Sydney Water Operational Audit 2011/2 - IPART - NSW Government

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Unexpected claims for additional works by contractors. It was noted that both the roof and the wall structures have been recorded in Maximo as a single asset. The implication is that both parts of the structure are afforded the same asset life and replacement value, when it is clear that the walls can be expected to have a much longer life than the roof. This raises a number of challenges for Sydney Water for the relationship between the asset management system (Maximo) and the separate, financial asset register, namely: Separating the reservoir asset into sufficient detail to account for differing lives and values (e.g. foundation, structure, roof, associated infrastructure such as pipework, valves, SCADA). The demonstration of Maximo suggested that more work is required to adequately separate the assets into this form of hierarchy and to comprehensively populate the fields. Separating the financial records of the asset to reflect a number of different lives, replacement values, associated depreciation, and disposal. Whether adequate allowance was made when the reservoirs were originally capitalised to allow for disposal of the roof only, through a renewal/replacement capital expenditure (Capex) project. If this was not the case the disposal may require the use of operational expenditure (Opex). It is noted that some parts of the program of work identified as a result of the 2011 Audit, would be sitting outside of the normal capital works process. As a result the works will compete with all other Sydney Water capital projects, each with a business case, to allow corporate assessment. It was noted that the corporate risk assessment process, which is used to determine allocation of such funds, may hinder the progress to achieving greater investment for reservoirs as the associated assessment scores appear to sit within the Moderate or Minor category (see Table 2). This investment tool is used to enable the Executive to make decisions between business cases between programs with differing needs (e.g. between ICT and water/sewerage networks). This tool is a decision support tool under Licence Clause 3.1.2 and is acknowledged as both necessary and good practice. That said the consequences identified that can arise from contaminated potable water resident in reservoirs are not explicitly included within the Customers category and may only be captured under the Public Health - Minor Assessment, after an event. This suggests that maintenance requirements such as those generated by the recent roof surveys may struggle to gain capital investment when considered against all business cases. Greater consideration should be given to the potential for contamination, as opposed to reportable events, by considering the risk factors identified in the project resulting from 2011 Audit, with the inclusion of factors associated with residency time or turnover at each site. Table 2 Extract from Sydney Water's Corporate Risk Assessment Assessment Public Health Customers Catastrophic Very High impact with very significant consequences Severe High impact with major consequences Moderate Noticeable impact with clearly visible consequences Widespread illness / fatalities. Serious illness requiring hospitalisation. Deterioration in water quality parameters. Reportable event. Increase in illness. Complete disruption to services > 1 week. Affects > 30% of SWC customers. Partial disruption > 2 days. Affects 10% to 30% of customers. Widespread complaints. Unreliable services. Increase in number of complaints. Multiple and repeat customer complaints. 5% to 10% of customers affected. 14 | GHD | Report for Independent Pricing and Regulatory Tribunal - Operational Audit of Sydney Water Corporation, 23/14602
Assessment Public Health Customers Minor Minor impact with some consequences Insignificant Very minor impact with unimportant consequences Deterioration in water quality parameters. Reportable event. No increase in illness. Non-reportable event Some customer complaints. Isolated customer complaints. 3.4.3 Asset Disposal Three categories are maintained for assets across the whole of the Sydney Water asset base, namely: Operational; Decommissioned; and, Disposed. The Decommissioned assets are further divided into: Non maintained; and, Partially maintained. This classification system can result in a Decommissioned asset still attracting a Maximo led planned maintenance program with associated investment. An example was given of a pipeline and pumps which can run in reverse if required. The assets associated with this intermittent reverse flow operation are classified as Decommissioned, Partially Maintained and regular work is carried out to ensure that the assets will operate when required. No breakdown or magnitude of Opex investment on Decommissioned Non or Partially Maintained assets was requested. It may be of interest to follow up on these classes of assets to: Determine the value and performance of these Decommissioned Non or Partially Maintained assets relative to the other Operational assets. Determine how a prudency and efficiency based investment business case is made for these Decommissioned assets. These assets do have an operational purpose as a contingency (albeit an irregular operation) and are required to be available for service, in the same manner that other duty – standby configurations are required to be available. This suggests that the assets should not be described as Decommissioned and Partially Maintained but Operational as Contingency Measure. Further investigation would reveal whether this is a material issue. Once an asset is disposed of Maximo keeps a record; the financial asset register shows a removal of the asset for valuation purposes, but with a flag record for 7 years (to satisfy tax purposes). An annual write down of the financial asset register is carried out. 3.5 Discussion with Field Staff 3.5.1 Wollongong The site visit to Wollongong afforded the opportunity to understand the practical use of Maximo at an operational plant. The asset management system is available to all Operators on site; any fault, failure or suspected issue can be reported through the system and an unplanned GHD | Report for Independent Pricing and Regulatory Tribunal - Operational Audit of Sydney Water Corporation, 23/14602 | 15
Page 1: Independent Pricing and Regulatory
Page 4 and 5: © Independent Pricing and Regulato
Page 7 and 8: Executive Summary Executive Summary
Page 9 and 10: 1 Introduction and scope 1 Introduc
Page 11 and 12: 1 Introduction and scope Under our
Page 13 and 14: 2 Overview of audit findings and re
Page 15 and 16: 2 Overview of audit findings and re
Page 17 and 18: 3 Progress on 2010/11 audit recomme
Page 19: A Operational Audit Report 2011/12
Page 23 and 24: Executive summary Introduction GHD
Page 25 and 26: Compliance Against Audited Licence
Page 27: Figure index Figure 1 Sydney Water'
Page 30 and 31: 1. Introduction 1.1 Sydney Water Co
Page 32 and 33: 1.5 Audit Methodology The operation
Page 34 and 35: 2. Water Quality - Part 2 2.1 Summa
Page 36 and 37: Information provided by Sydney Wate
Page 38 and 39: In particular, routine verification
Page 40 and 41: 3. Infrastructure Performance - Par
Page 44 and 45: maintenance request developed. This
Page 46 and 47: 3.6.2 Opportunities for Improvement
Page 48 and 49: Up until the two most recent years,
Page 50 and 51: OFI 7.4 IPART should note that any
Page 52 and 53: Appendix A - Glossary and Dictionar
Page 54 and 55: Abbreviation/Acronym ISO IT JOG kL
Page 56 and 57: Clause Requirement Grade Reason a S
Page 58 and 59: Clause Requirement Grade Reason Aud
Page 84 and 85: Appendix C - Water Quality Detailed
Page 86 and 87: Clause Requirement Grade and Reason
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Clause Requirement Grade and Reason
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Appendix D - Water Quality Detailed
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Appendix E - Infrastructure Perform
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Appendix F - Water Conservation Det
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Appendix G - Audit Methodology GHD
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Audit Methodology The methodology a
