards

Natural hazards pose a lesser risk when infrastructure networks are resilient. Flooding, drought, catchment fire, landslides, rising groundwater and liquefaction in the event of an earthquake pose the most significant risks to Dunedin’s infrastructure. The DCC is working to improve it’s understanding of natural hazards and to develop options for resilient infrastructure networks into the future, including route resilience.

The DCC will manage this issue by ensuring investment in renewals and new capital specifically considers reducing the risk arising from natural hazards and where possible considers adaptive planning. Renewing aging infrastructure in flood prone and coastal erosion areas will reduce some risks arising from natural hazards. The DCC will continue to fund projects to improve the resilience of the water supply, wastewater, stormwater and transport network. Alpine Fault Quake Resilience and Lifelines resilience projects will also improve help resilience of the 3 waters and transport networks.

Planned increases or decreases in levels of service

The 3 waters industry is entering a period of significant change. The Government’s reform programme is likely to require an increased level of service over time. Through strategic planning and improving asset management, the DCC will assess the costs and benefit of projects to meet new levels of service to ensure the best practicable options are implemented.

The transport levels of service for this 10 year plan demonstrate alignment with the GPS on Land Transport. Infrastructure investment to support active transport modes and public transport will continue to be invested in to improve levels of service in these areas. There are also opportunities to make amenity and service improvements in the central city through the Central City Plan projects to make the city more vibrant, support growth and to attract people to Dunedin.

The DCC will manage this issue by focusing on renewing infrastructure to reduce the risk of declining service levels and to increase resilience, while also investing in improving strategic service levels as planning and delivery capacity allows.

Zero Carbon 2030 target

In June 2019, the Council declared a climate emergency. The ‘Zero Carbon 2030’ target seeks to achieve city-wide net carbon neutrality (excluding biogenic methane) by 2030. The transport sector is Dunedin’s most significant, and fastest growing, source of emissions. Emissions from this sector are closely linked to urban form, which in turn is greatly influenced by the provision of transport and 3 waters network infrastructure. Trends suggest that with increasing investment in infrastructure to improve the levels of service for active and public transport modes, there is a slow increase in uptake, and with increasing intensification of urban form, these trends are likely to continue.

Alignment of infrastructure provision with the Zero Carbon 2030 target will focus in the first instance on improving data quality, and amending internal policy and processes to ensure emissions reduction is central to strategic urban planning. In parallel, immediate capital investment in the transport network will be focused on projects that support mode choices.

Dunedin is planning and investing for a medium-high growth scenario over 2021-28 and a medium growth scenario from 2029 onward. Because of this, significant work is required to enlarge and expand Dunedin’s existing infrastructure. Renewals programmes and specific projects are also needed to address risks to health and safety, public health, levels of service and the environment, and to respond to new regulatory requirements.

In the short term, major renewals are needed at water treatment plants to ensure they continue to meet the Ministry of Health Drinking Water Standards and major renewals within the wastewater network and treatment plants are needed to ensure discharges will remain compliant and to provide a safe working environment for operational and maintenance staff. As 3 waters resource consents expire, investigations into the capacity of infrastructure, effects on the environment and working in partnership with Iwi will allow best practicable options for new resource consents to be achieved. The DCC will invest in flood alleviation in South Dunedin and Mosgiel, increase water supply resilience via the Port Chalmers and Water Supply projects and improve wet weather flow management on the wastewater networks.

In the medium term, water treatment plants will be upgraded as budgets allow to meet ongoing anticipated improvements in standards. Major renewals of water supply pipelines will also be undertaken to improve drinking water system resilience.

Large scale 3 waters projects are difficult to anticipate in the longer term due to a number of unknowns on how 3 waters reform and increased regulation will progress. However, within the timeframe of this Infrastructure Strategy, most 3 waters buildings and structures will require replacement or significant upgrades to ensure service levels are maintained. Some specific major projects are identified for post-2031 such as the Deep Creek/Deep Stream pipeline renewal and servicing the Variation 2 to the 2GP to enable growth. Further changes to the 3 waters networks may also be required depending on demographic changes within the city. Ongoing strategic planning within 3 waters will produce long-term strategic investment plans for the 2024-34 10-year plan.

The level of investment in transport renewals and maintenance across the city aims to maintain existing levels of service but does assume some transport mode shift associated with growth occurs to mitigate traffic congestion. In the short to medium term, improved planning and increased investment is required for assets such as sea walls, retaining walls and drainage assets in light of changing weather patterns. Overall, the mid to long-term, budgets are set with the aim of maintaining assets at their current condition. The nature and extent of capital programmes required over the longer term is more uncertain, however the impacts of climate change are likely to place pressure on the network’s capacity to remain resilient in coastal, flood-prone, low-lying areas and will likely require some mitigation.

Long term investment in the Transport network will need to focus on resilience to natural hazards (e.g. St Clair sea-wall), and consider efficiency and movement of freight and people (Mosgiel heavy vehicle bypass and central city bypass) and an increased level of service in public transport for our city’s main commuting populations.

To support the Council’s Zero Carbon 2030 target, projects will aim to minimise carbon emissions both in the construction and operational phases. In addition, tight integration of land use, infrastructure and transport system planning will be essential, particularly in the implementation of the National Policy Statement – Urban Development and the development of a Future Development Strategy.

The DCC will continue to invest in relationships with professional and local government bodies such as Water New Zealand, Local Government New Zealand, Society of Local Government Managers, Institute of Public Works Engineers Australasia and Central Government to avoid duplication of effort and identify approaches used by other groups that can be applied in a local context.