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Licence Clause Operating Licence Ob
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Drinking Water Quality Interview Pe
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Appendix J - SWC Document Received
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Document Reference Number Document
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GHD 16 Marcus Clarke St Canberra AC
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B Sydney Water’s Statement of Com
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Operating Licence 2010-2015 Complia
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1 Introduction This report has been
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In 2011-12, 572 properties experien
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2.2.1 Water continuity: unplanned i
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2.2.3 Water continuity: historical
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2.3 Sewage Overflow Standard (SPS 4
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2.3.3 Sewage overflows: historical
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3.1 Response times for Priorities 6
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Water use per capita per day 460 43
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4.1.1 Calculating water leakage The
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Table of Contents Introduction Tabl
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Table E.1 - NWI Water Resources and
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NWI W18 Total sewage collected The
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Table E.2 - IPART Service Quality a
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Table E.3 - NWI Customer Indicators
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Sydney Water continues to undertake
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Table E.4 - IPART Customer Service
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Ref. Indicator 2007-08 2008-09 2009
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Table E.7 - NWI Pricing Indicators
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Ref. Indicator 2007-08 2008-09 2009
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Water Efficiency Report
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Contents At a glance - 2011-12 1 1
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8 Water use forecast 30 8.1 2010-15
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As noted in last year’s Water Eff
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Recycled water In 2011-12, Sydney W
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person per day (LPD). In 2011-12, w
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Box A: Case study Working with cust
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A case study of a customer working
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2.3.3 Educational tours Sydney Wate
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3 Leak management in 2011-12 Best p
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3.5 Improving flow metering Flow me
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4.3 Water recycling projects Sydney
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5 Research, analysis and support in
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5.4 Water Conservation Program Impl
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5.11 Recycling research projects In
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Figure 11 Sydney Water’s Strategi
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lecturers, and local and state gove
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8 Water use forecast Our current de
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Appendix 2 Correcting for weather W
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Appendix 4 Estimating leakage Sydne
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Appendix 6 Savings achieved between
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Program 99-00 00-01 01-02 02-03 03-
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Appendix 8 List of acronyms and uni
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Table of Contents 1 Introduction 3
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(c) If either Sydney Water or a lic
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2.3 Delays by consent authorities N
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Distribution list Controlled copy D
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Contents 1. Introduction ..........
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Water quality - characteristics not
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Table 1: Exception summary for wate
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2.3 Performance for key characteris
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3.1.1 Evaluation of results on an e
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Delivery System No. of exceptions/t
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4. Water quality: other characteris
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Table 6: Summary of exceptions for
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Table 8: Summary of exceptions for
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5. Water Quality: Summary of NSW He
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Date of notification Event/incident
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Date of notification Event/incident
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Orchard Hills 2004 Guideline Health
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Prospect North 2004 Guideline Healt
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Ryde 2004 Guideline Health Value Qu
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Warragamba 2004 Guideline Health Va
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Macarthur 2004 Guideline Health Val
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Woronora 2004 Guideline Health Valu
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SWC Summary 2004 Guideline Health V
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Table 13: Aesthetic guideline value
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Delivery System : Prospect East 200
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Delivery System : Nepean 2004 Guide
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Delivery System : Cascades 2004 Gui
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Orchard Hills 2004 Guideline Aesthe
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Prospect North 2004 Guideline Aesth
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Ryde 2004 Guideline Aesthetic Value
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Warragamba 2004 Guideline Aesthetic
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Macarthur 2004 Guideline Aesthetic
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Woronora 2004 Guideline Aesthetic V
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SWC Summary 2004 Guideline Aestheti
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Cryptosporidium - (DAPI CONFIRMED)
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Giardia - (DAPI CONFIRMED) Quarter
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Table 16: Number of exceptions for
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Table 18: Chlorine performance by d
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Quarterly Recycled Water Quality Mo
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DOCUMENT STATUS This quarterly repo
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1. Introduction In Sydney Water’s
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Table 1: Exception summary for recy
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Table 2: Evaluation of results on e
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Sydney Water Operational Audit 2011/2 - IPART - NSW Government

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